Close
Close

Kentucky Court of Appeals holds telecommunications tax is unconstitutional

The Kentucky Court of Appeals has held that the state’s telecommunications tax is unconstitutional because it prohibits local governments from collecting telecommunications franchise fees. The Kentucky Constitution authorizes local governments to impose franchise fees on utilities, but the state has been collecting the telecommunications tax in lieu of the local level franchise fee system since Jan. 1, 2006. Significant changes are expected based on this ruling if it is affirmed on appeal, including the possibility that historic local level franchise fees will be re-enacted as part of a final resolution.

Download the PDF.