HAZARD, Ky. (WYMT) - The City of Hazard is at the center of a legal battle over a tax that several other towns have been using for years to boost tourism and grow the economy.

According to Kentucky law, some cities can add 3% on top of the states 6% sales tax on prepared food and drinks, also known as the restaurant tax.

According to KRS 91A.400 , only cities that met certain classification criteria as of Jan., 1, 2014, are eligible to include the tax. The law also states that the money must be used for tourism-related projects.

Back in 2014, Hazard was classified as a third-class city, however, local officials such as Mayor Happy Mobelini argue they met the population requirements for fourth or fifth-class cities, which are eligible.

“We have the same amount of population, everythin

See Full Page