Agribusiness leaders share tax concerns at city council meeting

Agribusiness leaders made their voices heard at Tuesday’s Hopkinsville City Council meeting expressing their complaints about the removal of the city’s business license tax cap.

After the council recognized November as Native American Heritage Month with a proclamation, the meeting was called to order the floor was opened to public comments.

H&R Agri-Power CEO Wayne Hunt, Krusteaz Company Plant Manager Kevin Maynard, Siemer Milling Company Vice President David Jansen, Farm Credit Mid-America Regional Vice President Brandon Garnett and Kentucky Agriculture Commissioner Jonathan Shell, were among those who spoke about the tax cap.

Garnett explained that the tax amount is determined based on a business’s revenue. Before it was overturned by the council in 2022, Garnett says the most a business would pay was $10,000.

Hunt says what followed the cap removal was the shock of a lifetime. Without the cap, he says H&R Agri-Power’s license tax increased by around 700%. 

Maynard and Jansen say the cap removal may impact where their companies expand. Beyond Kentucky, Krusteaz Company has locations in Illinois, Kansas and Washington, and Siemer Milling Company is in Illinois and Indiana.

Shell emphasized the importance of being business-friendly and listening to the needs of those who play a key role in the community. Shell also complimented Hopkinsville’s agriculture industry and says he wants to replicate the same agricultural success across the state.

Brandon Garnett says they would like to work with the city to settle on a tax structure that both parties can agree to. After hearing the group’s concerns, Ward 6 Council Member Travis Martin motioned to form a committee composed of business leaders and council members to find a tax resolution. The motion was approved.

Turning toward the meeting agenda, the council approved another bond agreement with Ascend Elements for the construction of sewage and solid waste disposal facilities at the Apex 1 Facility. Ascend Elements Vice President of Government Relations Roger Lin shared that construction on the facility has been paused to update contracts and review invoices.

As a result of the pause, the construction completion date was pushed from summer of 2025 to the end of 2025 and Lin says they have laid off 90 to 100 workers at the Hopkinsville facility, but hopes to hire some of those workers back once construction resumes.

The council will be hosting a special called meeting on Thursday to give the bond agreement a second reading and vote.