City of Lexington v. Motel Developers, Inc.

CLAY, Commissioner.

This controversy involves the constitutionality of an ordinance of the City of Lexington, enacted February 5, 1970, imposing upon hotel and motel owners, and others similarly engaged, what purports to be a “license” tax fixed at 5% of the rental charged for the occupancy of rooms. The Chancellor held the ordinance unconstitutional on two grounds. He concluded the tax was an excise tax which cannot be levied in view of section 181 of the Kentucky Constitution, but, if it was a license tax, it would violate the public policy of the state against double taxation.

For some time…