The Kentucky Court of Appeals has passed a dispute between Graves County Schools and the City of Mayfield on to the state Supreme Court.
The city approved an ordinance last year that would annex Graves County Schools property into the city, which the school board has fought. Those properties would include Graves County Middle School, Central Elementary and the Board of Education office, as well as the district’s transportation and maintenance garages.
Graves County Schools superintendent Kim Dublin says the annexation would subject around 300 district employees to the city’s 2 percent payroll tax.
“Working hard to get our employees a pay raise is a top priority and that was done a couple years ago and this payroll tax would negate that pay raise," Dublin said. "So we just feel it’s important to stand up for our employees.”
Graves County High School is already within city limits and its employees are subject to the payroll tax.
In its ruling, the Court of Appeals said the issue has the potential to have an effect on all of the state’s cities, counties and school districts.
“Clearly, the court’s action indicates this case involves a basic American principle of the founding fathers concerning taxation without representation," Dublin said.
Dublin said an initial split ruling by the local District Court would probably not be favorable to the school district, if it's upheld by the state's highest court. She said she’s been given no timeline on when the Supreme Court might take up the case or make a ruling.
