Louisville weighs 10-year historic-preservation tax extension
A proposed 2026 ballot measure would continue the 0.125% sales tax through 2038, broaden eligible uses and raise the Museum Campus allocation cap to 30%.
Louisville City Council is considering asking voters to extend the city’s 0.125% historic-preservation sales tax for 10 years, broaden eligible spending and raise the maximum share for the Louisville Museum Campus from 20% to 30%.
Ordinance 1928 received a first reading July 14 for possible referral to the Nov. 3, 2026, coordinated special election. The ordinance has not been adopted, and voters have not approved it. Although staff recommended a public hearing and second reading July 21, the meeting record said the date would be set later; materials reviewed through July 15 did not confirm a scheduled hearing.
Staff materials prepared for a July 22 council retreat recommend placing the extension on the November ballot. They say the tax expires Dec. 31, 2028; if voters approve the measure, the extension would run from Jan. 1, 2029, through Dec. 31, 2038. The retreat presentation describes the ballot placement as a council decision point, not a completed action.
The proposed ballot question would ask whether city taxes should increase by $1.5 million in 2029 and annually afterward by the amount generated by continuing the 0.125% sales tax. It also would authorize the city to retain and spend the revenue under the Taxpayer’s Bill of Rights, or TABOR. The existing 0.125% historic-preservation use tax would continue separately.
The changes to the preservation fund would take effect Jan. 1, 2027. Eligible spending would expand to include city programs and capital projects that promote and preserve Louisville’s history and cultural heritage, alongside existing uses such as historic-resource incentives, preservation of contributing buildings, compatible-development design incentives and administrative costs. Spending outside historic Old Town Louisville would require approval from at least five council members. The Historic Preservation Commission would recommend program and capital uses, while the council would retain final approval.
The staff report says the tax currently generates about $900,000 annually. A 30% Museum Campus share would therefore be about $270,000, compared with about $180,000 under the current 20% allocation. Staff said the $1.5 million figure was set to avoid a TABOR refund if revenue exceeds expectations, not as a forecast of first-year collections. The city estimates the election question would cost more than $32,000.
The proposal follows a council-created Historic Preservation Tax Task Force, which recommended extending the tax at the same rate, expanding eligible uses and directing 30% to 40% of revenue to the museum. The council later directed that the ordinance specify 30%.
The same July 22 staff materials recommend ending a temporary Recreation Center debt mill-levy credit in 2027 and increasing the city levy from 1.375 to 1.70 mills. Staff estimate that change would cost about $20 annually for a median-valued home and help cover roughly $1.75 million in annual Recreation Center debt payments through 2042. That recommendation, like the tax extension, has not been adopted.
The ordinance remains pending further council action and, if referred, a public vote.