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In 1979, business owner Carl Ligon lead the move to incorporate a half-square mile area of Lone Oak, KY to avoid being annexed by the city of Paducah. The effort succeeded, however, the city hasn't been able to grow because of the same reason the city incorporated in the first place - neighboring residents don't want to be annexed and pay additional taxes.
Since the incorporation in 1979, Lone Oak residents have enjoyed their own police department, mayor, city commission and taxes. Now, residents are fed up with paying the taxes and say they are not receiving much in return or would rather go without.
One benefit of the incorporation is in the city's business licenses. Anyone needing a business license in Lone Oak will find them incredibly reasonable. Licenses are a flat $100 per year. This fee is significantly cheaper than in the city of Paducah where the fee is based on revenue. Additionally, the city payroll tax is 1.5% whereas the city of Paducah is 2%.
This election day these residents will vote on whether to dissolve their city and stop paying the additional taxes. If vote succeeds the city will dissappear 30 days after the vote. The sheriff's department will take over the police department duties and the taxes for the year will go to the county. The payroll tax will disappear as well.
The city of Paducah and McCracken County have been considering a merger. Talks of the merger have been delayed due to the unknown future of the city of Lone Oak. After the November 4th vote merger talks can continue.
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