A Stronger Daviess County:
Support Ending Tax Fraud
Daviess County
Public School Support Center
Workers claim tax fraud is happening on a $15 million project in Owensboro, KY, that has been funded by local and state tax dollars. ​​
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Why this project matters.
Currently misclassification of employees is happening on the Support Center's job site, per employees. Local, State, and Federal tax dollars funding this project are benefiting out-of-state labor brokers. This is tax money that could be going back into projects just like this for Daviess County schools, police, fire fighters, roadways, and more. ​​
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The Problem.
​​The Support Center project is being funded in part with a local grant and tax dollars. The construction manager over the project is subcontracting a portion of the work to another subcontractor, who has subcontracted their portion of work out to another company ran by a labor broker out of Texas.
They pay their Carpenters under-the-table in cash, without benefits. At the end of the year, workers like these are given a 1099 tax form, as an independent contractor, where they are now responsible for the taxes the contractor never paid on them as an employee. Under this business model, tax money generated from projects like these often leave the community, due to out-of-state contractors and their crews they bring with them. Many employers who use this practice of worker exploitation hire crews with undocumented workers. Those workers are often scared to speak up in fear of losing their livelihood.
Daviess County Public Schools has several ongoing and planned projects with varying costs, including the New Highland Elementary School project. From large projects like the $40 million Daviess County Detention Center to the $3 million artificial turf projects at the high schools, all Daviess County projects should be held to the same standard. It is important that we stop the tax fraud business model now, so that tax dollars from these upcoming projects don't fall into the hands of the out of state labor brokers.
Local KY Resident Feels Effects of Misclassification
Reach out to your local school and government officials and let them know this tax fraud model is unacceptable in your community.
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Daviess County Public Schools
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Daviess County Commissioner
Make A Difference​​.
Example statement of concern:
"I urge you to investigate and put an end to tax fraud and worker misclassification in our community. Please take action to protect fair wages and job opportunities for local workers. It will strengthen our community by protecting hardworking families, promoting responsible development, and ensuring that city-funded projects prioritize those who live and work here in our community. Keeping our tax dollars where they belong, here."
By adopting a Responsible Bidder Ordinance, communities like Daviess County can help ensure that only responsible companies receive public works contracts, keep local money local, stay safe, and on time. Click through the images below to learn more about RBOs, and how they can help your community build safely together.
Make A Change.
Change Can Happen.
Bourbon County, KY is a great example of a community coming together to create guidelines for new projects, that bring accountability for businesses. In creating a licensure program for new builds, it helps maintain that all projects are free of the tax fraud model; and helps promotes the counties teachers, police, fire, and roadways. Although still a work in progress, progress is being made, and change is happening. They have been able to see over a quarter of a million dollars in tax monies that has been able to be redistributed directly in back into their local economy. Learn more below.
