House bill aimed at fine tuning 2018 tax reforms clears committee

0
326

FRANKFORT, Ky. (WTVQ) – The House Appropriations and Revenue Committee approved legislation today that seeks to build on tax reform legislation enacted by the legislature in 2018 as well as to clarify various interpretations that impact how the state sales tax is levied.

The measure, HB 354, is sponsored by Rep. Steven Rudy, Chair of the House Appropriations and Revenue.

- Advertisement -

“Last year’s tax reform package was a huge step in modernizing our tax structure,” Rudy said. “However, we have a few things to fine tune. This bill will clear up some confusion and address misinterpretations made by the Department of Revenue.”

If passed, HB 354 would make admissions to events held by nonprofit organizations tax exempt. The bill also exempts the first $10,000 in sales of items by all nonprofit organizations. Direct contributions to nonprofits remain tax exempt.

House Bill 354 also includes language that would allow services purchased by a retailer or other business to be tax exempt if they are intended for resale.

“We recognize that asking a business to pay the sales tax on something they are ultimately going to sell to a consumer is essentially collecting the same tax twice – making our businesses less competitive,” Rudy added.

Other provisions included in HB 354 would make tax exempt fees paid to enter or participate in fishing tournaments because the state has already collected a fee for the mandatory, state-issued fishing license. Fees paid for the use of a boat ramp for launching into or hauling out of the water are also exempt.

“Last year’s reforms brought down the corporate and individual rates’ on manufacturers, while also phasing out the burdensome inventory tax that for far too long stood in the way of growth,” Osborne said. “We must continue to move in that direction. As a state, we simply should not stand in the way of economic growth that benefits Kentuckians.”