Bevin official says tax changes put budget out of balance
FRANKFORT, Ky. (AP) – Kentucky’s budget director says a recently approved tax hike will lead to a $50 million shortfall over the next two years.
John Chilton wrote in a letter to Republican Gov. Matt Bevin that revenue projections for House Bill 366 are not accurate. The Legislative Research Commission estimates the new taxes will generate $478 million over the next two years. But Chilton says an analysis by his office shows revenues will be about $50 million less.
House Bill 366 would impose a 6 percent sales tax on a variety of services, including auto and home repairs. It would also cut income taxes for most individuals and corporations.
Bevin has not yet taken action on the bill. He has until next week to either sign it into law or veto it.