Kentucky lawmakers agree to reduce revenue by $105 million

FRANKFORT, Ky. (AP) – Republican lawmakers in Kentucky have agreed to reduce revenue by $105 million a year to give a tax break to some locally-owned banks and exempt nonprofits from some sales taxes.

Legislative leaders in the GOP-dominated state House and Senate reached an agreement on Wednesday morning. The proposal, House bill 354, will likely be approved by both chambers by Thursday and sent to Republican Gov. Matt Bevin’s desk. If he vetoes it, lawmakers could override him on March 28.

The proposal would let banks with a Kentucky charter pay corporate income taxes instead of a “bank franchise fee” that is based on how much capital a bank has. It would also exempt nonprofits from paying sales taxes on fundraising activities.