Tax Bills in the General Assembly

Below is a list of 35 bills relating to taxes that are currently before the General Assembly. Of the 35 bills 23 contain some reference to exemptions, deductions, credits, refunds, holiday, or exclusions. I am particularly appalled by the breaks for TV station owners and Horse Farm Owners.

HB 277/LM (BR 1149) - R. Webb, J. Tilley, L. Belcher, S. Westrom

AN ACT relating to a property tax exemption for broadcasting equipment.

Amend KRS 132.200 to clarify the local property tax exemption for radio and television equipment and to exempt broadcast towers and weather equipment; apply to assessments made on and after January 1, 2009.
Jan 10-introduced in House

And,

HB 249 (BR 256) - R. Adams, S. Westrom, R. Adkins, J. Arnold Jr, E. Ballard, S. Baugh, S. Brinkman, D. Butler, M. Cherry, L. Clark, L. Combs, T. Couch, R. Damron, M. Dedman Jr, M. Denham, T. Edmonds, D. Floyd, D. Ford, J. Gooch Jr, J. Greer, K. Hall, R. Henderson, M. Henley, C. Hoffman, J. Hoover, S. Lee, T. McKee, H. Moberly Jr, B. Montell, L. Napier, R. Nelson, D. Osborne, R. Palumbo, D. Pasley, M. Rader, R. Rand, J. Richards, T. Riner, C. Rollins II, S. Rudy, S. Santoro, D. Sims, A. Smith, J. Stacy, J. Stewart III, T. Thompson, J. Tilley, T. Turner, J. Vincent, R. Webb, R. Wilkey, A. Wuchner

AN ACT relating to sales and use taxes.

Amend KRS 139.531 to exempt hay, feed, feed additives, water and waterer systems, wormer, fly repellents, equine grooming supplies, straw and other bedding supplies, and seed and commercial fertilizer to be applied on land, the products from which ordinarily constitute feed for equine if these items are purchased for equine; and amend KRS 139.470 to conform; EFFECTIVE August 1, 2008.


In other words,23 of the 35 bills intentionally reduce revenue to state government in some form. Given the current mess the state budget is in, largely the responsibility of the Legislature, it becomes obvious these guys just can’t do math or are too busy wrapping themselves in the flag or taking care of campaign contributors to actually think about good tax policy.

However there are always the exceptions to the rule. There are two bills that have some merit. Increasing the tax rate of those most capable to pay and shining a little light on where the money goes are both good things.

HB 262 (BR 911) - J. Wayne, J. Jenkins, L. Belcher, T. Burch, L. Combs, K. Hall, M. Marzian, R. Meeks, K. Stein

AN ACT relating to taxation.

Amend KRS 141.020 to increase the tax rate on income over $75,000; amend KRS 141.066 to establish a refundable earned income tax credit at 15 percent of the federal credit; amend KRS 140.130 to decouple from the federal estate tax phase-out; amend KRS 139.120, 139.200, and 139.480 to include a list of selected services as subject to sales tax; amend KRS 141.0205 to recognize changes to income tax credits; make income tax provisions effective for tax years beginning on or after January 1, 2008, make estate tax provisions effective for deaths on or after August 1, 2008; make sales tax provisions effective for billings on or after August 1, 2008.

HB 105 (BR 393) - J. DeCesare, D. Floyd, S. Lee

AN ACT relating to accounting for the expenditure of state funds.

Create new sections of KRS Chapter 42 to require the Finance and Administration Cabinet to create a searchable Web site to provide certain information on the expenditure of state funds; provide that the new sections shall be known as the "Taxpayer Transparency Act of 2008."

The list of tax bills:

• Broadcast radio and television towers, exemption from property tax - HB 277
• Compulsive gamblers awareness and treatment fund, funding for - HB 137
• Corporate Income tax, community rehabilitation tax credit - HB 21
• Corporation apportionment, sales factor - HB 258
• Education savings plan trust, allow tax deduction for contributions to - HB 263
• Estate tax, federal estate tax phase-out, decoupling of - HB 262
• Federally documented vessels, exempt from local property tax - SB 77
• Gasoline and special fuels, allocation of - HB 80
• Income tax deduction for volunteer firefighters - HB 75
• Income tax, diesel engine conversion tax credit, established - HB 214
• Income tax, educational scholarship tax credit, family tax credit, established - HB 160
• Individual income tax, refundable earned income tax credit, establishment of - HB 262
• Individual income tax, tax rate on income over $75,000, increase of - HB 262
• Limited liability entity tax, repeal of - HB 26
• Live organ donation, tax credit for - SB 35; HB 234
• Local occupational tax return, clarify what must be filed with - HB 198
• Military pay, tax deduction for - HB 43
• Military pay, tax exemption for - HB 163
• Motor fuels taxes, refund for volunteer fire departments - HB 76
• Motor vehicle usage tax, exempt 100 percent disabled veterans - SB 18
• Multistate Tax Compact, adoption - HB 256
• Problem gambling awareness and treatment fund, funding for - SB 38
• Property tax, constitutional amendment, increase homestead exemption - HB 238
• Refunds, rebates or credits, searchable Web site - HB 105
• Sales and use tax exemption, horse farm purchases - HB 249
• Sales and use tax holiday - HB 101
• Sales and use tax, exempt church sales for fundraising events - HB 169
• Sales and use tax, exempt delivery charges - HB 143
• Sales and use tax, exempt straw, wood shavings, sawdust - HB 60
• Sales tax holiday for clothing, computers, computer supplies and school supplies - HB 115
• Sales tax, exclude transient room taxes from taxable amount - HB 195
• Small business tax credit, creation of - HB 38
• Special fuel definition, vegetable oil and waste vegetable oil excluded - HB 214
• Statewide utility gross receipts tax for schools, imposition of - HB 257