Vetoed by Governor Matt Bevin

Vote Smart's Synopsis:

Vote to adopt a conference report that amends various taxes and credits for individuals and businesses.

Highlights:

• Requires beginning on July 1, 2018 imposing a $2 fee upon a retailer for each new tire sold, which the retailer may choose to pass onto the purchaser, specifying that the fee will not be subject to the Kentucky sales tax (Sec. 2).

• Amends the tax credit for qualified expenditures made for production work in Kentucky to exclude commercials created on or after January 1, 2018 (Sec. 61).

• Prohibits the Department of Revenue from hiring outside auditors or lawyers to examine a taxpayer’s books if any part of the compensation for the service is contingent upon the amount of tax or fee assessed against or collected from the taxpayer (Sec. 100).

• Repeals the incentive tax credit for Kentucky coal purchased and used to generate electricity (Sec. 105).

• Requires a suspension until July 1, 2022 of the Kentucky Angel Investment Act (KAIA), which provides a tax credit of up to 50% for capital given to startup companies in counties with high unemployment rates (Sec. 99).

• Increases the cigarette excise tax to $1.10 per pack of 20 cigarettes beginning on July 1, 2018, specifying that the tax on tobacco products other than cigarettes will remain the same (Secs. 27 and 141).

• Repeals the tax credit for new home purchases (Sec. 140).

• Repeals the tax credit for individuals who grow or raise edible agricultural products and donate them to nonprofit food programs operating in Kentucky (Sec. 140).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that amends various taxes and credits for individuals and businesses.

Highlights:

• Requires beginning on July 1, 2018 imposing a $2 fee upon a retailer for each new tire sold, which the retailer may choose to pass onto the purchaser, specifying that the fee will not be subject to the Kentucky sales tax (Sec. 2).

• Amends the tax credit for qualified expenditures made for production work in Kentucky to exclude commercials created on or after January 1, 2018 (Sec. 61).

• Prohibits the Department of Revenue from hiring outside auditors or lawyers to examine a taxpayer’s books if any part of the compensation for the service is contingent upon the amount of tax or fee assessed against or collected from the taxpayer (Sec. 100).

• Repeals the incentive tax credit for Kentucky coal purchased and used to generate electricity (Sec. 105).

• Requires a suspension until July 1, 2022 of the Kentucky Angel Investment Act (KAIA), which provides a tax credit of up to 50% for capital given to startup companies in counties with high unemployment rates (Sec. 99).

• Increases the cigarette excise tax to $1.10 per pack of 20 cigarettes beginning on July 1, 2018, specifying that the tax on tobacco products other than cigarettes will remain the same (Secs. 27 and 141).

• Repeals the tax credit for new home purchases (Sec. 140).

• Repeals the tax credit for individuals who grow or raise edible agricultural products and donate them to nonprofit food programs operating in Kentucky (Sec. 140).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass with amendment a bill that requires an increase in the tax imposed on tire purchases.

Highlights:

• Requires beginning on July 1, 2018 imposing a $2 fee upon a retailer for each new tire sold, which the retailer may choose to pass onto the purchaser (Sec. 2).

• Requires the fee to be subject to the Kentucky sales tax (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends taxes on tires.

Highlights:

• Requires beginning on July 1, 2018 imposing a $2 fee upon a retailer for each new tire sold, which the retailer may choose to pass onto the purchaser, specifying that the fee will not be subject to the Kentucky sales tax (Sec. 2).

• Amends the tax credit for qualified expenditures made for production work in Kentucky to exclude commercials created on or after January 1, 2018 (Sec. 61).

• Prohibits the Department of Revenue from hiring outside auditors or lawyers to examine a taxpayer’s books if any part of the compensation for the service is contingent upon the amount of tax or fee assessed against or collected from the taxpayer (Sec. 100).

• Repeals the incentive tax credit for Kentucky coal purchased and used to generate electricity (Sec. 105).

• Requires a suspension until July 1, 2022 of the Kentucky Angel Investment Act (KAIA), which provides a tax credit of up to 50% for capital given to startup companies in counties with high unemployment rates (Sec. 99).

• Increases the cigarette excise tax to $1.10 per pack of 20 cigarettes beginning on July 1, 2018, specifying that the tax on tobacco products other than cigarettes will remain the same (Secs. 27 and 141).

• Repeals the tax credit for new home purchases (Sec. 140).

• Repeals the tax credit for individuals who grow or raise edible agricultural products and donate them to nonprofit food programs operating in Kentucky (Sec. 140).

Full Bill Text