Budget Bill Contains "Limited" Amnesty and Unclaimed Property Provisions
With the Commonwealth facing serious budget concerns, the state budget has been a primary focus for lawmakers during the 2010 Regular Session. House Bill 290 (the “Budget Bill”), sponsored by Representative Rick Rand, Chair of the House Appropriations & Revenue Committee, consists of 205 pages of text which sets forth proposed financing through the fiscal year ending June 30, 2012, for the operation of state government.
The Budget Bill provides for a procedure described as an “Expedited Protest Resolution” that is in effect, a limited tax amnesty. As proposed, this procedure would be available for any tax assessment that as of January 19, 2010 has been protested and is not the subject of a Final Ruling issued by the Kentucky Department of Revenue (“Department”).
A taxpayer would have the opportunity to satisfy a qualifying assessment in full by paying the tax only – no interest or penalty – on or before June 15, 2010. However, any payment of tax made pursuant to this “tax amnesty” would be final and not be subject to refund.
The Budget Bill also proposes to shorten the dormancy period for abandoned property held by a financial institution from seven to three years and to allow unclaimed securities held by the Department of the Treasury to be sold, with receipts from same to be contributed to the General Fund.