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Kentucky General Assembly Kicks off 2011 with Numerous Tax-Related Bills to Consider

01.03.2011

The Kentucky General Assembly convened its 2011 Regular Session on January 4, 2011.  Numerous tax-related bills, most of which were pre-filed, are awaiting consideration as the Commonwealth’s budget and economy is a continued focus of Kentucky lawmakers. 

Senate President David L. Williams released the Senate GOP’s priorities in December, which included creating a Commission to recommend changes in the state tax code.  This “priority” received media attention even before the 2011 Regular Session began.   

Notable tax-related bills include:

  • BR 30 – would require Property Valuation Administrators to verify that any property subject to a homestead exemption continues to be occupied by the person claiming the exemption;
  • BR 134 – would establish a three-day sales and use tax holiday the first weekend in August each year to exempt clothing, school supplies and computers;
  • BR 151 – would provide a sales and use tax refund on the purchase of building materials used to repair or replace homes in a disaster area;
  • BR 154 – would create a 48-hour waiting period to vote on an appropriation or revenue bill or amendment;
  • BR 184 – would establish a Great Schools Tax Credit Program to provide a nonrefundable credit against the income tax imposed under KRS 141.020 or 141.040 and the limited liability entity tax imposed under KRS 141.0401, for contributions made to a scholarship organization that is organized solely for the purpose of receiving and distributing cash contributions to provide educational scholarships at qualified schools;
  • BR 278 – would reduce third-party purchaser fees for certificates of delinquency;
  • BR 293 – would allow advertisements for informing the public of delinquent taxes and notifying the public of the sale of tax claims and to also require all urban-county governments to publish the full text of ordinance sections that impose taxes or fees;
  • BR 331 – would provide a nonrefundable income tax credit for taxpayers who contract with a resident nonprofit organization for services performed by individuals who are legally blind or severely disabled;
  • BR 386 – would provide that wooden boats 25 years old or older are subject to Kentucky property tax;
  • BR 420 – would require the publication of a state economic development and tourism project expenditure report by the Office of State Budget Director on development tax expenditures and tax expenditures annually; and
  • BR 421 – would require a systematic review by the Program Review and Investigations Committee of the Legislative Research Commission of each tax increment financing, tourism development and economic development program one year prior to its scheduled expiration.

If you have questions about this topic or any other legal issue, please contact any member of the firm's State and Local Tax Team.

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