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Kentucky Passes Legislation Impacting Administrative Guidance on Taxes and Tax Appeals


Long awaited tax guidance legislation is making its way through the Kentucky legislature. House Bill 245 amends KRS 131.130 to expand the Department of Revenue’s (“Revenue”) ability to provide guidance on tax issues.  Specifically, the legislation permits Revenue to respond to and publish responses to taxpayer questions. Additionally, the legislation allows Revenue to include examples as part of those responses or explanations. Expanding the Revenue’s authority to issue this guidance should give taxpayers the opportunity to better understand Revenue’s position on a variety of issues.

Kentucky Senate has also passed HB 50. It includes a provision that causes administrative regulations to automatically expire every seven years without further action by the issuing agency.  Effectively, this legislation requires an agency to review regulations at least once every seven years. Taxpayers obviously benefit from regulations that reflect the current statutory provisions.  Many tax regulations have not been updated since the mid 2000’s or before; so, this could address such situations.

The Kentucky Senate has also passed HB 453 which requires that one member of the newly formed Kentucky Claims Commission be an attorney and a second member have a tax background. HB 453 essentially codifies the Executive Order that created the Kentucky Claims Commission by combining the Kentucky Board of Tax Appeals, Board of Claims, and the Crime Victims Compensation Board. 

These three bills have been enrolled, and signed by the House Speaker and the Senate President. 

March 16, 2017

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