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Kentucky Proposed Legislation Would Affect Taxes on Property, Sales

01.09.2014

Click here to view the PDF of this SALT Law Letter.

The Kentucky House of Representatives recently proposed several bills that would affect various state taxes.

BR 114 would amend KRS 56.515. It would allow for private parties to develop land owned by the Department of Parks by authorizing the private parties to lease the land. The private party could mortgage the leasehold interest and operate the development. The private party must also pay all taxes and insurance on the development in addition to lease payments to the state.

BR 349 would amend KRS 139.010 by exempting any charges from a retailer to a purchaser for any services necessary to complete the sale from sales and use tax. The charges must be separately stated on an invoice or other similar document given to the purchaser.

BR 410 would amend KRS 141.438 to increase the total amount of annual Endow Kentucky tax credits from $500,000 to $2,000,000 beginning in fiscal year 2014-2015. This bill is effective upon passage or approval.

BR 148 would amend KRS 132.485 to clarify the standards for determining for property tax purposes the fair cash value of motor vehicles that are 20 years old or older. The bill provides that no vehicle of that age shall have a presumption that it was maintained or restored to either original factory condition or classic condition unless such information is otherwise available that supports such a finding. The standard value of such a vehicle would be the actual valuation of the vehicle in its nineteenth year or the clean trade-in value prescribed by the applicable edition of the valuation manual used by the Department of Revenue reduced by ten percent annually for each year after the nineteenth year, unless information is available that dictates otherwise.

BR 402 would create a new section of KRS Chapter 141 to allow an extension for filing a refund claim for individuals who received an airline payment amount and transferred any portion of the amount to an IRA according to Section 1106 of the federal FAA Modernization and Reform Act of 2012. The bill would also require certain documentation to be filed with the amended return and allow the amended return to be filed on or before December 30, 2014.

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