Senate Approves Legislation Creating a Tax Council to Recommend Reform of Kentucky’s Tax Code
The Kentucky General Assembly convened its 2011 Regular Session on January 4, 2011. In the first week, the Senate approved several important pieces of legislation, including Senate Bill 1, which would create a panel of experts to recommend a completely new tax code to the Kentucky General Assembly.
Led by Senate President David L. Williams, Senate Republicans passed several “priority bills” on January 7, 2010, including Senate Bill 1 (“S.B. 1”), which proposes the creation of a council, the Kentucky Council on Revenue Reform, to recommend an overhaul of the state’s tax code. The nine-member Council would include five economists appointed by the Legislative Research Commission, two certified public accountants appointed by the Kentucky Society of Certified Public Accountants, one property valuation administrator appointed by the Kentucky Property Valuation Administrators Association, and an attorney that is a member of and appointed by the Kentucky Bar Association’s Taxation Section. The Council would have to report to the Legislative Research Commission on or before November 30, 2011 and the House and Senate would be required to vote up or down on the Council’s report without changing it.
According to Williams, the purpose of the Council is not to increase revenue, but to instead create a pro-growth, revenue neutral tax code to make Kentucky more competitive. Various business groups, including the Kentucky Chamber, will be consulted for input. S.B. 1 passed the Senate in a 25 to 13 vote. It is unclear how S.B. 1, and other legislation passed by the Senate will fare in the Democrat-controlled House.