Senate Bill Proposes to Allow Department of Revenue to Include Examples as Part of its Administrative Regulations
In recently promulgated administrative tax regulations, the Department has generally not included examples, citing lack of authority. Practitioners, however, have expressed a desire for examples in tax regulations. Legislation recently introduced in the Kentucky General Assembly would, if enacted, specifically authorize the Kentucky Department of Revenue (“Department”) to include examples as part of the administrative regulations which it promulgates. In doing so, the change would resolve many long-term concerns of the tax regulations expressed by Taxpayers and tax practitioners alike.
Senate Bill (“S.B.”) 158 was introduced by Senator Bob Leeper (I). This Bill would amend KRS 131.180, which sets forth the powers and duties of the Department, to authorize the Department to incorporate by reference in administrative regulations, demonstrative and non-exclusive lists of items to assist taxpayers in understanding the application of the Commonwealth’s tax laws. S.B. 158 would give the Department authority to add examples “if the Department determines such lists would be helpful to taxpayers.”