tax reform

Stumbo: No Kentucky Tax Overhaul Coming This Session

Associated Press — Wed, 20 Feb 2013 01:32:59 +0000

Kentucky House Speaker Greg Stumbo says he doesn't expect a tax reform package to be brought up for a vote in the current legislative session.

Stumbo told reporters Tuesday that such a package doesn't have the 60 votes necessary to pass in the House.

A special commission appointed by the governor proposed reforms that could generate about $690 million a year in additional revenue.

Stumbo said one of the proposals made by the commission could surface in days ahead as a method of shoring up Kentucky's weakening pension system for government retirees. That proposal calls for raising the cigarette tax from 60 cents to $1 a pack, which could generate $100 million for the pension system.

Kentucky Lawmakers Ready for Tax Reform Legislation, but Bill Unlikely This Session

Kenny Colston — Tue, 05 Feb 2013 23:06:24 +0000

Kentucky lawmakers seemed eager to dig into another tax reform bill this year, but the chair of the latest tax reform commission says reform isn't likely coming soon.

Lt. Gov. Jerry Abramson—who chaired the commission —and Mary Lassiter, the secretary of the cabinet, addressed lawmakers on the budget committees about the recommendations of the Blue Ribbon Tax Commission.

Many lawmakers were eager to see a bill filed, even if tax reform is unlikely in this year's regular session. But Lassiter and Abramson implied that one was not likely anytime soon.

But State Rep. Jim Wayne, a Democrat from Louisville, who unveiled his own tax reform bill today, said he would still like the see the commission's suggestions in bill form.

Givens: Don't Expect Major Kentucky Tax Code Reform in 2013

Kevin Willis — Thu, 20 Dec 2012 15:25:10 +0000

A state senator who represents parts of south-central Kentucky isn't betting on major changes to the state's tax code this upcoming legislative session. Overhauling what's been described as an antiquated tax system is at, or near, the top of many lawmakers' agendas.

Sen. David Givens, who represents Allen, Barren, Edmonson, Green, Metcalfe, and Simpson counties, says while there's a lot of talk in the air about streamlining Kentucky's tax code, he doubts anything will pass during the 2013 General Assembly.

"From what I gather, I don't think the tax reform issue is far enough down the road that we can make those sorts of changes in the session ahead, with it being a short session," the Greensburg Republican told WKU Public Radio.

Kentucky Tax Panel Offers Changes to Individual, Corporate, and Cigarette Taxes

Associated Press — Tue, 18 Dec 2012 14:57:15 +0000

A panel appointed by Gov. Steve Beshear to look at changes to Kentucky's tax system has proposed lowering individual and corporate tax rates, raising the cigarette tax and expanding the state sales tax to certain services.

Lt. Gov. Jerry Abramson said the changes recommended by the Governor's Blue Ribbon Commission on Tax Reform would generate about $659 million in new state revenue each year.

Abramson, who headed the commission, said the changes will make Kentucky more competitive in creating jobs.

The proposal would lower the state's top corporate tax rate to 5.8 percent from 6 percent. Individual income tax rates also would drop. The state's cigarette tax would go to $1 a pack from the current 60 cents.

Kentucky's Bourbon Distillers Rooting for State Tax Reform

Kevin Willis — Wed, 12 Dec 2012 16:56:01 +0000

One of the big issues Kentucky lawmakers are expected to take up in the next legislative session is an overhaul of the state tax code. It's something that the commonwealth's bourbon distillers will have their collective eyes on, because a provision under consideration would create a new tax credit for manufacturers designed to offset a longstanding barrel tax.

"We pay a tax on every barrel that is aging in the commonwealth, as long as it sits in one of our warehouses. So if you're drinking a bottle of 18-year- old bourbon, it's been taxed 18 times," says Eric Gregory, president of the Kentucky Distillers Association. "That makes Kentucky non-competitive in the global marketplace. We are the only alcohol manufacturer in the world that pays such a tax."

Tax legislation designed to help Kentucky's bourbon distillers has previously passed in the Senate, but has never made it out of the House. Gregory says distillers are sensing a renewed seriousness on the part of many lawmakers to get a tax code overhaul passed next year, either in the regular session that begins January 8, or during a special session.