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HB 700/FN (BR 2314) - R. Palumbo, T. Thompson, S. Riggs, R. Crimm
AN ACT relating to economic development.
Create new sections of KRS Chapter 154 to establish findings and definitions; allow businesses to apply annually with the Cabinet for Economic Development to become eligible for benefits; require the Cabinet for Economic Development to approve or deny applications based on criteria for minimum capital expenditures, minimum qualified employees, and average wage; allow qualified businesses to file for a refund with the Revenue Cabinet on sales and use taxes paid on capital expenditures; allow motor vehicle usage tax exemption for vehicles not considered commercial vehicles but purchased and used by qualified businesses solely for business purchases; allow the Cabinet for Economic Development and the Revenue Cabinet to promulgate administrative regulations; provide short title of the Kentucky Enterprise Zone Reform and Job Creation Act; allow an eligible business to apply for a refund on sales and use taxes paid on capital expenditures made on or after January 1, 2004.
HB 700 - AMENDMENTS
HCS/FN - Retain original provisions, include in legislative findings the encouragement of research and development and technology; exclude from the definition of "capital expenditures" the costs associated certain lodging facilities unless they have at least 200 rooms and are integral to attracting tourism or conventions to the local area; exclude from expenditures eligible for sales and use tax refund those associated with activities governed by Section 226 of the Constitution or by KRS Chapter 230, office equipment, office furnishings, and office supplies; eliminate requirement of average hourly wage as 200% of federal minimum, replace with requirement for base hourly wage for 90% of full-time employees at 75% of state or county average hourly wage or 150% of federal minimum, whichever is higher; require business to provide employee benefits equal to 15% of the base hourly wage or provide 90% of full-time employees total compensation of 115% of applicable base hourly wage; limit motor vehicle usage tax exemption to commercial vehicles licensed at more than 26,000 pounds, purchased by a qualified business, and used solely for business purposes; set annual refund cap of $40,000 million, split between businesses operating inside and outside of areas designated by 154.45-050; change short title to the Kentucky Enterprise Zone Reform and Job Preservation Act; change the earliest date on which paid sales and use taxes may be eligible for refund from January 1, 2004 to July 1, 2004; make technical corrections.
Mar 1-introduced in House
Mar 2-to Economic Development (H)
Mar 3-posting waived
Mar 8-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 9-2nd reading, to Rules
Mar 11-recommitted to Appropriations and Revenue (H)
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