AN ACT relating to taxation.
     Amend KRS 141.010 to add definitions and change the definition of corporation; amend KRS 141.0205 to recognize change in corporation tax credits; amend KRS 141.040 to change the method of taxing pass-through entities; amend KRS 141.120 to change apportionment for corporations owning pass-through entities; amend KRS 141.200 to allow previously consolidated groups to opt out of that consolidation, and change language to agree with the new definitions; amend KRS 141.205 to extend prohibited related party transactions to apply to newly defined entities, and allow management fees that are for recognized business purposes and are equivalent to arms-length; amend KRS 141.206 to recognize pass-through entities in apportionment methods; require withholding on distributive share of net income of all nonresidents who do not consent to personal jurisdiction for tax purposes; require inclusion of a pass-through entity's gross receipts or gross profits in determining the alternative minimum calculation of a corporate owner; amend KRS 141.208 to tax limited liability companies as they are treated for federal tax purposes; amend KRS 141.420 to treat distributions of corporations and pass-through entities in the same manner as for federal purposes; amend KRS 141.347, 141.400, 141.401, 141.403, 141.405, 141.407, 141.414, and 141.415 to conform; amend KRS 141.990 to provide a safe harbor for corporation declaration payments; EFFECTIVE for tax years beginning on or after January 1, 2006 unless specified for earlier tax years in certain provisions.

     Jan 17-introduced in House
     Jan 18-to Appropriations and Revenue (H)