16RS House Bill 342

House Bill 342

Actions

Last Action	to Appropriations & Revenue (H)
Title	AN ACT relating to taxation.
Bill Documents	Bill
Impact Statements	Fiscal Note Local Mandate
Bill Request Number	1256
Sponsors	J. Wayne, T. Burch, G. Brown Jr, J. Donohue, K. Flood, D. Graham, C. Howard, J. Jenkins, M. Marzian, R. Meeks, D. Owens, T. Riner, R. Smart, D. Watkins
Summary of Original Version	Amend KRS 140.130 to decouple from changes to the federal estate tax since 2003; amend KRS 141.010 to provide for a reduction and phase-out of the pension exclusion, disallow the domestic production activities deduction, establish a cap for itemized deductions, and define "taxpayer"; amend KRS 141.020 to provide for changes to income tax rates; amend KRS 141.066 to provide for a refundable earned income credit; amend KRS 141.0205 to recognize changes in income tax credits; amend KRS 141.0401 to lower the exclusion threshold; amend KRS 141.120 to change apportionment methods to use a "throwback" rule and market-based sourcing for receipts; amend KRS 141.200 to require "combined" reporting for corporations; amend KRS 134.810, 136.310, 136.530, 141.040, 141.121, 141.206, and 141.420 to conform; amend KRS 141.205 to recognize "tax haven" foreign countries and tax all income apportioned or allocated to those countries; amend KRS 141.383, 148.544, and 148.546 to make the film industry tax credit nonrefundable and nontransferable; create a new section of KRS 6.905 to 6.935 to require review and sunset of all economic development tax credits; amend KRS 131.190 to allow LRC employees to review selected tax documents; amend KRS 138.270 to reduce motor fuels dealer compensation to one percent; amend KRS 132.020 to make the real property tax rate 12.2 cents per $100, remove the rate adjustment provision, and remove the recall provisions; amend KRS 132.260 to clarify requirements for reporting of rental space for mobile or manufactured homes, private aircraft, and certain boats or vessels; amend KRS 132.730, 132.751, 132.810, and 132.815 to clarify property tax treatment of manufactured homes; amend KRS 140.300 to clarify the treatment of agricultural valuation on inherited property; amend KRS 279.200, 279.530, 279.220, and 139.530 to repeal rural electric and telephone co-op taxes; amend KRS 132.097 and 132.099 to amend the exemption for personal property shipped out of state; amend KRS 139.105, 139.200, 139.220, 139.270, 139.340 and 139.740 to impose sales tax on selected services; amend KRS 243.0305 and 243.990 to recognize changes in the distilled spirits case tax; amend KRS 138.130, 138.140, and 138.143 to change the tax on cigarette rolling papers, to raise the tobacco taxes, to impose a floor stock tax, and to tax e-cigarettes; amend KRS 65.125, 65.674, 67.862, 67.938, 67A.843, 68.245, 68.248, 82.095, 97.590, 132.0225, 132.023, 132.024, 132.027, 132.029, 157.440, 160.470, 160.473, 67C.147, 78.530, 342.340, and 134.810 to remove the provisions of HB 44 that allow for recall of certain tax rates and make conforming and technical changes; repeal KRS 132.017, 132.018, 132.025, 132.720, 143A.035, and 243.710; provide that estate tax provisions apply for deaths occurring on or after August 1, 2016, sales tax provisions are effective for periods beginning on or after October 1, 2016, motor fuels compensation provisions are effective August 1, 2016, and property tax provisions are for assessments on and after January 1, 2017.
Index Headings of Original Version	Economic Development - Tax credits, provide for sunset of Taxation - Comprehensive tax reform Taxation - Film industry credit, make nonrefundable Taxation - Motor fuels tax, change minimum rate Taxation - Tobacco taxes, increase rates Taxation, Income--Corporate - Domestic production activities deduction, disallow Taxation, Income--Corporate - Tax haven, make taxable any transfer of income to Taxation, Income--Corporate - Unitary method, use for determining taxable income Taxation, Income--Individual - Earned income credit, create Taxation, Income--Individual - Itemized deductions, establish maximum amount of Taxation, Income--Individual - Rates imposed, change Taxation, Inheritance and Estate - Estate tax, reestablish separate from the federal tax Taxation, Property - Real property tax rate, remove recall provision Taxation, Property - Real property, establish fixed tax rate Taxation, Sales and Use - Services, impose tax on selected Wills and Estates - Estate tax, reestablish separate from the federal tax Fiscal Note - Real property, establish fixed tax rate Agriculture - Inherited property, agricultural valuation of Boats and Boating - Federally documented vessels, reporting requirements for property tax Local Mandate - Real property, establish fixed tax rate Deaths - Estate tax, change calculation of

02/05/16	introduced in House
02/08/16	to Appropriations & Revenue (H)