HB 585 (BR 1578) - T. Couch

     AN ACT relating to tax expenditures and declaring an emergency.
    Amend KRS 243.720 eliminate the reduced rate on low-volume distilled spirits and malt beverages; amend KRS 243.884 to equalize the tax rate among all alcoholic beverage taxes and impose the tax on sales made by a small farm winery or wholesaler of wine produced by a small farm winery; amend KRS 171.396 to lower the certified rehabilitation credit cap to $4 million; amend KRS 141.010 to sunset the domestic production activities deduction, to impose income tax on 50% of any dividend income classified as a patronage dividend, to include in net income any dividends-paid deduction of a real estate investment trust, and define the term "credit union"; amend KRS 141.040 to impose income tax on credit unions at reduced income tax rate bracket levels; amend KRS 243.720 to conform; amend KRS 141.422 to reduce the annual biodiesel and renewable diesel tax credit cap to $5 million, the annual cellulosic ethanol tax credit cap to $2.5 million, and the annual ethanol tax credit cap to $2.5 million; amend KRS 141.423 to reduce the amount certified as a tax credit to 50 cents per gallon of biodiesel produced; amend KRS 141.4242 to reduce the amount certified as a tax credit to 50 cents per gallon of ethanol produced; amend KRS 141.4244 to reduce the amount certified as a tax credit to 50 cents per gallon of cellulosic ethanol produced; amend KRS 141.389 to sunset the distilled spirits tax credit; amend KRS 154.32-070 to provide that 100% of the tax liability may be offset with the tax credit if the economic development project is within an enhanced incentive county, and 75% of the tax liability may be offset by the tax credit if the economic development project is outside an enhanced incentive county; amend KRS 141.385 and 141.386 to sunset the tax credits; amend KRS 141.390 to allow 40% of the installed cost of recycling equipment to qualify for the tax credit; amend KRS 138.270 to set the allowance for collecting and reporting the tax at 2%; amend KRS 141.0401 to apply the tax to personal service corporations; amend KRS 141.206 to conform; amend KRS 132.020 to set the state property tax rate for real property at 12.7 cents upon each $100 of assessed value, to increase the 4% ceiling on revenues to 5%, and to increase the rates for certain tangible personal property; amend KRS 139.010 to include the amount charged for labor or services rendered in installing or applying the tangible personal property sold; amend KRS 139.470 to include in gross receipts the sale of a semi-trailer and trailer; amend KRS 139.480 to include, within the definition of retail sale, locomotives or rolling stock, certain agricultural items, property certified as a pollution control facility, and aircraft, repair, and replacement parts therefor, and supplies; amend KRS 139.531 to include the sale of certain horses; amend various sections to conform; repeal KRS 139.483; EMERGENCY.