House Bill 354

Actions | Amendments
Last Action 03/14/19: delivered to Governor
Title AN ACT relating to taxation and declaring an emergency.
Bill Documents Current
Introduced
Bill Request Number 844
Sponsors S. Rudy, L. Bechler, S. Sheldon
Summary of Original Version Amend KRS 132.010 to define terms related to qualified heavy equipment; amend KRS 132.020 to assess qualified heavy equipment at a rate of 15 cents upon each $100 of value and reorder other property by the tax rates imposed; amend 132.360 to allow a 60-day protest period for property tax; amend various KRS sections to make technical corrections and conforming changes; create a new section of KRS Chapter 139 to prohibit class actions against a marketplace provider on behalf of purchasers; amend KRS 139.010 to create and amend definitions of marketplace providers, admissions, and marketplace retailer; amend KRS 139.200 to exclude admissions charged by nonprofit educational, charitable, or religious institutions exempt from taxation under Internal Revenue Code Section 501(c)(3) and to clarify that small animal veterinary services exclude services for poultry; amend KRS 139.260 to allow acceptance of a resale certificate for certain services; Amend KRS 139.270, 139.280, and 139.340 to conform; amend KRS 139.450 to require a marketplace provider to collect and remit sales tax; amend KRS 139.480, 160.613, and 160.6131 to clarify who is a toller; amend KRS 139.495 to exempt the sales of admissions by nonprofit educational, charitable, or religious institutions exempt from tax under Internal Revenue Code Section 501(c)(3); create a new section of KRS Chapter 139 to exempt the first $10,000 of sales in a calendar year made by nonprofit civic, governmental, or other nonprofit organizations; amend KRS 139.550 and 139.720 to conform; amend KRS 141.010 to update to the Internal Revenue Code reference date for 2019 and clarify the provisions for 2018; amend KRS 141.170 to allow one additional month for an extension of time to file a corporation income tax return; amend KRS 241.010 to expand the definition of a small farm winery to include a winery that produces no more than 500,000 gallons in a calendar year; amend KRS 243.884 to clarify that sales made by a small farm winery during a calendar year of the first 50,000 gallons of wine are exempt; amend various sections in KRS Chapters 141 and 154 to make technical corrections and conforming changes; repeal KRS 136.078, 136.090, and 136.100.
Index Headings of Original Version Effective Dates, Delayed - Sales tax, energy and energy producing fuels, clarification of
Taxation - Alcohol, small farm winery, clarification of exemption for
Taxation - Tax reform, technical corrections related to 2018
Taxation, Income--Corporate - Internal Revenue Code, update reference to
Taxation, Income--Individual - Internal Revenue Code, update reference to
Taxation, Property - Heavy equipment rentals
Taxation, Property - Protest period, extension of
Taxation, Sales and Use - Admissions, clarification of
Taxation, Sales and Use - Energy and energy producing fuels, clarification of
Taxation, Sales and Use - Marketplace provider, require collection and remittance by
Jump to Proposed Amendments House Floor Amendment 1
House Floor Amendment 2
House Floor Amendment 3
House Floor Amendment 4
Senate Committee Substitute 1
Senate Floor Amendment 1
Senate Floor Amendment 2
Conference Committee Report 1
Free Conference Committee Report 1
Votes Vote History

Actions

Top | Amendments
02/13/19
  • introduced in House
02/14/19
  • to Appropriations & Revenue (H)
  • posted in committee
02/19/19
  • reported favorably, 1st reading, to Calendar with Committee Substitute (1)
02/20/19
  • 2nd reading, to Rules
  • posted for passage in the Regular Orders of the Day for Thursday, February 21, 2019
02/21/19
  • floor amendments (2) and (4) filed to the Committee Substitute, floor amendment (3) filed to bill
  • 3rd reading, passed 96-4 with Committee Substitute (1)
02/22/19
  • received in Senate
02/26/19
  • to Appropriations & Revenue (S)
02/28/19
  • taken from Appropriations & Revenue (S)
  • 1st reading
  • returned to Appropriations & Revenue (S)
03/01/19
  • taken from Appropriations & Revenue (S)
  • 2nd reading
  • returned to Appropriations & Revenue (S)
  • floor amendment (1) and (2) filed
03/04/19
  • reported favorably, to Rules with Committee Substitute (1)
  • posted for passage in the Regular Orders of the Day for Monday, March 4, 2019
  • 3rd reading
  • floor amendments (1) and (2) ruled out of order
  • Bill passed 33-0 with Committee Substitute (1)
  • received in House
  • to Rules (H)
03/05/19
  • taken from Rules
  • posted for passage for concurrence in Senate Committee Substitute (1)
  • House refused to concur in Senate Committee Substitute (1)
  • received in Senate
  • posted for passage for receding from Senate Committee Substitute (1)
  • Senate refused to recede from Committee Substitute (1)
  • Conference Committee appointed in House and Senate
03/06/19
  • Conference Committee report filed in House and Senate
  • Conference Committee report adopted in House and Senate
  • Free Conference Committee appointed in House and Senate
03/13/19
  • Free Conference Committee report filed in Senate
  • posted for passage for consideration of Free Conference Report on Wednesday, March 13, 2019
  • Free Conference Committee report adopted in Senate
  • Bill passed 34-3
  • received in House
  • to Rules (H)
  • Free Conference Committee report filed in House
  • taken from Rules
  • placed in the Orders of the Day
  • Free Conference Committee report adopted in House
  • Bill passed 87-8 with FCCR (1)
03/14/19
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor

Proposed Amendments

Top | Actions
Amendment House Floor Amendment 1
Sponsor J. Blanton
Summary Clarify the definition of "heavy equipment rental company."
Index Headings Taxation - Heavy equipment company definition
Taxation, Property - Heavy equipment company definition

Amendment House Floor Amendment 2
Sponsor R. Palumbo
Summary Amend KRS KRS 139.495 to exempt from sales tax all sales of tangible personal property and digital property made by resident, charitable, religious, and educational institutions that are exempt from taxation under Section 501(c) (3) of the Internal Revenue Code; exempt all sales of tangible personal property and digital property made by nonprofit civic, governmental or other nonprofit organizations.
Index Headings Charitable Organizations and Institutions - Sales and use tax, sales of tangible personal property and digital property, exempt
Taxation - Sales and use tax, sales of tangible personal property and digital property, exempt
Taxation, Sales and Use - Sales of tangible personal property and digital property, exempt

Amendment House Floor Amendment 3
Sponsor R. Palumbo
Summary Amend KRS KRS 139.495 to remove the exemption for the first $10,000 in sales and add language to exempt all sales of tangible personal property and digital property made by resident, charitable, religious, and educational institutions except for sales made by an institution that provides job training and employment to individuals with workplace disabilities and sales made by an approved tourism development project; exempt all sales of admissions, tangible personal property and digital property made by nonprofit civic, governmental or other nonprofit organizations rather than the first $10,000 in sales in a calendar year.
Index Headings Taxation - Sales and use tax, sales of tangible personal property and digital property, exempt
Taxation, Sales and Use - Sales of tangible personal property and digital property, exempt
Charitable Organizations and Institutions - Sales and use tax, sales of tangible personal property and digital property, exempt

Amendment House Floor Amendment 4
Sponsor J. Blanton
Summary Clarify the definition of "heavy equipment rental company."
Index Headings Taxation - Heavy equipment company, definition
Taxation, Property - Heavy equipment company, definition

Amendment Senate Committee Substitute 1
Summary Amend various sections in KRS Chapters 131,139, 141, and 154 to make technical corrections and conforming changes; amend KRS 139.010 to modify definitions related to extended warranty services, marketplace provider, and marketplace retailer; amend KRS 139.200 to clarify that veterinary services do not apply to poultry; amend KRS 139.260, 139.270, and 139.280 to allow a resale certificate to be provided for certain services; amend KRS 139.450 to require a marketplace provider to pay sales and use tax for sales facilitated through their marketplace; amend KRS 139.470 to allow a $12,000 de minimis sales volume for certain services; amend KRS 139.480 to clarify who is a toller and require arm's-length transactions between the toller and the manufacturer; amend KRS 139.495 and create a new section of KRS Chapter 139 to exempt the sales of admissions by all nonprofit organizations; amend KRS 141.010 to update the Internal Revenue Code reference date; amend KRS 141.019 to allow itemized deductions for investment interest and wagering losses; amend KRS 141.170 to one additional month for the filing of an extension for corporation income tax.
Index Headings Taxation - Technical corrections
Taxation, Income--Corporate - Internal Revenue Code, update of reference to
Taxation, Income--Individual - Itemized deductions, wagering losses allowed for
Taxation, Sales and Use - Marketplace provider
Taxation, Sales and Use - Admissions, nonprofit exemption of
Taxation, Sales and Use - Resale certificate, acceptance of
Taxation, Sales and Use - Services, de minimis sales volume

Amendment Senate Floor Amendment 1
Sponsor D. Harper Angel
Summary Amend KRS 141.019 to allow medical expenses as a deduction for individual income taxation; renumber subsequent sections.
Index Headings Taxation - Individual income; medical expenses, deduction for
Taxation, Income--Individual - Medical expenses, deduction for

Amendment Senate Floor Amendment 2
Sponsor J. Turner
Summary Amend KRS 141.019 to exclude up to forty-one thousand one hundred ten dollars ($41,110) of pension income for taxable years beginning on or after January 1, 2019.
Index Headings Taxation - Individual income, Pension income exclusion
Taxation, Income--Individual - Pension income exclusion

Amendment Conference Committee Report 1
Impact Statements Fiscal Note
Summary Cannot agree.
Index Headings Conference Committee Reports - HB 354
Taxation - Alcohol, small farm winery, clarification of exemption for
Taxation, Property - Heavy equipment rentals
Taxation, Sales and Use - Admissions, definition
Taxation, Sales and Use - Energy and energy producing fuels, clarification of
Taxation, Sales and Use - Nonprofits, fundraising sales, exemption
Taxation, Income--Corporate - Recycling tax credit, modification of
Taxation, Income--Corporate - Combined reporting requirements, modification of

Amendment Free Conference Committee Report 1
Summary Delete all provisions in the original bill and insert the following in lieu thereof; amend KRS 132.020 to lower the property tax rate for heavy equipment rentals and make conforming changes; amend KRS 132.220 to allow a de minimis threshold for tangible personal property; amend KRS 132.360 to allow a 60-day protest period for tangible personal property; amend KRS 134.580 to modify the limited liability entity tax statute of limitations when a pass-through entity is audited; transition financial institutions to corporation income tax from the current bank franchise tax and make conforming changes; amend KRS 136.602 to define video streaming services; amend KRS 139.010 to modify the definitions of admissions and extended warranty services; amend KRS 136.200 to clarify that veterinary services related to poultry are not taxable; amend various sections in KRS Chapter 139 to allow resale certificates and direct pay authorizations to be utilized for certain services; amend KRS 139.340 and 139.450 to impose sales tax on marketplace providers; amend KRS 139.470 to allow a $3,000 de minimis threshold for certain services; amend KRS 139.480, 160.613, 160.6131, and 160,637 to clarify who is a toller; amend various sections in KRS Chapter 139 to exempt admissions and fundraising events for all nonprofits; amend KRS 139.533, 139.536, and 148.853 to end the application process; amend KRS 141.010 to update the reference to the Internal Revenue Code; amend KRS 141.0101 to update to Section 179 expensing related to the 2003 Internal Revenue Code; amend KRS 141.019 to allow itemized deductions for investment interest and wagering losses; amend KRS 141.040 to impose corporation income tax to financial institutions; amend KRS 141.044 and 141.305 to conform the estimated tax payment process to the federal process; amend KRS 141.175 to clarify that training for National Guard is active duty; amend KRS 141.202 to clarify which members of a unitary business are included in the combined report; amend KRS 243.884 to clarify the taxation of small farm wineries; repeal KRS 136.377, 141.042, and 141300; provide construction clauses to detail application of specified sections; provide that Sections 61 to 71 apply retroactively to April 14, 2018; EMERGENCY.
Index Headings Conference Committee Reports - HB 354
Effective Dates, Emergency - Taxation, sales tax, non-profit organizations
Taxation - Technical corrections
Taxation, Income--Corporate - Combined reporting, clarification of
Taxation, Income--Corporate - Expensing of assets, modification of
Taxation, Income--Individual - Itemized deductions
Taxation, Property - Qualified heavy equipment, lowered rate for
Taxation, Sales and Use - Fundraising event sales, exemption of
Taxation, Sales and Use - Marketplace provider, taxation of
Taxation, Sales and Use - Sales of admissions, nonprofit organizations, exemption

Last updated: 3/25/2019 5:21 PM (EDT)
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