21RS HB 356

House Bill 356

Actions

Last Action	02/03/21: to Committee on Committees (H)
Title	AN ACT relating to taxation.
Bill Documents	Introduced
Bill Request Number	352
Sponsors	L. Willner, A. Scott, G. Brown Jr., K. Flood, J. Jenkins, N. Kulkarni, M. Marzian, J. Raymond, S. Westrom
Summary of Original Version	Amend KRS 132.020 to freeze the state property tax rate and eliminate the tax rate reduction for qualified heavy equipment; amend KRS 136.291, 136.505, and 136.506 to reinstate the bank franchise tax and exempt financial institutions from corporation income tax and LLET; amend KRS 138.130 to define vapor products and include vapor products in the definition of tobacco products; amend KRS 138.132, 138.135, 138.195, and 138.197 to remove references to vapor products; amend KRS 138.140 to increase the tax on cigarettes, snuff, chewing tobacco, and tobacco products; to remove the vapor products tax; and to remove the discount for modified-risk tobacco products; amend KRS 138.143 to require a floor stock tax; amend KRS 138.510 to impose specific surtax amounts on horse racing wagers and to require the revenue generated from the surtaxes to be deposited into the general fund; amend KRS 139.010 to remove boat ramp fees from the list of fees not considered to be taxable admissions; amend KRS 139.200 to remove the tax on small animal veterinary services and to make other various services taxable; amend KRS 139.470 to remove the exemption of gross receipts from the sale of semi-trailers and trailers and to include the new taxable services in the de minimis rule; amend KRS 139.480 to remove the exemption for various types of properties; amend KRS 140.130 to impose an estate tax; amend KRS 141.010 to define married and unmarried individuals and allow a single column return and a single calculation of adjusted gross income with differing thresholds for married and unmarried individuals; amend KRS 141.019 to require a dollar-for-dollar reduction to the retirement income exclusion; to limit the itemized deduction amount for all itemized deductions except for the charitable contribution deduction; to ignore the special rules for capital gains invested in opportunity zones; amend KRS 141.020 to establish graduated tax rate brackets and a phase-out based on income level; amend KRS 141.081 to increase the standard deduction; amend KRS 141.066 to expand the family size tax credit; amend KRS 141.040 to increase the tax rate to 7%; amend KRS 141.0401 to lower the threshold amounts for determining the tax amount owed; amend KRS 141.120 to reinstate the three-factor apportionment formula and include a throw-back rule; amend KRS 141.039 to eliminate the deferred tax deduction; amend KRS 141.201 to sunset the election for consolidated reporting; amend KRS 141.202 to alter the filing requirement basis from waters-edge to world-wide; amend KRS 141.383 to reduce the annual cap; amend KRS 141.433 to sunset the new markets tax credit; amend KRS 142.303 to eliminate the cap on calculation of gross receipts; make conforming changes.
Index Headings of Original Version	Economic Development - New markets tax credit, sunset Effective Dates, Delayed - Various provisions, delayed effectiveness Health and Medical Services - Healthcare provider tax, gross revenue calculation caps, eliminated Taxation, Inheritance and Estate - Estate tax, imposition Taxation, Property - Qualified heavy equipment, tax rate reduction, elimination Taxation, Property - State tax rate level, fixed Taxation, Sales and Use - Motor carrier, exemptions, elimination Taxation, Sales and Use - Repair and replacement parts, exemptions, elimination Deaths - Estate tax, imposition Motor Carriers - Gross receipts from sales, repair/replacement parts, sales and use taxes, exemptions, elimination Poverty - Individual income tax, family size tax credit, income level, expansion Retirement and Pensions - Individual income tax, exempt income, expansion Small Business - Limited liability entity tax, gross receipts or gross profit threshold, lowering of Taxation - Bank franchise taxes, reinstate Taxation - Comprehensive tax reform Taxation - Excise tax, tobacco products, rate increase Taxation - Tobacco taxes, rate increase Taxation, Income--Corporate - Combined reporting, filing basis, change of Taxation, Income--Corporate - Film industry tax credit, cap reduction Taxation, Income--Corporate - Financial institutions, exempt Taxation, Income--Corporate - Three-factor apportionment formula, reinstating Taxation, Income--Individual - Film industry tax credit, cap reduction Taxation, Sales and Use - Services, imposition of tax on selected Taxation, Sales and Use - Small animal veterinary services, exemption Veterinarians - Small animal services, sales and use taxes, exemption Wills and Estates - Estate tax, imposition Wagering - Pari-mutuel taxes, surtax, imposition Aeronautics and Aviation - Aircraft, repair and replacement parts, sales and use tax exemption, elimination Boats and Boating - Ramp fees, sales and use taxes, imposition Horses and Horse Racing - Pari-mutuel taxes, surtax, imposition Vaping - Excise tax, imposition