Kentucky
General Assembly

02/22/23	introduced in House to Committee on Committees (H)
02/23/23	to Appropriations & Revenue (H)
03/03/23	taken from Appropriations & Revenue (H) 1st reading returned to Appropriations & Revenue (H)
03/07/23	taken from Appropriations & Revenue (H) 2nd reading returned to Appropriations & Revenue (H)
03/13/23	reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title) taken from Rules placed in the Orders of the Day floor amendment (1) filed to Committee Substitute 3rd reading, passed 59-40 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title)
03/14/23	received in Senate to Committee on Committees (S) taken from Committee on Committees (S) 1st reading returned to Committee on Committees (S) to Appropriations & Revenue (S)
03/15/23	floor amendment (1) filed taken from Appropriations & Revenue (S) 2nd reading returned to Appropriations & Revenue (S)
03/30/23	reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title) posted for passage in the Regular Orders of the Day for Thursday, March 30, 2023 3rd reading Floor Amendment (1) withdrawn passed 23-14 with Committee Substitute (1) and Committee Amendment (1-title) received in House to Rules (H) posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title) House concurred in Senate Committee Substitute (1) and Committee Amendment (1-title) passed 60-39 enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor
03/31/23	signed by Governor (Acts Ch. 148)

Amendment	House Committee Substitute 1
Fiscal Impact Statements	Fiscal Note to House Committee Substitute 1 Local Mandate to House Committee Substitute 1
Summary	Retain original provisions; create a new section of KRS Chapter 65 to authorize cities, counties, and fire protection districts to levy a storage license fee on an owner or proprietor of a bonded warehouse containing distilled spirits and the costs of which are financed by industrial bonds; set requirements for the license fee; create a new section of KRS Chapter 75A to allow an emergency services board that levies an ad valorem tax and provides services to a non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; create a new section of KRS Chapter 75 to allow a board of trustees of a fire protection district or subdistrict that levies an ad valorem tax and provides services to non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; amend KRS 141.389 to allow the distilled spirits inventory tax credit through taxable year 2033 for taxpayer's owning or possessing less than 25,000 barrels; create a new section of KRS 157.310 to 157.440 to exclude the assessed value on distilled spirits related to the property tax exemption from the calculation for the Support Education Excellence in Kentucky program and the tax rate-setting process for district boards of education.
Index Headings	Fiscal Note - Appropriation, salary increments Distilled Spirits - Premises, city, county, and fire protection district fees Education, Finance - Distilled spirits property tax, SEEK calculation omission Firefighters and Fire Departments - Service charge fee and license fee levy, distilled spirits premises, authorization Taxation - Distilled spirits tax credit allowance, taxpayers with 25,000 barrels or less Taxation - License fee levy, distilled spirits premises, cities and counties, authorization Taxation, Income--Corporate - Distilled spirits tax credit allowance, taxpayers with 25,000 barrels or less Taxation, Income--Individual - Distilled spirits tax credit allowance, taxpayers with 25,000 barrels or less Consolidated Local Governments - License fee levy, distilled spirits premises, authorization Cities - License fee levy, distilled spirits premises, authorization Counties - License fee levy, distilled spirits premises, authorization Counties, Urban - License fee levy, distilled spirits premises, authorization Local Mandate - Distilled spirits tax, license fee levy, distilled spirits premises, authorization

Amendment	House Committee Amendment 1
Sponsor	J. Petrie
Summary	Make title amendment.
Index Headings	Title Amendments - HB 5

Amendment	House Floor Amendment 1
Sponsor	R. Roberts
Summary	Allow the tax credit to apply up to 25,000 barrels of distilled spirts in a bonded warehouse or premises per taxable year and remove ownership and possession requirement.
Index Headings	Distilled Spirits - Income tax credit, taxpayers with 25,000 barrels Taxation - Income tax, credit on distilled spirits inventory, taxpayers with 25,000 barrels Taxation, Income--Corporate - Distilled spirits inventory tax credit, taxpayers with 25,000 barrels Taxation, Income--Individual - Distilled spirits inventory tax credit, taxpayers with 25,000 barrels

Amendment	Senate Committee Substitute 1
Fiscal Impact Statement	Local Mandate to Senate Committee Substitute 1
Summary	Delete all provisions; amend KRS 132.140 to phase out the ad valorem tax on distilled spirits and exempt distilled spirits after year 2043; create a new section of KRS Chapter 138 to provide an industry replacement tax for schools and fire districts; amend KRS 141.389 to allow a taxpayer to elect to receive a modified credit or a combined sales and use tax refund and a withholding tax refund based on a portion of the accumulated distilled spirits income tax credit for certain capital investments and job creation; create a new section of KRS 157.310 to 157.440 to modify the SEEK funding formula related to distilled spirits; amend various sections that were amended by 2023 Ky. Acts ch. 92 to conform and make technical corrections; create a new section of KRS Chapter 141 to allow a pass-through entity to elect to pay the income tax; repeal Section 16 of 2023 Ky. Acts ch. 92; provide that certain settlement agreements shall not be voided; provide that if any provision of this Act is held invalid, the invalidity shall not affect other provisions that can be given effect without the invalid provision; EMERGENCY.
Index Headings	Effective Dates, Emergency - Fiscal matters, income tax credit, distilled spirits ad valorem tax, pass-through entity taxation State Agencies - Department of Education, SEEK funding formula Taxation - Replacement tax Taxation - Revenue measures Taxation - Sales tax, withholding tax, combined refund, accumulated amount Taxation, Income--Individual - Pass-through entity taxation, election Taxation, Property - Distilled spirits Taxation, Sales and Use - Telemarketing services Technical Corrections - HB 5/SCS 1 Local Mandate - Fiscal matters, income tax credit, distilled spirits ad valorem tax, pass-through entity taxation

Amendment	Senate Committee Amendment 1
Sponsor	C. McDaniel
Summary	Make title amendment.
Index Headings	Title Amendments - HB 5/GA

Amendment	Senate Floor Amendment 1
Sponsor	J. Higdon
Summary	Retain original provisions that sunset the income tax credit; remove all other provisions; amend KRS 132.140 to set an allowable revenue threshold for property taxes on distilled spirits; exempt state and local ad valorem taxes on distilled spirits associated with the revenues in excess of the allowable amount.
Index Headings	Distilled Spirits - Inventory, property tax exemption Taxation - Property, distilled spirits, exemption Taxation, Property - Distilled spirits, exemption