| Last Action | 04/02/26: delivered to Governor |
|---|---|
| Title | AN ACT relating to revenue measures and declaring an emergency. |
| Bill Documents |
Current
Introduced |
| Fiscal Impact Statement | Additional Fiscal Impact Statements Exist |
| Bill Request Number | 90 |
| Sponsor | J. Petrie |
| Summary of Original Version | Amend KRS 139.340 to redefine the sales and use tax nexus standard for remote retailers and marketplace providers to include a sales volume threshold only; amend KRS 131.383 and 141.044 to allow the Department of Revenue to refund an estimated tax payment in the event the payment was submitted to the department in error; amend KRS 96.895 to require reporting by the Department for Local Government to the Legislative Research Commission related to the Tennessee Valley Act in lieu of tax payments; amend KRS 154.30-030 to sunset the tax increment financing state-participation programs; allow TIF projects approved prior to this date to continue to be governed in accordance with the tax incentive agreement's terms and conditions; amend KRS 141.010, 141.019, and 141.039 to conform to the Internal Revenue Code in effect on December 31, 2025, for taxable years beginning on or after January 1, 2026; decouple from certain IRC provisions; delay the deferred tax deduction until January 1, 2028; create a new section of KRS Chapter 138 to define terms and impose an excise tax on fantasy contests; set requirements for administering the tax; amend KRS 139.010 to define "data brokering services"; amend KRS 139.200 to impose sales and use taxes on pay phones and data brokering services; amend KRS 139.202 to exempt from the tax pre-existing lease or rental agreements; amend KRS 224.50-868 to extend the fee currently imposed for each new motor vehicle, trailer, or semitrailer tire sold in Kentucky to July 1, 2028; amend KRS 224.50-872 to require reporting by the Energy and Environment Cabinet to the Legislative Research Commission on the waste tire trust fund; amend KRS 45.760 and 45.770 to limit the transfer of moneys for a capital project from 15% to 5%; amend KRS 45.345 and create new sections of KRS Chapters 65, 160, and 367 to define terms and require rounding of cash transactions to the nearest $.05 increment; amend KRS 139.210 to prohibit retailers from being relieved of their responsibility to collect the correct amount of sales tax regardless of the purchaser' s payment method; create new sections of KRS Chapter 65 in relation to regional industrial development districts to prioritize the purposes for organizing the district; exclude cities and school occupational license taxes from the single occupational license tax imposition restriction; require the fee to expire the earlier of date bonds issued are retired or 20 years; require notification to all local governments with territory in the boundaries of the multicounty region before interlocal agreement is executed; prohibit inclusion of any portion of a city that has not consented to participation; require reporting to the Department for Local Government and the Legislative Research Commission; amend KRS 143A.030 to tax fluorspar as a natural resource; amend KRS 143A.010 to add fluorspar to the definition of "natural resources"; amend KRS 140.160, relating to the inheritance and estate taxes, to extend the deadline for filing a tax return from 18 months to 36 months for deaths on or after July 1, 2026; amend KRS 140.210 to correspondingly extend the due date for payment of tax and discount; amend KRS 134.490 to modify notification requirements for third-party purchasers of delinquent taxes; amend KRS 138.130 to define "premium cigar," and amend "vending machine operator" to include cigarettes, tobacco products, vapor products, or a combination thereof; amend KRS 138.140 to tax premium cigars at the rate of 15% of the actual price up to 60 cents per cigar; require an annual CPI adjustment for the maximum rate and publication on the Department of Revenue's website; amend KRS 138.195 to require a vending machine operator to secure a license for dispensing tobacco products and vapor products in vending machines; amend KRS 141.0205 to order income tax credits; amend KRS 131.190 to allow the Department of Revenue to report on certain credits to the Legislative Research Commission; amend KRS 160.613 to impose the utility gross receipts license tax on the furnishing of pay phone service; amend KRS 139.538 to sunset sales and use tax exemptions for filming and producing motion pictures in this state July 1, 2028; amend KRS 132.096, 139.480, 139.4802, 139.481, 141.0401, 141.206 to delete tax exemptions for property certified as a fluidized bed energy production facility; amend KRS 139.481 to extend the agricultural exemption license number for sales and use taxes to 6 months; amend KRS 154.20-236 to end further applications for the Kentucky Angel Investment ; amend KRS 141.065 to sunset the credit for hiring the unemployed as of January 1, 2028; amend KRS 141.412 to sunset the qualified farming operation credit as of January 1, 2028; amend KRS 151B.402 to sunset the employer High School Equivalency Diploma program incentive credit as of January 1, 2028; amend KRS 171.396 to allocate 15% of the certified rehabilitation credit cap to owner-occupied residential property and 85% to all other property; define "commercial residential property" and "median family income"; amend KRS 171.397 to sunset the current application process; create a new section of KRS Chapter 171 to establish 2 application rounds by which the certified rehabilitation credit may be applied for; allow credit based on 30% of the qualified rehabilitation expenses if the commercial residential property is affordable to households earning 80% of the median family income; amend KRS 441.135 to require compensation received from disposal of property that was purchased from a jail canteen account to be returned to the canteen account; require reporting of proceeds by the jailer; create a new section of KRS Chapter 224A to require an administrative fee of 0.5% to be paid for each project funded by the Infrastructure for Economic Development Fund for Coal-Producing Counties and the Infrastructure for Economic Development Fund for Tobacco Counties; amend KRS 45.050 require audit expenses of audits with federal funds to be paid by the agency being audited; amend KRS 18A.080 Executive branch agencies assessed for the operation of the Personnel Board; require the amount to be determined and collected by Finance and Administration Cabinet based on the number of full-time employees of each agency on July 1; amend KRS 151.723 to prohibit state and local taxes on water withdrawal fees; amend KRS 304.17B-021 to require insurance premium and retaliatory taxes for accident and health and insurance premiums to be deposited into the general fund; amend KRS 11.068 to require the Office of State Budget Director to publish on its website by September 1 of each year an estimate of general fund and road fund revenue loss from tax expenditures; create a new section of KRS Chapter 16 to require billing of Kentucky State Police security services provided to nonstate-operated events; create a new section of KRS Chapter 138 to impose a new excise tax on predictive markets; define terms; amend KRS 160.470 to increase the publication requirements when a local board of education proposes to levy a general tax rate; amend KRS 132.017 to require the petition committee challenge information be published on the home page of the county clerk's website; amend KRS 160.473 to prohibit a personal property tax rate levied by a local board of education to be higher than the rate levied on January 1, 2026; amend KRS 160.607 to prohibit an occupational license tax from being imposed in a school district that does not currently have one imposed as of January 1, 2026; prohibit an occupational license tax rate levied for a school district to increase on or after January 1, 2026; amend KRS 160.613 to prohibit a utility gross receipts license tax from being imposed in a school district that does not currently have one imposed; prohibit a utility gross receipts license tax rate from increasing on or after January 1, 2026; amend KRS 11A.211 to increase the registration fee for each employer of one or more executive agency lobbyist and each real party in interest from $500 to $750; amend KRS 278.010 to define “municipal interlocal gas utility”; exempt “municipal interlocal gas utility” from the definition of “utility”; amend KRS 65.230 to define “municipal interlocal gas utility”; create a new section of KRS 65.210 to 65.300 to provide that municipal interlocal gas utilities shall be considered special purpose governmental entities and pay an annual fee to the Department for Local Government; amend KRS 65.240 to allow public agencies to enter into agreements to acquire natural gas facilities outside of its municipal jurisdictional boundaries; amend KRS 96.5375 to allow municipal interlocal gas utilities to extend or construct natural gas systems outside the constituents city’s boundaries; define municipal interlocal gas utility; allow for the selling or disposal of real property purchased with capital construction funds or equipment or state funds; require reporting of property sold or disposed; require school districts receiving urgent needs school allotments to reimburse the Commonwealth; amend various other sections to conform; make technical changes; repeal KRS 160.621, 160.625, 160.627, 160.633, 160.472, 211.390, and 211.392; EFFECTIVE, in part, August 1, 2026, and January 1, 2027; RETROACTIVE, in part to January 1, 2020; EMERGENCY. |
| Index Headings of Original Version |
Taxation - Income tax, IRC update Taxation - Income tax, mortgage interest deduction, primary residence only Taxation - Income tax, various credits, sunset Taxation - Inheritance and estate tax, time of payment and discount Taxation - Kentucky River Authority, water withdrawal fees taxation, prohibition Taxation - Occupational license taxes, schools, rate reduction and elimination Taxation - Pay phone service, utility gross receipts license tax Taxation - Prediction market operators, excise tax, imposition Taxation - Property tax, local boards of education, personal property, rate levy restrictions Taxation - Revenue measures, omnibus bill Taxation - Sales and use, agricultural exemption license number, extension Taxation - Sales and use, motion picture company, exemption, sunset, July 1, 2028 Taxation - Severance tax, fluorspar, imposition Taxation - Tax increment financing, state participation program, sunset Taxation - Use tax, marketplace provider, transaction threshold nexus standard, deletion Taxation - Use tax, remote retailer, transaction threshold nexus standard, deletion Taxation - Utility gross receipts license tax, pay phone service, impose Taxation, Income--Corporate - Certified rehabilitation credit, application rounds, allocation of credit cap Taxation, Income--Corporate - Deferred tax, deduction extension Taxation, Income--Corporate - Various tax credits, sunset Taxation, Income--Individual - Certified rehabilitation credit, application rounds, allocation of credit cap Taxation, Income--Individual - Estimated tax payments, refund Taxation, Income--Individual - Various tax credits, sunset Taxation, Inheritance And Estate - Time of payment and discount, extension Taxation, Property - Delinquent tax lien, notification process Taxation, Property - Local boards of education, tax rate levy requirements Taxation, Sales And Use - Agricultural exemption license number, extension Taxation, Sales And Use - Marketplace provider, transaction threshold nexus standard, deletion Taxation, Sales And Use - Motion picture company, exemption, sunset, July 1, 2028 Taxation, Sales And Use - Pay telephone service, imposition Taxation, Sales And Use - Remote retailer, transaction threshold nexus standard, deletion Taxation, Severance - Fluorspar, severance tax, imposition Technical Corrections - Property tax rate levy requirements Telecommunications - Pay phone service, utility gross receipts license tax Telecommunications - Pay telephone service, sales tax Tobacco - Premium cigars, excise tax imposition Vaping - Vending machine operator, licensing requirements Wills, Trusts, And Estates - Inheritance and estate tax, time of payment and discount Accountants - Prediction market operators, excise tax, imposition Advertising - Sales and use tax, billboard services, imposition Agriculture - Qualified farming operation tax credit, sunset Athletics - Fantasy contests, excise tax administration Budget And Financial Administration - Kentucky Access fund, use of funds Budget And Financial Administration - Money transfers to capital project allotment account, authorization reduction Budget And Financial Administration - Revenue measures, omnibus bill Business Entities And Organizations - Transactions, penny shortage, rounding Capital Construction - Money transfers to capital project allotment account, authorization reduction Cities - Municipal interlocal gas utilities, creation Cities - Regional industrial development districts, occupational license tax, levy restrictions, exclusion Coal - Fluidized bed combustion facility, tax exemption, repeal Commerce - Transactions, penny shortage, rounding County Clerks - Publication requirements, property tax rate levy Deaths - Inheritance and estate tax, time of payment and discount Economic Development - Kentucky Angel Investment Act, application acceptance, sunset Economic Development - Regional industrial development districts, purposes expansion and prioritization Economic Development - Tax increment financing, state participation program, sunset Education, Finance - Occupational license tax for schools, levy restrictions Education, Finance - Personal property tax rate levy restrictions Education, Finance - School district taxation, omnibus reforms Education, Finance - Transactions, penny shortage, rounding Education, Finance - Urgent needs school assistance, reimbursement of funds Effective Dates, Delayed - Fantasy contest operator and predictive markets operator, taxation, January 1, 2027 Effective Dates, Delayed - Marketplace provider and remote retailer, taxation thresholds, August 1, 2026 Effective Dates, Delayed - Pay phone service, utility gross receipts tax, August 1, 2026 Effective Dates, Delayed - Pay telephone and data brokering services, sales tax, August 1, 2026 Effective Dates, Emergency - Auditor of Public Accounts, audit expenses Effective Dates, Emergency - Certified rehabilitation credit, application rounds, allocation of credit cap Effective Dates, Emergency - Inheritance and estate tax, time of payment and discount Effective Dates, Emergency - Jailers, jail canteen account Effective Dates, Emergency - Kentucky Access fund, use of funds Effective Dates, Emergency - Kentucky Infrastructure Authority, administrative fee Effective Dates, Emergency - Kentucky River Authority, water withdrawal fees taxation, prohibition Effective Dates, Emergency - Kentucky State Police, security service billing requirement Effective Dates, Emergency - Money transfers to capital project allotment account, authorization reduction Effective Dates, Emergency - New tire fee, extension Effective Dates, Emergency - Personnel Board, assessments for operation Effective Dates, Emergency - Postsecondary institution, capital construction funds, sale or disposal or property Effective Dates, Emergency - Premium cigars taxation Effective Dates, Emergency - School tax rate levy requirements Effective Dates, Emergency - State Budget Director, tax expenditure report Effective Dates, Emergency - Urgent needs school assistance, reimbursement of funds Energy - Fluidized bed combustion facility, tax exemption, repeal Environment And Conservation - New tire fee, extension until July 1, 2028 Fees - Department of Agriculture, weights and measurements device inspections Fees - Kentucky Infrastructure Authority, administrative fee Fees - New tire fee, extension until July 1, 2028 Fees - Occupational license tax for schools, levy restrictions Funds - Infrastructure for Economic Development Funds, administrative fee Housing, Building, And Construction - Certified rehabilitation tax credit, certified historic structures Investments - Angel investor credit, sunset Jails And Jailers - Canteen accounts, property disposal Liens - Delinquent tax lien, notification process Local Government - Regional industrial development districts, occupational license tax, notification requirements Local Government - Transactions, penny shortage, rounding Minerals And Mining - Fluorspar, severance tax, imposition Pollution - Fluidized bed combustion facility exemption, repeal Property - Certified rehabilitation of historic structures, tax credit cap allocation Property - Delinquent tax lien, homestead exemption, requirement Public Buildings And Grounds - Money transfers to capital project allotment account, authorization reduction Public Utilities - Municipal interlocal gas utilities, creation Public Utilities - Pay phone service, utility gross receipts license tax, impose Real Estate - Certified historic structures, income tax credit Real Estate - Delinquent tax lien, notification process Reports Mandated - Department for Local Government, regional industrial development districts, report Reports Mandated - Department for Local Government, TVA in lieu of tax payments report Reports Mandated - Department of Revenue, high school equivalency diploma program incentive credit Reports Mandated - Department of Revenue, motion picture company sales and use tax, annual report Reports Mandated - Energy and Environment Cabinet, waste tire trust fund report Reports Mandated - Jailers, jail canteen account Retroactive Legislation - Municipal interlocal gas utilities, creation Science And Technology - Fluidized bed combustion facility tax exemption, repeal Small Business - Transactions, penny shortage, rounding Special Purpose Governmental Entities - Municipal interlocal gas utilities, creation State Agencies - Auditor of Public Accounts, audit expenses State Agencies - Department of Agricultural, weights and measurements device inspection fee State Agencies - Department of Revenue, severance tax, fluorspar, imposition State Agencies - Economic Development, state participation TIF programs, sunset State Agencies - Fantasy sports excise tax administration State Agencies - Kentucky Infrastructure Authority, administrative fee State Agencies - Kentucky River Authority, water withdrawal fees taxation, prohibition State Agencies - Kentucky State Police, security service billing requirement State Agencies - Personnel Board, assessments for operation State Agencies - State Budget Director, tax expenditure report State Agencies - Transactions, rounding, penny shortage Sunset Legislation - Income tax, various credits, sunset Sunset Legislation - Motion picture company, sales and use tax exemption, sunset, July 1, 2028 Sunset Legislation - New tire fee, extension until July 1, 2028 Sunset Legislation - Tax increment financing, state participation programs Taxation - Delinquent tax lien, notification process Taxation - Excise tax, fantasy contests, creation Taxation - Excise tax, premium cigars, establishment Taxation - Income tax credit, amendment to the certified rehabilitation credit Taxation - Income tax, deferred tax deduction, extension Taxation - Income tax, estimated tax payments, refund |
| Jump to Proposed Amendments |
House Committee Substitute 1 with Fiscal Impact Statements House Floor Amendment 1 House Floor Amendment 2 House Floor Amendment 3 House Floor Amendment 4 House Floor Amendment 5 House Floor Amendment 6 House Floor Amendment 7 House Floor Amendment 8 House Floor Amendment 9 Senate Committee Substitute 1 Senate Floor Amendment 1 Conference Committee Report 1 Free Conference Committee Report 1 |
| Votes | Vote History |
| 02/25/26 |
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|---|---|
| 03/04/26 |
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| 03/09/26 |
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| 03/10/26 |
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| 03/11/26 |
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| 03/12/26 |
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| 03/13/26 |
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| 03/20/26 |
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| 03/24/26 |
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| 04/01/26 |
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| 04/02/26 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Fiscal Impact Statement | Fiscal Note to House Committee Substitute 1 |
| Summary | Retain original provisions; amend 141.019 to disallow the deduction for interest paid on mortgage and home equity loans for more than a primary residence for taxable years beginning on or after January 1, 2026; change the taxable base for the excise tax on fantasy contest operators from gross receipts to entry fees and the tax rate from 15.25% to 12%; amend KRS 224.50-868 to extend the sunset date for the new tire fee to July 1, 2034; amend KRS 224.50-872 to require reporting of recipients receiving moneys from the fund and a compilation of the information in KRS 224.50-878(4); remove the sunset on the angel investor tax credit program; amend KRS 171.396 to define "affordable"; allow the certified rehabilitation income tax credit to apply to the taxes imposed under KRS 136.320, 136.330, 136.340, 136.350, 136.370, 136.390, and 304.3-270; allow the credit to equal 30% of the qualified rehabilitation expenses, if the commercial residential property is affordable, to households earning 80% of the median family income or less; allow an insurance company claiming the credit against the insurance premium tax to not pay additional retaliatory taxes; change the taxable base for the excise tax on prediction market operators from gross receipts to transaction fees and the tax rate from 15.25% to 17.25%; amend KRS 160.470 to require additional publication when a local board of education proposes to levy a general tax rate; create a new section of KRS 363.510 to 363.850 to establish an electric vehicle charging station inspection program at the Department of Agriculture; require an electric vehicle power dealer to obtain a retail electric charging license from the department before operating an electric vehicle charging station; require the department to impose an annual license fee of $100 per electric vehicle charging port located at an electric vehicle charging station; establish the retail electric vehicle charging station license fund; require the department to inspect each licensed electric vehicle charging station at least once every 2 years; require the inspection to be made using the standards in the current edition of the National Institute of Standards and Technology's Handbook 44; provide for the aspects of the inspection; exempt electric vehicle charging stations constructed using funds from the federal National Electric Vehicle Infrastructure Funding Program from the licensure and inspection requirements established by the section for 5 years following their initial operation; require that within 90 days of the effective date of the section, the department shall promulgate administrative regulations establishing the electric vehicle charging station inspection standards and to carry out the requirements of the section; amend KRS 363.510 to amend the definition of "weights and measures" and define for "electric vehicle," "electric vehicle charging port," "electric vehicle charging station," "electric vehicle power dealer," and "electric vehicle supply equipment"; amend KRS 138.477 to include within the definition of electric vehicle power dealer a person who receives the payment for the charges for power distributed through an electric vehicle charging station; amend KRS 138.446 to remove taxicab companies' ability to receive a refund of the motor fuels tax paid on motor fuels used in their regularly scheduled operations in Kentucky; amend KRS 138.210 to define "cellulosic ethanol," "ethanol," "ethanol flex fuel," and "fuel grade ethanol" and include fuel grade ethanol in the definition of "gasoline"; create a new section of KRS Chapter 246 to establish the Friends of Kentucky Agriculture fund; amend KRS 186.162, relating to special license plates, to establish that a portion of the initial and renewal fee for a Kentucky National Guard plate is dedicated to the National Guard Association of Kentucky and that a portion of the initial and renewal fee for a Friends of Kentucky Agriculture plate is dedicated to the Friends of Kentucky Agriculture fund; amend KRS 186.164 to set a $200,000 threshold for auditing groups receiving funds from special license plate fees; require reporting by groups receiving funds from special license plate fees; amend KRS 154.32-010, relating to the Kentucky Business Investment Program, to add laboratory equipment, computer servers, software, capitalized leases, and leasehold improvements directly related to research and development, headquarters, high-technology operations, or service sector facilities to the definitions of "eligible costs" and "start-up costs," respectively; amend KRS 143.022 to extend the allowance of coal severance tax refunds related to coal transported directly to a market outside of North America; amend KRS 186.041 and 186.166 to conform; make technical corrections; EFFECTIVE, in part, August 1, 2026, and January 1, 2027; RETROACTIVE, in part, January 1, 2026; EMERGENCY. |
| Index Headings |
Taxation - Taxicab companies, motor fuels tax refund, exclusion Taxation, Income--Corporate - Angel investor tax credit, sunset, removal Taxation, Income--Corporate - Certified rehabilitation credit, definitions Taxation, Income--Individual - Angel investor tax credit, sunset, removal Taxation, Income--Individual - Certified rehabilitation credit, definitions Taxation, Income--Individual - Interest deduction, primary residence requirement Transportation - Electric vehicle charging station inspection program, establishment Transportation - Electric vehicle power dealer, licensing Transportation - License plate, Kentucky National Guard special license plate, fee distribution Transportation - Taxicab companies, motor fuels tax refund, exclusion Administrative Regulations And Proceedings - Department of Agriculture, EV charging station inspection program, administrative regulations Agriculture - Department of Agriculture, electric vehicle charging station inspection program, establishment Business Entities And Organizations - Kentucky Business Investment Program, eligible and start-up costs, addition County Clerks - License plate, Kentucky National Guard special license plate, fee distribution Economic Development - Kentucky Business Investment Program, eligible and start-up costs, addition Education, Finance - Local board of education, general tax rate, publication requirements Effective Dates, Delayed - Electric vehicle power dealer, August 1, 2026 Effective Dates, Delayed - Motor fuels tax, definitions Effective Dates, Delayed - Motor fuels tax, taxicab refunds Effective Dates, Emergency - Coal severance tax refunds on foreign coal, extension Effective Dates, Emergency - Special license plate, fee distribution Environment And Conservation - New tire fee, extension Fees - Electric vehicle charging station inspection program, establishment, licensure fee Fees - New tire fee, extension Fuel - Taxicab companies, motor fuels tax refund, exclusion Funds - Friends of Kentucky Agriculture fund Funds - Retail electric vehicle charging station license fund, establishment Licensing - Electric vehicle charging station inspection program, establishment Motor Vehicles - Electric vehicle charging station inspection program, establishment Motor Vehicles - Electric vehicle power dealer, licensing Motor Vehicles - License plate, Friends of Kentucky Agriculture Motor Vehicles - License plate, Kentucky National Guard special license plate, fee distribution Motor Vehicles - Motor fuels tax, definitions National Guard - Special license plate, fee distribution Occupations And Professions - Taxicab companies, motor fuels tax refund, exclusion Reports Mandated - Department of Revenue, coal severance tax refunds on foreign coal Retroactive Legislation - Special license plate fees, auditing and reporting requirements Safety - Electric vehicle charging station inspection program, establishment Small Business - Kentucky Business Investment Program, eligible and start-up costs, addition State Agencies - Department of Agriculture, electric vehicle charging station inspection program, establishment Taxation - Coal severance tax refunds on foreign coal, extension Taxation - Electric vehicle power dealer, imposition Taxation - Excise tax, fantasy contest operators, base and rate amendment Taxation - Excise tax, prediction market operators, base and rate amendment Taxation - Income tax, angel investor tax credit sunset, removal Taxation - Income tax, certified rehabilitation credit, definitions Taxation - Insurance premium tax, certified rehabilitation credit Taxation - Kentucky Business Investment Program, eligible and start-up costs, addition Taxation - Motor fuels, definitions |
| Amendment | House Floor Amendment 1 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; and amend KRS 142.400 to impose a 1% statewide surtax on the rental of accommodations when charged by the owner of the property or by a person facilitating the rental of the property and deposit the receipts from the surtax into the affordable housing trust fund; amend KRS 142.402, 142.404, 142.406, and 198A.190 to conform; EFFECTIVE August 1, 2026. |
| Index Headings |
Effective Dates, Delayed - Statewide transient room surtax, imposition, August 1, 2026 Housing, Building, And Construction - Affordable Housing Trust Fund, surtax on rental of accommodations, deposit Taxation - Statewide transient room surtax, imposition |
| Amendment | House Floor Amendment 2 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.019 to require any gain from the sale or exchange of qualified small business stock be included in the calculation of adjusted gross income. |
| Index Headings |
Small Business - Qualified small business stock, gain from the sale or exchange, individual income tax Taxation - Gain from the sale of qualified small business stock, include in adjusted gross income Taxation, Income--Individual - Gain from the sale of qualifiied small business stock, include in adjusted gross income |
| Amendment | House Floor Amendment 3 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; and amend KRS 141.039 to include in adjusted gross income any federal deduction taken for foreign-derived deduction eligible income under 26 U.S.C. sec. 250. |
| Index Headings |
Taxation - Foreign-derived deduction eligible income, corporation income tax Taxation, Income--Corporate - Foreign-derived deduction eligible income |
| Amendment | House Floor Amendment 4 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.030 to provide guidelines related to the taxation of an incomplete gift non-grantor trust; provisions apply to taxable years beginning on or after January 1, 2026. |
| Index Headings | Taxation - Incomplete gift non-grantor trust |
| Amendment | House Floor Amendment 5 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.039 to state that dividend income does not include net CFC-tested income as used in 26 U.S.C. sec. 951A. |
| Index Headings |
Taxation - Corporation income tax, net CFC-tested income, taxation Taxation, Income--Corporate - Net CFC-tested income; taxation |
| Amendment | House Floor Amendment 6 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 142.400 to impose a 1% statewide surtax on the rental of accommodations when charged by the owner of the property or by a person facilitating the rental of the property and deposit the receipts from the surtax into the affordable housing trust fund; amend KRS 142.402, 142.404, 142.406, and 198A.190 to conform; EFFECTIVE August 1, 2026. |
| Index Headings |
Effective Dates, Delayed - Statewide transient room surtax, imposition, August 1, 2026 Housing, Building, And Construction - Affordable Housing Trust Fund, surtax on rental of accommodations, deposit Taxation - Statewide transient room surtax, imposition |
| Amendment | House Floor Amendment 7 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.019 to require any gain from the sale or exchange of qualified small business stock be included in the calculation of adjusted gross income. |
| Index Headings |
Small Business - Qualified small business stock, gain from the sale or exchange, individual income tax Taxation - Gain from the sale of qualified small business stock, include in adjusted gross income Taxation, Income--Individual - Gain from the sale of qualified small business stock, include in adjusted gross income |
| Amendment | House Floor Amendment 8 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.039 to include in adjusted gross income any federal deduction taken for foreign-derived deduction eligible income under 26 U.S.C. sec. 250. |
| Index Headings |
Taxation - Foreign-derived deduction eligible income, corporation income tax Taxation, Income--Corporate - Foreign-derived deduction eligible income |
| Amendment | House Floor Amendment 9 |
|---|---|
| Sponsor | L. Burke |
| Summary | Retain original provisions; amend KRS 141.030 to provide guidelines related to the taxation of an incomplete gift non-grantor trust; provisions apply to taxable years beginning on or after January 1, 2026. |
| Index Headings | Taxation - Incomplete gift non-grantor trust |
| Amendment | Senate Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions; amend KRS 141.019 to couple with the deduction for employer contributions to Trump accounts; include the amount deducted for domestic research or experimental expenditures under 26 U.S.C. sec. 174A; exclude the amount deducted for domestic research or experimental expenditures under 26 U.S.C. sec. 174, as that section existed on December 31, 2024; set the tax rate for fantasy contest service providers at 12% of adjusted gross fantasy contest receipts; require participants in fantasy contests to be at least 21 years of age; amend KRS 139.010 to remove from the definition of "data brokering services" the use of data by a third party; define “infrastructure development” and “trustee”; amend KRS 65.302 to allow tax revenues from a regional industrial to be distributed by the interlocal agreement; amend the purpose of the district; allow the occupational license fee imposed by the district to continue instead of expiring at the earlier of when the bonds are retired or 20 years; require if a district is located within a city’s jurisdiction, all cities, which are part of the interlocal agreement, agree upon the occupational tax rate imposed; allow stacking of occupational license taxes, but require if a city and county both impose an occupational license fee, crediting provisions under KRS 68.197 apply; allow the district to be a county industrial district under KRS 81A.532 to 81A.536 upon the enactment of an ordinance; allow wage assessments to be imposed in the district; set expiration requirements for the wage assessments; amend KRS 138.140 to lower the wholesale sales tax rate on premium cigars from 15% to 6%; extend the sunset date for the film and motion picture tax exemption to July 1, 2030; allow surplus credits in the owner-occupied residential property or commercial property pools to be used interchangeably; allow 50 % of the surplus credits to roll to the next application round; require the Heritage Council and Kentucky Housing Corporation collaborate on compliance with income limits for workforce housing credit; require the apportionment process to happen twice a year; set the tax rate for the prediction market operator excise tax at 14.25% of transaction fees; amend KRS 160.473 to prohibit the general tax rate levied by a local board of education to be more than the tax levied for January 1, 2028 assessment year; amend KRS 160.607 to increase the population threshold for a county to exceed the maximum occupational license tax rate by 0.25%; amend KRS 160.483 to prohibit an occupational license tax from being imposed in a school district that does not already have one imposed as of January 1, 2027; prohibit an occupational license tax rate levied by a school to increase on or after January 1, 2027; remove the prohibition on utility gross receipts license tax; create a new section of KRS 65.210 to 65.300 to prohibit municipal interlocal gas utilities from serving residential and provide exceptions; create a new section of KRS 65.210 to 65.300 to provide that municipal interlocal gas utilities shall be considered special purpose governmental entities and pay an annual fee to the Department for Local Government; amend KRS 217.2202 to prohibit the distribution, dispensing, selling, or making available for sale kratom, kratom, extract, or kratom product and set penalties for violation; amend KRS 139.495 to define "educational or charitable institution" and "religious institution"; exempt purchases and sales of tangible personal property, digital property, or services made by qualifying religious institutions from state sales and use taxes; amend KRS 132.195 to exempt leasehold interests in real property owned by Kentucky Housing Corporation and leasehold interests in public-private partnerships projects or property developed, acquired, or leased in accordance with public-private partnership agreements executed by a state contract or local government; amend KRS 65.494 to require a new development area to exist for 30 years and all it to be extended for 25 years to accommodate a pilot program term; set requirements on contracts regarding the application of increment derived from the new development area; require amendments of projects for an existing development and any negotiation or agreement made related to an existing development area or new development area to be approved by KEDFA; amend KRS 141.438 to increase the tax credit cap from $1,000,000 to $2,000,000 on or after July 1, 2026; amend KRS 164.2847 to require waiver of tuition and fees for a Kentucky foster or adopted child who is a full-time or part-time student if the student meets all entrance requirements and maintains academic eligibility while enrolled at the postsecondary institution; amend KRS 278.150 to increases the Public Service Commission assessment from 2 mills to 0.23% of intrastate receipts; amend KRS 117.322 to include a person with intent to deceive or mislead changes in the content of an electioneering communication in a manner that results in it qualifying as synthetic media in the reasons that a medium or its advertising sales representative may be held liable in a cause of action; amend KRS 154.30-010, relating to tax increment financing, to extend the sunset date for the "modified new revenues for income tax" to 2048 and reduce the modifier; amend KRS 132.380 to require DOR to continue to hold the PVA exam until 2 people for a county are certified or 30 days prior to the certification of candidates for the regular election, when there is not a qualified candidate before the filing deadline for the primary election; create various funds; require the Legislative Research Commission to study of the taxation structure of depository financial institutions. |
| Index Headings |
Advertising - Synthetic media in electioneering communication Charitable And Nonprofit Organizations - Religious institutions, sales and use tax, exemption Drugs And Medicines - Kratom, kratom extract, kratom product, prohibition Economic Development - Tax increment financing in existing and new development areas, approval by KEDFA Education, Elementary And Secondary - Religious institutions, sales and use tax, exemption Education, Finance - Religious institutions, sales and use tax, exemption Fees - Public Service Commission assessment fees Funds - Out-of-home care program Legislative Research Commission - Taxation structure of depository financial institutions Property - Income tax credit amendment, certified rehabilitation of historic structures, credit cap allocation Property Valuation Administrators - Examination opportunities Real Estate - Certified historic structures, income tax credit, amendment to certified rehabilitation credit Religion - Religious institutions, sales and use tax, exemption Sales - Religious institutions, sales and use tax, exemption Studies Directed - Taxation structure of depository financial institutions Sunset Legislation - Tax increment financing, modified new revenues for income tax, extension to 2048 Taxation - Endow Kentucky tax credit, sunset Taxation - Income tax credit, amendment to the certified rehabilitation credit Taxation - Religious institutions, sales and use tax, exemption Taxation - Tax increment financing, new development area, extension Taxation - Tax increment financing, state participation program Taxation, Income--Individual - Tax increment financing, individual income tax Taxation, Property - Leasehold interests, Kentucky Housing real property, exemption Taxation, Property - Leasehold interests, public-private partnerships, exemption Taxation, Sales And Use - Religious institutions, exemption |
| Amendment | Senate Floor Amendment 1 |
|---|---|
| Sponsor | G. Williams |
| Summary | Amend KRS 139.495 to define "educational or charitable institution" and "religious institution"; exempt purchases and sales of tangible personal property, digital property, or services made by qualifying religious institutions from state sales and use taxes; make technical changes. |
| Index Headings |
Charitable And Nonprofit Organizations - Religious institutions, sales and use tax, exemption Education, Elementary And Secondary - Religious institutions, sales and use tax, exemption Education, Finance - Religious institutions, sales and use tax, exemption Religion - Religious institutions, sales and use tax, exemption Sales - Religious institutions, sales and use tax, exemption Taxation - Religious institutions, sales and use tax, exemption Taxation, Sales And Use - Religious institutions, exemption |
| Amendment | Conference Committee Report 1 |
|---|---|
| Summary | Cannot agree. |
| Index Headings | Conference Committee Reports - HB 757 |
| Amendment | Free Conference Committee Report 1 |
|---|---|
| Summary | Create a new section of KRS Chapter 11 to require the state curator to accept a statute, monument, or object to art that is privately funded and created depicting or representing United States Senator Addison Mitchell McConnell for display in the New State Capitol rotunda; require the commission to reserve a spot in the rotunda for the display; authorize the installation and permanent display by the General Assembly; create a new section of KRS Chapter 139 to establish a sales tax incentive related to profession a sporting events equal to 100% of the sale of admissions and tangible personal property and services to a qualifying attraction; set requirements for receiving the incentive; create a new section of KRS Chapter 171 to allow credit for taxable years beginning on or after January 1, 2027, for the certified rehabilitation of a certified historic structure in which total qualified rehabilitation expenses exceed $150,000,000 for the taxable year; set requirements for the credit. |
| Index Headings |
Public Buildings And Grounds - Senator Addison Mitchell McConnell, statute, monument, or object of art display requirement Taxation - Sales Tax, professional sporting event incentive Taxation, Income--Corporate - Certified rehabilitation credit Taxation, Income--Individual - Certified rehabilitation credit Taxation, Sales And Use - Professional sporting event incentive |
Last updated: 4/7/2026 4:24 PM (EDT)