| Last Action | 02/25/26: to Committee on Committees (H) |
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| Title | AN ACT relating to revenue measures and declaring an emergency. |
| Bill Documents | Introduced |
| 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 |
| 02/25/26 |
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Last updated: 2/25/2026 6:56 PM (EST)