HB 107/LM (BR 896) - J. Draud, J. Callahan, T. Feeley, M. Marzian, R. Palumbo, J. Wayne
AN ACT relating to revenue and taxation, and making an appropriation therefor, and declaring an emergency.
Create new sections of KRS Chapter 142 to impose a tax of 32% of the gross receipts of wholesale sales of smokeless tobacco, cigars, loose tobacco, and pipe tobacco and specify that funds received shall be deposited into a new children's dental care fund; exempt sales between wholesalers and distributors; require certificate of registration; require tax returns; permit time extension for filing tax returns; require interest on tax not paid by date due; permit offset payments; require wholesalers and distributors to keep records for 4 years; permit tax refunds and credits; permit civil penalties for violations; amend KRS 138.140 to impose a surtax of $0.75 per pack of cigarettes and specify that funds received shall be deposited into a new Commonwealth fund; amend KRS 138.146 to specify that the tax evidence compensation remains at $.30 per $3 and require the $0.75 tax to be paid at the time of purchase of tax evidence stamps; amend KRS 248.652 to specify the $0.03 tax remains credited to the agriculture diversification and development fund; amend KRS 438.335 to specify that the Department of Agriculture retains $0.0005 of the $0.03 tax; amend KRS 438.337 to specify that the Department of Alcoholic Beverage Control retains $0.0005 of the $0.03 tax; create new sections of KRS Chapter 41 to establish a children's dental care fund from the tax imposed on smokeless tobacco, cigars, loose and pipe tobacco and to create a Commonwealth Fund from the surtax imposed on cigarettes and specify use of cigarette tax money for mental health and substance abuse services, Medicaid health care services, cost-of-living pay raises for certified and classified public school employees, smoking prevention and cessation, public school construction or renovation for local school districts with growth in enrollment, veterans' nursing homes, university medical schools for cancer research, and the state general fund; require any agency or entity receiving moneys from the Commonwealth Fund to report on use of the funds; create a new section of KRS Chapter 194A to require the Department for Public Health to administer the children's dental fund for children whose family income is below 250% of the federal poverty level, and require the Cabinet for Health Services to report on the use of funds; create a new section of KRS Chapter 132 to exempt motor vehicles from the state ad valorem tax; amend KRS 134.805 to levy a $3 administrative fee on motor vehicle registrations; provide that county clerks are allowed to retain $1 of the fee and that the remaining $2 is to be remitted to the Revenue Cabinet; amend KRS 132.487, 134.800, 134.810, 134.815, and 134.820 to conform; provide that the new cigarette and tobacco taxes takes effect July 1, 2004, provide that motor vehicles exemptions from state ad valorum tax takes effect January 1, 2005. EMERGENCY, APPROPRIATION.
(Prefiled by the sponsor(s).)
Jan 6-introduced in House; to Appropriations and Revenue (H)