HB 138 (BR 813) - J. Draud
AN ACT relating to revenue and taxation, making an appropriation therefor, and declaring an emergency.
Amend KRS 138.130 to include tobacco products or smokeless tobacco and define terms; 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; 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; create a new section of KRS 138.130 to 138.205 to require a physical inventory of cigarette packages on May 31, 2005, and a report of the inventory to the Revenue Cabinet; establish a floor stock tax; amend KRS 138.146 to exempt compensation for tax evidence; amend KRS 138.165 for technical corrections; amend KRS 138.195 to require the tax on smokeless and other tobacco products to be paid by the 20th of each month and require the Revenue Cabinet to promulgate administrative regulations; create a new section of KRS 138.130 to 138.205 to corporate and limited liability officers to be personally liable for taxes imposed; amend KRS 248.652 to specify the $0.03 tax imposed by KRS 138.140 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 and other tobacco; create a Commonwealth Fund from the surtax imposed on cigarettes; 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 tax revenues 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; 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 take effect July 1, 2005, provide that motor vehicle exemption from the state ad valorum tax takes effect January 1, 2005; EMERGENCY; APPROPRIATION.
Jan 7-introduced in House
Feb 1-to Appropriations and Revenue (H)