HB 364/FN (BR 334) - B. Farmer, C. Belcher, J. Bowen, J. Carr, R. Crimm, J. DeCesare, C. Embry Jr, J. Fischer, J. Higdon, R. Mobley, B. Montell, D. Osborne, R. Palumbo, M. Rader, S. Rudy, S. Westrom, A. Wuchner
AN ACT relating to taxation.
Amend KRS 141.010 to add definitions and change the definition of corporation; amend KRS 141.0205 to recognize change in corporation tax credits; amend KRS 141.040 to change the method of taxing pass-through entities; amend KRS 141.120 to change apportionment for corporations owning pass-through entities; amend KRS 141.200 to allow previously consolidated groups to opt out of that consolidation, and change language to agree with the new definitions; amend KRS 141.205 to extend prohibited related party transactions to apply to newly defined entities, and allow management fees that are for recognized business purposes and are equivalent to arms-length; amend KRS 141.206 to recognize pass-through entities in apportionment methods; require withholding on distributive share of net income of all nonresidents who do not consent to personal jurisdiction for tax purposes; require inclusion of a pass-through entity's gross receipts or gross profits in determining the alternative minimum calculation of a corporate owner; amend KRS 141.208 to tax limited liability companies as they are treated for federal tax purposes; amend KRS 141.420 to treat distributions of corporations and pass-through entities in the same manner as for federal purposes; amend KRS 141.347, 141.400, 141.401, 141.403, 141.405, 141.407, 141.414, and 141.415 to conform; amend KRS 141.990 to provide a safe harbor for corporation declaration payments; EFFECTIVE for tax years beginning on or after January 1, 2006 unless specified for earlier tax years in certain provisions.
Jan 17-introduced in House
Jan 18-to Appropriations and Revenue (H)