HB 262/FN (BR 911) - J. Wayne, J. Jenkins, L. Belcher, T. Burch, M. Marzian, R. Meeks, T. Riner, K. Stein
AN ACT relating to taxation.
Amend KRS 141.020 to increase the tax rate on income over $75,000; amend KRS 141.066 to establish a refundable earned income tax credit at 15 percent of the federal credit; amend KRS 140.130 to decouple from the federal estate tax phase-out; amend KRS 139.120, 139.200, and 139.480 to include a list of selected services as subject to sales tax; amend KRS 141.0205 to recognize changes to income tax credits; make income tax provisions effective for tax years beginning on or after January 1, 2008, make estate tax provisions effective for deaths on or after August 1, 2008; make sales tax provisions effective for billings on or after August 1, 2008.
HB 262 - AMENDMENTS
HCS (1/FN) - Replace all existing language with a sales tax exemption for lemurs.
HCS (2/FN) - Remove all original provisions of the bill; amend KRS 139.200 to include a smaller list of services as taxable; repeal, reenact and amend KRS 138.130 to alter the definition of "other tobacco products"; amend KRS 138.140 to increase the cigarette tax by 25 cents per pack, and the tax on other tobacco products by 6.25%; amend KRS 138.143 to impose a floor stocks tax; amend KRS 138.146 to eliminate advance hoarding of stamps; amend KRS 138.195 to conform; amend KRS 138.210 to modify the definition of "average wholesale price" and to allow the price to adjust up to 10% per quarter beginning January 1, 2010; amend KRS 138.220 to clarify the computation of the motor fuels tax.
HFA (1, B. Farmer) - Amend KRS 138.140 to sunset the 25 cent surtax cigarettes and the 6.25% increase on other tobacco products on June 30, 2010.
HFA (2, D. Floyd) - Retain original provisions; amend KRS 138.140 to sunset the cigarette tax increase on June 30, 2010.
HFA (3, H. Moberly Jr.) - Allow one-tenth of one cent ($0.001) of the July 1, 2008 increase in motor fuels taxes to be shared with local governments.
HFA (4, M. Marzian) - Retain original provisions except establish the surtax on cigarettes at thirty-five cents ($.35) and specify that ten cents ($.10) of the surtax shall be used to fund mental health and substance abuse services provided by regional mental health and mental retardation boards.
HFA (5, D. Watkins) - Delete Section 1 of the Act removing the sales tax on selected services; increase the cigarette surtax in the original bill to 30 cents ($.30).
HFA (6, J. Hoover) - Suspend the application of the prevailing wage law for FY09 and FY10, for all public works projects.
HFA (7, H. Moberly Jr.) - Remove requirement for earmark of cancer research penny; remove quarterly limit of average wholesale price increase for motor fuels tax; make technical amendment.
HFA (8, B. Farmer) - Provide that the provisions of Sections 1 to 8 shall expire June 30, 2010.
HFA (9, T. Moore) - Retain original provisions; create a new section of KRS Chapter 141 to create a tax credit for individuals participating in a smoking cessation treatment program; amend KRS 141.2025 to place the new credit in the ordering of all tax credits.
SCS/FN - Remove all sections of original bill; create a new section of KRS Chapter 42 and a new section of KRS Chapter 141 to establish a rebate of income tax paid by active duty military members; create a new section of KRS Chapter 139 to establish a sales tax refund for governmental entities in counties under 100,000 that own and operate a multipurpose facility available for public arts, sports, and entertainment performances; create new sections of KRS Chapter 148 to provide individual income tax, corporation income tax, limited liability entity tax, and sales tax incentives for locating a film production facility in Kentucky or filming or producing a motion picture production in Kentucky; define terms; establish qualifications including minimum capital investment and minimum qualifying expenditures and minimum qualifying payroll expenditures, application and reporting requirements; require the Kentucky Film Office to administer the incentive program; authorize the Kentucky Film Office to enter into a film industry tax incentive agreement; authorize the promulgation of administrative regulations by the Kentucky Film Office and the Department of Revenue; create a new section of KRS 141 to create a motion picture film production nonrefundable credit for a new film production facility or renovation of an existing structure to become a film production facility and a motion picture production that is filmed or produced in Kentucky against the tax imposed under KRS 141.020 or 141.040 and KRS 141.0401, allow credit to be carried forward 3 years; amend KRS 141.0205 to establish the order in which the credits may be taken; create a new section of KRS 139 to provide refund of the sales and use tax paid on the purchase of tangible personal property that is permanently incorporated into a film production facility or is used to equip the film production facility; provide for a refund of the sales and use tax paid by an approved company on qualifying expenditures if used in the filming or production of a motion picture production in Kentucky; amend KRS 139.5381, 139.5382, 139.5383, 139.5384, and 139.5385 to apply prior to August 1, 2008; appropriate $10,000,000 to the military service rebate fund.
SCA (1, D. Kelly) - Amend KRS 136.602 to include video services regardless of the method of delivery in the definition of multichannel video programming service; amend KRS 160.603 and 160.6131 to conform; amend KRS 160.614 to coordinate with school tax requirements.
SCA (2, R. Jones II) - Amend rebate provisions to allow the rebate of sales taxes collected from the sale of tangible personal property to the governmental entity operating the public facility.
SFA (1, D. Boswell) - Exempt air ambulance providers from the sales tax on air charter services.
Jan 10-introduced in House
Jan 15-to Appropriations & Revenue (H)
Mar 3-posting waived
Mar 4-reported favorably, 1st reading, to Calendar with Committee Substitute
Mar 5-2nd reading, to Rules
Mar 6-recommitted to Appropriations & Revenue (H)
Mar 11-floor amendments (1) (2) (3) (4) (5) and (6) filed to Committee Substitute (2) ; reported favorably, to Rules with Committee Substitute (2) ; taken from Rules Committee; placed in the Orders of the Day
Mar 12-floor amendments (7) (8) and (9) filed to Committee Substitute (2) ; 3rd reading, passed 50-45 with Committee Substitute (2), floor amendment (7)
Mar 13-received in Senate; floor amendment (1) filed
Mar 17-to Appropriations & Revenue (S)
Mar 24-taken from committee Appropriations & Revenue (S); 1st reading; returned to Appropriations & Revenue (S)
Mar 25-taken from committee Appropriations & Revenue (S); 2nd reading; returned to Appropriations & Revenue (S)
Mar 26-reported favorably, to Rules with Committee Substitute, committee amendments (1) and (2)
Mar 27-posted for passage in the Regular Orders of the Day for Thursday, March 27, 2008; passed over and retained in the Orders of the Day; 3rd reading; floor amendment (1) withdrawn ; passed 33-0 with Committee Substitute, committee amendments (1) and (2)
Mar 28-received in House; to Rules (H); posted for passage for concurrence in Senate Committee Substitute, committee amendments (1) and (2)