{"id":8247,"date":"2022-03-29T15:10:17","date_gmt":"2022-03-29T19:10:17","guid":{"rendered":"https:\/\/www.greaterlouisville.com\/?p=8247"},"modified":"2022-03-30T11:16:37","modified_gmt":"2022-03-30T15:16:37","slug":"senate-passes-state-tax-reform-bill","status":"publish","type":"post","link":"https:\/\/www.greaterlouisville.com\/advocacy-and-legislation\/senate-passes-state-tax-reform-bill\/","title":{"rendered":"General Assembly passes state tax reform bill"},"content":{"rendered":"

This post was updated on March 30, 2022 to reflect final passage of the House Bill 8.<\/em><\/p>\n

The General Assembly passed an amended version of House Bill 8<\/a> to modernize Kentucky\u2019s personal income tax on Tuesday. The original version, sponsored by House Appropriation and Revenue Chair Jason Petrie, lowered the state\u2019s 5% personal income tax incrementally over a period of years until it was eliminated and included broadening the base by extending the sales tax or user fees to several services.<\/a><\/p>\n

The Senate committee substitute adopted and ultimately passed by the General Assembly includes revenue triggers to lower the personal income tax but implements other safeguards for a more conservative approach. A 0.5% personal income tax reduction would require for actual revenue incurred that year to exceed expenses plus the dollar value of a 1% reduction income tax. Additionally, the amended version requires a 10% budget reserve trust fund to be established before lowering the income tax rate and requires that the General Assembly must have the opportunity to affirmatively vote on income tax reductions.<\/p>\n

Financial services, travel agencies, and boat launch fees were removed from the list of services that would see an increase in sales tax or user fees. That list still includes the following services:<\/p>\n