KY HB5 | 2023 | Regular Session | LegiScan AN ACT relating to fiscal matters and declaring an emergency. of Educational Accountability, 03/31/23: signed by Governor (Acts Ch. of Educational Accountability, 01/13/22: signed by Governor (Acts Ch. Several factors will need to be considered, including: There are stillmanyunanswered questions on how this legislation will be implemented. Delete all provisions; amend KRS 132.140 to phase out the ad valorem tax on distilled spirits and exempt distilled spirits after year 2043; create a new section of KRS Chapter 138 to provide an industry replacement tax for schools and fire districts; amend KRS 141.389 to allow a taxpayer to elect to receive a modified credit or a combined sales and use tax refund and a withholding tax refund based on a portion of the accumulated distilled spirits income tax credit for certain capital investments and job creation; create a new section of KRS 157.310 to 157.440 to modify the SEEK funding formula related to distilled spirits; amend various sections that were amended by 2023 Ky. Acts ch. Increased compliance costs for PTE tax filers. Check out our first installment of our Intern Insider series featuring Abigail Watson, a tax intern, working in Blue's Indianapolis office. However, the addition of text messages and social media to the definition of taxable telemarketing services seems to make Kentucky unique among the states. While the legislature appears unlikely this session to appropriate new funds for housing assistance in parts of the state devastated by natural disasters, it seems likely to shift existing disaster relief funding to meet that need. posted for passage in the Regular Orders of the Day for Wednesday, March 15, 2023 3rd reading floor amendment (1) withdrawn passed 35 -0 with Floor Amendment (2) received in House to Rules (H) On March 14, 2023 in the House: 2nd reading, to Rules as a consent bill Floor Amendments (1) and (2) filed On March 13, 2023 in the House:
Penalties and interest provisions provide the necessary relief to allow Kentucky taxpayers to take advantage of the retroactive PTE election for 2022 without being penalized.
2023 KY General Assembly is underway. Here's what lawmakers are By Aaron Mudd. The election and tax returns for 2022 will not be available until later this year. Underpayment of estimated tax penalties will not apply to the PTE tax liability for tax years beginning on or after January 1, 2022, but before January 1, 2024. Speaking for HB 5 on the House floor, Osborne said the threat of the industry leaving the state over the tax is real, as the product only has to be in the state for one year to be called Kentucky bourbon. Amend KRS 141.020 to reduce the individual income tax to 4.5% for taxable years beginning January 1, 2023, and to 4% for taxable years beginning January 1, 2024. posted for passage in the Regular Orders of the Day for Wednesday, February 08, 2023. Numbers. Spectrum: Partisan Bill (Republican 1-0) Status: Passed on April 8 2022 - 100% progression. July 01, 2023 7:00 AM. Do you want to add this note to other bill lists too? Necessary cookies are absolutely essential for the website to function properly. Committee Schedule, Office
You can (and should) ignore the PTE tax provisions enacted in HB 360. 2023 Regular Session 2022 Special Session 2022 Regular Session 2021 Special Session 2021 Interim Record - December 2021 Regular Session 2020 Regular Session 2019 Special Session 2019 Regular Session Record 2018 Special Session Record 2018 Regular Session Past Legislative Records Past Interim Records Legislative Record Search All rights Reserved, - West Kentucky State Aid Funding for Emergencies, - Assistance, Caldwell and Muhlenberg Counties, Last Effective Dates, Expirations, and Certifications, Career
The bill drew stiff opposition in committee testimony from local officials, with school districts, city and county governments, law enforcement and firefighters saying it would cost them an estimated $30 million in annual tax revenue. Two joint resolutions are also near passage that could authorize the release of significant capital construction funds for state agencies. Legislation enacted in 2022 (HB 8) imposed sales and use tax on an additional 34 services. Kentucky taxpayers may take advantage of tax savings by making the election for their 2022 PTE returns. House Bill 5: Kentucky Enacts Retroactive Pass-through Entity Tax, For a detailed explanation of passthrough entity taxes why states have enacted them and how taxpayers may benefit , PTE Taxation in Kentucky: House Bill 5 Highlights, Challenges and Considerations for PTE Elections for the 2022 Tax Year. Legislative Research Commission
Benefits of Annual Wellness Visits Annual Wellness Visits also improve quality impact and [], By Luke Pierce, CPA, Manager at Blue & Co. What Are Functional Expenses? 141.020 to adopt a process requiring the Office of State Budget Director to evaluate whether additional rate reductions may be adopted for tax years beginning on or after January 1, 2025. Current Requirements for Documentation and Reporting, reach out to your local Blue & Co. advisor, Implementation Guide: ASU 2016-14 Presentation of Financial Statements for Not-for-Profit Entities, Annual Wellness Visits: Understanding the Value They Bring, Functional Expenses What They Are and Why They Matter. Copyright
Copyright
01/12/22. Passed Senate. Opportunities, Regular Session
HB 360 makes Kentucky the 32nd jurisdiction to adopt an elective PTE tax. Committee Schedule, Office
} Kentucky Fish and Wildlife conservation officers are included in this provision. You can create bill lists by going to Tracked Bills->Manage Bill Lists. Note: This alert has been updated to add a reference to subsequent law changes made by House Bill 5 (HB 5) that clarify the pass-through entity tax provisions enacted in HB 360 and modify changes to the definition of taxable "telemarking services" made by HB 360.. On March 24, 2023, Kentucky Governor Andy Beshear signed into law House Bill 360 (HB 360), which includes a number of tax . Create a new section of KRS Chapter 247 to prohibit a nonresident alien, foreign business, agent, trustee, or fiduciary associated with the government of any prohibited country as referenced in 22 C.F.R. All Rights Reserved. AN ACT relating to the taxation of currency and bullion. EY US Tax News Update Master Agreement | EY Privacy Statement, Create an elective passthrough entity (PTE) tax, Update Kentucky's Internal Revenue Code (IRC) conformity date, Make technical corrections to sales tax legislation enacted in 2022 by HB 8 (see Tax Alert 2022-0564), Expand the definition of taxable telemarking services to include the use of text messages and social media, Allow a deduction for expenses covered by Restaurant Revitalization Funds received between January 1, 2020 and March 11, 2023. If the PTE makes the election, all owners are included resident and nonresident individuals, other pass-through entities, C corporations, and beneficiaries of an estate or trust. The legislature recently enacted HB 1, which lowered the state individual income tax rate to 4.5%, retroactive to January 1, 2023, and to 4.0%, effective January 1, 2024. Tax News Update Email this document Print this document, Kentucky law updates IRC conformity, adopts an elective passthrough entity tax, and makes sales/use tax changes. Andy Beshear. The election can be made only upon consent of all partners, members or shareholders (collectively, investors) holding more than 50% ownership in the PTE. Among them, codifying the cut to. During this years Summer Leadership Program, students worked together to create a mini-golf course out of non-perishable food items, which were then donated to a local food pantry in Kentucky. The state residence of all the pass-through entity owners. floor amendment (1) filed to Committee Substitute. While HB 444 directs $89 million of the funding for 6% raises across three branches of government, Senate Bill 162 would also direct $38 million toward salary increases for staff of the Corrections and Juvenile Justice departments. Are you part of a non-profit, business, government relations firm or association? House Bill 5. AN ACT relating to fiscal matters providing funding for disaster recovery and relief, making an appropriation therefor, and declaring an emergency. Pass. 3) Text: Latest bill text (Chaptered) [PDF] Summary
Amend KRS 139.480 to exempt currency and bullion from sales and use tax; EFFECTIVE July 1, 2023. Under financial reporting standards, all not-for-profit entities are required to present a statement of functional expenses, either within the actual financial statements or as a disclosure within the notes to the financial statements. https://apps.legislature.ky.gov/record/23RS/hb5/vote_history.pdf, enrolled, signed by President of the Senate, posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title), House concurred in Senate Committee Substitute (1) and Committee Amendment (1-title), reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title), posted for passage in the Regular Orders of the Day for Thursday, March 30, 2023, passed 23-14 with Committee Substitute (1) and Committee Amendment (1-title), floor amendment (1) filed to Committee Substitute, 3rd reading, passed 59-40 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title). sec. In the area of sales and use tax, more than thirty (30) additional service categories became subject to tax. Under HB 360, Restaurant Revitalization Grants, as well as related deductions and tax attributes, will receive the same treatment for state income tax purposes as they do for federal individual and corporate income tax purposes. Kentucky Publishes Technical Corrections to Pass-Through Entity Tax Article Published: Apr 10, 2023 Authors Evan Meltzer Renee Wolff Advisory State & Local Tax Tax On March 31, 2023, Kentucky Gov. Use our new PolitiCorps to join with friends and collegaues to monitor & discuss bills through the process.Monitor Legislation or view this same bill number from multiple sessions or take advantage of our national legislative search. substituted for identical Senate Bill 5: .
Electing PTEs pay Kentucky income tax at the entity level on the passthrough entitys Kentucky income. The $200 million appropriated by the state last year to the SAFE funds addressing the deadly 2021 tornadoes and 2022 flooding has been slow to go out, with GOP leaders saying this session there could be an effort to "broaden" the uses of this funding to help those still without stable housing.
Three key bills pass General Assembly on final day of session - WKYT Aclu-ky Files Brief Asking Court to Strike Down Partisan Gerrymandering Kentucky residents can now claim a credit for taxes paid to other states for similar PTE tax provisions enacted in other states. By Amy Sandlin, CPA, Tax Senior Manager at Blue & Co. On March 31st, Governor Andy Beshear signed House Bill 5, which includes a retroactive pass-through entity (PTE) tax effective for tax years beginning on or after January 1, 2022. Next Estimated Jackpot: $875 Million. This plan may help prevent illness based on current health and risk factors. The election must be made by the 15th day of the 4th month after the close of the tax year, or the 15th day of the 10th month after the close of the tax year if filing under an extension. Allow the tax credit to apply up to 25,000 barrels of distilled spirts in a bonded warehouse or premises per taxable year and remove ownership and possession requirement. 141.206(3)(c) removes an elective PTE from the prohibition of taxing certain PTEs at the entity level. The bills also appropriate $4.5 million for the renovation of Juvenile Justice's Lyndon detention center, $9.7 million to hire 146 additional youth workers, $3.2 million for youth worker raises, $4 million for security upgrades to detention centers and $1.5 million to increases diversion and treatment services for detained youths. Legislation includes new laws around gray machines, LGBTQ .
22RS HB 523 - Legislative Research Commission While the legislature passed a budget last year with $200 million appropriated for executive branch employee raises enough for an average raise of 12% a dispute over the thoroughness of a salary study submitted last summer by the administration has led to GOP leaders withholding the full amount. For a detailed explanation of passthrough entity taxes why states have enacted them and how taxpayers may benefit see our article here. Category Prize Per Winner Winners Prize Fund; Match 5: $45,000.00 Rollover 0 . KY State Legislature page for HB5 Summary Sponsors Texts Votes Research Comments Track Status Completed Legislative Action Spectrum: Partisan Bill (Republican 2-0) Status: Passed on March 31 2023 - 100% progression Action: 2023-03-31 - signed by Governor (Acts Ch. You also have the option to opt-out of these cookies. AN ACT relating to fiscal matters and declaring an emergency. Create a new section of KRS Chapter 382 to establish priority for purchase money deeds of trust and mortgages over a prior judgment lien against the purchaser; amend KRS 382.270 and 382.280 to conform. You can create bill lists by going to Tracked Bills->Manage Bill Lists. This series features interviews from six current and former interns who share their experiences working in a top-60 accounting and consulting firm. Kentucky House Bill. LIST:Here are the key bills advancing - and dying - in the 2023 Kentucky legislature. if (event.keyCode === 13) { Penalties & interest will not be assessed for late payment of PTE tax for passthroughs that elect PTE for tax years beginning on or after January 1, 2022, but before January 1, 2023.
HB56 | Kentucky 2023 | AN ACT relating to mental health - TrackBill Stat. Published: Mar. 23 (5) Any interest earnings of the fund shall become a part . House Bill 3 and SB 162 also appropriate more funding to aid Juvenile Justice, including $13.4 million for the reopening of a Louisville detention center to be run by the state. Read the full blog post to learn more about how these students gave back: hubs.la/Q01XklkY0#LifeatBlue #TheBlueWay #CommunityService #LeadershipDevelopment See MoreSee Less, Share on FacebookShare on TwitterShare on Linked InShare by Email, Check out our first installment of our Intern Insider series featuring Abigail Watson, a tax intern, working in Blue's Indianapolis office.Watch the full video or read her interview at hubs.la/Q01X32qB0The Intern Insider Series is an interview series where we explore what makes Blue & Co.'s internship program unique. This website uses cookies to improve your experience while you navigate through the website. Legislative Research Commission
Who doesnt enjoy giving back to their community? The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated.
Kentucky 2023 | AN ACT relating to recovery housing. - TrackBill These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Subscribe to The Courier Journal's politics newsletter for the latest out of Frankfort. Copyright 1996 2023, Ernst & Young LLP. Retain original provisions; create a new section of KRS Chapter 65 to authorize cities, counties, and fire protection districts to levy a storage license fee on an owner or proprietor of a bonded warehouse containing distilled spirits and the costs of which are financed by industrial bonds; set requirements for the license fee; create a new section of KRS Chapter 75A to allow an emergency services board that levies an ad valorem tax and provides services to a non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; create a new section of KRS Chapter 75 to allow a board of trustees of a fire protection district or subdistrict that levies an ad valorem tax and provides services to non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; amend KRS 141.389 to allow the distilled spirits inventory tax credit through taxable year 2033 for taxpayer's owning or possessing less than 25,000 barrels; create a new section of KRS 157.310 to 157.440 to exclude the assessed value on distilled spirits related to the property tax exemption from the calculation for the Support Education Excellence in Kentucky program and the tax rate-setting process for district boards of education. Among the bills on the move that aim to cut taxes is Kentucky House Bill 5, which phases out local property taxes on the value of bourbon barrels at the request of one of the state's signature industries and over the opposition of local governments and school districts that would lose revenue.
PDF UNOFFICIAL COPY - Legislative Research Commission However, we need implementation guidance from Kentucky Department of Revenue before we can determine the full impact on your personal tax situation. }); Did you know we offer free bill tracking in Congress and 50 states, and a great mobile app? Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Here's how things played out. 360), which enacted a pass-through entity tax ("PTET") in the state. Their own data proves it does not discourage growth. By using this website, you agree to our use of cookies as outlined in our. 141.070(4) and 141.206(3)(c) to allow the individual credit and to specify that an electing PTE is subject to income tax at the entity level. Incumbent Democratic Governor Andy Beshear is running for re-election to a second term. All rights Reserved, Last Effective Dates, Expirations, and Certifications, Career
Calendar, Standing
AN ACT relating to income taxation. Opportunities, Regular Session
LegiScan is an impartial and nonpartisan legislative tracking and reporting service utilizing GAITS and LegiScan API, Senate: Third Reading W/scs1 scta1 RSN# 2764, https://apps.legislature.ky.gov/record/23RS/hb5.html, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/hb5/orig_bill.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/hb5/bill.pdf, https://apps.legislature.ky.gov/law/acts/23RS/documents/0148.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/HCS1.pdf, https://apps.legislature.ky.gov/recorddocuments/note/23RS/hb5/HCS1LM.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/HCA1.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/HFA1.pdf, https://apps.legislature.ky.gov/recorddocuments/note/23RS/hb5/HCS1FN.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/SFA1.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/SCS1.pdf, https://apps.legislature.ky.gov/recorddocuments/note/23RS/hb5/SCS1LM.pdf, https://apps.legislature.ky.gov/recorddocuments/bill/23RS/HB5/SCA1.pdf, https://apps.legislature.ky.gov/recorddocuments/note/23RS/hb5/LM.pdf, https://apps.legislature.ky.gov/recorddocuments/note/23RS/hb5/FN.pdf, https://apps.legislature.ky.gov/record/23RS/hb5/vote_history.pdf, enrolled, signed by President of the Senate, House concurred in Senate Committee Substitute (1) and Committee Amendment (1-title), posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title), passed 23-14 with Committee Substitute (1) and Committee Amendment (1-title), posted for passage in the Regular Orders of the Day for Thursday, March 30, 2023, reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title), 3rd reading, passed 59-40 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title), floor amendment (1) filed to Committee Substitute. 148) Text: Latest bill text (Chaptered) [PDF] Summary Many of the bills passed during Kentucky's 2023 General Assembly are now officially in effect. Legislative Research Commission
PDF Kentucky amends pass-through entity tax election - Deloitte US Andy Beshear announced Friday he is signing into law House Bill 1, the top-priority bill of the legislature's Republican supermajority to cut the state's individual income tax. Calendar, Standing
3rd reading, passed 90-0 with Committee Substitute (1) and Floor Amendment (1) received in Senate. Amend KRS 132.140 to allow an exemption of the property tax on distilled spirits stored or aging in barrels located in a bonded warehouse or premises; amend KRS 141.389 to allow the distilled spirits income tax credit only to taxable years beginning prior to January 1 . Stat.
126.1 from the purchase, lease, or acquisition of agricultural lands in Kentucky or participation in programs administered by the Department of Agriculture, Agricultural Development Board, and Kentucky Agricultural Finance Corporation. It is the second iteration of PTE tax enacted for Kentucky this year House Bill 360 was signed into law March 24th. Note: This alert has been updated to add a reference to subsequent law changes made by House Bill 5 (HB 5) that clarify the pass-through entity tax provisions enacted in HB 360 and modify changes to the definition of taxable telemarking services made by HB 360. Though this is not a budget session, several bills have collectively appropriated hundreds of millions of dollars from the General Fund, including a shift in state funds to create a rural housing trust fund to assist those who lost their homes in the Western Kentucky tornadoes and Eastern Kentucky flooding in the past two years.
What bills did the Kentucky legislature pass in 2023? | Lexington House Bill 213. House Bill 444 to give state workers an across-the-board 6% raise in the next fiscal year also cleared the Senate budget committee Monday, with another deadline for the Beshear administration to submit a detailed salary study. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website.
Kentucky laws passed 2023: Sports betting, marijuana & more | Lexington HB 5 makes a number of clarifying changes, including: Retain original provisions that sunset the income tax credit; remove all other provisions; amend KRS 132.140 to set an allowable revenue threshold for property taxes on distilled spirits; exempt state and local ad valorem taxes on distilled spirits associated with the revenues in excess of the allowable amount. The PTE tax is intended to enable Kentucky taxpayers who are PTE owners to deduct, for federal income tax purposes, state and local taxes exceeding the annual $10,000 deduction limitation imposed by IRC Section 164(b)(6) (the SALT Cap), consistent with IRS Notice 2020-75 (see Tax Alert 2020-2690).
23RS HB 5 - Legislative Research Commission var tweet_keyword_field = document.getElementById("tweet-keyword-field"); 148). Kentucky 5. These provisions may be ripe for technical corrections before the end of the legislative session. "We ought to call this bluff from this industry," Raymond said. Do you want to add this note to other bill lists too? Mar 13, 2023. These cookies will be stored in your browser only with your consent. "I know how hard it is to go against a bill that's sponsored by the chairman of (the budget committee) and co-sponsored by (House Speaker David Osborne). load_bill_or_legislator_tweets(); Amend KRS 141.020 to reduce the individual income tax to 4.5% for taxable years beginning January 1, 2023, and to 4% for taxable years beginning January 1, 2024. This change applies retroactively to January 1, 2020 but before March 11, 2023. Many of your trusted Blue & Co. advisors are extending their personal tax returns to take advantage of this legislation! var tweet_keyword_field = document.getElementById("tweet-keyword-field"); }); Did you know we offer free bill tracking in Congress and 50 states, and a great mobile app? Individual investors in an electing PTE will be allowed a nonrefundable PTE tax credit equal to 100% of the tax paid by the PTE "on behalf of" the investor and based on the pro rata share of the investor's income from the PTE. We also use third-party cookies that help us analyze and understand how you use this website. Therefore, for taxpayers thatmaybenefit from a PTE election, we recommend extending your passthrough entity and individual tax returns, so you do not lose this opportunity merely because the legislation change occurredduringthe 2022 tax return filing season. While HB 447 passed the House nearly unanimously, HB 5 advanced 58-41, with 28 of 80 Republicans joining the majority of Democrats in voting against phasing out the barrel tax. Include Caldwell and Muhlenberg Counties within the assistance for burying of utility wires; APPROPRIATION. However, since this legislation was enacted with less than two weeks left in the 2022 tax filing season, our ability to work through its impact and best advise you for your circumstances is severely limited. Appropriate moneys to the West Kentucky State Aid Funding for Emergencies (SAFE) fund; create a new section of KRS Chapter 39A to create the West Kentucky SAFE fund; APPROPRIATION; EMERGENCY.
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