(Detailed analysis of Ky. H.B. 354 (2019))
On March 13, 2019 the 2019 Kentucky General Assembly adopted H.B. 354, legislation originally billed as necessary to make corrections to the substantial tax changes enacted last year. H.B. 354 in its final form does much more, making sweeping changes to Kentucky’s taxation of banks and other depositary institutions. The bill now goes to Governor Matt Bevin and will become law if not vetoed within the ten-day veto period.
In 2018, Kentucky enacted two acts that made a number of changes to Kentucky’s income taxes, sales and use taxes and tobacco taxes as well as reforms aimed at simplifying compliance with and administration of Kentucky’s tax statutes.1 The 2018 acts were estimated to raise nearly $395 million over the state’s 2019-2020 biennium. When fully implemented, H.B. 354’s corrections to those 2018 acts along with H.B. 354’s further changes are estimated to reduce state collections by $105 million annually.