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Kentucky General Assembly Passes $395-500 Million Tax Increase

(Detailed analysis of Ky. H.B. 366 and H.B. 487 (2018))

Timothy J. Eifler

On April 2, 2018, the General Assembly adopted a free conference committee’s compromise report for H.B. 366 which includes substantial changes to the state’s tax code. Those changes are estimated to raise nearly $500 million over the state’s 2019-2020 biennium.  The Governor vetoed the bill on April 9. The Kentucky House and Kentucky Senate overrode the Governor’s veto on April 13.

On April 14, the General Assembly adopted H.B. 487. As amended in the Senate, H.B 487 includes the entirety of H.B. 366 with additional changes and technical corrections. H.B. 487’s changes are estimated to reduce the additional taxes raised over the state’s 2019-202 biennium to approximately $396 million. The Governor has ten days (excluding Sundays) to veto H.B. 487.  Because the General Assembly has adjourned, any gubernatorial veto cannot be overridden by the legislature.