AP NEWS

The Latest: Kentucky legislature OKs bill cutting revenue

March 14, 2019

FRANKFORT, Ky. (AP) — The Latest on a bill making changes to Kentucky’s tax code (all times local):

10 p.m.

Kentucky lawmakers have approved a bill that will help banks and nonprofits but eventually reduce revenue by $105 million.

The House and Senate voted to approve House bill 354 on Wednesday. It now heads to Republican Gov. Matt Bevin’s desk. Bevin has not said if he will sign it. But if he vetoes it, lawmakers could override him on March 28th before adjourning for the year.

The bill means Kentucky chartered banks will collectively pay about $56 million less in taxes beginning in 2021. Nonprofits also will be exempt from paying taxes on fundraising activities, among other changes.

Republicans said the bill will stop the sale of locally-owned banks to out-of-state entities. Some Democrats criticized the Republican majority for not finding new sources of revenue for public education.

___

2:45 p.m.

Republican lawmakers in Kentucky have agreed to reduce revenue by $105 million a year to give a tax break to some locally-owned banks and exempt nonprofits from some sales taxes.

Legislative leaders in the GOP-dominated state House and Senate reached an agreement on Wednesday morning. The proposal, House bill 354, will likely be approved by both chambers by Thursday and sent to Republican Gov. Matt Bevin’s desk. If he vetoes it, lawmakers could override him on March 28.

The proposal would let banks with a Kentucky charter pay corporate income taxes instead of a “bank franchise fee” that is based on how much capital a bank has. It would also exempt nonprofits from paying sales taxes on fundraising activities.