Big Changes are Coming to Kentucky’s Tax Code
What this could mean for other states
After being approved in Kentucky’s House and Senate, then being vetoed by Kentucky Governor Andy Beshear, House Bill 8 was officially ratified on April 13, 2022. The ratification required the Republican Supermajority to impose an override of the Governor’s veto in the last two days of the Kentucky General Assembly’s recent session.
H.B. 8 will significantly impact Kentucky’s tax code for individuals and businesses.
Under the bill, the state’s 5 percent individual income tax will be lowered gradually, over a period of years if key trigger points are met. The bill will also broaden Kentucky’s sales tax base and impose new taxes on certain high-growth services in high-growth industries such as entertainment, personal fitness, ride sharing, and electric and autonomous vehicles. These changes in Kentucky’s tax code are meant to promote economic growth in the short term and lay the groundwork for future pro-growth reform.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett.