House Bill 487 (and its companion HB 366) raises taxes/revenue AT LEAST 41 different ways:
- Raises cigarette tax by 50 cents per pack.
- Imposes a floor stocks tax on cigarettes.
EXPANDED ADMISSIONS TAX, which includes:
- Skating rinks
- Health spas
- Swimming pools
- Tennis courts
- Weight training
- Fitness centers
SALES TAX ADDED TO SERVICES:
- Small-animal veterinary services
- Pet-care services
- Non-coin-operated laundry and dry-cleaning services
- Linen supply services
- Indoor tanning services
- Non-medical diet and weight-reducing services
- 19.Limousine services
- Extended-warranty services
INCOME TAX DEDUCTIONS REMOVED:
- Investment interest
- Medical-care expenses
- Moving expenses
- Other miscellaneous deductions
- Any deduction allowed by the Internal Revenue Code for amounts allowed under state law in calculating the value of the distributive shares of the estate of a decedent, unless there is filed with the income return a statement that the deduction has not been claimed under that law.
- Any deduction allowed by U.S.C. sec. 151 for personal exemptions.
- Amend net income to disallow the 20% deduction related to pass-through income to individuals under Section 199A of the Internal Revenue Code.
- Eliminate the $10 personal credit for the taxpayer.
- spouse, and
- each dependent
- Disallows Domestic Production Activities Deduction in conformance with Internal Revenue Code.
- Reduces pension-income exclusion from$41, 1 00 to $31, 1 00
CORPORATE INCOME TAXES (this will increase taxes for some, lower them for others):
- This changes the requirement for a combined report based on being a member of a unitary business group
- Market-based sourcing of safes.
- For the current budget cycle, there is a new $2 fee for each new motor vehicle tire purchased, and sales tax is collected on it. That is up from the $1 fee that had been charged, and that fee was not subject to the sales tax.
- Allows a KCTCS fee not to exceed $8 per credit hour to be used exclusively for debt service.
- Imposes sales and use tax on property certified as a pollution control facility.
- Suspends the motion picture production company sales tax incentive until July 1, 2022.
- Requires the Department of Fish and Wildlife Resources to pay an assessment in an amount equal to 5% of the debt service associated with the Kentucky State Police two-way radio system.