Lexington, KY - After years of discussion and 13 months after a “blue ribbon commission” issued its final report on tax reform needs in the commonwealth, Gov. Steve Beshear rolled out the plan he’ll take the to legislature to overhaul Kentucky’s tax code.
For the first time some services would be taxed. Beshear explained in a press conference late Tuesday morning that services such as warranties for and work on appliances and cars would be subject to a sales tax, though other services like legal work and accounting would not.
According to Governor’s Office, Kentucky Competes – as the tax plan is dubbed – would also implement tax reforms that would:
• Create an angel investor tax credit
• Expand the state’s research and development tax credit to cover human capital
• Double the New Markets Tax Credit
• Exempt inventory from state property tax
• Eliminate selected negligible state property tax rates for tangible personal property
• Create an income tax credit for the bourbon industry
• Exempt sales and use tax on certain equine products, similar to other livestock
• Exempt sales tax on pharmaceuticals for food animals
• Lower wholesale tax on beer, wine and distilled spirits
• Repeal the distilled spirits case sales tax