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Most-Missed Tax Benefits in Kentucky
IRS free file — Anyone whose 2006 income was $52,000 or less can e-file online at no cost. E-filing is safe and secure and offers a fast refund, a virtually error-free return, and confirmation of receipt by the IRS. Visit IRS.gov and click on the Free File link.
Estimated number of Kentucky residents eligible to use Free File: 1.2 million
Number of Kentucky residents who used Free File last year: 52,000
Free tax help sites — Tax help sites in libraries, churches, community centers and trained volunteers staff other locations. If you earned less than $39,000 and file a simple tax return, find the site closest to you by calling (Your Preferred Number). Sites have limited availability and generally operate on a first-come, first-served basis.
Estimated number of Kentucky residents who qualify to use free tax help sites: 414,000
Number of Kentucky residents who used free tax help sites last year: 40,000
Telephone excise tax refund — A one-time refund of long distance excise taxes billed from March 2003 through July 2006. IRS offers a standard refund amount of $30 to $60, or you can calculate actual tax paid. Even if you don't normally have to file a return, use Form 1040EZ-T to request this refund. Businesses and exempt organizations can also request it.
Estimated number of Kentucky residents eligible for phone tax refund so far: 876,000
Number of Kentucky residents who requested phone tax refund so far: 606,000
Minimum dollars left on the table so far: $8 million
Earned income tax credit — If you earned any income in 2006 and the amount you earned was below $39,000, you may qualify. The credit is a maximum of $4,536 — not a small amount — and can be refunded to you even if you paid no taxes in last year. Attach Schedule EIC to your tax return to claim this credit. Check the EITC Assistant at IRS.gov to see if you are eligible.
Estimated number of Kentucky residents eligible for EITC: 414,000
Number of Kentucky residents who claimed EITC last year: 331,000
(Information provided by the Internal Revenue Service)
Lawmakers said to miss point of Horse Park structures
State legislators who deadlocked on funding for upgrades at the Kentucky Horse Park for the World equestrian Games failed to see them as investments said the Event Director for the Rolex Three Day Event. "What state government never recognizes is investment. They don't run it like a business," said Jane Atkinson following a recent appearance before the weekly Lexington Rotary Club luncheon at Fasig-Tipton. "This is an investment in the future of the state, not just the Horse Park because anybody that comes to anything at the Horse Park as a spectator or as a competitor is leaving money elsewhere in this state."
Atkinson said legislators evidently failed to appreciate the urgency of appropriating funds for a permanent outdoor arena and other facilities in the 2007 session. "The problem is, you want it in place for the World Games so the people see that you have a facility that can accommodate a crowd. If anybody has ever been involved in state government, watched them, they know that nothing ever gets done when they say it's going to get done, which is why this money was so important in this session."
The proposed $24 million outdoor stadium would provide permanent seating for 10,000 visitors and temporary seating that would expand the stadium's capacity to more than 30,000. Plans also call for adding exhibit space, better lighting and technical infrastructure to the park's indoor arena at a cost of $4 million.
Many of the roads at the Horse Park were the original farm roads and are in need of widening and repaving. And an additional four miles of park roads must be created to accommodate the anticipated crowds at a cost of $10.3 million, to be paid from the Road Fund.
Governor Fletcher has authorized the state Commerce Cabinet to use discretionary funds to begin the design phase of the projects. The governor has said that he is prepared to call a special session of the legislature to focus on funding for the Horse Park and other projects.
Horses vs. houses? Strike a balance says Chandler
Congress is being asked to permanently extend the conservation easement tax provision in the Internal Revenue Code that is set to expire at the end of this year.
Under the provision, when landowners donate their property as a conservation easement - to either the government or a public land trust - they maintain ownership and management of the land while forgoing their rights to develop the land in the future. Once under a conservation easement, the land can continue to be actively farmed, but it cannot be subject to development at any time, even if the land is sold.
Congressman Ben Chandler (D-KY) said he supports the bill because it would help central Kentucky protect its landscape. "Central Kentucky has a particularly special landscape —its signature- and it allows the landowners to get some tax relief by giving up their rights to develop their land."
Some area developers and homebuilders have argued that such an approach seems to favor horses over houses. Chandler said the two are not mutually exclusive. "You have to strike a balance," he said. "There are ample opportunities for people to have the ability to develop in the right kind of way. What we don't want to do is destroy the goose that laid the golden egg."
The conservation easement tax provision gives landowners a tax deduction equal to the land's development value. The bill has 26 co-sponsors led by Congressman Mike Thompson (D-CA) and Congressman Dave Camp (R-MI).
ACS founder moves to take company private
Affiliated Computer Services Chairman Darwin Deason is part of an investment group said to be offering $5.93 billion in cash to take the information technology services company private. ACS employs 1,200 at its Lexington facility.
Deason is quoted in press reports as saying he has joined investment partner Cerberus Capital Management in making the bid of $59.25 per share.
The buyers would also assume about $2.3 billion in debt as part of the deal. Citigroup Global Markets, Inc. has provided a letter stating it is highly confident of its ability to raise the debt necessary to complete the transaction.
Gatton ranked high for undergrads
Business Week magazine has ranked the University of Kentucky's Gatton College of Business and Economics among the leading programs in the nation for undergraduates.
Business Week editors rank Gatton 87th in the nation among all public and private institutions, ahead of such schools as the University of South Carolina, the University of Colorado and the University of Oklahoma. UK's undergraduate business program is the only one at a Kentucky college or university to be ranked by Business Week.
Downtown business forum planned
Downtown Development Authority president Harold Tate will provide an update on downtown revitalization April 11. The presentation will be followed by an open discussion.
The Downtown Merchants Open Forum - open to members and non-members of the Downtown Lexington Corporation- is scheduled for 8:30-10:00am in the Victorian Square atrium.
Those planning to attend are asked to send their top three concerns or comments as a business owner/manager in Downtown to the Downtown Lexington Corporation before April 10th. These can be e-mailed to sandy@downtownlex.com or faxed to 231-7333.
Brighton East Rail Trail dedication
The first "rail trail" in Fayette County will be dedicated at Pleasant Ridge Park at 2:00 p.m. on Sunday, April 22. The one-mile Brighton East Rail Trail runs from Bryant Road to Pleasant Ridge Drive, and is designed for walking, biking and non-motorized use. The Kentucky Rails to Trails Council will receive a gift of $5,000 from Coca-Cola North America to help continue its mission of advocating and promoting more rail trails in Kentucky.
The Brighton East Trail is part of a proposed trail system stretching from the Bluegrass through Eastern Kentucky. The Lexington Big Sandy Rail Trail is envisioned to run from Lexington to Coalton outside of Ashland. It would traverse Fayette, Clark, Montgomery, Bath, Rowan, Carter and Boyd counties for a length of 109 miles, from the central Bluegrass, across the Knobs and through the eastern coalfields.