An amended taxation bill will head back to the Kentucky House after the state Senate made changes to the legislation to address issues that surfaced after last year’s tax overhaul.
State Senator Christian McDaniel of Taylor Mill says in a release that House Bill 354, as amended by the Senate, “addresses taxation issues that have been confounding nonprofits around the commonwealth for many many decades. For the first time, he adds they make clear in statute that sales from onetime fundraising events are not subject to the sales tax of the commonwealth.”
The Senate Appropriations and Revenue Committee chairman said the measure would also exempt taxation on the sales of tickets to charity events hosted by nonprofits.
According to a release, other provisions of House Bill 354 would clarify there be no tax on veterinary services for poultry, require online retailers to collect sales taxes for third-party sellers using the platforms and would allow gambling losses to be deducted from winnings on state income tax returns.
House Bill 354 also included language that would exempt the smallest of businesses, such as a teenager who cuts his neighbor’s grass, from being required to collect sales taxes on their services.
The Senate passed the amended legislation by a 33- vote Monday. Senate President Robert Stivers of Manchester said the bill will now be returned to the House for a concurrence vote and would likely end up in a conference committee. That’s a joint committee of Senators and Representatives directed to reach agreement on legislation on which the two houses are unable to agree.
