Governor Andy Beshear signed House Bill 1 into law Thursday morning, a move that will lower the individual income tax rate next year.
Governor Beshear stated that he signed the bill due to Kentucky’s “booming” economy, even as costs have risen.
click to download audioThe governor said he will continue to fight for Kentuckians, citing this as his reason for supporting HB-1.
click to download audioBeshear also stressed the need for transparency, noting that the Legislative Research Committee staff estimates this tax cut will decrease state revenue by $750,000 annually. However, Beshear said he believes that the state’s growth in certain revenue areas will offset this reduction. He also emphasized the importance of keeping Kentuckians informed about the financial impact of any bill, which is why a new website has been launched.
click to download audioHB-1 will reduce the individual income tax rate from the current 4% down to 3.5%, with the change set to take effect in 2026.
