(The Center Square) – With the start of the 2023 Kentucky General Assembly session less than three months away, the Kentucky Chamber of Commerce has come out with its agenda for the upcoming legislative session.
The 31-page document contains dozens of recommendations for lawmakers regarding the state’s economy, workforce and schools, the environment, infrastructure and health care.
Not surprisingly, one major issue for the state’s business community is continued tax reforms. The chamber’s top priority policy is to see the state implement a tax code that can make the commonwealth a national leader in attracting new jobs and residents.
Last year, the Republican-led legislature passed a law over Democratic Gov. Andy Beshear’s veto that could eventually eliminate the state’s personal income tax. However, the Chamber noted that neighboring states like Tennessee and Indiana also took steps to implement changes in their tax structures.
“Policymakers have taken great strides to make Kentucky more competitive for growth, and we must continue to think toward the future and reimagine our Commonwealth,” said Kate Shanks, the Chamber’s senior vice president of public affairs, in a statement.
Besides continuing to whittle away at the personal income tax, the Chamber also wants to see lawmakers eliminate the limited liability entity tax. It further recommends improving inventory tax credit and approving reforms for local governments so they can wean off occupational taxes as a primary source of revenue.
On the latter topic, that could include a constitutional amendment allowing local governments to establish sales taxes. If that comes to fruition, the chamber wants lawmakers to ensure city and county sales taxes are levied in the same fashion as the state’s sales tax.
“Local tax reform should be included in the broader dialogue centered around tax reform and competitiveness,” the Chamber said in its 2023 Legislative Agenda.
The tax reforms should also cover the state’s distilling industry, which makes 95% of the bourbon sold globally.
The chamber said distilleries are the highest taxed industry in the state, and it also pointed out Kentucky is the only place in the world where makers are taxed on products aging in barrels.
“This discriminatory tax puts Kentucky at a competitive disadvantage globally and creates a barrier to entry for new distilleries by pushing jobs, investment, and economic vibrancy away from our communities and into other states,” the chamber said in its agenda. “The chamber strongly supports making the state’s Barrel Tax Credit fully refundable or phasing out the tax while minimizing the impact on local communities.”
Originally published by The Center Square. Republished with permission.
More great content from Budget & Tax News
