Summary of Original Version

Amend KRS 132.140 to allow an exemption of the property tax on distilled spirits stored or aging in barrels located in a bonded warehouse or premises; amend KRS 141.389 to allow the distilled spirits income tax credit only to taxable years beginning prior to January 1, 2024, but allow the accumulated credit to be claimed after that date; prohibit the Department of Revenue from considering any settlement agreement between the department and any taxpayer having distilled spirits in a bonded warehouse to be null and void; allow the agreement to be renegotiated; require the renegotiated agreement to be promulgated in an administrative regulation following the renegotiation process.

Summary of Amendment: House Committee Substitute 1

Summary Retain original provisions; create a new section of KRS Chapter 65 to authorize cities, counties, and fire protection districts to levy a storage license fee on an owner or proprietor of a bonded warehouse containing distilled spirits and the costs of which are financed by industrial bonds; set requirements for the license fee; create a new section of KRS Chapter 75A to allow an emergency services board that levies an ad valorem tax and provides services to a non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; create a new section of KRS Chapter 75 to allow a board of trustees of a fire protection district or subdistrict that levies an ad valorem tax and provides services to non-IRB and tax-exempt premises to charge a fee for services rendered; set requirements for the fee; amend KRS 141.389 to allow the distilled spirits inventory tax credit through taxable year 2033 for taxpayer's owning or possessing less than 25,000 barrels; create a new section of KRS 157.310 to 157.440 to exclude the assessed value on distilled spirits related to the property tax exemption from the calculation for the Support Education Excellence in Kentucky program and the tax rate-setting process for district boards of education.

Summary of Amendment: House Committee Amendment 1 -- J. Petrie

Summary Make title amendment.

Summary of Amendment: House Floor Amendment 1 -- R. Roberts

Summary Allow the tax credit to apply up to 25,000 barrels of distilled spirts in a bonded warehouse or premises per taxable year and remove ownership and possession requirement.

Summary of Amendment: Senate Committee Substitute 1

Summary Delete all provisions; amend KRS 132.140 to phase out the ad valorem tax on distilled spirits and exempt distilled spirits after year 2043; create a new section of KRS Chapter 138 to provide an industry replacement tax for schools and fire districts; amend KRS 141.389 to allow a taxpayer to elect to receive a modified credit or a combined sales and use tax refund and a withholding tax refund based on a portion of the accumulated distilled spirits income tax credit for certain capital investments and job creation; create a new section of KRS 157.310 to 157.440 to modify the SEEK funding formula related to distilled spirits; amend various sections that were amended by 2023 Ky. Acts ch. 92 to conform and make technical corrections; create a new section of KRS Chapter 141 to allow a pass-through entity to elect to pay the income tax; repeal Section 16 of 2023 Ky. Acts ch. 92; provide that certain settlement agreements shall not be voided; provide that if any provision of this Act is held invalid, the invalidity shall not affect other provisions that can be given effect without the invalid provision; EMERGENCY.

Summary of Amendment: Senate Committee Amendment 1 -- C. McDaniel

Summary Make title amendment.

Summary of Amendment: Senate Floor Amendment 1 -- J. Higdon

Summary Retain original provisions that sunset the income tax credit; remove all other provisions; amend KRS 132.140 to set an allowable revenue threshold for property taxes on distilled spirits; exempt state and local ad valorem taxes on distilled spirits associated with the revenues in excess of the allowable amount.

Statutes affected:
Introduced: 132.140, 141.389
Acts Chapter 148: 132.140, 141.389
House Committee Substitute 1: 132.140, 141.389
Senate Committee Substitute 1: 132.140, 141.389
Current/Final: 132.140, 141.389
Current: 132.140, 141.389