Tax giveaways | Kentuckians For The Commonwealth

Tax giveaways

House Bill Number: 

House Bill 354 would create additional tax giveaways for corporations and lost state revenue.

"Although House Bill 354 (HB 354) has been described as the “clean-up bill” that fixes the unintended consequences that occurred because of the rush in which the 2018 tax bills were passed, it is more than that. It also includes tax breaks that will deprive the commonwealth of sorely needed General Fund revenues in the future," according to Pam Thomas with the Kentucky Center for Economic Policy.

Some of the "clean up" from 2018 is the unintended requirement that nonprofits collect sales tax on admissions. HB 354 removes those requirements, and creates a $10,000 exemption on the first $10,000 in nonprofit sales. Those items make it a popular bill, used to win support and obscure the corporate giveaways and revenue loss.

Bill Sponsor(s): 
Reps. Steve Rudy, Lynn Bechler

HB 354 passed the House, 96-4, on February 21. HB 354 was amended and passed by the Senate Appropriations & Revenue Committee and by the full Senate, 33-0, both on March 4 (see how House and Senate members voted).

On March 5, the House reject the Senate amendment and the Senate refused to recede. A conference committee was appointed to negotiate differences in the two bills. On March 6, the conference committee reported that it could not reach an agreement. A free conference committee was appointed and added several more special interest tax breaks – including more than $50 million for banks – to the bill, totaling $105 million in lost revenue.

On March 13, both the Senate (34-3) and the House (87-8) approved the free conference committee report. On March 26 Gov. Bevin signed HB 354 into law.

See what else Republicans hid in the bill.

KFTC's Position: 
KFTC Opposes