Republican lawmakers in Kentucky have agreed to reduce revenue by $105 million a year to give a tax break to some locally-owned banks and exempt nonprofits from some sales taxes.
Legislative leaders in the GOP-dominated state House and Senate reached an agreement on Wednesday (3/13) morning. The proposal, House bill 354, will likely be approved by both chambers by Thursday (3/14) and sent to Republican Governor Matt Bevin’s desk. If he vetoes it, lawmakers could override him on March 28.
The proposal would let banks with a Kentucky charter pay corporate income taxes instead of a “bank franchise fee” that is based on how much capital a bank has. It would also exempt nonprofits from paying sales taxes on fundraising activities.