Lawmakers in each chamber of the Kentucky General Assembly continue their meetings to hammer out a final budget. The mechanism for paying for items in the two-year spending plan got little fanfare in the Senate Monday.
After Senate Budget Committee Chair Chris McDaniel explained various sections, the Senate approved the revenue bill without debate. That’s where so-called comprehensive tax reform would be found. McDaniel said a discussion like that is not likely in these waning days.
“We did a pretty good job last time or several years ago with the income tax and income tax triggers and such. And so I don’t necessarily see us doing anything major until we get that settled in a little more,” said McDaniel.
The next possible further drop in the state income tax couldn’t occur until 2026, and McDaniel says that possibility won’t be known until this July when receipts and expenditures are reviewed.
No significant tax changes are anticipated this session. Senate Majority Floor Leader Damon Thayer told Weku’s Stu Johnson tax modification is underway.
“We have begun comprehensive tax reform and as long as we continue to hit the budget revenue triggers, we’ll continue to cut people’s taxes,” said Thayer.
“Property too?” Asked Johnson
“We’re focusing on income taxes,” replied Thayer.
The current state income tax rate of 4.5% will remain in place at least through 2025.
Thayer told Senate members daily sessions could run up to midnight the next few days.
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