The Senate Appropriations and Revenue Committee voted 11-0 to report House Bill 1, which would lower Kentucky's individual income tax rate from 4% to 3.5% and take effect Jan. 1, 2026. Chair McDaniel cast a recorded aye and offered an explanation on the committee floor.

Committee Chair McDaniel said the bill is the third step in a three-step, multi-year process to reduce the income tax rate and to present lawmakers with a recurring choice about spending levels. "This does reduce the individual income tax rate from 4% to 3 and a half percent and will be effective on January 1, 2026," McDaniel said during the committee meeting.

The measure was moved by Vice Chair Mays Bledsoe and seconded by Senator Boswell. Following the motion, the committee called the roll and recorded unanimous support. McDaniel cast his vote and explained that the committee's gradual approach is intended to make revenue reductions only when expenses can reasonably be covered; he warned that cutting revenue without corresponding spending reductions would be "merely a stunt." The chair recorded the final tally as 11-0 and said the bill would be reported favorably to the full Senate.

No amendments or changes to the bill were recorded during the committee discussion, and no formal testimony or public comment is recorded in the transcript for this agenda item.

Votes at a glance: House Bill 1 — motion to report favorable to the floor; mover: Vice Chair Mays Bledsoe; second: Senator Boswell; vote: 11 yes, 0 no; outcome: approved and reported to the Senate floor.

Background: Committee members framed the bill as part of an ongoing, multi-year process to reduce the individual income tax rate and to force a choice among increasing spending, holding spending steady, or reducing spending to enable lower taxes. The committee did not discuss specific spending cuts or identify budget line items that would be reduced to offset the revenue loss in the transcript.