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Senate adopts sweeping revenue bill with new excise taxes and multiple sunsets
Summary
House Bill 757, the revenue package, passed the Senate after a floor explanation outlining income tax, sales tax and excise changes, sunsets for multiple credits, a new fantasy betting excise tax, and administrative changes for refunds and TIFs.
The Kentucky Senate on April 1 passed House Bill 757, a broad revenue and tax policy measure that lawmakers described as a dense package of tax changes, credits and administrative revisions.
Senator from Kenton, explaining the bill, told senators it permits the Department of Revenue to issue refunds to certain taxpayers without an additional return filing, sunsets state participation in TIF programs, and keeps the state coupled to the federal tax treatment of certain accounts. He listed several substantive elements: a new excise tax on fantasy betting (21+ age requirement), application of sales tax to data brokering services, adjustments to how rounding works after the elimination of the penny, extensions of inheritance‑tax filing deadlines, new definitions and caps for premium cigar taxation, sunsets for certain credits (including film and motion picture exemption by 2030, credits for hiring unemployed persons, qualified farming operation credits and a GED tax credit), and a new excise tax on prediction markets with a carve‑out for commodities trading.
Senator from Kenton also noted reforms to local taxing authority and occupational license taxes for school districts and an increase in lobbyist registration fees from $500 to $750. The bill includes an electric vehicle charging station inspection program administered by the Department of Agriculture, a study of credit union and bank taxation by the Legislative Research Commission, and adjustments to coal severance credits.
On the floor, a senator explained concerns about local impacts from one provision (Section 77) that affects occupational license tax authority for some counties; despite those concerns the senator voted aye and noted the potential local revenue effects for Fayette County school projects.
After the floor explanations and brief member remarks, the Senate adopted HB 757 as amended by a Senate committee substitute. The roll call recorded 37 ayes, no nays, and the bill was passed by the Senate.
What happens next: The revenue bill moves toward final enrollment and signatures as required; some provisions were described as sunsetting or requiring follow‑up study, and the Legislative Research Commission was asked to examine bank and credit union tax treatment.
