FRANKFORT, Ky. — Admission fees charged by nonprofit civic, governmental and all other nonprofit organizations would be exempt from state sales tax under legislation that Thursday cleared the Kentucky House.
House Bill 354, sponsored by House Appropriations and Revenue Committee Chair Rep. Steven Rudy, R-Paducah, passed the House 96-4. It now goes to the Senate for consideration.
Besides the exemption on admissions sales, Rudy said his bill would raise the threshold for collection of tax on most types of sales by nonprofit civic, governmental and other nonprofits to $10,000. “So that first $10,000 they will not have to collect sales tax on,” he specified.
HB 354 would also create a resale certificate for certain services – such as landscaping, industrial laundry service and pet care—that were added to the state’s sales and use tax rolls last year. Additionally, the bill would change how certain heavy equipment rental property is taxed, and amend tax law impacting Kentucky’s small farm wineries plus make some corporate tax changes.
The House also voted 93-6 in favor of HB 268, also sponsored by Rudy, which would authorize $50 million in bond funds for improvements at Kentucky’s state parks while stating the General Assembly’s “intent” to an additional $50 million for state park improvements in future years.
Funding provided by HB 268—which also would fund several higher education needs in the state—would come from General Fund surplus funds or the state’s “rainy day” fund, officially known as the Budget Reserve Trust Fund, said Rudy.
He added that the bill clearly specifies how the funds it would appropriate can be spent.
“We thought that it would be very, very important to specify where this money would be spent and not give a true blank check,” said Rudy.
HB 268 includes an emergency clause, which would allow it to take effect immediately upon becoming law. It also now goes to the Senate for consideration.