FRANKFORT, Ky. — Legislation that would address issues that surfaced after last year’s tax overhaul passed the Senate Monday by a 33-0 vote.
House Bill 354, as amended by the Senate, “addresses taxation issues that have been confounding nonprofits around the commonwealth, frankly, for many many decades,” said Sen. Christian McDaniel, R-Taylor Mill. “For the first time, we make clear in statute that sales from onetime fundraising events are not subject to the sales tax of the commonwealth.”
The Senate Appropriations & Revenue Committee chairman said the measure would also exempt taxation on the sales of tickets to charity events hosted by nonprofits.
Other provisions of HB 354 would clarify there be no tax on veterinary services for poultry, require online retailers to collect sales taxes for third-party sellers using the platforms and would allow gambling losses to be deducted from winnings on state income tax returns.
HB 354 also included language that would exempt the smallest of businesses, such as a teenager who cuts his neighbor’s grass, from being required to collect sales taxes on their services.
While HB 354 will now be returned to the House for a concurrence vote, Senate President Robert Stivers II, R-Manchester, said HB 354 would likely end up in a conference committee. That’s a joint committee of Senators and Representatives directed to reach agreement on legislation on which the two houses are unable to agree.