Kentucky Secretary of State Michael Adams ceremonially signed House Bill 8 Friday afternoon at the Capitol Rotunda in Frankfort.
The measure calls for a series of incremental reductions to Kentucky’s individual income tax until it is eliminated. The bill will help Kentuckians retain more of their income, starting with a projected $600 million following the first decrease in 2023.
House Appropriations and Revenue Chair Jason Petrie (R-Elkton) and Vice Chair Brandon Reed (R-Hodgenville) sponsored House Bill 8. Petrie called the bill a joint General Assembly package with “a lot of support” from both chambers. “House Bill 8 has been called tax reform, and that is a thing that it does,” Petrie said. “But what it does more than anything else is this – it makes a sort of promise. It makes a statement of direction that says this General Assembly is committed to moderating expenses, being wise and prudent in how the taxpayer money is spent.”
Reed said Kentuckians struggle to pay their bills, buy gas, and provide for their families. He blamed those struggles on “failed federal policies that are causing 8.2% inflation.” He said House Bill 8 is evidence of Kentucky legislators’ commitment to supporting working Kentuckians.
The KLC Board of Directors is advocating for the modernization of local tax policies. That process begins with a change to an antiquated section of the Kentucky Constitution that severely limits the legislature’s power to reform local tax policies. Repealing Section 181 would be the first step toward helping the state continue the momentum legislators began with House Bill 8, moving away from taxing productivity into more of a consumption-based model.