Legislators sent a bill to Governor Andy Beshear that reduced the state’s income tax. The Senate Appropriations and Revenue Committee passed House Bill 1 Wednesday morning, and the Senate passed the measure by a 30 to 5 vote on Wednesday afternoon.
Representative Brandon Reed (R-Hodgenville) sponsored the measure that codifies tax cuts outlined in last year’s House Bill 8. The personal income tax rate decreased from 5.0% to 4.5% on Jan. 1, 2023. The bill would reduce the rate again on Jan. 1, 2024, from 4.5% to 4.0%.
Senate President Pro Tem David Givens (R-Greensburg) told committee members that legislative leadership did not implement the changes hastily. “Safety valves are built-in in such a way that I am confident that we will be able to sustain the growth of the economy in Kentucky and meet the needs of our citizens as it relates to state government,” he said.
The Senate vote was along party lines, with the five Democrats voting “no.” Representative Ashley Tackett Laferty (D-Martin) was the only Democrat to support the bill in the House of Representatives.
Governor Beshear can pass or veto the bill or let it become law without his signature. If he chooses to veto the measure, the Republican supermajority in both chambers has plenty of time to vote to override his veto before they break on March 30.
The Senate also unanimously passed House Bill 2. Representative Michael Meredith (R-Oakland) sponsored the measure to provide an additional $16.6 million from the Budget Reserve Trust Fund for the construction of a new veterans’ center in Bowling Green.
The KLC Board of Directors voted to support House Bill 2.