Vote Smart's Synopsis:

Vote to pass a bill that amends the Kentucky Revised Statutes.

Highlights:

-Deposits any proceeds derived from the sale of equipment and property originally purchased with funds from the capitol construction fund into the general fund. Does not apply to (Sec. 30 [KRS 45.777]):

-The sale of property held as right-of-way; -The sale of equipment by the Transportation Cabinet; and -The sale of confiscated firearms.

-Requires the Attorney General to first recover costs of litigation and investigations whenever funds or assets are recovered by judgment or settlement of a legal action (Sec. 30 [KRS 48.005]). -Extends the trade-in allowance deadline for motor vehicles from September 1, 2009 to June30, 2011 and caps the allowance at $25 million (Sec. 30 [KRS 138.4602]). -Requires the monthly taxes being paid under this bill to be paid by the 20th of the next succeeding month if the taxpayer's monthly sales and tax liability are under $30,000. If the taxpayer's monthly sales and tax liability is over $30,000, then the taxes for the previous month and the current month will be paid by the end of the current month (Sec. 30 [KRS 139.540]). -Replaces the previous domestic production deduction allowed by Section 199 of the IRS Code with a domestic production deduction to be calculated at 6 percent as of January 1, 2010 (Sec. 30 [KRS 141.010]). -Prohibits the net operating loss deduction for any taxable year between December 31, 2009 and January 1, 2013. In lieu of any net operating loss deduction, the carryover period provided by Section 172 of the IRS Code shall be extended as follows (Sec. 30 [KRS 141.011]):

-For any carry forward which could have been deducted, and for any loss incurred between December 31, 2009, and January 1, 2011, the carryover shall be 3 years; -For any carry forward which could have been deducted, and for any loss incurred between December 31, 2010, and January 1, 2012, the carryover shall be 2 years; and -For any carry forward which could have been deducted, and for any loss incurred between December 31, 2011, and January 1, 2013, the carryover shall be 1 year.

-Requires that any pass-through entity after December 31, 2011 required to withhold Kentucky income tax, make a declaration and payment of estimated taxes if (Sec. 30 [KRS 141.206]):

-The estimated tax liability is expected to exceed $500 for a nonresident individual partner, member, or shareholder; or -The estimated tax liability is expected to exceed $5,000 for a corporate partner or member doing business in Kentucky through its ownership interest in a pass-through entity.

-Requires, beginning January 1, 2012, every employer that is allowed to deduct and withhold tax to make a return and report to the department the tax required to be withheld. Also requires (Sec. 30 [KRS 141.330]):

-Any employer who withheld income tax of less than $400 during the look-back period, to pay the tax annually; -Any employer who withheld income tax of between $400 and $1,999 during the look-back period, to pay the tax quarterly; -Any employer who withheld income tax of between $2,000 and $49,999 during the look-back period, to pay the tax monthly; -Any employer who withheld income tax of over $50,000 during the look-back period, to pay the tax twice a month; -Any employer who withheld income tax of $100,000 or more during the look-back period, to pay the tax by electronic fund transfer by the close of the first banking day after the first day the employer accumulates $100,000.

-Lowers the new home tax credit cap from $25 million to $15 million. Requires completed new home tax credit forms to be faxed within 7 days of the purchase of a new residence (Sec. 30 [KRS 141.388]). -Establishes the cap amount of tax credits authorized by the Tourism Development Finance Authority for fiscal year 2010-2011 at $5 million, and at $7.5 million for fiscal year 2011-2012 (Sec. 30 [KRS 148.546]). -Charges an administrative fee of 0.5% to be paid to the Tourism Development Finance Authority for any infrastructure project funded by the local government economic development fund or the rural development fund, (Sec. 30 [KRS 224A]).

Full Bill Text