Kentucky Tax Code Changes May Impact You and Your Business

Kentucky Tax Code Changes May Impact You and Your Business

On April 2nd Kentucky passed a tax reform bill that makes significant changes to Kentucky individual and corporate taxes. Much of the new law is in response to the federal tax law changes passed late last year. Major provisions include:

Individual Tax

  • Flat Tax Rate
  • Itemized Deductions
  • Long-term Care and Health Insurance Premiums
  • Pension Income Exclusion
  • Personal Exemption Credit

Corporate Tax

  • Domestic Production Activities Deduction (DPAD)
  • Flat Tax Rate
  • Income Apportionment Formula
  • Federal Pass-through Income Deduction
  • Property Tax

Sales & Use Tax

  • Sales and Use Tax Base Expanded

Most of the changes to federal tax law are incorporated into new Kentucky code, however there are a few provisions not adopted by Kentucky.

For details on the above changes, see Rudler PSC e-Tip Kentucky Tax Code Changes. The Kentucky Department of Revenue has also launched a website to provide more information (TaxAnswers.ky.gov). If you have questions about how these changes might impact you or your business, contact our professionals at 859-331-1717.