June 19, 2018 3:04pm
Regional experts explain how state tax reform impacts the business community
State tax experts from the Greater Louisville region gathered this morning at GLI to discuss recent changes to Kentucky’s tax code. The event, sponsored by Dean Dorton, marked GLI’s second installment of its Issues & Influences series in 2018. This series brings together key insiders from our region to discuss public policy issues impacting the Greater Louisville business community.
At the end of the 2018 legislative session in Frankfort, lawmakers passed House Bills 366 and 487, making several substantive reforms to individual and corporate income taxes and significantly expanding the reach of sales and use taxes in the Commonwealth. Most of these changes go into effect July 1, 2018. As today’s discussion made clear, the 2018 tax reform legislation will affect all businesses in our region, both large and small.
At the event, Erica Horn of Dean Dorton guided a discussion addressing the new law from a range of different angles. Stephen Sherman of Stoll Keenon Ogden touched on changes to corporate income taxes and explained the significance of state and federal conformity. Bailey Roese of Bingham Greenebaum Doll walked attendees through the differences between unitary and combined/consolidated reporting. Erica Horn gave an overview of services, admissions, and privileges now subject to sales taxes. Daniel Mudd of Frost Brown Todd spoke about how the 2018 tax reform legislation directly impacts the manufacturing industry. Brian Cromer of Stites & Harbison and Chair of the GLI Tax Reform Task Force rounded out the discussion by detailing GLI’s involvement with tax reform and noting the relationship between tax reform and Kentucky’s overall business competitiveness.
As GLI COO Sarah Davasher-Wisdom remarked at the event, tax reform is rarely ever a done deal. While today’s event focused on the aftermath of the 2018 session, it also formally kicked off a much larger conversation among the Greater Louisville business community about future changes to the Commonwealth’s tax code in the 2019 legislative session. In the coming months, GLI will be convening its Tax Reform Task Force as well as its six issue advisory committees to lay the groundwork for the business community’s advocacy efforts next year. All GLI investors are eligible to join an issue advisory committee, and participation in the public policy process is strongly encouraged. Contact GLI’s advocacy team for more information.
To learn more about the new tax reform law in Kentucky, read Daniel Mudd’s summary here. In addition, it’s important to note that the Kentucky Department of Revenue’s thinking on some issues is continuing to evolve, and the Department continues to make decisions related to questions that have been asked. For the most up-to-date information, please check www.taxanswers.ky.gov.