Bill exempts churches, non-profits from sales tax on admission fees


FRANKFORT, Ky. (KT) - Churches and other non-profit groups would be exempt from having to collect sales tax on admission fees, under legislation approved by the Kentucky House on Thursday.

Rep. Steven Rudy, R-Paducah, sponsored the bill, noting, when lawmakers pass major bills, such as last year’s tax reform bill, some clean-up needs to be done.

In addition, he said, “Some of the sections deal with what I believe to be incorrect interpretations that were not intended by the General Assembly, by the Revenue Cabinet.”

Rudy stated the bill, “Will exempt all civic, government and non-profit organizations from collecting sales tax on admissions.  It will also raise the current $1,000 threshold to these same groups on things that they have always supposed to have tax collected on, to $10,000.”

The bill also exempts some large companies from paying sales tax on utility costs that are more than three percent of their total overall costs, and that drew objections from some members.

Rep. Angie Hatton, D-Whitesburg, said she would support the bill, to fulfill a promise she made to charitable organizations in her district.  “But I’m very disappointed to find some surprises in this Christmas Tree bill, in the form of corporate tax cuts.”

She added: “We can’t keep allowing sources of revenue to be leaked out of the pipeline, before it reaches our citizens.  For those who oppose welfare, let’s start with reducing corporate welfare.”

The measure passed 96-4 and now heads to the Senate.


The legislation is House Bill 354



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