Thursday, January 28, 2010
Sunday, February 8, 2009
$1.8 Billion KY 09-13 Tax Resources Enhancement
2009-2013 TAX RESOURCE TAX ENHANCEMENTS
Replace state income tax and sales tax exemptions with TAX ON SERVICES
+$500 million
Employ revenue neutral tax strategy by eliminating unfairly administered Weight Distance Tx by applying weight distance tax revenues to motor fuels and truck registration fees:
Since nursing home costs estimatied to be 45% more than assisted living costs State Division of Aging apply for Federal Medicaid Waiver allowing Kentucky medicaid eligible seniors needing assistance with less-than-two-daily living activities to use Medicaid funding to pay for residence in assisted living facility approved by state.
State Tax Expenditures, which are exemptions,exclusions,deductions,credits,deferrals, preferential tax rates, be reduced by $250 million
Cut Corporate Tax Shelters $400 million
Cut $100 million of non-Merit/Statutory state employees costs
COLLECT Uncollected Usage tax and Property Tax from an estimated 150,000 evaders owing $225 million
Amend H.B. 44 legislation raising cap from 4% to 6% alleviating KY General Fund
Amend legislation Option for Local Jurisdictions to tax alleviating KY General Fund
ENROLL all 6/01/09 new state employees in defined contribution retirement
plan reducing future state retirement costs to general fund
Combine KERS, CERS, SPRS and TRS retirement plans reducing administration costs
Division of Motor Carriers update "allocation formula" and implement against
all lease/rental U-Drive-It-Permit Holder vendors operating out of KY airports
circumventing paying estimated $30 million state u-drive-it-tax
Declare legislative moratorium against any legislation offering any State Tax Exemption from 2009-2013
State budget relinquish through revisitation to recently passed telecommunication legislation costing local governments estimated $22 million in revenues due to presence of "hold Harmless" clause
Replace state income tax and sales tax exemptions with TAX ON SERVICES
+$500 million
Employ revenue neutral tax strategy by eliminating unfairly administered Weight Distance Tx by applying weight distance tax revenues to motor fuels and truck registration fees:
Since nursing home costs estimatied to be 45% more than assisted living costs State Division of Aging apply for Federal Medicaid Waiver allowing Kentucky medicaid eligible seniors needing assistance with less-than-two-daily living activities to use Medicaid funding to pay for residence in assisted living facility approved by state.
State Tax Expenditures, which are exemptions,exclusions,deductions,credits,deferrals, preferential tax rates, be reduced by $250 million
Cut Corporate Tax Shelters $400 million
Cut $100 million of non-Merit/Statutory state employees costs
COLLECT Uncollected Usage tax and Property Tax from an estimated 150,000 evaders owing $225 million
Amend H.B. 44 legislation raising cap from 4% to 6% alleviating KY General Fund
Amend legislation Option for Local Jurisdictions to tax alleviating KY General Fund
ENROLL all 6/01/09 new state employees in defined contribution retirement
plan reducing future state retirement costs to general fund
Combine KERS, CERS, SPRS and TRS retirement plans reducing administration costs
Division of Motor Carriers update "allocation formula" and implement against
all lease/rental U-Drive-It-Permit Holder vendors operating out of KY airports
circumventing paying estimated $30 million state u-drive-it-tax
Declare legislative moratorium against any legislation offering any State Tax Exemption from 2009-2013
State budget relinquish through revisitation to recently passed telecommunication legislation costing local governments estimated $22 million in revenues due to presence of "hold Harmless" clause
Friday, July 4, 2008
KY Tax Reform to enhance tax resources
11/3/2007
tax reform with reduced growth rate in state tax expenditures to solve deficit
Fiscal Year Total Revenue Debt Service App Debt Service/Rev
1990 (3.561) 5.814.85 304.43 5.24
1991 (4.312) 6,143.23 314.66 5.12
1992 (4.316) 6,419.98 394.44 6.14
1993 (4.512) 6,578.18 394.76 6.00
1994 (4.647) 6,800.82 395.95 5.82
1995 (5.154) 7,554.79 424.65 5.62
1996 (5.337) 7,759.59 435.72 5.62
1997 (5.663) 8,188.75 459.56 5.62
1998 (6.012) 8,675.10 457.44 5.27
1999 (6.196) 9,123.43 460.88 5.04
2000 (6.549) 9,496.30 556.47 5.86
2001 (7.040) 10,496.66 553.75 5.50
2002 (7.082) 10,609.11 653.96 6.16
2003 (7.203)
2004 (7.420)
CBER, 2001 Kentucky Annual Economic Report, Table #3, p.5
( ) =Senate A&R Committee Chair Analysis, Jan. 1995
From this report the following tax reform scenario could be debated: This approach would create a tax system this is adequate, competitive, fair and simple and start our State towards promoting global competitiveness of individuals and business, and provides for the common wealth.
1)Create a 3% sales tax rate applied to daily Corporate services used by the Genreal Public, such as telephone, computer and the like
2)Reduce current sales tax rate for goods to 3% eliminating industry sales tax exemption and continuing food sales tax exemption.
3)Reduce individual rates for all income tax filers to 5.5%, after making sure those current state income non-filers estimated in ’92 to number 75,000 are in compliance with current tax system:
To the GENERAL FUND:
establish budget reserve trust fund of 5% and improve cash flow collecting all taxes due
direct state tax collecting agencies to collect all taxes with the financial wherewithal to conduct comprehensive tax compliance and education programs that promote both voluntary and involuntary compliance and
implement a state management data base to enhance revenue forecasts and provide leadership in the executive branch and legislative branch with detailed analysis of impact of various taxes on classes of individuals and businesses, including the ability to provide “what if” answers and
GENERAL FUND TAXES:
Maximize the economic impact of tax credit development incentives by requiring follow up to determine if companies are complying with terms of the tax incentive agreement
repeal the public service corporation (PSC) property tax
repeal the rural electric telephone cooperative corporation tax of $10 per provider
Whenever the legislature decides to implement Constitutional Exemption #2, exempting owners of “cars” from the state’s portion of vehicle taxes, address Kentucky's 3 truck taxes currently paid in 2008; i.,e., truck registration fees, weight-distance and fuel taxes, by eliminating the weight-distance tax. While reducing truck tax burden, eliminate unfair tax burden on intrastate Kentucky truck owners by making interstate Kentucky truck owners liable for Kentucky usage taxes.
Reference study done by Subcommittee on Vehicle Regulation and commercial Transportation requested by Representative Little for the ’96 General Assembly.
Review 1994 suggestions from ’94 Commission on Quality and Efficiency suc as:
Move from a defined benefit to a defined contribution program for new state employees saving an estimated $3.8 million
Merge administration and support services of the Kentucky Employees Retirement System, the County Employees Retirement System, the State Police Retirement System and the Teachers Retirement Systems saving an estimated $9.5 million
Move the property tax collection from the Sheriff to the Revenue Cabinet and allow all delinquent property tax collections to be a function of the cabinet saving an estimated $55.5 million
If not already done, the finance and Administration Cabinet should review, update and implement the 1987 automated purchasing study saving an estimated $25.2 million
If not already done, conduct a comprehensive economic impact study of the “extended weight Haul road system” on the coal producing economy of the State saving an estimated $55.5 million
If not done, implement TWIST- a statewide case management system-as described in the ‘94-96 Information Resources Plan saving an estimated $20.8 million
If not done, eliminate excess layers of management [eliminate all assistant positions in state government] and place more emphasis on direct service employees saving an estimated $30 million-
Review to eliminate, modernize to significantly slow growth rate of state tax expenditures siphoning off billion of state tax revenues needed to fund social programs
This is food for tax reform debate that includes a reduction in growth rate of state tax expenditures.
Sincerely,
Bill Huff
113 N. East St
Harrodsburg, Ky. 40330-1244
859.734.2228
bhuffjr@searnet.com
tax reform with reduced growth rate in state tax expenditures to solve deficit
Fiscal Year Total Revenue Debt Service App Debt Service/Rev
1990 (3.561) 5.814.85 304.43 5.24
1991 (4.312) 6,143.23 314.66 5.12
1992 (4.316) 6,419.98 394.44 6.14
1993 (4.512) 6,578.18 394.76 6.00
1994 (4.647) 6,800.82 395.95 5.82
1995 (5.154) 7,554.79 424.65 5.62
1996 (5.337) 7,759.59 435.72 5.62
1997 (5.663) 8,188.75 459.56 5.62
1998 (6.012) 8,675.10 457.44 5.27
1999 (6.196) 9,123.43 460.88 5.04
2000 (6.549) 9,496.30 556.47 5.86
2001 (7.040) 10,496.66 553.75 5.50
2002 (7.082) 10,609.11 653.96 6.16
2003 (7.203)
2004 (7.420)
CBER, 2001 Kentucky Annual Economic Report, Table #3, p.5
( ) =Senate A&R Committee Chair Analysis, Jan. 1995
From this report the following tax reform scenario could be debated: This approach would create a tax system this is adequate, competitive, fair and simple and start our State towards promoting global competitiveness of individuals and business, and provides for the common wealth.
1)Create a 3% sales tax rate applied to daily Corporate services used by the Genreal Public, such as telephone, computer and the like
2)Reduce current sales tax rate for goods to 3% eliminating industry sales tax exemption and continuing food sales tax exemption.
3)Reduce individual rates for all income tax filers to 5.5%, after making sure those current state income non-filers estimated in ’92 to number 75,000 are in compliance with current tax system:
To the GENERAL FUND:
establish budget reserve trust fund of 5% and improve cash flow collecting all taxes due
direct state tax collecting agencies to collect all taxes with the financial wherewithal to conduct comprehensive tax compliance and education programs that promote both voluntary and involuntary compliance and
implement a state management data base to enhance revenue forecasts and provide leadership in the executive branch and legislative branch with detailed analysis of impact of various taxes on classes of individuals and businesses, including the ability to provide “what if” answers and
GENERAL FUND TAXES:
Maximize the economic impact of tax credit development incentives by requiring follow up to determine if companies are complying with terms of the tax incentive agreement
repeal the public service corporation (PSC) property tax
repeal the rural electric telephone cooperative corporation tax of $10 per provider
Whenever the legislature decides to implement Constitutional Exemption #2, exempting owners of “cars” from the state’s portion of vehicle taxes, address Kentucky's 3 truck taxes currently paid in 2008; i.,e., truck registration fees, weight-distance and fuel taxes, by eliminating the weight-distance tax. While reducing truck tax burden, eliminate unfair tax burden on intrastate Kentucky truck owners by making interstate Kentucky truck owners liable for Kentucky usage taxes.
Reference study done by Subcommittee on Vehicle Regulation and commercial Transportation requested by Representative Little for the ’96 General Assembly.
Review 1994 suggestions from ’94 Commission on Quality and Efficiency suc as:
Move from a defined benefit to a defined contribution program for new state employees saving an estimated $3.8 million
Merge administration and support services of the Kentucky Employees Retirement System, the County Employees Retirement System, the State Police Retirement System and the Teachers Retirement Systems saving an estimated $9.5 million
Move the property tax collection from the Sheriff to the Revenue Cabinet and allow all delinquent property tax collections to be a function of the cabinet saving an estimated $55.5 million
If not already done, the finance and Administration Cabinet should review, update and implement the 1987 automated purchasing study saving an estimated $25.2 million
If not already done, conduct a comprehensive economic impact study of the “extended weight Haul road system” on the coal producing economy of the State saving an estimated $55.5 million
If not done, implement TWIST- a statewide case management system-as described in the ‘94-96 Information Resources Plan saving an estimated $20.8 million
If not done, eliminate excess layers of management [eliminate all assistant positions in state government] and place more emphasis on direct service employees saving an estimated $30 million-
Review to eliminate, modernize to significantly slow growth rate of state tax expenditures siphoning off billion of state tax revenues needed to fund social programs
This is food for tax reform debate that includes a reduction in growth rate of state tax expenditures.
Sincerely,
Bill Huff
113 N. East St
Harrodsburg, Ky. 40330-1244
859.734.2228
bhuffjr@searnet.com
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