$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