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AN ACT relating to economic fiscal matters. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 3
READ AS FOLLOWS: 4
As used in Sections 1 to 8 of this Act: 5
(1) "Agency" means any "organizational unit" or "administrative body" as defined 6
in KRS 12.010; 7
(2) "Board" means the Tax Expenditure and Economic Development Incentive 8
Review Board established by Section 2 of this Act; 9
(3) "Economic development incentive" means a state program, statutory provision, 10
or tax expenditure, including tax credits, tax exemptions, tax deductions, grants, 11
or loans, that is intended to encourage businesses to locate, expand, invest, or 12
remain in Kentucky or to hire or retain employees in Kentucky; and 13
(4) "Tax expenditure" means an exemption, exclusion, or deduction from the base of 14
a tax, a credit against the tax, a deferral of a tax, or preferential tax rate. 15
SECTION 2. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 16
READ AS FOLLOWS: 17
The Tax Expenditure and Economic Development Incentive Review Board of the 18
Kentucky General Assembly is hereby established. The purpose of the board shall be to 19
review, analyze, provide oversight, and make recommendations to the General 20
Assembly about tax expenditures and economic development incentives. 21
SECTION 3. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 22
READ AS FOLLOWS: 23
(1) The board shall be composed of the following twelve (12) members: 24
(a) Four (4) members of the General Assembly appointed by the President of 25
the Senate, each of whom shall serve while a member of the Senate for the 26
term for which he or she has been elected, one (1) of whom shall be the 27 UNOFFICIAL COPY 24 RS BR 1200
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chair or vice chair of the Senate Standing Committee on Appropriations 1
and Revenue, and one (1) of whom the President of the Senate shall 2
designate as co-chair of the board; 3
(b) Four (4) members of the General Assembly appointed by the Speaker of the 4
House of Representatives, each of whom shall serve while a member of the 5
House for the term for which he or she has been elected, one (1) of whom 6
shall be the chair or vice chair of the House Standing Committee on 7
Appropriations and Revenue, and one (1) of whom the Speaker shall 8
designate as co-chair of the board; 9
(c) Two (2) members of the General Assembly appointed by the Minority Floor 10
Leader of the Senate, each of whom shall serve while a member of the 11
Senate for the term for which he or she has been elected; and 12
(d) Two (2) members of the General Assembly appointed by the Minority Floor 13
Leader of the House of Representatives, each of whom shall serve while a 14
member of the House for the term for which he or she has been elected. 15
(2) (a) Initial appointments to the board shall be made within thirty (30) days of the 16
effective date of this Act. 17
(b) Any vacancy which may occur in the membership of the board shall be 18
filled by the appointing authority who made the original appointment within 19
thirty (30) days of the creation of the vacancy. 20
SECTION 4. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 21
READ AS FOLLOWS: 22
(1) The co-chairs of the board shall have joint responsibilities for meeting agendas 23
and presiding at board meetings. 24
(2) Beginning August 1, 2024, and continuing through November 30, 2028, the 25
board shall meet at least once every month during the interim between regular 26
sessions of the General Assembly. On an alternating basis, each co-chair shall 27 UNOFFICIAL COPY 24 RS BR 1200
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have the first option to set the monthly meeting date. Cancellations may occur by 1
agreement of both co-chairs. Additional meetings may also occur by agreement of 2
both co-chairs, including during regular or extraordinary sessions of the General 3
Assembly. 4
(3) Members of the board shall be entitled to reimbursement for expenses incurred in 5
the performance of their duties. 6
(4) A majority of the entire membership of the board shall constitute a quorum, and 7
all actions of the board shall be by vote of a majority of its entire membership. 8
(5) The Legislative Research Commission shall have exclusive jurisdiction over the 9
employment of personnel necessary in order for the board to carry out its duties. 10
Staff and operating costs of the board shall be provided from the budget of the 11
Legislative Research Commission. 12
(6) The board shall terminate all actions and activities on December 1, 2028. 13
SECTION 5. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 14
READ AS FOLLOWS: 15
The board shall have the authority to: 16
(1) (a) 1. Require any agency to collect, report on, or provide all information 17
necessary to evaluate tax expenditures and economic development 18
incentives in order for the board to carry out its duties. 19
2. Notwithstanding Section 11 of this Act or any other statute to the 20
contrary, each agency receiving a request for information from the 21
board shall provide the requested information by the due date 22
established by the board. If an agency fails to respond to a request for 23
information, the board shall include the failure in its report required 24
under Section 6 of this Act. Any noncompliance by the agency shall be 25
considered in determining the agency's future appropriations. 26
3. If the requested information is not available, the agency shall explain 27 UNOFFICIAL COPY 24 RS BR 1200
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why the information is not available and recommend other 1
information that might be available to assist the board in carrying out 2
its duties; and 3
(b) Agree to provisions of confidentiality requested by the agency, but shall 4
retain authority to include all data, with identifying information redacted, in 5
the report required under Section 6 of this Act; 6
(2) Conduct public hearings in the performance of its duties, at which it may request 7
the testimony of officials of any state agency and solicit the testimony of 8
interested individuals, groups, and the general public; 9
(3) Establish a uniform format for reports and information submitted to the board 10
and the frequency and due dates for the reports and information; 11
(4) Subject to the selection and approval by the Legislative Research Commission, 12
engage legal counsel, tax or economic development experts, auditors including 13
the Auditor of Public Accounts, actuaries, or others that have been deemed 14
necessary by the board to render professional and technical assistance in 15
providing information for the evaluation of tax expenditures or economic 16
development incentives. Costs for these services shall be considered part of the 17
operating costs of the board; and 18
(5) Optimize research capabilities and resources by contracting with private sector 19
organizations, including profit and nonprofit organizations, through the quality-20
based selection procurement procedures established in KRS Chapter 45A. 21
SECTION 6. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 22
READ AS FOLLOWS: 23
The board shall have the powers and duties to: 24
(1) Conduct a systematic and comprehensive review, analysis, and evaluation of tax 25
expenditures and economic development incentives offered by the 26
Commonwealth, prioritizing each tax expenditure and economic development 27 UNOFFICIAL COPY 24 RS BR 1200
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incentive by the following criteria: 1
(a) The number of taxpayers impacted by each expenditure or incentive; 2
(b) The number of recipients impacted by each expenditure or incentive; 3
(c) The total amount of state and local dollars involved with each expenditure 4
or incentive; and 5
(d) Political sensitivity. 6
(2) Create a schedule at the beginning of each interim to outline the board's agenda 7
for that year's interim meetings. The schedule shall ensure that each tax 8
expenditure and economic development incentive listed for discussion at the 9
interim meetings has a review, analysis, and evaluation in accordance with 10
subsection (1) of this section and that the annual report is completed prior to the 11
deadline established in subsection (9) of this section; 12
(3) Conduct an impartial review of all the laws governing tax expenditures and 13
economic development incentives to recommend any changes it may find 14
desirable with respect to ending a tax expenditure or economic development 15
incentive at a future date, immediately repealing a tax expenditure or economic 16
development incentive, or otherwise changing a tax expenditure or economic 17
development incentive; 18
(4) (a) Identify and list all existing tax expenditures and economic development 19
incentives. 20
(b) For each tax expenditure and economic development incentive: 21
1. Determine its purpose, goals, enabling legislation, impact to revenues, 22
beneficiaries, usage, benchmarks, and performance standards; and 23
2. Analyze how the expenditure or incentive has been impacted by 24
behavioral changes since its implementation. 25
(c) For any tax expenditure or economic development incentive that does not 26
have stated purposes or goals, the board shall research its history and 27 UNOFFICIAL COPY 24 RS BR 1200
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recommend purposes, goals, benchmarks, and performance standards as 1
applicable; 2
(5) Research issues related to existing or proposed tax expenditures or economic 3
development incentives; 4
(6) Develop standardized reporting requirements for agencies to follow in reporting 5
data that pertains to tax expenditures or economic development incentives to the 6
Legislative Research Commission and recommend any legislation needed to 7
implement the requirements; 8
(7) At the request of either co-chair of the Interim Joint Committee on 9
Appropriations and Revenue, the chair of the House Standing Committee on 10
Appropriations and Revenue, the chair of the Senate Standing Committee on 11
Appropriations and Revenue, the Speaker of the House of Representatives, or the 12
President of the Senate, evaluate proposed changes to laws that include a tax 13
expenditure or economic development incentive and report back on the state and 14
local fiscal impacts and desirability as a matter of public policy; 15
(8) At the request of either co-chair of the Interim Joint Committee on 16
Appropriations and Revenue, the chair of the House Standing Committee on 17
Appropriations and Revenue, the chair of the Senate Standing Committee on 18
Appropriations and Revenue, review all new or amended administrative 19
regulations that include tax expenditures or economic development incentives 20
and provide comments to the Administrative Regulation Review Subcommittee 21
established by KRS 13A.020; and 22
(9) Publish an annual report covering the board's evaluation and recommendations 23
for each tax expenditure and economic development incentive reviewed during 24
the year. The report shall be submitted to the Interim Joint Committee on 25
Appropriations and Revenue, the President of the Senate, and the Speaker of the 26
House of Representatives no later than November 30 of each year and shall 27 UNOFFICIAL COPY 24 RS BR 1200
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include: 1
(a) A summary of the actions by the board during the year; 2
(b) Any legislative recommendations made by the board; and 3
(c) A statement on the viability of each tax expenditure and economic 4
development incentive reviewed. 5
SECTION 7. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 6
READ AS FOLLOWS: 7
When enacting any new tax expenditure or economic development incentive, the 8
General Assembly shall: 9
(1) Establish the tax expenditure or economic development incentive for no more 10
than five (5) years; 11
(2) State the purpose, goals, and performance measurements for the tax expenditure 12
or economic development incentive; 13
(3) Identify specific data that the agency administering the tax expenditure or 14
economic development incentive shall collect so that the effectiveness of the tax 15
expenditure or economic development incentive can be evaluated; 16
(4) Require data, benchmarks, financial impact statements, cost-benefit analysis 17
directly related to the tax expenditure or economic development incentive, and 18
any other information from the appropriate agency to be reported on an annual 19
basis for evaluation of the tax expenditure or economic development incentive; 20
and 21
(5) At the discretion of the Speaker of the House of Representatives or the President 22
of the Senate, allow the board to evaluate the tax expenditure or economic 23
development incentive prior to assigning the legislation that proposes the tax 24
expenditure or economic development incentive to any committee of the General 25
Assembly during a regular or extraordinary session. 26
SECTION 8. A NEW SECTION OF KRS CHAPTER 7A IS CREATED TO 27 UNOFFICIAL COPY 24 RS BR 1200
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READ AS FOLLOWS: 1
(1) To facilitate the work of the board, the Department of Revenue and all agencies 2
administering or responsible for tax expenditures or economic development 3
incentives shall work collaboratively to: 4
(a) Assign a unique number to each individual taxpayer to allow for the 5
tracking of tax expenditures and economic development incentives related 6
to them. The unique number shall not be an individual's Social Security 7
number or the tax identification number for a business. The unique number 8
of the entity or individual shall be the same for all related: 9
1. Programs with tax expenditures or economic development incentives; 10
2. Taxes paid; 11
3. Tax attributes reported; and 12
4. Tax expenditures or economic development incentives received or 13
claimed; 14
(b) Identify a location or locations for the entity or individual by county based 15
on where the activity occurs or the entity or individual is located; and 16
(c) For each tax expenditure and economic development incentive, identify the 17
total number of taxpayers claiming the expenditure or incentive. 18
(2) The Department of Revenue and any other agency involved in the processes 19
described in subsection (1) of this section shall complete the processes in order to 20
provide requested data and information to the board within three (3) months of 21
the effective date of this Act. 22
Section 9. KRS 11.068 is amended to read as follows: 23
(1) There is created an agency of state government known as the Office of State Budget 24
Director. The office shall be attached for administrative purposes to the Office of 25
the Governor. 26
(2) The office shall include the following major organizational units: 27 UNOFFICIAL COPY 24 RS BR 1200
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(a) The Office of State Budget Director; 1
(b) The Governor's Office for Policy and Management; 2
(c) The Governor's Office for Policy Research; and 3
(d) The Governor's Office for Economic Analysis. 4
(3) The Office of State Budget Director shall be[,] headed by the state budget director. 5
The state budget director shall be appointed by the Governor pursuant to KRS 6
11.040 and shall serve, under direction of the Governor, as state budget director and 7
secretary of the state planning committee. The office shall include such principal 8
assistants and supporting personnel appointed pursuant to KRS Chapter 12 as may 9
be necessary to carry out the functions of the office. The office shall have such 10
duties, rights, and responsibilities as are necessary to perform, without being limited 11
to, the following functions: 12
(a)[1.] Functions relative to the preparation, administration, and evaluation of 13
the executive budget as provided in KRS Chapters 45 and 48 and in other 14
laws, including but not limited to, capital construction budgeting, evaluation 15
of state programs, program monitoring, financial and policy analysis and issue 16
review, and executive policy implementation and compliance; 17
(b)[2.] Continuous evaluation of statewide management and administrative 18
procedures and practices, including but not limited to economic forecasting, 19
technical assistance to state agencies, forms control, and special analytic 20
studies as directed by the Governor; and 21
(c)[3.] Staff planning functions of the state planning committee and evaluation 22
of statewide management and administrative practices and procedures. 23
(4)[(b)] The Governor's Office for Policy and Management shall be[ ,] headed by the 24
state budget director. The state budget director shall maintain staff employed 25
pursuant to KRS Chapter 18A sufficient to carry out the functions of the office 26
relating to state budgeting as provided in[ paragraph (a) of this] subsection (3) of 27 UNOFFICIAL COPY 24 RS BR 1200
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this section and state planning as provided in KRS Chapter 147, review of 1
administrative regulations proposed by executive agencies prior to filing pursuant to 2
KRS Chapter 13A and such other duties as may be assigned by the Governor. 3
(5)[(c)] The Governor's Office for Policy Research shall be[, ] headed by the state 4
budget director. The Governor's Office for Policy Research shall assist the state 5
budget director in providing policy research data, information, and analysis to the 6
Governor on public policy issues that impact the Commonwealth. The state budget 7
director shall identify and direct the research to be completed and provided by the 8
office. The state budget director shall maintain staff employed in accordance with 9
KRS Chapter 18A sufficient to carry out the functions of the office. 10
(6)[(d)] The Governor's Office for Economic Analysis shall be[, ] headed by the state 11
budget director. The state budget director shall maintain staff employed in 12
accordance with KRS Chapter 18A sufficient to carry out the functions of the 13
office. The Governor's Office for Economic Analysis shall: 14
(a) Carry out the revenue estimating and economic analysis functions and 15
responsibilities, including but not limited to the functions and responsibilities 16
assigned to the Office of State Budget Director by KRS Chapter 48;[. ] 17
(b) [The Governor's Office for Economic Analysis shall ]Perform the tax 18
administrative function of using tax data to provide the Department of 19
Revenue with studies, projections, statistical analyses, and any other 20
information that will assist the Department of Revenue in performing its tax 21
administrative functions; and 22
(c) 1. On or before October 15, 2025, and biennially on or before each 23
October 15 of each odd-numbered year thereafter, provide to the Tax 24
Expenditure and Economic Development Incentive Review Board 25
established in Section 2 of this Act and the Interim Joint Committee 26
on Appropriations and Revenue a detailed estimate of the revenue loss 27 UNOFFICIAL COPY 24 RS BR 1200
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resulting from each tax expenditure and economic development 1
incentive, as defined in Section 1 of this Act, for the general fund and 2
road fund for the current fiscal year and the next two (2) fiscal years. 3
2. The Department of Revenue, the Cabinet for Economic Development, 4
the Tourism, Arts and Heritage Cabinet, and any other agency with 5
information relating to tax expenditures or economic development 6
incentives shall provide assistance and furnish data to produce the 7
detailed estimate. 8
3. The detailed estimate of the revenue loss shall include analysis from: 9
a. A tax-by-tax view; 10
b. An entity-type view, including individuals, pass-through entities, 11
and corporations; and 12
c. An expenditure or incentive view, including a description for 13
each tax type if the expenditure or incentive crosses multiple 14
taxes. 15
4. The estimate for each tax expenditure and economic development 16
incentive shall include: 17
a. A citation of the legal authority for the tax expenditure or 18
economic development incentive; 19
b. The enactment year and the bill number that originally 20
authorized the tax expenditure or economic development 21
incentive; 22
c. A description of how the tax expenditure or economic 23
development incentive has changed over time, if amendments to 24
the statutory language have been enacted, including the year and 25
bill number that authorized the amendment; 26
d. The number of taxpayers currently claiming each tax 27 UNOFFICIAL COPY 24 RS BR 1200
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expenditure and economic development incentive; 1
e. The amount of projected revenue loss for the current fiscal year 2
and the two (2) fiscal years of the upcoming biennium; 3
f. A description of the data used to form the estimate of revenue 4
loss, including: 5
i. The source of the data; 6
ii. The publication year or period related to the data; 7
iii. The agency or entity producing the data; 8
iv. The data set used, if a subset of the data source was 9
necessary; 10
v. A complete data citation related to that source, including 11
electronic sources; 12
vi. Whether the data is a line item from a Kentucky or federal 13
income tax return; and 14
vii. Whether the data relates directly to Kentucky activity, and 15
if not, how the data was modified to obtain an estimate for 16
the Commonwealth; 17
g. If a purpose or goal is not included in the statute, a best 18
determination by the Office of State Budget Director of all 19
purposes or goals of the tax expenditure or economic 20
development incentive; and 21
h. A statement regarding whether the purpose or goal of the tax 22
expenditure or economic development incentive: 23
i. Is currently being met; 24
ii. Has been met and the tax expenditure or economic 25
development incentive is no longer needed; or 26
iii. Is not being met and the tax expenditure or economic 27 UNOFFICIAL COPY 24 RS BR 1200
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development incentive should be repealed or amended, 1
including data which supports the statement. 2
Section 10. KRS 131.020 is amended to read as follows: 3
(1) The Department of Revenue, headed by a commissioner appointed by the secretary 4
with the approval of the Governor, shall be organized into the following functional 5
units: 6
(a) Office of the Commissioner, which shall consist of: 7
1. The Division of Protest Resolution, headed by a division director who 8
shall report directly to the commissioner. The division shall administer 9
the protest functions for the department from office resolution through 10
court action; 11
2. The Division of Taxpayer Ombudsman, headed by a division director 12
who shall report to the commissioner. The division shall perform those 13
duties set out in KRS 131.083; 14
3. The Special Investigations Division, headed by a division director who 15
shall report directly to the commissioner. The division shall investigate 16
alleged violations of the tax laws and recommend criminal prosecution 17
of the laws when warranted; and 18
4. The Division of Information Management, headed by a division director 19
who shall report directly to the commissioner. The division shall provide 20
project management, planning, analysis, application development, 21
implementation, security, support, and maintenance for new and existing 22
legacy systems of the department; 23
(b) Office of Tax Policy and Regulation, headed by an executive director who 24
shall report directly to the commissioner. The office shall be responsible for: 25
1. Providing oral and written technical advice on Kentucky tax law; 26
2. Drafting proposed tax legislation and regulations; 27 UNOFFICIAL COPY 24 RS BR 1200
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3. Testifying before legislative committees on tax matters; 1
4. Analyzing tax publications; 2
5. Providing expert witness testimony in tax litigation cases; 3
6. Providing consultation and assistance in protested tax cases;[ and] 4
7. Conducting training and education programs; and 5
8. Collecting, reporting, and providing the data required under Section 5 6
of this Act to the Tax Expenditure and Economic Development 7
Incentive Review Board; 8
(c) Office of Registration and Operations, headed by an executive director who 9
shall report directly to the commissioner. The office shall be responsible for 10
processing documents, depositing funds, collecting debt payments, and 11
coordinating, planning, and implementing a data integrity strategy. The office 12
shall consist of the: 13
1. Division of Operations, which shall be responsible for opening all tax 14
returns, preparing the returns for data capture, coordinating the data 15
capture process, depositing receipts, maintaining tax data, and assisting 16
other state agencies with similar operational aspects as negotiated 17
between the department and the other agency; and 18
2. Division of Registration, which shall be responsible for registering 19
businesses for tax purposes, ensuring that the data entered into the 20
department's tax systems is accurate and complete, and assisting the 21
taxing areas in proper procedures to ensure the accuracy of the data over 22
time; 23
(d) Office of Property Valuation, headed by an executive director who shall 24
report directly to the commissioner. The office shall consist of the: 25
1. Division of Local Support, which shall be responsible for providing 26
supervision, assistance, and training to the property valuation 27 UNOFFICIAL COPY 24 RS BR 1200
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administrators and sheriffs within the Commonwealth; 1
2. Division of State Valuation, which shall be responsible for providing 2
assessments of public service companies and motor vehicles, and 3
providing assistance to property valuation administrators and sheriffs 4
with the administration of tangible and omitted property taxes within the 5
Commonwealth; and 6
3. Division of Minerals Taxation and Geographical Information System 7
Services, which shall be responsible for providing geographical 8
information system mapping support, ensuring proper filing of 9
severance tax returns, ensuring consistency of unmined coal 10
assessments, and gathering and providing data to properly assess 11
minerals to the property valuation administrators within the 12
Commonwealth; 13
(e) Office of Sales and Excise Taxes, headed by an executive director who shall 14
report directly to the commissioner. The office shall administer all matters 15
relating to sales and use taxes and miscellaneous excise taxes, including but 16
not limited to technical tax research, compliance, taxpayer assistance, tax-17
specific training, and publications. The office shall consist of the: 18
1. Division of Sales and Use Tax, which shall administer the sales and use 19
tax; and 20
2. Division of Miscellaneous Taxes, which shall administer various other 21
taxes, including but not limited to alcoholic beverage taxes; cigarette 22
enforcement fees, stamps, meters, and taxes; gasoline tax; bank 23
franchise tax; inheritance and estate tax; insurance premiums and 24
insurance surcharge taxes; motor vehicle tire fees and usage taxes; and 25
special fuels taxes; 26
(f) Office of Income Taxation, headed by an executive director who shall report 27 UNOFFICIAL COPY 24 RS BR 1200
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directly to the commissioner. The office shall administer all matters related to 1
income and corporation license taxes, including technical tax research, 2
compliance, taxpayer assistance, tax-specific training, and publications. The 3
office shall consist of the: 4
1. Division of Individual Tax, which shall administer the following taxes 5
or returns: individual income, fiduciary, and employer withholding; and 6
2. Division of Corporation Tax, which shall administer the corporation 7
income tax, corporation license tax, pass-through entity withholding, 8
and pass-through entity reporting requirements; 9
(g) Office of Field Operations, headed by an executive director who shall report 10
directly to the commissioner. The office shall manage the regional taxpayer 11
service centers and the field audit program; and 12
(h) Office of Enforcement, headed by an executive director who shall report 13
directly to the commissioner. The office shall initiate all collection 14
enforcement activity related to due and owing tax assessments, including 15
protest resolution, and shall assist other state agencies with similar collection 16
aspects as negotiated between the department and other state agencies. The 17
office shall consist of the Division of Collections. 18
(2) The functions and duties of the department shall include conducting conferences, 19
administering taxpayer protests, and settling tax controversies on a fair and 20
equitable basis, taking into consideration the hazards of litigation to the 21
Commonwealth of Kentucky and the taxpayer. The mission of the department shall 22
be to afford an opportunity for taxpayers to have an independent informal review of 23
the determinations of the audit functions of the department, and to attempt to fairly 24
and equitably resolve tax controversies at the administrative level. 25
(3) The department shall maintain an accounting structure for the one hundred twenty 26
(120) property valuation administrators' offices across the Commonwealth in order 27 UNOFFICIAL COPY 24 RS BR 1200
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to facilitate use of the state payroll system and the budgeting process. 1
(4) Except as provided in KRS 131.190(4), the department shall fully cooperate with 2
and make tax information available as prescribed under KRS 131.190(3) to the 3
Governor's Office for Economic Analysis as necessary for the office to perform the 4
tax administration function established in KRS 42.410. 5
(5) Executive directors and division directors established under this section shall be 6
appointed by the secretary with the approval of the Governor under KRS 12.050. 7
Section 11. KRS 131.190 is amended to read as follows: 8
(1) No present or former commissioner or employee of the department, present or 9
former member of a county board of assessment appeals, present or former property 10
valuation administrator or employee, present or former secretary or employee of the 11
Finance and Administration Cabinet, former secretary or employee of the Revenue 12
Cabinet, or any other person, shall intentionally and without authorization inspect 13
or divulge any information acquired by him or her of the affairs of any person, or 14
information regarding the tax schedules, returns, or reports required to be filed with 15
the department or other proper officer, or any information produced by a hearing or 16
investigation, insofar as the information may have to do with the affairs of the 17
person's business. 18
(2) The prohibition established by subsection (1) of this section shall not extend to: 19
(a) Information required in prosecutions for making false reports or returns of 20
property for taxation, or any other infraction of the tax laws; 21
(b) Any matter properly entered upon any assessment record, or in any way made 22
a matter of public record; 23
(c) Furnishing any taxpayer or his or her properly authorized agent with 24
information respecting his or her own return; 25
(d) Testimony provided by the commissioner or any employee of the department 26
in any court, or the introduction as evidence of returns or reports filed with the 27 UNOFFICIAL COPY 24 RS BR 1200
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department, in an action for violation of state or federal tax laws or in any 1
action challenging state or federal tax laws; 2
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 3
energy resources assessed under KRS 132.820, or owners of surface land 4
under which the unmined minerals lie, factual information about the owner's 5
property derived from third-party returns filed for that owner's property, under 6
the provisions of KRS 132.820, that is used to determine the owner's 7
assessment. This information shall be provided to the owner on a confidential 8
basis, and the owner shall be subject to the penalties provided in KRS 9
131.990(2). The third-party filer shall be given prior notice of any disclosure 10
of information to the owner that was provided by the third-party filer; 11
(f) Providing to a third-party purchaser pursuant to an order entered in a 12
foreclosure action filed in a court of competent jurisdiction, factual 13
information related to the owner or lessee of coal, oil, gas reserves, or any 14
other mineral resources assessed under KRS 132.820. The department may 15
promulgate an administrative regulation establishing a fee schedule for the 16
provision of the information described in this paragraph. Any fee imposed 17
shall not exceed the greater of the actual cost of providing the information or 18
ten dollars ($10); 19
(g) Providing information to a licensing agency, the Transportation Cabinet, or 20
the Kentucky Supreme Court under KRS 131.1817; 21
(h) Statistics of gasoline and special fuels gallonage reported to the department 22
under KRS 138.210 to 138.448; 23
(i) Providing any utility gross receipts license tax return information that is 24
necessary to administer the provisions of KRS 160.613 to 160.617 to 25
applicable school districts on a confidential basis; 26
(j) Providing documents, data, or other information to a third party pursuant to an 27 UNOFFICIAL COPY 24 RS BR 1200
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order issued by a court of competent jurisdiction; or 1
(k) Providing information to: 2
1. The Legislative Research Commission under: 3
a.[1.] KRS 139.519 for purposes of the sales and use tax refund on 4
building materials used for disaster recovery; 5
b.[2.] KRS 141.436 for purposes of the energy efficiency products 6
credits; 7
c.[3.] KRS 141.437 for purposes of the ENERGY STAR home and the 8
ENERGY STAR manufactured home credits; 9
d.[4.] KRS 141.383 for purposes of the film industry incentives; 10
e.[5.] KRS 154.26-095 for purposes of the Kentucky industrial 11
revitalization tax credits and the job assessment fees; 12
f.[6.] KRS 141.068 for purposes of the Kentucky investment fund; 13
g.[7.] KRS 141.396 for purposes of the angel investor tax credit; 14
h.[8.] KRS 141.389 for purposes of the distilled spirits credit; 15
i.[9.] KRS 141.408 for purposes of the inventory credit; 16
j.[10.] KRS 141.390 for purposes of the recycling and composting 17
credit; 18
k.[11.] KRS 141.3841 for purposes of the selling farmer tax credit; 19
l.[12.] KRS 141.4231 for purposes of the renewable chemical 20
production tax credit; 21
m.[13.] KRS 141.524 for purposes of the Education Opportunity 22
Account Program tax credit; 23
n.[14.] KRS 141.398 for purposes of the development area tax 24
credit; 25
o.[15.] KRS 139.516 for the purposes of the sales and use tax 26
exemption on the commercial mining of cryptocurrency; and 27 UNOFFICIAL COPY 24 RS BR 1200
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p.[16.] KRS 141.419 for purposes of the decontamination tax credit; 1
and[.] 2
2. The Tax Expenditure and Economic Development Incentive Review 3
Board established in Section 2 of this Act. 4
(3) The commissioner shall make available any information for official use only and on 5
a confidential basis to the proper officer, agency, board or commission of this state, 6
any Kentucky county, any Kentucky city, any other state, or the federal 7
government, under reciprocal agreements whereby the department shall receive 8
similar or useful information in return. 9
(4) Access to and inspection of information received from the Internal Revenue Service 10
is for department use only, and is restricted to tax administration purposes. 11
Information received from the Internal Revenue Service shall not be made available 12
to any other agency of state government, or any county, city, or other state, and 13
shall not be inspected intentionally and without authorization by any present 14
secretary or employee of the Finance and Administration Cabinet, commissioner or 15
employee of the department, or any other person. 16
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 17
requirements of KRS Chapter 137 and statistics of natural gas production as 18
reported to the department under the natural resources severance tax requirements 19
of KRS Chapter 143A may be made public by the department by release to the 20
Energy and Environment Cabinet, Department for Natural Resources. 21
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 22
submissions for the 1989 tax year, the department may make public or divulge only 23
those portions of mine maps submitted by taxpayers to the department pursuant to 24
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-25
out parcel areas. These electronic maps shall not be relied upon to determine actual 26
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 27 UNOFFICIAL COPY 24 RS BR 1200
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required under KRS Chapters 350 and 352 shall not be construed to constitute land 1
surveying or boundary surveys as defined by KRS 322.010 and any administrative 2
regulations promulgated thereto. 3