In an effort to provide relief to Kentuckians amid the rapid rise of inflation, the Senate Appropriations and Revenue Committee on Thursday approved Senate Bill 194, dubbed a Senate taxpayer relief measure.
Sponsored by Senator Chris McDaniel (R-Taylor Mill), Senate Bill 194 was originally filed as an appropriations measure to make a technical correction, but that language was substituted at Thursday’s committee meeting to reflect the Senate relief package.
Under the proposed language, Kentuckians would be eligible for a state income tax refund based on 2020 tax filings, up to a $500 refund for individuals and up to a $1,000 refund for joint-filers.
“As our nation is experiencing the highest inflation in 40 years, it’s important that lawmakers respond in a way that helps ease the burden on tax-paying Kentuckians,” said Senator McDaniel.
The estimated cost of SB 194 to the state would be approximately $1.15 billion, and even after the personal income tax rebates, the state budget still should see a surplus of nearly $800 million, according to McDaniel.
McDaniel told the press following the committee hearing that under SB 194, he would anticipate Kentuckians would receive their rebates my late spring or early summer of 2022. The Senate Appropriations and Revenue Committee chairman also said he viewed this measure different from comprehensive tax reform.
“I view this as completely separate from tax reform; this is current-year dollars,” McDaniel said. “I view tax reform as future-year dollars, and I’m sure those conversations will begin to happen soon.”