In an effort to provide relief to Kentuckians amid the rapid rise of inflation, the Senate passed Senate Bill 194 Monday, legislation dubbed a Senate taxpayer relief measure, with a 28-7 vote.
Sponsored by Senator Chris McDaniel (R-Taylor Mill), Senate Bill 194 would provide Kentuckians with 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 in a committee hearing on the bill.
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 a committee hearing on the bill that under SB 194, he would anticipate Kentuckians would receive their rebates by 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.”
Senate Bill 194 now moves to the House for consideration in committee.