Quickly after the General Assembly reconvened for part two of the 2023 legislative session, lawmakers passed the first bill all the way through the legislative process and sent House Bill 1 to the governor’s desk.
House Bill 1, sponsored by Rep. Brandon Reed, carries out another reduction in Kentucky’s income tax, initiated by legislation passed in the 2021 session that put the state on a path to eliminate the individual income tax.
The first reduction, moving the individual income tax from 5 percent to 4.5 percent, took effect January 1, 2023. And now, House Bill 1 will codify this as well as reduce the tax by another 0.5 percent to 4 percent effective January 1, 2024.
The state House passed the bill through committee and on the floor in January and on Wednesday, the second day back in session, the Senate Appropriations and Revenue Committee approved the bill before it passed the full Senate 30-5 in the afternoon.
With this passage, the bill heads to Gov. Andy Beshear for his signature or veto. If he vetoes the bill, the General Assembly will have plenty of time for an override vote.
The Senate Appropriations and Revenue Committee also passed House Bill 2 appropriating funds to the Bowling Green Veterans Center.
Stay tuned to The Bottom Line for more legislative updates.