Bill > HB37

This bill amends Kentucky Revised Statutes (KRS) 139.495 to expand and clarify sales and use tax exemptions for nonprofit educational, charitable, and religious institutions. Specifically, the bill defines a "resident nonprofit educational, charitable, or religious institution" as an organization that has qualified for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, and includes single-member limited liability companies that are wholly owned by such institutions. The legislation provides tax exemptions for purchases and sales of tangible personal property, digital property, or services made by these institutions when used within their educational, charitable, or religious functions. The bill also maintains a provision allowing certain qualifying institutions to receive a 25% refund on sales of donated goods, which can be used exclusively for capital construction costs of new retail locations, with specific conditions such as providing job training, spending at least 75% of annual revenue on community services, and a maximum refund of $1 million per location. Additionally, the bill modifies exemption limitations, particularly for sales generated at tourism development projects or by institutions that qualify for the donated goods sales tax refund. The changes aim to provide clearer guidelines and potential financial benefits for qualifying nonprofit organizations in Kentucky.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/hb37.html