Bill > HB453

This bill creates a new tax exemption for religious institutions in Kentucky, specifically exempting resident nonprofit religious organizations that qualify for federal tax-exempt status under Section 501(c)(3) from paying sales and use taxes. The exemption also extends to single-member limited liability companies (LLCs) that are wholly owned by such religious institutions and are considered "disregarded entities" for federal tax purposes. The bill modifies existing Kentucky Revised Statutes (KRS) chapters related to sales and use taxes, removing references to religious institutions in sections discussing tax applicability for nonprofit organizations. This means that religious institutions will no longer have to pay sales tax on purchases made for their religious functions, and sales made by these institutions during fundraising events will be tax-exempt. The changes will take effect on July 1, 2025, providing religious organizations with a financial benefit by reducing their tax burden. The bill aims to provide economic relief to religious institutions by eliminating sales and use taxes on their qualifying purchases and sales.