FRANKFORT, Ky. (AP) — A key House Republican has proposed gradually reducing Kentucky’s individual income tax rate, with the long-term goal of eliminating the levy.
It's part of a sweeping measure that would extend the state sales tax to a host of services. The legislation was introduced Friday by House Appropriations and Revenue Committee Chairman Jason Petrie.
Under the bill, the state’s 5% individual income tax rate would be lowered incrementally over a period of years until being eliminated.
The first reduction would be next Jan. 1, when the rate would drop to 4%. The percentage-point drop would save taxpayers an estimated $1 billion.