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RESOLUTION DIRECTING BESHEAR TO EXEMPT KENTUCKIANS FROM VEHICLE TAX BURDEN UNANIMOUSLY PASSES SENATE COMMITTEE

Passed the committee unanimously

                                   beshear

FRANKFORT, KY (February 10, 2022) – Yesterday, state Sen. Donald Douglas, M.D. (R-Nicholasville) presented Senate Joint Resolution 99 for consideration of the Senate Appropriations and Revenue Committee. It passed the committee unanimously 9-0. The joint resolution carries the force of law. It would require Governor Andy Beshear to order the Department of Revenue to exempt Kentucky taxpayers from the artificially inflated motor vehicle tax burden.

During committee testimony on the joint resolution, Douglas explained that under existing law, the governor has authority to remedy this issue today, citing KRS 132.485, which allows—if information is available and warrants—for a deviation from the standard value of motor vehicles. “Let me be clear, Senate Joint Resolution 99 would not be necessary if the administration would do what is right and make a choice to exempt our people from the artificial tax increase,” Douglas said. “Without action, they are facing a tax burden of nearly $70 million. Statutory language allows the administration to take action. If the governor doesn’t choose to, Senate Joint Resolution 99 will require him to.”

Douglas was joined for testimony by Senate Transportation Committee Chair Sen. Jimmy Higdon (R-Lebanon). “We’ve seen unprecedented disruption in our economy, and it only makes sense that deviation is warranted for financial relief for taxpayers,” Higdon said.

Higdon is the sponsor of Senate Bill 75 but said the bill will not pass because of limitations on what the Senate can pass regarding appropriation or revenue-raising measures. The Constitution of Kentucky only allows the state House of Representatives to originate those measures. “Senate Joint Resolution 99 is within the Senate’s authority, and I think it’s the best option from this chamber’s perspective,” Higdon said. “We will be looking at any House proposals that come our way and will work to make any improvements we identify that may be needed. The end game here is to help keep some money in the pocket of taxpayers.”

The joint resolution now qualifies for consideration of the full Senate.

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