SALT Report 1986 – On December 17, 2007 the Kentucky Blue Ribbon Commission on Tax Reform issued their findings and recommendations to Governor Beshear. The Commission’s primary focus was on reforming the state’s tax code to make Kentucky more business friendly and competitive.
The Commission recommends that the state modify their corporate income apportionment formula as well as their sales factor sourcing rules. In addition, the Commission recommends that the state:
- Tax services that have clear nexus with the state,
- Apply sales and transient room taxes to the entire charge for hotel accommodations,
- Tax prewritten computer software that is accessible without a download,
- Tax luxury items,
- Tax services that are tied to physical products already taxed, and
- Tax services in which the imposition of the tax would result in minimal shifting to avoid the tax
The commission also recommends that the Department be granted the authority to revoke, not issue or not renew professional business licenses, driver’s licenses, and vehicle registrations of a taxpayer who has exhausted all appeals and still refuses to pay its taxes or assessments.
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