WHAT IS STATE TAX EXPENDITURE? Legal exemptions which exclude or deduct
from the tax base, are a credit against tax base, deferral of a tax,
preferential tax rate |
TAX YEAR REVENUE |
STATE TAX REVENUE FROM SEMI AND AUTOMATIC STATE TAX EXPENDITURES |
AMOUNT 0F 2005 REVENUES SIPHONED OFF BY AUTOMATIC
STATE TAX EXPENDITURES |
CIGARETTE |
2005 |
$33.7
million |
$24.5
million |
CORPORATION |
2005 |
$612.7 million |
$416.5
million |
INDIVIDUAL
INCOME |
2005 |
$3.0 BILLION
|
$2.9 BILLION
|
INHERITANCE |
2005 |
$63.2
million |
$79.0
million |
PROPERTY
TAX |
2005 |
$472.6
million |
$1 billion |
SALES &
USE TAX |
2005 |
$2.6 BILLION
|
$2.9 BILLION
|
2006-2008 Tax Expenditure Analysis, 10/17/05 on pages 2,3
and 4 |
1999 REDUCTION IN TAXES |
TAX |
|
REDUCTION
TO STATE INCOME |
UNCOLLECTED TAXES IN 2007 |
PENSION |
|
-$83.6 |
|
STANDARD
DEDUCTION |
|
-$36.8 |
|
DEDUCT
L.T.C. |
|
-$1.8 |
|
HEALTH INS
DEDUCT |
|
-$2.0 |
|
INHERITANCE
TAX |
|
-$53.3 |
|
PROPERTY TX |
|
|
Estimated $60 million of state & local tx on illegally
licensed vehicles |
|
AUTOMOBILE |
-$63.5 |
|
|
INVENTORIES |
-$1.2 |
|
|
INTANGIBLES |
-$37.7 |
|
SALES |
FARM FUEL |
-$1.0 |
|
BUSINESS
TAXES |
|
-$26.7 |
Eliminate estimated $200 million of tax shelters |
MOTOR
VEHICLE USAGE & USE TAX
|
|
-$6.8 |
Estimated $100 million of usage tax $10 million of u-drive-it-tax on lease/rental vehicles @KY
airports + $140 million of use taxes uncollected on consumer online
sales |
HEALTH
PROVIDE TAX |
|
-$56.4 |
|
TRUCK
WEIGHT DISTANCE TAX |
|
|
ESTIMATED $20 MILLION UNCOLLECTED |
TOTAL |
|
-$370.8 |
$330.0 MILLION UNCOLLECTED + 200 TO BE ELIMINATED |
Senator Scorsone?
I appreciate your email reply, since I don't
receive any from other state representatives I write. However, there
is one exception; i.e., after retiring from 30 years of state service with
Kentucky Revenue Cabinet in 1994, I began emailing Senator Tom Buford about
the problem of uncollected tax dollars and he always responded with an
answer. Finally, after 13 years I now have a democrat to join us in
our concerns about Kentucky's financial quagmire. Here's a facsimile of an email sent to following
addressee's concerning state tax expenditures for your perusal. Sincerely, Bill Huff 319 Dixie Manor Ct Harrodsburg, Ky. 40330-1923 859.734.2228
From: "Bill Huff"
Sent: Saturday, November 03, 2007 1:54 PM
To: "Ryan Alessi"
, "Charles Bonta" Subject: Whomever is
elected Kentucky's new
Governor should commit to negotiating a spending moratorium on anymore
tax dollars with General Assembly until after equalizing current tax
burden had been accomplished. Among Kentucky's car owner this tax evasion
is over 23 years old! The NEW Administration should begin collecting
all uncollected taxes including all accrued penalty and interest
as tax burden is equalized among Kentucky car owners, truck owners,
lessors leasing out motor vehicles miss registering them in other
states not paying Kentucky's u-drive-it permit tax! Simultaneously, NEW Administration ought to collaborate
with General Assembly members to review state tax expenditures with intent
to eliminate, modernize, rewrite all obsolete tax expenditures. Since
some are constitutional mandates, such as Homestead & disability
exemption rewrite implementation; i.e., implement as circuit breaker
implementation rather than exemption. For example, Homestead/Disability constitutional exemption reviewed
to ascertain if it is legal to legislate application of a "circuit
breaker" to replace current automatic increasing dollar amount of
assessment every two years. In late 1960's started out exempting
$6,500 dollars of assessment from property tax has grown from $6,500
to over $30,000 dollars of property tax assessment...only for those
Kentucky citizens owning real property sixty-five years old or older. Sincerely, Bill Huff 319 Dixie
Manor Court Harrodsburg,
Ky. 40330-1923 859.734.2228 (now 859.265.7180) |
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