Kentucky banks seek tax changes ahead of legislative session
By ADAM BEAM
FRANKFORT, Ky. (AP) -- Kentucky's Republican-controlled legislature is eyeing more tax changes for 2019, including a proposal that would greatly benefit the banking industry.
Kentucky taxes banks differently than other businesses. The Kentucky Bankers Association said it hired three accounting firms to survey 59 banks, finding they pay a tax rate of 13.3 percent compared to the 5 percent rate charged to other corporations.
The industry is asking lawmakers to tax banks like they do other corporations. But estimates show that could cost the state $50 million a year in revenue at a time when lawmakers are struggling to pay off massive pension debts.
Republican Senate President Robert Stivers said he supports the change because it will keep locally owned banks from being sold to out-of-state entities.
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