An Official Website of the Commonwealth of Kentucky
The Kentucky Department of Revenue is committed to answering your questions and keeping you updated on recent tax law changes made by the Kentucky General Assembly in 2018.
The Kentucky Taxpayer Bill of Rights was amended to prohibit DOR from entering into a contingent fee contract for audits, collections or legal services if the service performed is contingent upon the amount of tax, interest, fee, or penalty assessed against or collected from the taxpayer. This change became effective April 27, 2018.
A change was enacted on how the receipts are allocated for the Tennessee Valley Authority (TVA)-in-lieu-of-tax. Effective for fiscal years beginning on or after July 1, 2018, more money will be sent to the counties with TVA power plants to improve economic development in those areas. The term "Tennessee Valley Authority (TVA)-in- lieu-of- tax" refers to the Department of Revenue's annual responsibility to administer and distribute the centrally collected TVA tax equivalency payments for local taxing jurisdictions.
Several changes were enacted to the economic development tax incentive programs. Little used programs were repealed, including the Kentucky Environmental Stewardship Act. Other tax incentive programs were sunset, including the Incentives for Energy Independence Act (IEIA), effective August 1, 2018.
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