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Bill

HB 57

AN ACT relating to sales and use tax.

2026 Regular Session Introduced by Kim Banta and 3 co-sponsors

HB 57 would modify Kentucky's sales and use tax base, exemptions, and administration to raise or reallocate revenue for state programs, affecting taxpayers and local funds.

to Appropriations & Revenue (H)
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WeVote Research Nonpartisan
Bill Summary · HB 57

Bill Overview

HB 57 (2026RS, Kentucky) is an act related to sales and use tax. The bill was introduced in the Kentucky House on January 7, 2026, and referred to the Appropriations & Revenue Committee (and previously to the Committee on Committees). The action history indicates initial committee consideration, with further committee referrals typical of budget and revenue measures.

Purpose and Intent

  • The bill aims to modify Kentucky’s sales and use tax framework. While the exact text isn’t provided here, bills with this title and committee referrals typically pursue one or more of the following objectives: expanding or narrowing the tax base, adjusting tax rates or exemptions, addressing administration or enforcement, or implementing revenue-related reforms to state and local fiscal capacity.
  • The intent is generally to raise or allocate revenue to support state programs, balance budgets, or modernize tax administration. The specific policy goals (e.g., exemptions for certain services, digital goods, manufacturing equipment, or remote sales provisions) would be detailed in the bill’s provisions.

Key Provisions (Expected Areas)

Note: Without the full text, the following are common provision types for sales and use tax bills in Kentucky and may reflect likely themes in HB 57. The actual bill may include one or more of these:

  • Tax Base Adjustments
    • Additions or removals of items/services from the sales and use tax base.
    • Revisions to definitions of taxable tangible personal property, services, or digital goods.
  • Tax Rates and Local Option
    • Changes to state sales tax rate or authorizations for local option sales taxes.
    • Mechanisms for distribution of additional revenue to local governments or specific funds.
  • Exemptions and Deductions
    • Creation, modification, or termination of exemptions (e.g., for groceries, medications, manufacturing equipment, energy efficiency products).
    • Introduction of targeted exemptions for specific industries or activities.
  • Remote/Marketplace Facilitator Rules
    • Provisions addressing taxation of remote sales and marketplace facilitators and associated collection responsibilities.
  • Administrative Provisions
    • Changes to filing, remittance, audit, and compliance processes.
    • Streamlining of sales tax administration through digital systems or centralized collection.
  • Revenue Allocation
    • Designation of new or existing revenue streams to particular state accounts, funds, or programs (e.g., education, transportation, general fund).

Who Would Be Affected

  • Businesses engaged in making taxable sales in Kentucky, including:
    • Retailers, manufacturers, service providers, and marketplace facilitators (depending on the scope of the base and exemptions).
  • Consumers may see changes in the price of goods and services that are taxed or exempt.
  • Local governments could be affected if the bill modifies local sales tax authority or revenue-sharing arrangements.
  • Tax professionals and payroll/accounting systems would need to adjust to any changes in rates, exemptions, or filing requirements.

Procedural and Timeline Considerations

  • Introduction: January 7, 2026.
  • Committee referrals: Initially to Committees on Committees, then to Appropriations & Revenue (H). This sequencing suggests the bill may undergo policy and revenue-impact review, followed by budgetary considerations.
  • next steps (typical): If advanced, the bill would proceed through additional House committee hearings, potential floor votes, and then Senate consideration, with any amendments affecting fiscal notes and effective dates.
  • Effective dates: Any new tax measures commonly include multiple effective dates (e.g., effective upon enactment or staggered implementation), with transitional provisions for taxpayers and businesses.

Potential Impacts and Considerations

  • Revenue Impact: Depending on changes to the base, exemptions, or rates, state and local tax collections could increase or decrease, influencing funding for programs and services.
  • Administrative Burden: Adjustments to compliance, reporting, or tax administration systems could impact businesses and state agencies.
  • Economic Effects: Changes to taxation on goods/services could affect consumer prices, business investments, and market competitiveness.

If you can provide the text of HB 57 or a link to the bill’s full language, I can supply a more precise, section-by-section summary with exact provisions, dollar figures, dates, and the anticipated fiscal note.

Compiled from official sources — confirm details with the bill’s official record.

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