Massaroni update: House has approved HB 5, will phase-out the current barrel tax

NC GAZETTE / WBRT RADIO
STAFF REPORT

Tuesday, March 14, 2023 — The Kentucky House has voted its approval of House Bill 5, the bill that will phase out the barrel tax that brought in nearly $9 million last year to help fund Nelson County schools and local governments.

According to a statement from Rep. Candy Massaroni, local entities will lose more than $232 million during the 14-year phase-out period. After that, local governments will lose approximately $46.2 million a year, and the state will lose around $3.2 million per year.

Nelson County receives the most revenue from the barrel tax.

The bill, which was first voted by the House on Monday but rejected by the Senate because it failed to get the needed 60 votes, includes taxing options to allow local districts to compensate for the lost revenue.

Additionally, the House approved House Bill 447, which will replace lost school board revenue with funds from the state’s Budget Reserve Trust Fund.

“It is difficult to overcome corporations motivated solely by profits for shareholders and investors, rather than supporting the communities that have sustained them,” Massaroni wrote in a statement following the House vote.

“Although local governments are promised to remain unaffected, taxpayers will ultimately bear the burden. Passing HB 5 will have an adverse impact not only on Nelson County but also on all other counties in the state, as their share of state funds will need to be diminished.”

The last day of the current session is Thursday. On Friday the 10-day veto period begins and will run until Tuesday, March 29 to give the Governor time to consider the legislation lawmakers have sent to his desk.

Legislators will have March 29 and 30 to consider votes to override the governor’s vetoes.

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