Some Kentuckians are closer to having more money in their pockets after the Kentucky Senate voted to advance a bill that would provide state tax refunds.
Senate Bill 194 would give a one-time tax rebate of up to $500 to single taxpayers and up to $1,000 to joint filers, not to exceed the amount of taxes they paid last year. The money is available through billions in budget surplus funds in the current fiscal year.
The bill’s sponsor, Sen. Christian McDaniel, R-Taylor Mill, said that taxpayers are facing around $267 in additional expenses each month from the highest level of inflation in 40 years and that the rebate will help working Kentuckians cope with the costs.
McDaniel said all of the surplus money in the state’s budget was generated by working Kentuckians, and that lawmakers must consider who is best to decide how the money is spent.
The bill was approved 28-7 after nearly an hour of debate on the Senate floor.
Supporters largely argued that taxpayers need and deserve a refund during times of excess funding and that giving money back to Kentuckians would not hamper other projects in the budget – such as paying down pension debt.
Opponents, however, said such large spending decisions should be made in context of the state’s next biennial spending plan. They also criticized the bill for not providing rebates to Kentuckians who pay relatively little or no taxes like retirees or the working poor.
The amended bill now heads to the House for consideration.
Story from KY LRC