KENTUCKY’S INDIVIDUAL INCOME TAX RATE WILL DROP TO THREE-POINT-FIVE PERCENT ON JANUARY FIRST……20-26……
THE REDUCTION IS THE LATEST STEP IN A SERIES OF RATE CUTS ENACTED OVER THE LAST SEVERAL YEARS…..IT WAS ENABLED BY A STATUTORY “TRIGGER”
PROCESS THAT THE LEGISLATURE AND GOVERNOR RATIFIED EARLIER IN 20-25 WITH THE PASSAGE OF HOUSE BILL ONE…..
ACCORDING TO THE KENTUCKY CENTER FOR ECONOMIC POLICY……THE SHIFT FROM FOUR PERCENT TO THREE-POINT-FIVE PERCENT….WILL REDUCE STATE
REVENUE BY ABOUT 718 MILLION DOLLARS A YEAR WHEN FULLY PHASED……