Tax Relief Tops NFIB’s Small Business Agenda for 2024 General Assembly

Date: January 09, 2024

This years' session of the state legislature got underway Jan. 2

NFIB State Director Tom Underwood says tax relief is the No. 1 issue for Kentucky’s small business owners in this year’s session of the General Assembly.

“We suspect most of the legislature’s attention will be focused on crafting a two-year state budget that the General Assembly approves and Governor Beshear will agree to, but there are other issues that would have a big impact on Kentucky’s small businesses,” NFIB State Director Tom Underwood said.

Eliminate the Limited Liability Entity Tax (LLET)

NFIB supports state Rep. Patrick Flannery’s bill to eliminate the annual LLET on all LLCs and corporations with revenue under $100,000 a year. “The annual $175 LLET fee applies to small businesses even if they record a loss and don’t have to pay income tax,” Underwood said. “That’s unfair. House Bill 120 is a first step in eliminating this regressive tax.”

Eliminate ‘Gotcha’ State Audits

NFIB supports HB 122, also sponsored by Representative Flannery, which will require the Department of Revenue to post all internal training manuals, tutorials, unpublished guidance and answers to taxpayers’ letters seeking direction. “This information will ensure businesses know exactly what’s expected of them,” Underwood said. “Sharing these documents on the state website would improve transparency and help eliminate many ‘gotcha’ audits.”

Eliminate the 1% Tax on Health Insurance Premiums

Underwood said NFIB is working with legislators to draft legislation to remove the state’s 1% tax on health insurance premiums. “This onerous tax has been around since 1990 but over the years, groups have been exempted from paying it. At this point, the only Kentuckians left are individuals and small business, the very people struggling with skyrocketing health insurance costs,” he said. “Not only is this tax a burden, but it’s also a prime example of unfairly taxing small business.”

Related Content: Small Business News | Kentucky

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