State House Lawmakers plan to seek a repeal of a 2005 business tax during the upcoming legislative session. Members say it is "killing" smaller companies and House Speaker Jody Richards calls the tax un-American.
The Alternative Minimum levy was enacted in 2005 to ensure that large multistate companies could not shift their earnings to other states and avoid Kentucky taxes.
"This part of the tax reform, the alternative minimum tax, had some unintended consequences that really affected small businesses across the Commonwealth," State Rep. Jim Decesare said.
Decesare was one of several Republicans at a news conference Monday, Dec. 11, 2006, who wants to repeal the the tax, which he said is hurting small businesses.
Gary Force Honda in Bowling Green, Ky., is one of them.
"It's taken small businesses like ours that sell high dollar items and have low profit margin and it has penalized us. It's hurt our business in the fact that we're not able to re-invest that money in our business. We have to pay it in the form of taxes," general manager, Tim Kanaly said.
Kanaly said the company doesn't mind paying its fair share of taxes but he said this tax is an undue burden.
"There are a lot of scenarios where businesses like ours can actually lose money and still have to pay taxes and we don't think that's quite fair," Kanaly said.
"It's gotten real complicated. It's hurt small businesses and this is the right thing to do," Kanaly said.