Kentucky nonprofits to benefit from new tax reform bill

BOWLING GREEN, Ky. (WBKO) -- Late Wednesday night, a tax reform bill successfully made it through the General Assembly and onto Governor Matt Bevin's desk.

Some of those who will especially benefit from this piece of legislation are non-profits across the Commonwealth.

Last year's tax law notably placed a new service tax in Kentucky for things like car repairs and dry cleaning.

But another effect of those reforms was to put a tax on ticket sales and even auction items for when nonprofits hold charitable events.

"That just really puts a negative taste in people's mouths because we already get taxed, it feels like at every turn," said Liz Bernard, CEO of Boys and Girls Club of Bowling Green. "Then to add it onto when you're trying to do good -- that's not something that we want to put on the backs of our supporters."

Bernard said it can make things a massive undertaking and a burden for nonprofits to monitor and collect sales tax, especially for large-scale events.

"Almost from the beginning, we were hearing from legislators that it really was an unintended consequence of everything that went through with tax reform last year," said Debbie Hills, president and CEO of United Way of Southern Kentucky. "And certainly, we've been hopeful that with this legislative session, that bills that were going to be put forward would go through."

Now House Bill 354 will get rid of those sales taxes on non-profits.

From a legislative standpoint, this new tax reform bill doesn't seem to be controversial.

It had bipartisan support, progressing through the House and Senate with an easy majority.

It's anticipated that Governor Matt Bevin will sign it, and with the help of an emergency clause in the bill, it would go into effect immediately.

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