Chris Blount
04-15-04, 06:39 AM
Kentucky's General Assembly ended its 2004 session late Tuesday night without passing a budget, a move that ultimately may ax any short-term talk about proposed taxes on communications services in the state, including satellite TV.
The legislature's failure to pass a budget was attributed to differences between Democratic lawmakers and Republican Gov. Ernie Fletcher, who proposed a "tax modernization" plan that included cuts in income tax but proposed the communications tax, which could've assessed a 7.62 percent levy on satellite TV subscribers in the state.
On the final night of the legislative session, Fletcher said it was disappointing the budget bill containing his tax modernization plan was not brought to the House floor for a vote. Options for the governor include calling a special legislative session, an idea Fletcher has dismissed, or implementing his own spending plan at the start of the fiscal year beginning July 1, a move that could result in a lawsuit challenging the governor's authority to spend money without legislative approval.
As for the fate of the communications tax, no tax modernization bill means no tax on communications services - for the moment. But some observers warned a tax proposal may again surface among lawmakers in future sessions.
http://www.skyreport.com (Used with permission)
The legislature's failure to pass a budget was attributed to differences between Democratic lawmakers and Republican Gov. Ernie Fletcher, who proposed a "tax modernization" plan that included cuts in income tax but proposed the communications tax, which could've assessed a 7.62 percent levy on satellite TV subscribers in the state.
On the final night of the legislative session, Fletcher said it was disappointing the budget bill containing his tax modernization plan was not brought to the House floor for a vote. Options for the governor include calling a special legislative session, an idea Fletcher has dismissed, or implementing his own spending plan at the start of the fiscal year beginning July 1, a move that could result in a lawsuit challenging the governor's authority to spend money without legislative approval.
As for the fate of the communications tax, no tax modernization bill means no tax on communications services - for the moment. But some observers warned a tax proposal may again surface among lawmakers in future sessions.
http://www.skyreport.com (Used with permission)