Public Act 168 of 2005

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• Introduced by Rep. Jeffrey Hoover (R) on February 2, 2005, to adopt Governor Ernie Fletcher's tax reform package. The bill would change rates of corporation income tax, extend to include all limited liability entities, create an alternative minimum calculation and a minimum assessment, require consolidated returns of certain groups of corporations. The bill would change individual income tax rates and would exclude state replacement payments for Phase II tobacco payments. The bill would alter coverage and rates of the low income tax credit. The bill would increase cigarette tax rate, assess new tax on smokeless tobacco, implement rate setting and adjustment procedures, implement floor stocks tax procedures. The bill changes various other taxes.
  • Referred to the House Appropriations and Revenue Committee on February 3, 2005.
  • Amendment offered by Rep. Tanya Pullin (D) on February 9, 2005.
  • Amendment offered by Rep. Rick Nelson (D) on February 17, 2005.
  • Substitute offered in the House on February 17, 2005, to retain most provisions, but also incorporate the provisions of the Military Family Relief Act of 2003. The substitute would reduce the top corporate rate to 7% in calendar year 2006, with a further reduction to 6% beginning in calendar year 2007. The substitute would impose a surtax of $0.26 on each 20 cigarettes (one pack). The substitute would impose an excise tax of 3% on cable and direct broadcast satellite companies and would impose a gross revenues tax on telephone, cable and direct broadcast satellite. The bill also would delete the income tax rate reduction trigger. The substitute would also attach provisions of House Bill 353.
  • The substitute passed in the House by voice vote on February 18, 2005.
  • Amendment offered by Rep. Harry Moberly, Jr. (D) on February 17, 2005, to make technical corrections.
  • The amendment passed in the House by voice vote on February 18, 2005.
  • Amendment offered by Rep. Rick Nelson (D) on February 17, 2005.
  • Amendment offered by Rep. David Floyd (R) on February 17, 2005.
  • Amendment offered by Rep. Rick Nelson (D) on February 17, 2005, to attach provisions of House Bill 429 deleting the writing portfolios from the statewide school accountability system.
  • Amendment offered by Rep. Harry Moberly, Jr. (D) on February 18, 2005, to exclude cigarettes and snuff from definition of "other tobacco products" and to change the tax rate on other tobacco products to seven and one-half percent. The amendment also would change the rate on snuff to five cents per unit. The amendment passed in the House by voice vote on February 18, 2005.
  • Amendment offered by Rep. Harry Moberly, Jr. (D) on February 18, 2005, to change the rate on other tobacco products to 7.5% of gross receipts. The amendment passed in the House by voice vote on February 18, 2005.
  • Amendment offered by Rep. Denver Butler (D) on February 18, 2005.
  • Amendment offered by Rep. David Floyd (R) on February 18, 2005.
  • Amendment offered by Rep. Harry Moberly, Jr. (D) on February 18, 2005, to change the title of the bill. The amendment passed in the House by voice vote on February 18, 2005.
• Passed in the House (96 to 4) on February 18, 2005, to adopt an amended version of Governor Ernie Fletcher's tax reform package. The amended bill would retain most provisions, but also incorporate the provisions of the Military Family Relief Act of 2003. The substitute would reduce the top corporate rate to 7% in calendar year 2006, with a further reduction to 6% beginning in calendar year 2007. The substitute would impose a surtax of $0.26 on each 20 cigarettes (one pack). The substitute would impose an excise tax of 3% on cable and direct broadcast satellite companies and would impose a gross revenues tax on telephone, cable and direct broadcast satellite. The bill also would delete the income tax rate reduction trigger. The amended bill would attach provisions of House Bill 353. The amended bill also raises tax rates for "other tobacco products" that do not include cigarettes and snuff. [Vote Details and Comments]
• Received in the Senate on February 22, 2005.
  • Referred to the Senate Appropriations and Revenue Committee on February 22, 2005.
  • Substitute offered in the Senate on February 28, 2005, to retain most provisions of the bill, but also to delete election requirement for the alternative minimum calculation. The bill provides language regarding intent for the increase in taxes on tobacco and communications providers and multichannel video programming service providers. The bill changes the clean coal credit to reduce initial investment to $150,000,000. The substitute passed in the Senate by voice vote on February 28, 2005.
  • Amendment offered by Sen. Charlie Borders (R) on February 28, 2005, to tax electing single member Limited Liability Entities at the individual level and ignore the entity for corporate tax purposes. The amendment passed in the Senate by voice vote on February 28, 2005.
• Passed in the Senate (37 to 0) on February 28, 2005, to retain most provisions of the bill, but also to delete election requirement for the alternative minimum calculation. The amended bill also would tax electing single member Limited Liability Entities at the individual level and ignore the entity for corporate tax purposes. The bill provides language regarding intent for the increase in taxes on tobacco and communications providers and multichannel video programming service providers. The bill changes the clean coal credit to reduce initial investment to $150,000,000. The amended bill also would tax electing single member Limited Liability Entities at the individual level and ignore the entity for corporate tax purposes. [Vote Details and Comments]
• Received in the House on March 1, 2005.
• Passed in the House (96 to 3) on March 8, 2005, a free conference committee report to retain most provisions of the Senate-passed bill with several changes. The compromise bill would permit publicly traded partnerships and affiliates to be treated as a partnership rather than a corporation. The bill would set the minimum corporation tax to $175. The bill would change the qualifications for a clean coal facility to include facilities beginning commercial operation on or after January 1, 2005. The bill would remove the tax on broadcast, television, and motion picture rights for professional boxing and wrestling matches. The bill makes other technical corrections. [Vote Details and Comments]
• Received in the Senate on March 1, 2005.
• Passed in the Senate (37 to 0) on March 8, 2005, a free conference committee report to retain most provisions of the Senate-passed bill with several changes. The compromise bill would permit publicly traded partnerships and affiliates to be treated as a partnership rather than a corporation. The bill would set the minimum corporation tax to $175. The bill would change the qualifications for a clean coal facility to include facilities beginning commercial operation on or after January 1, 2005. The bill would remove the tax on broadcast, television, and motion picture rights for professional boxing and wrestling matches. The bill makes other technical corrections. [Vote Details and Comments]
• Signed by Gov. Ernie Fletcher on March 18, 2005.