During a press conference on Thursday, Beshear endorsed a bill that would cut Kentucky’s sales tax from 6% to 5% for one year. The Governor said that the tax cut, along with vehicle tax suspension, would save Kentuckians more than $1 billion in a year.
“We know a dollar is fungible, right? If it costs you less to buy one thing you need, you have a little bit more to buy that next thing you need. But again, this is the only thing that’s out there that actually addresses what things cost,” Beshear said.
The governor is working with Kentucky House Democratic Caucus Whip Angie Hatton to form the sales tax legislation. If it were to pass, the cut would be effective from July 1, 2022, to June 30, 2023.
Gov. Beshear plans to go a step further by joining other governors asking lawmakers in Washington to suspend the 18 cents federal gas tax until the end of the year.