
KY General Assembly Passes Bill Lowering State Income Tax
Clip: Season 3 Episode 179 | 2m 57sVideo has Closed Captions
The Kentucky General Assembly has passed its first bill of the 2025 legislative session.
The Kentucky General Assembly is back in session. Today, lawmakers passed their first bill. House Bill 1 will reduce the state income tax from 4% to 3.5% beginning in 2026.
Problems with Closed Captions? Closed Captioning Feedback
Problems with Closed Captions? Closed Captioning Feedback
Kentucky Edition is a local public television program presented by KET

KY General Assembly Passes Bill Lowering State Income Tax
Clip: Season 3 Episode 179 | 2m 57sVideo has Closed Captions
The Kentucky General Assembly is back in session. Today, lawmakers passed their first bill. House Bill 1 will reduce the state income tax from 4% to 3.5% beginning in 2026.
Problems with Closed Captions? Closed Captioning Feedback
How to Watch Kentucky Edition
Kentucky Edition is available to stream on pbs.org and the free PBS App, available on iPhone, Apple TV, Android TV, Android smartphones, Amazon Fire TV, Amazon Fire Tablet, Roku, Samsung Smart TV, and Vizio.
Providing Support for PBS.org
Learn Moreabout PBS online sponsorshipfor spending some of your Tuesday night with us.
>> Kentuckians will enjoy another tax break when it comes to what they pay in state income taxes.
This after the Senate gave its stamp of approval to a measure to slice the tax from 4 to 3 and a half percent next year.
The measure now heads to the governor's desk, our June Leffler has more in tonight's Legislative update.
>> Lawmakers gavel didn't today for the first time in 3 weeks, the Senate picked up where the House left off.
The Senate has passed House Bill.
One.
Seen legislation to reduce the state income tax.
Republicans have gradually chipped away at the income tax for years.
>> This is a great day.
That where letting people >> KET some of their hard earned money.
And when you talk about putting money into whose pockets?
Well, that's not what we're doing.
We're stopping taking it from their pockets.
They are and that it's their money, not ours.
We think we know better what to do with their money than they did.
I'm telling you, we do not with this test could based on the median income for families in Kentucky.
We will have put over $1500 annually back in people's pockets.
Well, the folks who are against well, but you've raised taxes on these other services.
>> You have just been $25,000 on those new services for the sales tax will be greater than the that you realized.
In diapers.
This $1500.
What led you to purchase 303,360 diapers.
>> This measure gained bipartisan support in the House last month.
And this week in the Senate.
>> They're being 34 yeas, 3 nays.
>> House Bill one is finally passed.
>> But with President Donald Trump in office, some Democrats say now is not the time to reduce money coming into state coffers.
>> Cutting our revenues at a time of such economic uncertainty.
We don't know what tariffs if any, might be coming.
We don't know what federal funds if any might be going away.
We don't know what impact if any that's going to have on us here in this state.
>> The risk that we are facing now.
With that bourbon industry and tariffs.
>> Even with our battery plants.
>> And whether or not the new Federal administration >> is going to be in favor of electric vehicles, which it looks like they may not be.
>> Once the bill becomes law, the 0.5% reduction will take effect at the start of 2026. for Kentucky edition.
I'm June Leffler.
>> Thank you.
Much June.
The bill now heads to Governor Andy Beshear's desk for signature or veto.
But he has signaled support for the cut.
Ending Remote Work for State Employees?
Video has Closed Captions
Members of the KY General Assembly debate ending remote work for state employees. (3m 17s)
Honoring the Enslaved at Ashland, Henry Clay Estate
Video has Closed Captions
Ashland, the Henry Clay Estate, is hosting tours to give visitors the full story of those enslaved. (2m 59s)
"Kentucky Forward: A Vision for Families"
Video has Closed Captions
Kentucky House Democrats identify their legislative priorities. (3m 3s)
A "New Riff" On an Old Tradition
Video has Closed Captions
Leaders of a bourbon distillery in Northern Kentucky talk about challenges in the industry. (5m 5s)
Providing Support for PBS.org
Learn Moreabout PBS online sponsorshipKentucky Edition is a local public television program presented by KET