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Tax amnesty program begins

Posted on October 1, 2012 by Kentucky Chamber Blog

In an effort to collect tens of millions of dollars owed to the Commonwealth in back taxes, Gov. Steve Beshear recently announced the kick-off of Kentucky’s Tax Amnesty program.

Today through the end of November, most people and businesses that owe overdue taxes to the Commonwealth can apply for amnesty.  This means they can pay up without facing penalties or fees and owe only half the interest due.

“This is a great way to add significant revenue to the state budget in a short amount of time,” said Gov. Beshear.  “Offering amnesty also helps responsible taxpayers who’ve faced tough times and want to get out of trouble a way to meet their obligations and save them significant money.  They can pay now or pay more later.”

While the current database shows nearly 170,000 individuals and businesses qualifying for tax amnesty, others may also owe back taxes.  The list of delinquent debtors includes those businesses and individuals who have a tax lien on file, but does not include those who may owe taxes and have not filed.  The state is continuously gathering taxpayer information to discover non-filers and under-reporters.

Each individual and business taking advantage of Tax Amnesty will save an average of 30 percent of what they would otherwise be charged.  The average delinquent taxpayer owes about $5,000, while the average tax debt for a delinquent business is $25,000.

Those who don’t apply for amnesty will face higher penalties plus owe an additional 2 percent in interest.  Amnesty participants must remain current on their taxes over the next three years or face reinstated penalties, fees and interest.

The toll-free hotline set up by the Department of Revenue to handle Tax Amnesty questions is 855-KYTAXES (855-598-2937).  The website – www.amnesty.ky.gov – provides more information and has a searchable database of delinquent taxpayers.  It also has all forms needed to apply for amnesty.

“We’re making it as easy as possible for people to determine if they owe back taxes and to create multiple ways to pay,” said Tom Miller, Commissioner, Kentucky Department of Revenue.  “They can mail in the payment or use a credit card.  They can pay at any of our 10 offices around the state, or they can pay online using a website we have created just for Tax Amnesty.”

The amnesty program applies to taxes owed only to the Kentucky Department of Revenue for eligible tax periods ending after December 1, 2001 and prior to October 1, 2011.  While most on the delinquent tax roll reside in Kentucky, the list includes people in all 50 states plus several other countries.

 

Filed under: Government Modernization, Human Resources, Small Business, Taxes & Budget | Tagged: , , , , , | Leave a Comment »

Google kicks off initiative for Kentucky small businesses

Posted on May 30, 2012 by Kentucky Chamber Blog

Several hundred entrepreneurs and small business leaders from all over the Commonwealth made their way to Louisville yesterday for the Kentucky Get Your Business online event hosted by Google, in partnership with the Kentucky Chamber. 

Attendees had the opportunity throughout the day to create a website during a 90-minute workshop, learn to enhance their online presence in various seminars, and work one-on-one with Google staff on specific questions and issues.

Businesses from Whitesville to Bowling Green and Lexington to Louisville were represented, and people from every industry imaginable were in attendance: chefs, authors, personal trainers, real estate agents, business consultants, artists, nonprofit leaders and many more.

The initiative is dedicated to helping drive economic growth by providing Kentucky local businesses the tools and resources to get online and succeed, and it will continue at least throughout the next 12 months. Small business owners may visit Kentucky Get Online to access this offer and receive:

  • Free, easy-to-build, professional website
  • Free customized domain name and web hosting for one year
  • Local business listing
  • Free tools and resources

Filed under: Small Business | Leave a Comment »

Get involved on behalf of your small business

Posted on May 24, 2012 by albledsoe

Because small businesses are often disproportionately affected by changing legislation and the economic climate, the Chamber fights everyday to ensure your small business has a voice at the Capitol. But that fight can’t be won without the support and feedback of our members. We strongly encourage you to support the legislative process by getting involved with one of the initiatives mentioned below.

small businessSmall Business Council – Each year, the Chamber’s policy councils and committees, comprised of business leaders from across the state, develop our legislative positions and priorities. Join the small business council and help ensure the Chamber’s Legislative Agenda focuses on the broad range of issues of particular importance to small business owners. Contact the Chamber’s Public Affairs Department at 502-848-8733 to find out how you can get involved.

Small Business Action Network – The Chamber’s Action Networks are a great way to stay up to date on the issues that matter most to your business. Sign up for any of the seven networks (Education & Workforce Development, Government Modernization, Health & Wellness, Kentucky Competitiveness, Energy & Environment, Manufacturing and Small Business) and receive timely news updates related to that subject, as well as action alerts on pending legislation. Join today.

Filed under: Small Business | Tagged: , , , , , , | Leave a Comment »

Business Summit will feature session on workforce trends and growth

Posted on May 21, 2012 by Kentucky Chamber Blog

We know you, as a small business leader, care about Kentucky’s future. Be a part of the conversation to shape the course of our state. The Seventh Business Summit and Annual Meeting, presented by Bingham Greenebaum Doll PLLC, brings together diverse ideas to answer the question: What are the decisions we have to make to move Kentucky forward? Join us July 16-17 at the Louisville Marriott Downtown for a dialogue on Kentucky that explores solutions and inspires change.

One of the many high caliber speakers participating this year is Ted Abernathy, executive director of the Southern Growth Policies Board, which provides economic development research and advice for 13 Southern states. Abernathy, who has spent 32 years in economic development, will focus his presentation on the future of the South, especially Kentucky. He will discuss current workforce trends and opportunities for growth, covering key topics such as technology and innovation, globalization, talent, civic engagement, cluster development, collaboration and leadership.

The Annual Meeting dinner will begin at 6 p.m. on Tuesday, July 17. The keynote, titled The Great Debate: Election 2012, will feature commentary from Paul Begala, a political analyst for CNN, and William Kristol, a political analyst for Fox.

Visit kychamber.com/businesssummit for a complete agenda or to register. Sponsorship opportunities are available. Contact Andrea Flanders at 502-848-8723 to learn more.

Filed under: Events, Small Business | Tagged: , , , , | Leave a Comment »

Senate reduces spending in 2-year budget

Posted on March 23, 2012 by Kentucky Chamber Blog

From the Legislative Research Commission:

For Immediate Release
March 23, 2012

Senate approves two-year budget plans

FRANKFORT — The Kentucky Senate approved its version of the state’s biennial budget plan yesterday by a 32-4 vote.

House Bill 265, as amended by the Senate, is similar to the budget that cleared the House two weeks ago. The plan includes 8.4 percent cuts on nearly all agencies over the next two years. This is on top of 10 rounds of budget reductions since 2007. Critical areas, such as Medicaid, are exempt from the cuts.

Base-line school funding remains, along with an additional provision for school districts suffering damage from the recent tornadoes. The Senate included a waiver for up to ten school days that students missed due to storm damage, as well as a special process to calculate SEEK funding in the 2012-2013 school year, for those districts.

Most of the changes made by the Senate to HB 265 were aimed at reducing the state’s overall amount of authorized bonded indebtedness. The governor’s original proposal included $968 million in debt that was reduced to $552 million by the House. The Senate reduced that amount even further to $391 million by removing bond funds for several projects, including $20 million previously allocated for the High-Tech Construction Investment Pool and $25 million for the maintenance and renovation of the state’s public school buildings and facilities.

The Senate plan also mandates a reduction of nearly $100 million over the next two years in contract expenditures by the governor. It increases the Budget Reserve Trust, or ‘rainy-day’ fund, to nearly $129 million by the end of the biennium.

The Senate concurred with a handful of funding increases in the House plan, such as providing additional money to reduce the caseloads of frontline social workers. Both plans also include more than $4 million total for the expansion of the state’s KASPER prescription-drug monitoring program. While it approved funding to boost revenues for the Kentucky State Fair Board, it cut additional funding in the House-approved budget for the Horse Park.

Legislative and judicial branch operational budgets, included separately in House Bills 268 and 269, respectively, were approved unanimously. Those branches of government would also face a full 8.4 percent cut.

Salary and cost of living increases for state employees and retirees in all three branches were excluded.

The budget plan will now be considered by a conference committee comprised of members of both chambers working to hammer out differences in their versions of the bills.

–END–

Click here for a detailed summary of the Senate changes prepared by the Legislative Research Commission’s budget staff.

Filed under: Economy, Kentucky Competitiveness, Politics, Small Business, Taxes & Budget | Tagged: , , , | Leave a Comment »

Ten ways in 3 days to help Kentucky business

Posted on March 13, 2012 by Kentucky Chamber Blog

As the 2012 General Assembly comes to an end, a coalition of Chambers of Commerce from across the state have urged Kentucky legislators to take action before time runs out. While Kentucky’s economy is slowly recovering, the General Assembly should not lose sight of the critical importance of adopting policies that support businesses and spur job growth. With just 3 days left, time is running out. Join  the fight for business: contact your legislators and tell them we must all work together to make Kentucky a more competitive place for business to invest and grow.

 1.     Unemployment insurance – We urge the legislature to develop a mechanism to pay back the interest Kentucky owes on its debt to the federal government for unemployment insurance. Inaction is simply not an option. If the state defaults on its loan, Kentucky employers will be hit with a massive $607 million penalty, increasing UI taxes from $42 to $420 per employee. The burden to pay the interest must not be placed solely on the backs of employers, who are already facing state and federal UI tax increases. HB 495 passed the House; Senate must take action.

 2.     Career/technical education – SB 38 and HB 75 improve career and technical education programs to ensure students are developing the skills required in the modern workplace. There are currently high-tech manufacturing jobs in Kentucky that cannot be filled because we do not have enough qualified workers. A re-tooled career and technical education system will also keep students engaged and challenged, encouraging them to stay in school longer and earn their degrees. SB 38 passed the Senate; House must take action. HB 75 passed the House; Senate must take action.

3.     Angel investment – HB 113 provides tax credits to individual investors who further the establishment or expansion of small businesses, create jobs and foster the development of new products and technologies. Angel investors are key to funding small and medium-sized startups, but Kentucky is now lagging behind border states such as Ohio and Tennessee that have incentives to attract these investors. House and Senate must take action.

 4.     Prescription drug abuse – We are encouraged by the bi-partisan efforts (HB 4 and SB 2) to address the prescription drug epidemic in Kentucky. Not only does it strain families, it also hurts business. Prescription drug abuse in the workplace compromises the quality and safety of our workforce and increases workers’ compensation and health care costs. HB 4 passed the House; the Senate Judiciary Committee is expected to take action on the measure on Monday.

 5.     Local tax consolidation – HB 277 cuts some of the red tape of doing business in Kentucky by creating a standard form to be used by all local tax districts for the filing of net profits, gross receipts and occupational license taxes. The current system consists of more than 200 local taxing districts each with its unique filing form, creating an administrative nightmare for employers. HB 277 passed the House and Senate. It now heads to the governor for his signature.

 6.     Pension reform – Kentucky’s public employee pension system and outstanding liabilities continue to drown the state’s coffers, hurting our credit rating and risking large tax increases on business in the future. While we favor comprehensive reform and the move to a 401K-type system, at the very least the legislature should suspend the annual Cost-of-Living Adjustment (COLA) until the system is more adequately funded. HB 300 passed the House Senate; awaiting concurrence.

7.     State debt limit – SB 1 prohibits the legislature from appropriating more than 6 percent of General Fund-appropriated revenues to bonded indebtedness. Six percent is a generally accepted industry standard used by bond rating agencies and is essential for Kentucky to get its financial house in order. A fiscally-sound government means lower interest rates for much-needed infrastructure projects and lower taxes for business. Passed the Senate; House must take action. 

8.     Automotive incentives – HB 400 amends the Kentucky Jobs Retention Act by allowing projects related to automobile and parts manufacturing to seek economic development incentives regardless of their location in Kentucky. This legislation is needed to create a level playing field for our automotive industry, which is responsible for thousands of jobs and has an enormous ripple effect across the state. Passed the House and the Senate. The bill now heads to the governor for his signature. 

9.     Property restoration – Two bills incentivize business to restore blighted properties, encouraging economic growth, increasing surrounding property values and revitalizing communities. HB 465 establishes a Brownfields Redevelopment Program to extend nonliability to property owners seeking to redevelop a site where a release of petroleum, pollutants or contaminants has occurred. HB 513 extends tax credits for environmental remediation to the renovation or removal of a qualifying industrial building. HB 465 passed the House and Senate.Environment Committee. The bill now heads to the governor for his signature. 

10.  Teacher professionalization – Kentucky’s education system includes two practices that can make it difficult to remove poor performing teachers from the classroom, hurting student achievement – automatic tenure and the termination and suspension appeals process. SB 122 and SB 132 make great strides in correcting these personnel policies that are out of line with current employment practices. These measures would help to ensure we have qualified teachers in every classroom, increasing the quality of education for our future workforce. SB 132 passed the Senate; House must take action. House and Senate must take action on SB 122.

Filed under: Economy, Education, Energy & Environment, Government Modernization, Health & Wellness, Kentucky Competitiveness, Small Business | Leave a Comment »

Kentucky Chamber offers certificates of origin

Posted on January 11, 2012 by Kentucky Chamber Blog

International exporters can rely on accredited state Chamber to serve trade needs

Kentucky’s future prosperity rests on its preparation to compete in the global marketplace. This means recognizing that our true economic competitors are no longer limited to Ohio, Indiana, Tennessee and other states, but now also include countries like China, Korea and India. The Kentucky Chamber has set the goal of doubling exports from the state over the next five years, and we are working on the policies and partnerships necessary to create the best environment for companies across the Commonwealth to realize that goal.

We are pleased to offer our members who export internationally a reliable source for obtaining certificates of origin. A certificate of origin is a trade document required by customs authorities in destination countries where goods are shipped with the purpose of verifying the country in which the goods were manufactured.

False declarations or those that are fraudulently certified can not only result in severe penalties, but also may harm trade relations between the United States and other countries. With very few exceptions, chambers of commerce are the only institutions granted the authority to issue certificates of origin. The Kentucky Chamber of Commerce is an accredited state chamber under the U.S. Chamber of Commerce, and works in cooperation with the World Trade Center of Kentucky.

Certificates of origin are discounted to $25 per shipment for Kentucky Chamber members. Future members pay $55 per shipment. Contact Denise Scott at 502-848-8724 or Brenda Travis at 502-848-8743.

Filed under: Kentucky Competitiveness, Manufacturing, Small Business | Tagged: , , | Leave a Comment »

Big support for small biz

Posted on November 16, 2011 by albledsoe

November 26 marks the second annual Small Business Saturday initiative, which encourages consumers to patronize small merchants in their neighborhoods on the Saturday after Thanksgiving.

It’s easy for the Kentucky Chamber to get behind this initiative … with small businesses making up more than 70 percent of our membership, many of the laws and policies we fight for foster growth and prosperity for small businesses.

It’s important to recognize the contributions small businesses make to our state’s economic growth, not to mention the influence and impact of these companies in their local communities. Fortunately, Kentucky is also an ideal place for small businesses to thrive, with its geographical access to the rest of the country and world through road, rail, water and air and its relatively low cost of living and doing business. Whichever county you’re in throughout the Commonwealth, you should have plenty of small businesses to choose from.

Here’s how to participate:

Business owners

Check out the free online toolkit with marketing resources and sign up to be promoted as a participating small business. Last year, participants saw a 28% increase in sales over the same day in 2009, so it pays to join in!

Take advantage of the web badges, printable signs, and more to drive business through your doors. Including a special offer can help grab the attention of consumers as well.

Be sure to comment below and let us know about your business and how you’ll be participating.

Consumers

Show your support for small businesses by liking the Small Business Saturday Facebook page and by turning up at small shops on Saturday, Nov. 26.

When there’s something you need, think first if it’s possible to get it from a local merchant or provider.

Remember, Small Business Saturday is not just for the obvious retailers and restaurants (although it’s great to support them, of course). Think of creative ways to support small companies in your area. Here are just a few of the services and products that may be available to you:

Small Business Saturday

Shop Small on Saturday, November 26, 2012

  • Car washes and oil changes
  • Pet grooming and supplies
  • Salons and spas
  • Greenhouses, nurseries and farms
  • Print shops
  • Bed & breakfasts
  • Artists, designers
  • Professional services (such as legal and accounting)
  • Financial planners
  • Gyms, dance and yoga studios and personal trainers
  • Dry cleaners
  • What did we miss? Add your suggestion in the comments section.

The nationwide Small Business Saturday is still 10 days away, but you don’t have to wait until then to shop small in your neighborhood. On your way to work tomorrow, choose your local coffee shop for your morning pick-me-up, or give your sister cooking classes for her birthday. Small gestures of support for small business can mean big things for your town.

Filed under: Economy, Small Business | Tagged: , , , , , , | Leave a Comment »

What employers need to know to claim the Small Business Health Care Tax Credit

Posted on September 30, 2011 by Kentucky Chamber Blog

The IRS has asked us to share the following information about the Small Business Health Care Tax Credit:

Many small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. This credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage to maintain the coverage they already have. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.

Here is what small employers need to know so they don’t miss out on the credit for tax year 2010:

  • Hurricane Irene, Tropical Storm Lee and other recent disaster-related tax relief postponed certain tax filing and payment deadlines to Oct. 31, 2011. Qualifying businesses affected by these natural disasters still have time to file and claim the small employer health care credit on Form 8941 and claim it as part of the general business credit on Form 3800, which they would include with their tax return. For more information on the disaster relief visit IRS.gov.
  • Sole proprietors who file Form 1040, Partners and S-corporation shareholders who report their income on Form 1040 and had requested an extension have until Oct. 17 to complete their returns. They would also use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.
  • Tax-exempt organizations that file on a calendar year basis and requested an extension to file to Nov. 15 can use Form 8941 and then claim the credit on Form 990-T, Line 44f.
  • Businesses who have already filed can still claim the credit. For small businesses that have already filed and later determine they are eligible for the credit, they can always file an amended 2010 tax return. Corporations use Form 1120X and individual sole proprietors use Form 1040X.
  • Businesses that couldn’t use the credit in 2010 may be eligible to claim it in future years. Some businesses that already locked into health insurance plan structures and contributions for 2010 may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010. So these businesses may be eligible to claim the credit on 2011 returns or in years beyond. Small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

For tax years 2010 to 2013, the maximum credit for eligible small business employers is 35 percent of premiums paid and for eligible tax-exempt employers the maximum credit is 25 percent of premiums paid. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible tax-exempt organizations.

Additional information about eligibility requirements and calculating the credit can be found on the Small Business Health Care Tax Credit for Small Employers page of IRS.gov.

Links:

  • Form 8941, Credit for Small Employer Health Insurance Premiums (PDF)
  • Form 3800, General Business Credit (PDF)

Filed under: Health & Wellness, Kentucky Competitiveness, Small Business, Taxes & Budget | Leave a Comment »

Adkisson comments on UI tax issue

Posted on September 12, 2011 by Kentucky Chamber Blog

Tax Crisis averted

Filed under: Kentucky Competitiveness, Small Business, Taxes & Budget | Leave a Comment »

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