Kentucky nonprofits feeling 'relief' after governor signs tax bill into law
Governor Matt Bevin signed HB 354 into law lifting the burden off of nonprofits.
No longer will a six percent sales tax apply to nonprofit event ticket sales or items sold for fundraising purposes. It was an unintended consequence from the legislature last year.
"Relief is probably the most accurate reaction," said
CEO Danielle Clore. "We are obviously very happy and thrilled."
There was an emergency clause attached to the bill, meaning the changes for nonprofits went into effect as soon as the governor signed it Tuesday.
"We're thrilled that the governor and the legislature saw this was not something that Kentucky needs to be known for. They don't need to be known for taxing charities," said Stewart Perry, president of Equestrian Events, Inc.
On April 25-28, Equestrian Events Inc. will host the
at the Kentucky Horse Park. It brings in tens of thousands of people, many from outside of Kentucky. Proceeds from the event go to the nonprofit.
"Then the money that we raise, we turn around and plow back into local charities and the Kentucky Horse Park to help everybody in central Kentucky," Perry said.
While people can't get back the money they spent on taxed tickets, HB 354 does clear things up moving forward. Clore said everything that happened taught not only lawmakers a lesson, but nonprofits too.
"Just as they pay attention to donors and volunteers they serve, they need to be sure that people making decisions about their operating environment understand how they do business and how critical nonprofits are to Kentucky," Clore said.