FOR IMMEDIATE RELEASE:
KY State House Voting yet another Tax Increase during Recession
Frankfort, Kentucky – 2/23/09- In a time when Kentucky businesses and citizens are fighting to survive, the KY House wants to rush a vote on HB 347 which dramatically increases the reach of sales tax into digital media and related services.
The addition of this new Sales Tax will
· Make all Kentucky businesses less competitive by driving up costs which are passed onto consumers.
· Double the tax burden on businesses during a recession
· Burden small businesses with unknown compliance tracking requirements and costs.
· Cut high paying Kentucky jobs as businesses leave for friendlier states.
· Be a direct contradiction to the stated economic goals of Vision 2015 and the KY Dept of Economic Development
“An unnecessary tax increase during these tough economic times is not good for business,” says Chris Sturm, Board Member of the Kentucky Information Technology Alliance (KYITA) and a KY small business owner.
HB347 extends 6% sales tax to new areas including digital property and related services. HB 347 defines related services in vague terms that could reach virtually any industry that provides products or services over the Internet such as banking and accountants.
Tier 1 Performance located in Covington, KY is recognized as the 2009 Connect Kentucky Small Technology Business of Year and has created over 40 high paying jobs. Normand Desmarais, Chairman and Cofounder, commented that, “An increase in taxes definitely influences our ability to create new jobs. Tier 1 wants to help Kentucky build a pro business community that invites and encourages business growth. Tax increases create a barrier to growth and could act as a disincentive to bring other technology based companies to Kentucky.
The KY House of Representatives is considering a vote on HB347 as soon as Wednesday. Many organizations such as the Northern Kentucky Chamber of Commerce are in opposition of the tax increase in HB347. Contact your KY representative by calling 1-800-372-7181 or visit http:///www.lrc.state.ky.us to find your legislators.
To read the proposed bill go to http://www.lrc.ky.gov/record/09RS/HB347.htm.