"Issues Confronting the 2014 Kentucky General Assembly" book available
A book containing issue briefs on topics likely to confront lawmakers during the Kentucky General Assembly's 2014 session is now available in print and online. This book contains 46 issue briefs prepared by members of the Legislative Research Commission staff.
Real estate related issue briefs include:
Professional Or Driver’s Licenses - Should the General Assembly revise statutes authorizing the revocation of professional or driver’s licenses of individuals who have any state tax liability?
Eminent Domain - Should the General Assembly authorize the condemnation of private property needed to construct a natural gas liquids pipeline?
Local Occupational License Tax - Should the General Assembly amend the local occupational license tax statutes so that counties with populations of more than 30,000 are treated the same as other counties and cities?
The book is not meant as an exhaustive list of issues that lawmakers will consider, but reflects a balanced look at some of the main topics that have been discussed in legislative committee meetings. The publication can be viewed here.
The Kentucky General Assembly’s 2014 session begins on Jan. 7 and is scheduled to adjourn on April 15.
2014 Legislative Session - bills being watched by KAR:
(relating to the proposed Bluegrass Pipeline)
KAR is closely monitoring the proposed Bluegrass Pipeline that will transport natural gas liquids through Kentucky. Williams and Boardwalk Pipeline Partners, LP have addressed concerns about the potential use of eminent domain along the pipeline’s proposed route and stressed the fact that it is an absolute last option that is rarely used.
Eminent domain, as defined by the Kentucky Eminent Domain Act of 1976, means the right of the Commonwealth to take land for a public purpose, and shall include the right of private persons, corporations, or business entities, to do so under authority of law. REALTORS® are committed to the private ownership of real property and believe it is the foundation of our the Commonwealth's free enterprise system .KAR will continue to monitor any situation where eminent domain is utilized. Here are a few resources on the issue:
Rep. John Tilley Pre-filed bill
Rep. David Floyd Pre-filed bill
Sen. Jimmy Higdon Pre-filed bill
Kentucky Resources Council (Eminent Domain explained)
Bluegrass Pipeline project
Cn2 reports "Landowners divided over Bluegrass Pipeline"
Check back weekly for an updated list of bills KAR is monitoring throughout the 2014 session.
3.8% Tax (Medicare Tax) for 2013
Now that the Supreme Court has upheld the health care legislation, all of its major provisions remain in effect, including the new tax that was designed to affect upper income taxpayers. The 3.8% tax is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). The tax applies to investment income, defined as interest, dividends, capital gains and net rents. These items are all included in an individual's AGI. A formula will determine what portion, if any, of these types of investment income would be subject to the tax.
The tax is NOT a transfer tax on real estate sales and similar transactions. Not long after the tax was enacted, erroneous and misleading documents went viral on the Internet and created a great deal of misunderstanding and made the tax into something far more draconian than the actual provisions.
The new tax DOES NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence. Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.
REALTORS® should familiarize themselves with the tax, but should not advise their clients about the application of the tax. The amount of tax will vary from individual to individual because the elements that comprise AGI differ from taxpayer to taxpayer.
Visit the links below for additional information:
Top 10 Things to Know About the Tax
NAR Mythbuster Flyer
New Medicare Tax on "UNEARNED" Net Investment Income
New Medicare Tax on EARNED Income: Wages, Salaries and Commissions
NAR Page on Health Insurance Reform
Scenarios & Examples
Delinquent Taxpayers & Suspension/Revocation of a Professional License, Driver's License, and Motor Vehicle Registration
Read Major Provisions Report on HB 440 from KY Real Estate Commission
Effective January 5, an Order was entered by Commissioner Vice (Department of Financial Institutions or DFI) regarding the S.A.F.E. Act. You can read the Order as signed and presented by DFI to see the change which basically allows individuals who originate no more than four (4) mortgage loans in a calendar year to be exempt from registration according to KRS requirements.
Read the Order
Kentucky’s “Slayer Statute” & House Bill 52
KRS 381.280 is Kentucky’s “slayer statute.” It was enacted to prevent a killer, who is convicted of a felony, from benefiting from the death of the person that he or she killed. Under this law, “the person so convicted forfeits all interest in and to the property of the decedent, including any interest he would receive as [a] surviving joint tenant.” The statute further states that “the property interest so forfeited descends to the decedent’s other heirs-at-law, unless otherwise disposed of by the decedent.”
On March 16, 2011, Governor Beshear signed into law House Bill 52 (“HB 52”), which is described as: “An Act relating to elder and vulnerable adult abuse, neglect, and financial exploitation and making an appropriation therefor.” This bill included an amendment to KRS 209.990, the creation of a new section of KRS Chapter 41, and two (2) separate amendments to KRS 381.280. The first amendment to KRS 381.280 became effective on June 8, 2011; the second one will become effective on January 1, 2012.