Amend KRS 139.010 to define "diaper"; amend KRS 139.480 to exempt all diapers from the sales and use tax; make technical corrections; EFFECTIVE August 1, 2026.
SB 258 exempts all diapers from Kentucky's sales and use tax. The bill amends state tax law to define "diaper" as an absorbent garment worn by people who cannot control bladder or bowel movements, and removes diapers from the list of taxable items. This directly affects parents, caregivers, and individuals purchasing diapers for infants, toddlers, or adults with incontinence needs by eliminating the tax on these essential products. The key change is a straightforward policy update to the tax code, making diapers tax-free at the point of sale.
Amend KRS 138.510 to allocate moneys from the pari-mutuel racing excise tax distribution to the local government support fund; create a new section of KRS Chapter 230 to establish the pari-mutuel racing local government support fund to be administered by the Department for Local Government; establish parameters for use of fund moneys; amend KRS 131.190 to allow the Department of Revenue to share information relating to the calculation of the new fund distribution.
Create a new section of KRS Chapter 138 to define "owner," "solar farm," and "taxes"; levy an excise tax on the owner of a solar farm in Kentucky at an annual rate of $200 per acre for land used to generate electricity; provide for a yearly increase of the tax rate based on the change of the consumer price index; specify reporting and payment requirements; establish penalties.
Create a new section of KRS Chapter 139 to annually transfer 80% of the sales and use taxes, interest, and penalties collected during the preceding fiscal year from sporting goods retailers from the general fund to the Kentucky Heritage Land Conservation fund.
Amend KRS 139.470 to exempt from sales and use tax pet adoption fees and certain small veterinarian service fees charged by local government animal shelters and nonprofit animal welfare organizations; apply to transactions on or after August 1, 2026.
Amend KRS 141.0401 to exempt entities doing business in Kentucky with gross receipts of less than $100,000 from paying the limited liability entity tax for taxable years beginning on or after January 1, 2027.
Create a new section of KRS Chapter 139 to define terms; establish a 3-day sales and use tax holiday during the first Friday through Sunday in August each year exempting eligible property, which includes tangible personal property, with certain exceptions, not to exceed $3,000, and clothing or clothing accessories or equipment if the price of the item does not exceed $200; direct that the first sales tax holiday will occur from August 7 to August 9, 2026; EMERGENCY.
Amend KRS 138.220 to set a single excise tax on gasoline and special fuels; set initial base rate at 29.6 cents per gallon (cpg); subject tax to annual adjustment; eliminate references to taxation on the average wholesale price of gasoline and the supplemental tax on gasoline and special fuels; require annual notification to motor fuel dealers of the adjusted rate of the excise tax on gasoline and special fuels for each upcoming fiscal year; amend KRS 138.660 to set the initial base rate for the heavy equipment motor carrier surtax for gasoline at 2.2 cpg for fiscal year 26-27 and 4.3 cpg for fiscal year 27-28 and set the rate for special fuels at 3.6 cpg for fiscal year 26-27 and 7.2 cpg for fiscal year 27-28; subject the surtax to annual adjustment; create a new section of KRS Chapter 138 to define "taxes"; provide a mechanism for annual adjustment of the excise tax on gasoline and special fuels and the heavy equipment motor carrier surtax based on changes in the National Highway Construction Cost Index 2.0; allow these taxes to increase or decrease no more than 5% from one year to the next, subject to the statutory minimums; amend KRS 186.018 to increase the fee for a driving history record from $3 to $6; amend KRS 186.020 to eliminate the requirement to present a vehicle's registration receipt when renewing the vehicle registration and allow mail or online registration renewal with no additional fee; amend KRS 186.040 to eliminate the $30 county clerk fee for motor carrier registrations on vehicles in excess of 44,000 pounds; increase the county clerk fee for motor vehicle registrations from $6 to $8; amend KRS 186.050 to increase to state fee for motor vehicle registrations from $11.50 to $22; increase other state registration fees; provide for a $10 late charge for vehicle registrations not renewed within 30 days of expiration; make technical correction; amend KRS 186.162, 186.180, and 186.240 to conform; amend KRS 186.531 to set the reinstatement fee for a suspended operator's license at $100 and provide for distribution of funds; amend KRS 281A.150 to increase reinstatement fees for suspended CDLs from $50 to $100; amend KRS 186A.130 and 186A.245 to set the fee for an initial title at $25, the fee for a duplicate or replacement title at $10, and the fee for a speed title at $40, and adjust the distribution of fees between the Transportation Cabinet and the county clerk; amend KRS 189.574 to increase to fee for state traffic school from $15 to $50; create a new section of KRS Chapter 174 to create the multimodal transportation fund, specify allowable uses for moneys in the fund; amend KRS 177.320 and 177.365, regarding allocation of a portion of fuel tax revenue to county road aid funds and municipal road aid funds; change the revenue-sharing formula on the portion of fuel tax revenue available for revenue sharing which exceeds $825 million in any year from 18.3% to counties and 7.7% to cities to 13% for each fund; amend KRS 176.080 to establish limitations and awarding of single bid construction contracts the exceed, engineer's estimates, require reporting of such contracts; amend KRS 176.210 to prohibit the Department of Highways from revealing the identities of eligible bidders on a project until the project bid letting; amend KRS 138.210 to delete the definitions for "average wholesale price," "average wholesale floor price," and "quarterly survey value"; amend KRS 138.695, 138.270, 42.409, 234.320, 234.380, and 186A.035 to conform; repeal KRS 138.228, regarding the calculation of average wholesale price of gasoline, KRS 138.4602, regarding determination of total consideration on vehicles purchased between 2009 and 2014, and KRS 175.505, regarding the debt payment acceleration fund for turnpike authority debt; EFFECTIVE, in part, July, 1, 2026, and January 1, 2027; EMERGENCY.
Amend KRS 139.010, relating to the sales and use taxes, to define "menstrual discharge collection devices"; amend KRS 139.480 to exempt from sales and use tax the sale or purchase of menstrual discharge collection devices; apply to sales or purchases made on or after August 1, 2026, but before August 1, 2030; require the Department of Revenue to report annually to the Interim Joint Committee on Appropriations and Revenue the total exemptions claimed for the previous fiscal year; amend KRS 131.190 to allow the Department of Revenue to report to the Legislative Research Commission.
