AN ACT relating to the taxation of currency and bullion currency and declaring an emergency.
Create a new section of KRS Chapter 139 to create a violation when an official notice published by the secretary of the Finance and Administration Cabinet or the commissioner of the Department of Revenue improperly instructs that taxpayers should continue to collect and remit sales and use tax on currency or bullion currency, allow the taxpayer to file an action for refund in Circuit Court, and entitle the taxpayer to interest, injunctive relief, attorney's fees and costs, and liquidated damages of $1,000 for each day that the violation occurred; RETROACTIVE; EMERGENCY.
Introduced: January 10, 2025
Last action: March 27, 2025
In effect since March 27, 2025
This act carries an emergency clause, so it took effect as soon as it became law instead of waiting the usual 90 days after the session adjourned (Ky. Constitution § 55).
Plain-language summary
This bill establishes that sales and use tax cannot legally be applied to currency or bullion currency (such as gold and silver coins) in Kentucky. It creates a violation if a state official publishes guidance instructing taxpayers to collect or remit that tax, and it gives taxpayers the right to sue for a refund, plus interest, attorney's fees, and $1,000 per day in damages. The law applies retroactively and took effect immediately upon passage. Who it may affect: Kentuckians who buy or sell currency or bullion, as well as businesses that collect sales tax on those transactions.
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Legislative History
Primary Sponsor
Co-sponsors (27)
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