Effective January 1, 2006, new sections of Kentucky Revised Statute Chapter 136 were established to levy a 3 percent excise tax on multi-channel video and audio programming services, a 2.4 percent gross revenues tax on multi-channel video and audio programming services, and a 1.3 percent gross revenues tax on telephone communications services. The bill also provides that local franchise fees imposed on these providers are repealed effective January 1, 2006. The taxes imposed will be collected on one return to simplify and streamline the reporting process for affected providers.
The bill also guarantees local governments a fixed amount to replace the franchise fees and unit valuation property taxes that they will be losing. Hold harmless and growth funds are established to require the distribution of funds to multiple local jurisdictions. Additional information will become available as implementation develops.
See the Web page "Telecommunications Tax" for related information and links for this tax.