BOSWELL QUESTIONS BESHEAR ADMINISTRATION FOR REMAINING OUT OF COMPLIANCE WITH STATE LAW, ATTORNEY GENERAL'S OPINION
The administration stands by the unconstitutional line-item veto of HB 8, fails to provide Kentuckians tax exemptions
FRANKFORT, KY (August 22, 2024)—Governor Andy Beshear's Department of Revenue testified during Wednesday's Interim Joint Committee on Appropriations and Revenue meeting. Upon questions from Sen. Gary Boswell, R-Owensboro, Department of Revenue representatives confirmed the administration is standing by Beshear's unconstitutional line-item veto of House Bill (HB) 8, the state revenue bill.
"I'm receiving many calls and emails from constituents frustrated that this administration is not providing exemptions this legislature passed into law," Boswell said. "I want my constituents and the public to know this governor is ignoring the law. I will support any remedy, legislatively or legally, to bring this administration into compliance with the legislature's intent."
House Bill 8 incorporated sales tax exemptions for Kentuckians who opt to invest in bullion and coins made from gold, silver and other precious metals. Kentucky already exempts sales tax on purchasing stocks, bonds, ETFs, real estate, currencies, and other financial instruments. Supporters of the measure contend that applying sales taxes to precious metals is illogical, as sales taxes are generally applied to final consumer goods rather than items used for investment purposes.
Under Section 88 of the Kentucky Constitution, the governor can exercise a line-item veto on "appropriations bills." This authority allows the governor to veto individual spending provisions within such bills. However, the governor's action on HB 8 does not fall within his constitutional authority of line-item veto since HB 8 does not make an appropriation, which an opinion from Kentucky Attorney General Russell Coleman has also supported.
"Because the governor's veto power must be strictly construed, and because House Bill 8 is not an 'appropriation bill,' Section 88 does not empower the Governor to use his line-item veto on it," Coleman wrote in an opinion dated May 20. "The governor's attempted line-item vetoes of House Bill 8 were nullities, as they exceeded his constitutional authority."
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Sen. Gary Boswell, R-Owensboro, represents the 8th Senate District, including Daviess, Hancock, and McLean Counties. He serves as a Senate member of the Interim Joint Committees on Agriculture; Appropriations and Revenue; Economic Development and Workforce Investment; Veterans, Military Affairs, and Public Protection; and Tourism, Small Business, and Information Technology. In addition to Interim Joint Committees, Senator Boswell is co-chair of the Budget Review Subcommittee on Economic Development, Tourism, and Environment Protection. He is also a member of the Government Contract Review Committee and the Tobacco Settlement Agreement Fund Oversight Committee.
For a high-resolution .jpeg of Boswell, please visit: https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate108.jpg
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