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From YouTube: Budget Review Subcommittee on General Government, Finance, Personnel, & Public Retirement (10-19-22)
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A
We
do
have
a
quorum,
so
Madam
clerk.
Will
you
please
call
the
Rope.
D
A
F
Hi
good
morning,
I'm
Brian
Dillard
I'm,
vice
president
of
Rogers
Group
in
Central
Kentucky
and
in
Ohio
also
live
in
Bardstown
Kentucky.
E
F
Okay,
thank
you
good
morning
again
so
we'd
like
to
introduce
a
bill
that
tries
to
level
the
playing
field
for
the
aggregate
Limestone
aggregate
producers
in
Kentucky.
Right
now
we
have
to
pay
four
and
a
half
percent
mineral
Severance
tax.
Half
of
that
tax
goes
to
the
local
community.
The
other
half
goes
to
the
state
coffers.
We
don't
have
an
issue
with
paying
that
tax,
we're
not
trying
to
reduce
that
tax.
What
we're
trying
to
do
is
get
a
tax
based
for
the
outlying
states.
F
For
example,
Indiana
has
a
zero
percent
Severance
tax
so
from
day
one
I'm
four
and
a
half
percent
disadvantaged
from
the
producers
that
are
coming
into
Kentucky.
So
we
would
like
to
come
up
with
a
way
to
be
able
to
have
that
out
of
state
producer
have
to
pay
an
equal
amount
of
severance
that
we
are
so
that
we
level
that
playing
field
between
Kentucky
and
other
states.
Ohio,
for
example,
I
told
you
operate
in
Ohio.
We
pay
a
three
cent
tax
up
there.
Tennessee
is
roughly
15
cents
and
Indiana
is
zero.
F
So
on
ten
dollar
Rock
we're
paying.
You
know
45
cents
is
what
we
have
to
pay,
so
you
know
we're
we're
four
and
a
half
percent
disadvantaged,
just
to
say:
go
that's
affecting
our
employees,
we're
not
getting
as
much
Stone
because
we're
disadvantaged.
We
can't
compete
in
Indiana
the
same
way
because
you
know
we're
four
and
a
half
percent
disadvantaged.
So
that's
a
mechanism
to
try
to
level
that
playing
field
for
the
aggregate
producers
than
the
state.
G
Senator
West,
thank
you
Mr
chairman
sounds
good.
I
mean
how
how
would
you
propose
doing
that
and
kind
of
where
I'm
going
to
is
you
gotta
be
careful
constitutionally?
How
you
draft
something
like
that?
So
you
you
don't
run
afoul
of
constitution.
So
do
you
have
any
specifics
yet
on
how
you
propose
to
charge
the
out-of-state
entity
that
that
tax.
F
I
can't
really
say
yes
or
no
100
on
that.
Not
really
a
tax
expert,
but
I
would
think
it
would
be
some
type
of
mechanics.
The
producer
would
have
to
build
into
their
system
no
different
than
having
to
pay
sales
tax
like
Amazon
or
something
shipping
in.
So
when
that
material
is
designated
in
their
system
to
to
ship
to
a
Kentucky
job,
then
they
would
have
to
pay
that
pay.
That.
G
A
You
I
can
answer
that
a
little
bit
representative
miles
had
a
bill
in
the
past,
he'll
probably
replicate,
and
then
on
your
constitutional
issue.
I'm
interested
in
that
I
hadn't
heard
that,
because
it's
usually
in
the
Constitution
taxes
need
to
be
fair,
and
it
sounds
like
this
is
not
fair,
so
represent
the
Huff.
If
you
did
with
Senator
on
that
representative.
E
Miller,
thank
you
and
welcome.
Gentlemen.
I
have
the
privilege
of
having
a
Rogers
Quarry
in
my
district
and
they're
good
neighbors
and
I
would
like
to
suggest
representative
huffit,
while
you're
looking
into
the
Constitutional
issue,
look
at
on
possibility
of
putting
this
new
Revenue
into
the
road
fund,
because
those
out-of-state
trucks
are
using
our
roads
and
they're
not
buying
our
gas.
E
F
H
Thank
you,
Mr
chairman
I,
think
we've
kind
of
looked
at
some
of
this
before,
with
some
things
like
coal
and
I,
think
where
we
might
make
sure
that
we
don't
run
afoul
of
any
interstate
commerce
clause
or
anything,
it's
where
I
think
not
necessarily
constitutional
issue
as
much
as
it
is.
G
West,
thank
you.
Sorry
I've
got
some
facilities
in
my
district,
so
this
is
a
very
important
topic
to
me,
I'm
very
interested
in
in
this.
So
when
refresh
my
memory
on
on
where
the
money
goes
now
so
the
way
when
we
collect
the
tax,
how
is
that
split?
Currently
as
far
as
counties
and
locals
and
so
I'm
going
to
Jerry's
question?
If
we
move
more
money
to
the
road
plan
trying
to
make
sure
we
don't
take
away
from
locals.
F
But
so
so
right
now
the
I
think
the
way
it
works
is
100
goes
to
the
state,
and
then
the
state
sends
back
50
percent
to
the
actual
local
community,
whether
that's
the
city
or
the
county,
I'm,
not
100
sure,
but
50
percent
comes
back
to
the
Local
District.
G
I
For
those
of
us
in
terms
of
our
local
governments,
I
think
we
need
to
look
at
to
make
sure
how
much
of
an
impact
it
will
have
on
their
budgets
as
well.
So
I,
don't
think
that
we
should
just
say
that
it
it
should
go
into
the
coffers
of
the
road
front.
I
have
no
problem
with
that
to
an
extent,
but
I
don't
want
anything
to
happen
to
those
in
the
local
government
area.
So
I
think.
A
The
way
they
were
talking
is
the
same
amount
would
go
if
not
more
from
the
the
new
Revenue
would
go
50
to
the
local
50
that
goes
to
the
state
now
would
go
to
the.
J
A
Next,
we
have
an
overview
of
the
homestead
exemption
and
I
am
going
to
present
a
bill
and
representative
Huff
in
the
house,
probably
the
sister
Bill
simmer
or
Bell.
That
is
really
simple.
It
we
all
and
I'll
read
the
part.
The
changes
in
the
homestead
exemption
for
Real
Property
maintained
as
the
permanent
residents
of
an
owner
who
is
65
years
of
age
or
older.
There
shall
also
be
exempt
any
increase
in
the
valuation
of
the
owner's
residence
in
contiguous
real
property
that
is
assessed
after
the
latter
of
of
the
year.
A
So
succinctly
what
it
says
is
that
if
you're
resident
of
the
property
and
you're
65
or
older,
that
your
property
tax
assessment
will
not
go
up
now,
your
the
tax
rates
may
go
up,
but
your
property
assessment
won't
go
up
after
you're
65
because
we're
you
know
with
the
inflation
and
everything
I
think
we
need
to
protect
our
elderly
people
now
that
property
will
continue
to
be
assessed
in
the
proper
way,
but
you'll
pay
on
the
assessment
that,
as
when
you
started
this
system
when
you
bought
the
Houser
when
you
turned
65..
A
So
if
you
sell
the
house,
then
that
increase
will
go
up.
So
in
essence
the
whoever
gets
a
part
of
your
taxes,
your
property
taxes,
we'll
still
get
that
same
amount.
So
they're
not
going
to
lose
any
money.
They
will
lose
the
money
that
those
assessments
would
go
up
in
the
future.
Someone
65
they
wouldn't
get
that
increase,
but
but
there
will
be
no
loss
of
Revenue
on
this.
A
So
with
that,
I
wanted
to
bring
in
someone
with
much
more
knowledge
of
the
homestead
and
that
so
we
have
a
staffer
Cynthia
Brown
his
cooperated
and
come
to
give
a
little
presentation.
Thank
you.
J
So
what
is
the
homestead
exemption?
First,
let
me
preface
this
Slide
by
saying
that
for
property
tax
purposes,
the
PVA
assesses
all
real
property
at
Fair
cash
value
unless
it's
exempt,
as
required
by
the
Constitution.
So
the
homestead
exemption
is
an
exemption
that
allows
the
PVA
to
reduce
that
assessed
value
by
set
amount
for
the
homeowners
who
qualify
once
the
property
tax
rate
is
applied
to
that
reduced
assessed
value.
The
result
is
a
lower
property
tax
bill
for
the
homeowner.
J
Now,
here's
an
exemption
example
of
how
the
exemption
works,
this
lovely
home
in
the
picture
sold
recently
for
two
hundred
thousand
dollars,
and
that
is
now
the
fair
cash
value
of
the
home
as
determined
by
the
PBA
in
the
First
Column,
the
property
taxes
have
been
computed,
assuming
the
new
owner
does
not
qualify
for
the
homestead
exemption.
Without
that
exemption,
the
assessed
value
of
the
home
is
the
same
as
the
fair
cash
value
of
the
home
at
two
hundred
thousand
dollars.
J
The
second
column.
The
tax
is
computed,
assuming
the
new
owner
does
qualify
for
the
homestead
exemption.
The
assessed
value
is
159
500,
which
has
is,
which
is
the
fair
cash
value
reduced
by
the
homestead
exemption.
In
both
columns,
the
property
tax
rate
is
applied
to
the
assessed
value,
and
then
the
result
is
with
the
homestead
exemption.
The
homeowner
saves
about
377
dollars
in
tax.
J
J
As
as
a
side
note
here,
property
taxes
are
based
in
the
Kentucky
Constitution
and
the
Constitution
is
very
specific
on
Real
Property
exemptions.
So,
therefore,
when
you
usually
see
proposed
legislation
that
amends
an
exemption
related
to
property
taxation,
it
is
often
drafted
as
a
constitution
Amendment.
J
So
in
looking
at
section
170,
it's
very
specific
in
stating
who?
What
and
how
much
in
relation
to
the
homestead
exemption
it
states
there
shall
be
exempt
from
taxation,
real
property
maintained
as
the
permanent
residence
of
the
owner.
That's
really
the
what's
exempt.
The
Who
is
an
owner
who
is
65
years
of
age
or
older
or
is
classified
as
totally
disabled
and
then
the
how
much
is
up
to
the
assessed
valuation
of
sixty
five
hundred
dollars.
J
J
J
J
So
how
do
you
apply
for
the
homestead
exemption?
Well,
a
homeowner
would
apply
for
the
homestead
exemption
at
their
local
PBA,
and
the
homeowner
must
provide
proof
of
age
or
disability
status
with
their
application.
Most
homeowners
only
have
to
apply
one
time,
but
if
you're
a
homeowner
Who
is
younger
than
65
and
classified
as
totally
disabled,
you
must
Supply
every
year
unless
the
homeowner
is
a
veteran
who
has
a
service
connected
disability,
an
individual
who
qualifies
as
totally
and
permanently
disabled
under
the
Social
Security
Administration,
the
Kentucky,
Retirement
Systems
or
any
other
Kentucky
revised
statute.
J
The
Proposal
provides
an
exemption
in
addition
to
the
current
homestead
exemption
for
owners
who
are
65
years
or
older,
so
they
still
get
the
current
homestead
exemption,
but
they
will
be
an
additional
exemption.
This
exemption
is
amount,
is
equal
to
any
Creek
increase
in
the
valuation
of
the
home
that
is
assessed
after
the
later
of
the
year,
that
homeowner
turns
65
or
they
purchase
the
home.
So
if
you
purchase
the
home
when
you're
70,
it
would
be
that
year
the
fair
cash
value.
J
So
this
slide
Compares
how
a
home
would
be
assessed
that
the
owner
qualified
under
the
current
homestead
exemption
and
how
they
would
be
assessed.
Under
The
Proposal,
the
fair
cash
value
of
the
home
in
2022,
is
200
000
and
the
fair
cash
value
of
the
home.
When
the
homeowner
was
65,
it
was
175
000
in
the
First
Column.
Under
the
current
homestead
exemption,
the
exemption
is
subtracted
from
the
two
hundred
thousand
dollars,
which
is
the
2022
Fair
cash
value
of
the
home.
J
Under
the
legislative
proposal,
the
homestead
exemption
is
subtracted
from
175
000,
which
is
the
fair
cash
value
in
the
year
that
the
owner
turns
65
and
it
leaves
an
assessed
value
of
134
500.
in
both
columns.
The
property
tax
rate
is
applied
to
the
assessed
value
and
the
result
ends
up
being
an
additional
savings
of
232.50.
Under
the
legislative
proposal.
D
Yes,
thank
you
Mr
chairman
I'm,
pretty
sure
I
know
the
answer
to
this
question,
but
just
for
clarification
purposes
and
I'm
going
to
use
my
wife
and
I
as
an
example.
When
we
our
property,
we
own
where
our
home
is
it's
in
both
of
our
names,
and
there
is
a
two
years
age
difference
between
us.
So
when
the
oldest
turns
65,
then
do
we
reach
that
or
do
we
both
have
to
be
65
before
we
would
qualify?
If
this
were
to
come
to
be
part
of
our
statute,.
C
Thank
you,
Mr
chairman,
it's
very
interesting,
I,
guess,
brilliant
minds!
Think
alike.
I
followed
the
similar
legislation
at
back
as
soon
as
we
went
into
the
interim
session
about
freezing
taxes,
because
retirees
don't
have
a
way
to
compensate,
you
know
once
they
are
there
on
a
fixed
income,
so
I've
got
a
novel
idea
here,
gentlemen,
you
know
I'd
like
for
all
three
of
us
to
work
together
on
this
and
look
forward
to
getting
some
before
that
we
can
get
some
legislation
passed.
Thank
you,
Mr
chairman
thank.
A
You
representative,
Donahue
and
I
have
a
couple
comments
on
your
statement,
short
statement.
There
is
great
minds,
think
alike,
and
you
and
I,
sometimes
maybe
they're,
not
great,
but
they
do
think
a
lot
and
we've
always
been
able
you
and
I
to
work
together
and
I
look
forward
to
it.
Thank
you.
K
You
Mr
chairman,
I,
appreciate
this
presentation.
It's
a
great
one
on
slide
one.
You
said
that
it
allows
the
PVA
to
do
the
assessment
and
I
understand
that
the
homeowner
has
to
request
that
re-evaluation
is
there,
but
there's
nothing
in
the
statute
that
requires
the
PVA
to
communicate
to
the
people
that
reach
65
that
they're
eligible,
so
I
would
like
for
there
to
be
an
additional
obligation,
that's
placed
on
the
PVA
for
communication,
because
right
now
it's
an
optional
for
the
PBA
to
do
that.
So
thank
you
very
much.
L
Thank
you
Mr
chair,
and
thank
you
for
this
presentation.
Mine
is
another
scenario,
question
related
to
the
the
the
proposal,
so
it
said
that
the
the
exemption
will
apply
the
year
that
the
home
was
purchased.
If
that
that
is
correct,.
L
L
L
L
Starts
I
guess
it
freezes
at
that
at
age,
65.
A
Thank
you
and
then
to
add
to
that
I
think
you
alluded
to.
It
is
if
I
turned
65
next
year,
I'd
like
to
do
that,
then
then
it
would
freeze
that
year
or
the
you're
following,
but
if
Jerry
Miller
comes
along
and
buys
my
house
10
years
from
now
when
he
becomes
65,
then
that
assessment
10
years
from
now
would
take
effect
at
that.
G
Thank
you,
Mr
chairman
I.
Guess
it's
Constitution
Day
for
me
for
some
reason,
but
in
yours
this
bill
draft.
Is
it
your
opinion
that
it
would
have
to
be
in
the
form
of
a
constitutional
amendment
or
not?
In
my
the
way,
it
kind
of
looks.
A
I,
don't
think
so,
and
I
think
that
she
went
over
it
pretty
well
in
in
the
examples
of
why
we
might
need
to
do
it
as
a
constitutional
amendment
got
it.
Thank
you,
representative.
Meredith.
I
A
I
think
there
was
we'll
have
to
I
have
to
go
back
and
look
at
that.
I
think
I
have
that
in
my
file,
because
we
backed
off
on
this
bill
because
it
wasn't
during
a
budget
session,
and
we
were
very
overwhelmed
with
that
session.
So
with
chairman
McDaniels
asking
me
to
pull
it
back,
I
did
so
so
I'll
find
out
and
it
does
need
to
be
done.
The.
I
The
fact
that
the
state
property
tax
rate
continues
to
decrease
under
house
bill
44
from
1978
or
79
automatically
each
year
means
that
a
physical
impact
statement
would
only
only
tell
you
a
small
portion
of
the
story
on
this.
There
would
also
need
to
be
a
local
impact
or
local
mandate
statement
prepared
on
this
as
well,
because
the
big
impact
of
something
like
this
would
be
focused
at
the
County
City
special
district
or
Local
School
Board
of
Education
level.
A
That,
yes
and
part
of
that,
as
they
came
up
to
my
office,
is
there
is
no
immediate
impact
because
there
is
no
decrease
in
taxes.
It's
the
future
tax
that
that
would
not
be
obtained
because
of
the
future
tax
assessment.
A
A
I
Inclination
would
be,
though,
that
it
would
play
into
the
house
bill
44
formula
about
increases
on
everyone
else,
that's
under
the
age
of
65
and
how
those
would
be
calculated
into
the
future,
because
you
have
the
compensating
rate,
the
compensating
plus
four
calculation
and,
if
you
future,
reduce
what
some
are
paying
you're
going
to
increase
what
others
are
paying
under
that
compensating
or
compensating
plus
four
ratio,
and
so
that
would
need
to
be
taken
into
the
account
in
this
in
this
process
because
of
the
complications
of
House
Bill
44..
Okay,
thank
you.
H
Thank
you,
Mr
chairman
I,
had
to
follow
up
along
those
lines.
I
thought
I
understood
that
let's
say
that
I'm
70
and
that
we
would
back
up
and
to
the
to
what
the
value
of
the
property
was
five
years
ago,
when,
if
I
owned
the
house
for
10
years
that
we
would
back
up
five
years.
So
whatever
the
assessed
value
was
when
I
was
65.
A
I
think
that
is
incorrect.
It's
when
you
first
obtain
the
assessment
you
if
you
get
it
when
you're
70,
that's
when,
where
it
stays
at
70.,
it
doesn't
retroactively.
H
Well,
I
understand,
but
let's
say
I've
had
my
house
for
10
years
and
at
65
I
got
the
exemption,
but
it
has
been
reassessed
pretty
much
every
year
since
then.
So
now,
at
age
70,
it's
you
know
more
than
what
it
was.
It
says
that
when
it
actually
turns.
A
That
is
correct.
You
wouldn't
have
to
pay
the
extra
amount
on
the
new
assessment.
Assuming
that's
your
house,
you
know
is
higher
than
it
was
when
you
were
65,
that
that
is
correct.
J
Let
me
jump
in
there
and
it's
the
legislative
proposal
states
that
the
the
exemption
starts
after
the
after
the
bill
is
ratified,
so
it
will
actually
start
in
2025,
so
exemptions
prior
it
would
not
go
back.
It
would
be
2025
forward.
A
If
there
are
no
other
questions-
and
there
is
nothing
else,
we
thank
you
all
very
much
for
being
here
and
we
are
adjourned.