# Kentucky HB 518: AN ACT relating to the collection of local business taxes and fees. Kentucky HB 518, AN ACT relating to the collection of local business taxes and fees., is a 2026 Regular Session House bill sponsored by Patrick Flannery (Republican); status signed, last action 2026-04-07 (signed by Governor (Acts Ch. 44)) (as of 2026-11-01). - Canonical: https://policyrisk.com/state-bill/KY-HB518-2026RS - As of: 2026-11-01 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Kentucky HB 518 - State: Kentucky - Session: 2026 Regular Session - Title: AN ACT relating to the collection of local business taxes and fees. - Status: signed - Chamber: House - Introduced: 2026-01-29 - Last action: 2026-04-07, signed by Governor (Acts Ch. 44) - Sponsor: Patrick Flannery (Republican) - Cosponsors: 2 - Subjects: Local Mandate, Administrative Regulations And Proceedings, Advisory Boards, Commissions, And Committees, Cities, Counties, Education, Finance, Information Technology, Local Government, Reports Mandated, Special Districts, Taxation - Touches household money: no - Roll calls: 2 (129 yes, 3 no in all) - Economic provisions PRIA read: 4 ## Summary No summary available. ## Bill overview: provisions PRIA read - Local tax e-filing required by 2029: benefit, medium. By July 1, 2029, each local tax district must adopt the state standard electronic returns or accept them alongside its own. A district may opt out only if it already had an online filing and payment system by January 1, 2025, or a binding contract by July 1, 2026. If a district accepts the forms, i… - Committee to design business tax forms: benefit, low. The Secretary of State leads a stakeholder committee to design the standard forms and instructions. The first meeting is held by August 31, 2026. The committee develops the forms by June 1, 2027, files them by June 24, 2027, and the Secretary proposes a regulation soon after the July 2027 meeting. - Standard online tax forms for businesses: benefit, low. The Secretary of State creates standard electronic occupational tax forms for all businesses. You can file a combined or separate net‑profits and gross‑receipts return, plus a payroll return. Fillable PDFs and instructions are posted on the state one‑stop business portal or another public site. You… - Cost-based online filing fees and small-district exemptions: mixed, low. Local tax districts may charge an extra electronic processing fee, but only to recover their actual costs, including vendor or bank charges. A district can apply each year for an exemption if it collected under $200,000 last fiscal year, or if compliance would cost more than 5% of its total annual… ## Sponsors and cosponsors - Sponsor: Patrick Flannery (Republican), House - Cosponsor: Daniel Grossberg (Democrat), House - Cosponsor: George Brown Jr. (Democrat), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-03-25 | Senate | 3rd reading, passed | pass | 38 | 0 | | | 2026-02-25 | House | 3rd reading, passed | pass | 91 | 3 | | ## Actions (20) - 2026-04-07: signed by Governor (Acts Ch. 44) - 2026-03-26: delivered to Governor - 2026-03-26: enrolled, signed by President of the Senate (House) - 2026-03-26: enrolled, signed by Speaker of the House (House) - 2026-03-26: received in House (House) - 2026-03-25: 3rd reading, passed 38-0 (Senate) - 2026-03-24: passed over and retained in the Consent Orders of the Day (Senate) - 2026-03-20: posted for passage in the Consent Orders of the Day for Tuesday, March 24 2026 (Senate) - 2026-03-19: 2nd reading, to Rules as a consent bill (Senate) - 2026-03-18: reported favorably, 1st reading, to Consent Calendar (Senate) - 2026-03-16: to State & Local Government (S) (Senate) - 2026-02-26: to Committee on Committees (S) (Senate) - 2026-02-26: received in Senate (Senate) - 2026-02-25: 3rd reading, passed 91-3 with Committee Substitute (1) (House) - 2026-02-24: posted for passage in the Regular Orders of the Day for Wednesday, February 25 2026 (House) - 2026-02-18: 2nd reading, to Rules (House) - 2026-02-17: reported favorably, 1st reading, to Calendar with Committee Substitute (1) (House) - 2026-02-05: to Local Government (H) (House) - 2026-01-29: to Committee on Committees (H) (House) - 2026-01-29: introduced in House (House) ## Bill text - Current, 2026-02-25: [PDF](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb518/bill.pdf) - Introduced, 2026-01-28: [PDF](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb518/orig_bill.pdf) ## Related bills - SB 197: AN ACT providing funding and establishing conditions for state government agencies and institutions, making an appropriation therefor, and declaring an emergen… (became law) - SB 133: AN ACT relating to the fiscal reporting of local entities. (signed) - HB 869: AN ACT relating to fiscal matters and declaring an emergency. (signed) - HB 727: AN ACT relating to education and declaring an emergency. (signed) - SB 324: AN ACT relating to the entertainment industry. (signed) - SB 66: AN ACT relating to the operation of a motor vehicle. (signed) ## Sources - [Current (PDF)](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb518/bill.pdf) - [Introduced (PDF)](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb518/orig_bill.pdf) ## Related - [SB 197: AN ACT providing funding and establishing conditions for state government agenc…](https://policyrisk.com/state-bill/KY-SB197-2026RS) - [SB 133: AN ACT relating to the fiscal reporting of local entities.](https://policyrisk.com/state-bill/KY-SB133-2026RS) - [HB 869: AN ACT relating to fiscal matters and declaring an emergency.](https://policyrisk.com/state-bill/KY-HB869-2026RS) - [HB 727: AN ACT relating to education and declaring an emergency.](https://policyrisk.com/state-bill/KY-HB727-2026RS) - [SB 324: AN ACT relating to the entertainment industry.](https://policyrisk.com/state-bill/KY-SB324-2026RS) - [SB 66: AN ACT relating to the operation of a motor vehicle.](https://policyrisk.com/state-bill/KY-SB66-2026RS) - [Kentucky bills](https://policyrisk.com/states/kentucky/bills) - [Kentucky state hub](https://policyrisk.com/states/kentucky) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/KY-HB518-2026RS (as of 2026-11-01).