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New Laws in Kentucky

By PJ Martin


The Herald-News


In case you don’t keep up with all the legislation changes, we have done the research and compiled a list of a few of the laws that took effect on January 1, 2024.

House Bill 1 – Individual Income Tax

A drop in the Kentucky individual state income tax took effect on Jan. 1. The individual income tax dropped from 4.5% to 4%. The original change was passed for 2022 and the state went down to 4.5% in 2023.

That means if the state meets all the stated conditions, the state income tax rate would fall to 3.5% on January 1, 2025; however, Kentucky does not meet the conditions for the 3.5%. Sorting through all the legal speak made it very difficult to find the specific condition not met.

Senate Bill 30 – Auto-Renewal – This bill creates new sections of KRS Chapter 365 that define automatic renewal, and automatic renewal offer terms. It required a business to state its current automatic renewal service offer before the purchase.

It also requires businesses to obtain the customer’s consent before charging them, provide an acknowledgment that includes the terms, the cancellation policy, and information regarding how to cancel, plus provide the customer with an easy-to-use mechanism for cancellation. It also requires businesses to provide users who purchase in one medium the opportunity to terminate in the same medium, including online termination.

To put it simply, if you purchase a product online it must clearly state prior to purchase the automatic renewal and allow you to opt-out and approve the amount of purchase before it goes through.

House Bill 180 – Biomarker Tests – This bill requires health insurers and Medicaid to cover biomarker tests and specifies that they are offered at a minimal cost. The lower cost only applies to benefit plans issued or renewed after January 1, 2024.

Biomarker tests are used primarily to analyze the genes of an individual to provide an individualized cancer treatment.

House Bill 360 – Electric Vehicles – If you own or purchase an electric or hybrid vehicle you will be charged a new annual ownership fee. The Kentucky Transportation Cabinet will mail you a reminder postcard just like the current registration renewals.

Owners of hybrid or electric vehicles will be required to pay the state $120 a year and owners of hybrid or electric motorcycles will be required to pay $60 a year. The fees will go toward Kentucky’s Road Fund.

Also, people using public charging stations for their electric vehicles will be taxed $0.03 per kilowatt-hour.

Senate Bill 80 – Registered sex offenders – This new law requires registered sex offenders to notify their parole office of their new address before they move, and they must report to the new county’s parole office within five days of moving.

If a sex offender doesn’t have a permanent home, they must report in person to their parole officer every 30 days and disclose where they are temporarily staying.

Senate Bill 163 – Military licenses – The Kentucky Transportation Cabinet will no longer require a member of the Armed Forces who is stationed in the Commonwealth to obtain a Kentucky operator’s license in order to register a motor vehicle in Kentucky.

In other words, if you are from another state and stationed in Kentucky you will not be required to change your driver’s license to a Kentucky driver’s license.

House Bill 21 – Military Plates – The Kentucky Transportation Cabinet will make all of the special military license plates available for motorcycles owned or leased by eligible individuals. All special license plates available to the military will be available for motorcycles.

House Bill 506 – Establishes new partial lump sum payment options for retiring members of the Kentucky Employees Retirement System, County Employees Retirement System, or State Police Retirement System with and without survivor rights.

The first part amends KRS to reinstate the Partial Lump-Sum Optional Form of payment, or PLSO, for members who retire on and after January 1, 2024, with the lump-sum payment options expanded to include 48 or 60 times the member’s monthly retirement allowance.

The second part of the bill adjusts the minimum required separation period before a retiree is allowed to become reemployed and continue to receive their retirement allowance.


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