OBJECTIVE: Seek a legislative/executive branch remedy to reduce or eliminate the intangible tax burden imposed by the Kentucky Revenue Cabinet on the capital structure of Farm Credit Services of Mid-America.
STRATEGY: Scheduled meetings with key members of the Finance and Administration Cabinet, including the Cabinet’s legislative liaison and the general counsel of the Department of Revenue, to discuss options for settling the case.
Informed and educated key legislators about the history and facts relating to the issue and requested those lawmakers draft amendments and bills to eliminate the problem.
Developed bipartisan support among legislators and leadership to support our position and kept Finance Cabinet officials informed of efforts.
Worked collectively with lobbyists seeking tax changes.
RESULTS: The chairman of the Senate Appropriations and Revenue Committee offered the Farm Credit amendment to H.B. 292 (an omnibus tax bill) on the last night of the 2004 session. Capitol Solutions was asked by the chairman to testify regarding the amendment’s content and need. Following the testimony, the committee unanimously adopted the amendment.
Both chambers passed H.B. 292, and the governor signed it into law on April 22, 2004, resulting in the elimination of an annual tax burden of $715,000 for Farm Credit Services of Mid-America.