For Immediate Release
Feb. 7, 2000
Contact: Gwenda Bond or Mark Pfeiffer (502)564-2611

Governor Patton Signs First Bill of Session

Frankfort, Ky. Governor Paul Patton signed the first bill for this legislative session in the Capitol Rotunda today.

Joined by Lt. Gov. Steve Henry, bill sponsor Rep. Ron Crimm of Louisville and other legislators, Governor Patton signed House Bill 43, regarding tourism, into law.

Governor Patton said, “This bill concentrates on growing the economy of Kentucky, which is one of our primary concerns. And also, it recognizes that state government has a responsibility to be partners with business and private interests, where investment in Kentucky that will improve economic opportunity, preserve some of our heritage, and promote the general quality of life in a community.

HB43 amends the Kentucky tourism tax credit law to allow historical hotels to qualify under the act for tourism tax credits. This changes a 1996 law that states that qualified properties must be owned by the state and the lodging portion of the project must constitute half the project’s costs.

This landmark legislation, the first of its kind in the nation, also provides a state sales tax incentive program for tourism development projects. The incentive for developers of approved new or expansion tourism projects is the ability to recover 25 percent of the cost of the projects. On an annual basis, the Kentucky Revenue Cabinet will return to developers of approved projects the state sales tax paid by visitors to the attraction on admission tickets, food and gift sales and lodging costs. The developer has 10 years to reach the 25 percent threshold. This bill will apply to the Henry Clay Hotel project in downtown Louisville, which involves renovating the old YWCA into a 263-room Embassy Suites hotel.

Both Lt. Gov. Henry and Secretary of Tourism Ann Latta testified on behalf of the bill.

Lt. Gov. Henry said, “This is an excellent opportunity for the leadership of Kentucky to save the many historic hotels we have in our state. The need for this legislation came to our attention when the YWCA in Louisville was set for demolition. This bill saves that building and others like it around Kentucky.”