AG Coleman: Beshear’s line-item veto of gold sales tax revenue bill invalid
Attorney General Russell Coleman has sided with GOP legislative leaders over Democratic Gov. Andy Beshear in a dispute over the governor’s veto powers.
Beshear had line-item vetoed — meaning he vetoed only specific parts — House Bill 8, a 2024 General Assembly bill making myriad changes to the state’s tax system.
Beshear specifically vetoed two sections of the broad bill: the exemption of gold and silver from the state’s 6% sales tax and a new tax amnesty program for certain filers.
Coleman wrote in an opinion rendered last week that the governor didn’t have that authority.
The line-item veto is an executive power the governor can exercise under Section 88 of the Kentucky Constitution. It gives governors the ability to line-item veto “appropriations bills.”
Coleman’s disagreement with Beshear centered around what constitutes an “appropriations bill.”
At the request of House Speaker David Osborne, R-Prospect, and Senate President Robert Stivers, R-Manchester, Coleman issued the opinion May 20.
“Because the Governor’s veto power must be strictly construed, and because House Bill 8 is not an ‘appropriation bill,’ Section 88 does not empower the Governor to use his line-item veto on it,” Coleman wrote in the opinion. “The Governor’s attempted line-item vetoes of House Bill 8 were nullities, as they exceeded his constitutional authority.”
The governor’s office begged to differ. In a statement, spokesperson James Hatchett wrote that Coleman never contacted Beshear about the request or opinion and that his reading was “incorrect.”
“The AG’s opinion is incorrect, as the very title of the bill at issue says it makes an appropriation. The governor properly exercised his constitutional authority to veto parts of the bill, and previous legal opinions have upheld similar line-item vetoes,” Hatchett wrote. “In the future, and in basic fairness, we hope the AG’s office will reach out to the Governor’s Office before issuing any advisory opinions on the governor’s authority.”
He did not say whether or not Beshear would pursue legal action on the matter.
Coleman’s opinion has no binding power, but it can influence legal arguments that play out in the courts should any party decide to pursue legal action.
The bill is already law given that it was filed with the Secretary of State in mid-April, becoming law immediately thereafter because it contains an emergency clause.
The GOP-led legislature had the opportunity to override the line-item vetoes, but instead ruled them invalid.
Beshear had vetoed the provision exempting gold and silver on ideological grounds.
“If you own gold, you can afford to pay sales tax,” Beshear wrote in his veto message. “Tangible goods are the primary basis of the sales tax.”
Democrats, including Beshear, decried the fact that Republicans prioritized exempting gold from the sales tax before diapers, a Democrat-sponsored proposal that initially drew bipartisan interest.
As for the tax amnesty program, Beshear stated that it would amount to an unfunded mandate that would cost the Department of Revenue “at least $5 million to implement.”
A spokesperson for the governor’s office has yet to comment, including on whether or not Beshear will pursue any legal action.
This story was originally published May 28, 2024 at 12:12 PM.
