Some retirees are worried the changes would put their financial future in peril by weakening the system.
Kentucky lawmakers have approved a bill that will help banks and nonprofits but eventually reduce revenue by $105 million.
The House and Senate voted to approve House bill 354 on Wednesday. It now heads to Republican Gov. Matt Bevins desk. Bevin has not said if he will sign it. But if he vetoes it, lawmakers could override him on March 28th before adjourning for the year.
The bill means Kentucky chartered banks will collectively pay about $56 million less in taxes beginning in 2021. Nonprofits also will be exempt from paying taxes on fundraising activities, among other changes.
Republicans said the bill will stop the sale of locally-owned banks to out-of-state entities. Some Democrats criticized the Republican majority for not finding new sources of revenue for public education.