A Lexington native is working to reform expensive business license taxes.

State Chamber of Commerce CEO Ted Pitts, a former Lexington state House member, said many county delegation members are cosponsors of a bill to change business tax laws.

Sen. Ronnie Cromer put in the Senate budget a requirement to create a study committee to start meeting in the fall on the taxes.

The proposed Business License Tax Reform Act;

• Requires counties and towns which charge business license taxes to comply with this act unless another state law specifically provides for how business license taxes are charged.

Under state law, businesses such as motor carriers, banks, and telecommunication providers are exempt.

• Changes gross receipts taxes to business profits.

“Business taxable income” does not include costs, wages, corporate dividends, royalties and other taxes.

Real estate income is based on gross commissions.

Taxes for manufacturers is based on local sales.

• Small businesses operating in multiple locations can pay a delivery license tax of not more than $100 instead of a business license tax.

• Allows local officials to continue to set rates and does not affect existing laws.

• Creates ways for taxpayers to appeal taxes and time for local officials to respond.

• Provides for taxpayer data confidentiality.