(LEX 18) — With the new year underway, a slew of changes to Kentucky's tax system are also in the works.
Effective today, over 30 new service categories are now subject to a 6% sales tax.
The changes come after House Bill 8 passed in 2022. The bill lowers income taxes from 5 to 4.5%, but expands sales taxes to a variety of services, from personal fitness training to rideshares to cosmetic surgery and more.
Businesses that provide the new services are required to collect the 6% sales tax from their customers beginning January 1, unless otherwise noted.
Below is a complete list of newly taxed services:
- Photography and photo finishing
- Marketing
- Telemarketing
- Public opinion and research polling
- Lobbying
- Executive employee recruitment
- Website design and development
- Website hosting
- Facsimile transmission
- Private mailroom
- Bodyguarding
- Residential/nonresidential security system monitoring
- Private investigating
- Process server services
- Repossession of tangible personal property
- Personal background checks
- Parking
- Road and travel services
- Condo time-share exchange services
- Short-term rental of space
- Social event planning and coordination
- Leisure, recreational and athletic instructional services
- Recreational camp tuition and fees
- Personal fitness training
- Non-medical massage
- Cosmetic surgery
- Body modification (piercing, tattoos)
- Testing services
- Interior decorating and design
- Household moving
- Specialized design (fashion)
- Lapidary services
- Labor and services for commercial refrigeration
- Labor to repair or alter apparel, footwear, watches or jewelry
- Prewritten computer software access services
You can learn more about the tax changes here.
