Kentucky Enacts July 1 Sales Tax Changes

Erik Wallin
April 17, 2018

On April 13, 2018, the Kentucky Legislature voted to override the Governor’s veto of H366. Effective July 1, 2018, this bill makes taxable a wide range of services that were previously exempt.

Specifically, the bill revises the definition of “sales price” and “gross receipts” to include the amount charged for labor or services rendered in installing or applying the tangible personal property, digital property, or service. The bill also expressly made the following services subject to sales tax:

Landscaping – including lawn care and maintenance services; janitorial – including but not limited to residential and commercial cleaning, carpet, upholstery, and window cleaning; small animal veterinary – excluding veterinary services for equine, cattle, swine, sheep, goats, llamas, alpacas, ratite birds, buffalo, and cervids; pet care – Including but not limited to grooming and boarding, pet sitting and obedience training; industrial laundry – including but not limited to industrial uniform supply, protective apparel supply, industrial mat and rug supply; non-coin-operated laundry and dry cleaning; linen and non-industrial uniform supply – including but not limited to table and bed linen supply; indoor skin tanning – including but not limited to tanning booth or tanning bed services and spray tanning; non-medical diet and weight reducing; and limousine services with a driver.

The exemption applicable to materials, supplies and repair/replacement parts used in pollution control facilities was also removed and extended warranty services also become taxable – all effective July 1, 2018.
To read the full text of H366 click here


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Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.
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