On April 8, 2022, Kentucky Governor Andy Beshear vetoed House Bill 8 which would have provided for a reduction of the individual income rate and an expansion of sales and use taxes. The legislature can still override the veto by a majority vote of both houses, which are adjourned until April 13, 2022.
If passed, the law would reduce the individual income tax rate to four percent and extend sales and use taxes to certain services such as cosmetic surgery services, clothing alteration and repair services, marketing services, and prewritten computer software access services.
Additionally, the proposed law modifies the definition of “use”, for tax purposes, to account for the services which would become subject to sales tax.
Finally, the new law imposes a six percent excise tax on motor vehicle rentals and rideshares, with or without a driver. While simultaneously exempting certain driving services from sales tax.
The full text of the bill may be found here.
