Kentucky Sales and Use Tax Bill Vetoed

Erik Wallin
April 12, 2022

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.

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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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