As of 12/17/18
Compiled by the Kentucky Society of CPAs
During the 2018 legislative session, the Kentucky General Assembly passed legislation (HB 487) making significant changes to Kentucky’s tax code, including an expansion of the sales tax. This document is a compilation of Frequently Asked Questions (FAQs) related to the new sales tax (including sales tax on remote sellers), as provided by the Department of Revenue either through their website or answers to taxpayers or organizations.
The contents herein should not be construed as, and should not be relied upon as, accounting, legal or tax advice. For more information or to submit your own question, visit the Department’s tax reform website at https://taxanswers.ky.gov/. This page will be updated as additional information becomes available. Please note that the Department is continuing to review questions and responses to previous questions may be revised.
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Prior to the passage of HB 487, the following services were taxable and remain taxable:
- Rental of lodging facilities for a period of fewer than 30 days
- Sewer services
- Sale of admissions, except to race tracks, certain historical sites and a portion of county fair admissions
- Prepaid calling services and prepaid wireless calling services
- Certain intrastate, interstate, and international communications services
- Distribution, transmission, or transportation services for natural gas except for natural gas that is used for residential use or to the seller or reseller of natural gas
Added by HB 487 (KRS 139.010(1) and KRS 139.200), the following services are taxable effective July 1, 2018: (FAQs regarding each service can be viewed by clicking the links below)
- Additional admissions, including swimming pools, golf courses, bowling centers, etc.
- Campsites, campgrounds and RV Parks are considered taxable accommodations
- Extended warranty services
- Landscaping services, including but not limited to lawn care and maintenance services, tree trimming, pruning, or removal services, landscape design and installation services, landscape care and maintenance services, and snow plowing or removal services
- Janitorial services, including but not limited to residential and commercial cleaning services, and carpet upholstery, and window cleaning service
- Industrial laundry services, including but not limited to industrial uniform supply services, protective apparel supply services, and industrial mat and rug supply services
- Non-coin-operated laundry and dry-cleaning services
- Linen supply services, including but not limited to table and bed linen supply services and nonindustrial uniform supply services
- Small animal veterinary services, excluding veterinary services for equine, cattle, swine, sheep, goats, llamas, alpacas, ratite birds, buffalo and cervids
- Pet care services, including but not limited to grooming and boarding services, pet sitting services and pet obedience training services
- Indoor skin tanning services, including but not limited to tanning booths or tanning bed services and spray tanning services
- Non-medical diet and weight reducing services
- Limousine services, if a driver is provided
In addition to these services, sales tax is now imposed on labor associated with installing or applying taxable tangible personal property or digital property (KRS 139.010(15)(a)).