New year brings 6% sales tax to dozens of Kentucky services

Kentucky Legislature
Posted at 5:46 PM, Jan 01, 2023
and last updated 2023-01-01 17:47:43-05

(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:

  1. Photography and photo finishing
  2. Marketing
  3. Telemarketing
  4. Public opinion and research polling
  5. Lobbying
  6. Executive employee recruitment
  7. Website design and development
  8. Website hosting
  9. Facsimile transmission
  10. Private mailroom
  11. Bodyguarding
  12. Residential/nonresidential security system monitoring
  13. Private investigating
  14. Process server services
  15. Repossession of tangible personal property
  16. Personal background checks
  17. Parking
  18. Road and travel services
  19. Condo time-share exchange services
  20. Short-term rental of space
  21. Social event planning and coordination
  22. Leisure, recreational and athletic instructional services
  23. Recreational camp tuition and fees
  24. Personal fitness training
  25. Non-medical massage
  26. Cosmetic surgery
  27. Body modification (piercing, tattoos)
  28. Testing services
  29. Interior decorating and design
  30. Household moving
  31. Specialized design (fashion)
  32. Lapidary services
  33. Labor and services for commercial refrigeration
  34. Labor to repair or alter apparel, footwear, watches or jewelry
  35. Prewritten computer software access services

You can learn more about the tax changes here.