Beginning Sunday, several previously untaxed services will be subject to Kentucky’s six percent sales tax.
Prepare to pay more if you are planning to see a movie, have work done on your car, use a dry cleaner or tanning salon, or visit the vet. Those and dozens of other services fall under 12 business categories that will be subject to the six percent sales tax.
Other services affected include extended warranties, admissions to fitness and recreational sports centers, and dock and campsite rental fees.
Kentucky lawmakers enacted the changes in the last legislative session.
The sales tax expansion is expected to raise about $436 million over the next two years for the state. As part of a broader tax overhaul package, lawmakers also increased the cigarette tax by 50 cents per pack, which is expected to generate $245 million a year, and cut the individual and corporate tax code to a flat 5 percent tax.
These services will be taxed beginning July 1
- Facility/Event Admission Fees — Under current law, charges for the right of entrance to a display, program, sporting event, music concert, performance, play, show, movie, exhibit, fair or other entertainment event or amusement are subject to the state sales tax. Effective July 1, examples of additional types of admissions to be taxed are bowling centers, skating rinks, health spas, swimming pools, tennis courts, weight training facilities, boat launch and dock fees, fitness and recreational sports centers and golf courses — both public and private. Admission to racetracks, some historical sites and county fairs are exempt.
- Veterinary Services — The tax applies to small animals like cats and dogs. It does not apply to large animals like horses, cattle, swine, sheep, goats, llamas and alpacas. The state says small pet owners will pay sales tax on all charges that a veterinarian bills its customers for, including the cost of lab tests and prescription drugs.
- Pet care services — This includes but is not limited to grooming and boarding, pet sitting and pet obedience training.
- Labor Charges for Installation or Repair of Tangible Personal Property, Digital Property or Services Sold — Labor associated with the repair of fixtures to real property such as HVAC units, water heaters or plumbing fixtures will not be subject to the tax. Labor is taxable if it is part of a taxable retail sale. An example would be the labor bill of a mechanic to install repair parts in a car.
- Rentals of Campsites — This includes campsites, campgrounds and recreational vehicle parks. Rentals for a continuous period of 30 days or more to a person are excluded from sales tax. These new accommodations subject to sales tax will not be subject to the statewide or local transient room taxes.
- Extended Warranty Services — Sale of extended warranty services to repair, support, or maintain tangible personal property, such as cars, or digital property, such as computers, that is taxable to the warranty holder.
- Laundry/Dry Cleaning Services — This includes industrial laundry services, linen supply services and non-coin operated laundry and dry cleaning services.
- Indoor Skin Tanning Services — This includes but is not limited to tanning booths or beds and spray tanning.
- Janitorial Services — This includes but is not limited to residential and commercial cleaning and carpet, upholstery and window cleaning.
- Landscape Services — This includes but is not limited to lawn care and maintenance, tree trimming, pruning or removal, landscape design and installation, landscape care and maintenance, and snow plowing and removal.
- Limousine Services — The sales tax must be collected if a driver is provided
- Non-medical diet and weight reducing services
