Most states have debt at some level, but the state of KY has a lot.  So, in order to make up for the deficit a number of small businesses will be paying sales tax effective 7/1/2018.  Hopefully, by now your accountant or bookkeeper has informed you if you are one of the elect.  Below are some of the businesses that will be effected by this change.

If you are not a small business but you smoke cigarettes you are probably already aware that you will have to pay an extra .50 cents per pack on a 20 pack and .625 on a pack of 25.  This is a floor stock tax.

The top 2 businesses mentioned earlier in the year that are required to charge a sales tax are automotive repair shops and dry cleaners.

For dry cleaners, separately itemized charges for alterations will not be subject to sales tax.  However, charges for these services are subject to sales tax if a retailer selling the garments also provides these services to complete the sale of the garments. In the case of wedding dresses requiring substantial alterations with added fabric, brocade, etc., the charges for the added materials and the labor are subject to the 6% Kentucky sales tax.

In the past, when a person had repair work on their vehicle only the parts were taxed.  Now you will be paying 6% on the labor also.

Janitorial services will now be subject to the sales tax including duct cleaning.

Lawncare services will also be charging sales tax for mowing, trimming, weed eating, fertilizing, etc.

Pet care services are also in this group.  This includes grooming and boarding, pet sitting, and pet obedience training.  The boarding of horses and equine care are exempt from the category of pet care services.

Plumbing and HVAC contractors are exempt from this tax if they are making improvements or repairs to real property.  However, contractors will still pay sales and use tax on their purchases of tangible personal property (i.e., materials) to complete their construction contracts.

Sales tax returns must be filed monthly.

Parts of this list came from tax answers at ky.gov.   For a more comprehensive list see please visit their site.

For more information please call Sheryl Lucchese at 502-295-3538.