Did You Know You Have to Start Paying Sales Tax for Lawn Care Services?
Yesterday, I received a letter in the mail from my lawn care guy. Starting July 1st, we're going to have to start paying 6% sales tax each time he cuts our yard. That's due to the passage of the Kentucky Tax Reform Bill, which is set to take effect in just a couple of weeks.
Kentucky legislators recently overrode Governor Matt Bevin's veto of HB 366. The bill, a massive tax reform package, seeks to raise nearly $400 million dollars in additional tax revenue in the Commonwealth. There are several ways that money is being raised, but one affects various services that were previously not taxed.
Among them . . . lawn care/landscaping services, pet care/grooming, overnight trailer campgrounds, fitness and recreational sports, bowling, weight loss centers, limousine services and more. Another change set to take effect on July 1st will affect car repairs. We have already been accustomed to paying sales tax on repair parts, but we'll now pay tax on labor as well.
There are various key features of the tax reform bill. Another will affect smokers. The tax on cigarettes goes up from 60 cents a pack to $1.10 per pack.