These Services Will Be Taxed in Kentucky Starting in January.
Now that we are all speeding toward Christmas and the end of the year, what can we look forward to here in Kentucky as far as prices and income taxes in 2023? Well, it's a bit of a double-edged sword.
LOWER INCOME TAXES, BUT NEW TAXES FOR SERVICES
So while the Kentucky Legislature voted to lower income taxes starting next year for some breathing room for residents, however, to offset the cost, certain services will have a 6% sales tax added starting on January 1st.
House Bill 8, which passed earlier this year, drops the state's income tax from 5% to 4.5%. A person who earns $60,000/year will now pay $2,700 in state income taxes in 2023 as opposed to $3,000 this past year.
WHICH SERVICES ARE NOW GETTING A SALES TAX?
Some of these services you'll look at and say "I have no idea what that is", however, a lot of them are very common for everyone.
Here is the list of services that will now have a sales tax tacked on:
- Photography and photo finishing
- Public opinion and research polling
- Executive employee recruitment
- Website design and development
- Website Hosting
- Facsimile transmission
- Private mailroom
- Bodyguard services
- Security system monitoring
- Private investigation services
- Process server services
- Repossession of personal property
- Personal background check services
- Parking services
- Road and travel services
- Condo time-share exchange services
- Short-term rental of space
- Social event planning and coordination
- Leisure, recreational, and athletic instructional services
- Recreational camp tuition and fees
- Personal fitness training
- Massage (non-medical)
- Cosmetic surgery
- Body modification (piercing, tattoos)
- Testing services
- Interior decorating and design
- Household moving
- Specialized design (fashion)
- Lapidary services
- Labor and services for commercial refrigeration
- Labor to repair or alter apparel, footwear, watches, or jewelry
- Prewritten computer software access services
Yeah, some of these are tough. I'd say photography and photo finishing is the one that stands out as very common services. If you love to see a show, a concert, or go to a big game, a sale tax will now be added on for parking rates.
Start planning ahead or review your plans for 2023.