New Sales Tax Q&A with KY Dept. of Revenue

New Sales Tax Q&A with KY Dept. of Revenue

HB 8 expands the sales and use tax base to include a number of new services effective January 1, 2023. At our last seminar, many of the questions had not been settled by the state. This is your chance to speak directly to representatives of the Kentucky Department of Revenue, who collects the tax. Does your business provide any of the following? If so, you will likely need to start collecting sales tax. Register here.

• Photography and photo finishing services
• Marketing services.
• Telemarketing services.
• Public opinion and research polling services.
• Lobbying services.
• Executive employee recruitment services.
• Website design and development services.
• Website hosting services.
• Facsimile transmission services (currently taxable as communication services under KRS 139.195).
• Private mailroom services, including: 1. Presorting mail and packages by postal code; 2. Address barcoding; 3. Tracking; 4. Delivery to postal service; and 5. Private mailbox rentals.
• Bodyguard services.
• Residential and nonresidential security system monitoring services.
• Private investigation services.
• Process server services.
• Repossession of tangible personal property services.
• Personal background check services.
• Parking services; 1. Including: a. Valet services; and b. The use of parking lots and parking structures; but 2. Excluding any parking services at an educational institution.
• Road and travel services provided by automobile clubs as defined in KRS 281.010.
• Condominium time-share exchange services.
• Rental of space for meetings, conventions, short- term business uses, entertainment events, weddings, banquets, parties, and other short-term social events.
• Social event planning and coordination services.
• Leisure, recreational, and athletic instructional services.
• Recreational camp tuition and fees.
• Personal fitness training services.
• Massage services, except when medically necessary.
• Cosmetic surgery services.
• Body modification services, including tattooing, piercing, scarification, branding, tongue splitting, transdermal and subdermal implants, ear pointing, teeth pointing, and any other modifications that are not necessary for medical or dental health.
• Testing services, except testing for medical, educational, or veterinary reasons. However, small animal veterinarian testing services became taxable in 2018 under HB 487.
• Interior decorating and design services.
• Household moving services.
• Specialized design services, including the design of clothing, costumes, fashion, furs, jewelry, shoes, textiles, and lighting.
• Lapidary services, including cutting, polishing, and engraving precious stones.
• Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction including service calls and trip charges.
• Labor to repair or alter apparel, footwear, watches, or jewelry when no tangible personal property is sold in that transaction.
• Prewritten computer software access services.

Register in advance for this meeting by clicking here. After registering, you will receive a confirmation email containing information about joining the meeting, and a link to save it to your calendar.