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​Kentucky Sales Tax
Facts Newsletter

The May issue is the first in a series highlighting various legislative
changes affecting retailers.

Read it here.

Effective July 1, 2018, businesses that provide the services listed in the chart below are required to collect the 6% sales tax from their customers for providing these services. Retailers that make sales of these services will now charge 6% sales tax on the full sales price charged to their customers and may claim a resale exemption on their purchase of items provided to the customer as part of the service. This resale exemption is limited to tangible personal property or digital property sold to and received by the customers as part of the retail sale. There is no resale exemption for the resale of services under the provisions of KRS 139.260.

While the new sales tax requirement applies to many types of services, it does not apply to all types of services. For example, personal care services provided by barbers and hairdressers are not part of the expansion of taxable services. 

Please read below for a listing of new services subject to sales tax for transactions on or after July 1, 2018 to determine if you need to register your business for a Sales and Use Tax account.

*Businesses already registered with a Kentucky sales tax account number should use their existing account and filing process to begin reporting retail sales of these new service categories for periods on or after July 1, 2018.

​​​Sale of extended warranty services to repair, support, or maintain tangible personal property or digital property that is taxable to the warranty holder. Sales tax will apply to service contract agreements sold on or after July 1, 2018.

Read Frequently Asked Questions for Extended Warranty Services

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 6% Kentucky sales tax.

Effective July 1, 2018, examples of the additional types of admissions also becoming taxable are charges for the privilege of using facilities or participating in events or activities such as:

  1. Bowling centers,
  2. Skating rinks,
  3. Health spas,
  4. Swimming pools,
  5. Tennis courts,
  6. Weight training facilities,
  7. Fitness and recreational sports centers, and
  8. Golf courses (both public and private).

These admissions are taxable regardless of whether the fee paid is per use or in any other form, including but not limited to: an initiation fee, monthly fee, membership fee, or any combination of these.

*Admission to racetracks taxed under KRS 138.480, historical sites exempt under KRS 139.482, and the part of admissions to county fairs exempt under KRS 139.470 are exempt from sales tax by statute.

Read Frequently Asked Questions for Facility/Event Admission Fees

Including but not limited to:

  • tanning booth or tanning bed
  • spray tanning

Including but not limited to:

  • residential and commercial cleaning
  • carpet, upholstery, and window cleaning

Read Frequently Asked Questions for Janitorial Services

  • Please note that labor associated with the repair of fixtures to real property such as HVAC units, water heaters or plumbing fixtures will not become subject to tax. 
  • Labor is taxable if it is part of a taxable retail sale.  An example would be the labor bill of a mechanic to sell and install repair parts in a car.

Including but not limited to:

  • lawn care and maintenance
  • tree trimming, pruning or removal
  • landscape design and installation
  • landscape care and maintenance
  • snow plowing and removal

Sales tax must be collected if a driver is provided.

Read Frequently Asked Questions for Limousine Services

Industrial Laundry Services, including but not limited to:
  • industrial uniform supply
  • protective apparel supply
  • industrial mat and rug supply
Linen supply services, including but not limited to:

  • table and bed linen supply
  • non-industrial uniform supply services

​Non-coin operated laundry and dry cleaning services

Read Frequently Asked Questions for Dry Cleaning Services

Sales and use tax must be collected when providing non-medical diet and weight reducing services.

Pet care services, including but not limited to:

  • grooming and boarding
  • pet sitting
  • pet obedience training

Taxable accommodations will now includes campsites, campgrounds and Recreational Vehicle (RV) 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 state-wide or local transient room taxes.

Sales and use tax must be collected when providing veterinary services for small animals.  Sales and use tax does not need to be collected when veterinary services are provided for equine, cattle, swine, sheep, goats, llamas, alpacas, ratite birds, buffalo, and cervids.  

Read Frequently Asked Questions for Small Animal Veterinarians.

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