Certain service businesses previously treated as non-retail must ​register for a sales and use tax account number as a result of legislation effective July 1, 2018. This page will help you determine if your business is a type that needs to register.​

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 must 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 retailers' service(s). The resale exemption is limited to tangible personal property or digital property sold to and received by the customers as part of the retail sale for periods prior to July 1, 2019. However, for sales beginning on or after July 1, 2019, KRS 139.260 now provides a resale exemption for the services listed in subsections (g) through (q) of KRS 139.200, which became taxable as of July 1, 2018.

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.

​​​Sales of extended warranty services to repair, support, or maintain tangible personal property or digital property that is taxable to the warranty holder are subject to sales and use tax.  This includes extended warranties sold on motor vehicles.  Sales tax applies to service contract agreements sold on or after July 1, 2018.

*Effective July 1, 2019, a retailer may claim a resale exemption for the purchase of extended warranty services that are being resold to their customers at retail.

Read Frequently Asked Questions for Extended Warranty Services

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, charges for the privilege of using facilities or participating in events or activities are also taxable.  Examples of the additional types of taxable admissions are charges related to:

  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.

*Effective March 26, 2019, sales of admissions by resident 501(c)(3) charitable, educational and religious organizations , nonprofit civic organizations, governmental organizations and all other nonprofit organizations are exempt from sales tax.

*Effective July 1, 2019, the definition for "admissions" excludes fees paid to participate in a fishing tournament and fees paid for the use of a boat ramp to launch or remove a boat from the water. 

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 are not subject to tax. 
  • Labor is taxable if it is part of a taxable retail sale.  An example is 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 include 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 tax must be collected when providing veterinary services for small animals.  Sales 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.