No, contractors are making improvements or repairs to real property, and improvements or repairs to real property are not services that are subject to sales tax.
However, contractors will still pay sales and use tax on their purchases of tangible personal property (i.e., materials) to complete their construction contracts. These transactions are not treated as retail sales under the current law and that treatment does not change under the new law. Nothing in the new law changes the current tax treatment of construction contractor services or labor. Please see Kentucky Regulation 103 KAR 26.070 for more detail.