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Receipts from sales of these​ services became subject to sales and use tax on 01/01/2023.

Frequently Asked Questions for:

  • Leisure, Recreational and Athletic Instructional Services
  • Recreational Camp Tuition and Fees
  • Personal Fitness Training Services​


​Whether the category is leisure, recreational or athletic instructional services, all the services included have a physical activity component to them. In many cases the services excluded are in the broad category of the arts.

Examples of instructional services that are leisure, recreational and athletic instructional services include, but are not limited to:​

  • Archery lessons
  • Baseball training
  • Basketball training
  • Boating lessons
  • Cheerleading training
  • Football training
  • Golf lessons
  • Gymnastics training​
  • Martial arts classes
  • Riding lessons
  • Skating lessons
  • Sports leagues with coaching​
  • Swimming lessons
  • Tennis lessons 

Examples of instructional services that are not leisure, recreational and athletic instructional services include, but are not limited to:

  • Art lessons
  • Craft and decorating classes
  • Dance lessons
  • Firearms safety classes
  • Legal, accounting, medical or other professional certification training​
  • Life coaching sessions
  • Music lessons
  • Pilot training
  • Theatre classes
  • Vocational training

​No, receipts from the provision of childcare services are not subject to sales and use tax. Charges for services for daycare or childcare services by facilities licensed by the Cabinet for Health and Family Services or those facilities or providers exempted from the licensing requirement are not included within “recreational camp tuition and fees."

However, recreational and/or athletic instructional services such a swimming lessons or riding lessons provided by a licensed childcare facility may be subject to sales tax. If these charges are separately billed from the childcare services provided, then these instructional services are subject to sales and use tax.

Receipts from various types of camp enrollments that include recreational activities are subject to sales and use tax under this category. Tuition for camps, whether for-profit or non-profit, that have recreation as more than 10% of planned activities are taxable beginning 01/01/2023. These camps include day camps and overnight camps of all types and categories if there is a recreational component included comprising over 10% of the scheduled activities. For example, an overnight music camp may not be in the general category of leisure, recreational and athletic instructional services, but if the music camp has more than a 10% recreational activity component, then the tuition fees are taxable.

Please see the answer to frequently asked question number 2 regarding camps provided as part of licensed daycare or childcare services. See  KRS 139.215 for guidance on bundled transactions if the sales price or the purchase price of the taxable products is more than 10%. ​

​Yes, regardless of the type of organization providing these services, receipts from the provision of “personal fitness training services" are taxable. The exemptions from sales and use tax authorized for sales of admissions and fundraising events by non-profit organizations remains in place under KRS 139.495 and 139.498; however, the new language enacted by the General Assembly during the 2022 legislative session found in HB 8 imposes sales and use tax expressly upon receipts from “personal fitness training services" without exception. Examples of these taxable services include, but are not limited to, exercise instruction, yoga instruction, spinning classes, aerobics, etc. 

​No. If the net proceeds from the camp charges are used solely for the benefit of the elementary or secondary school or its students, then the sports camp fees are not subject to sales and use tax as provided under KRS 139.497.​

​Yes, the charges for participation in these camps are subject to sales and use tax.​

​This exemption is very limited in its application. It does not apply to nonprofit 501(c)(3) groups under KRS 139.495. It also does not apply to governmental organizations. The language may apply to nonprofit civic or other nonprofits (excluding 501(c)(3) groups and school organizations already exempt under KRS 139.497) if the group operates solely with volunteers for fundraising events. Groups that meet these qualifiers are exempt from sales and use tax on their receipts from sales of leisure, recreational, or athletic instructional services or related concessions sales. ​

​Yes, sellers whose sales of these new services subject to tax under KRS 139.200(2)(q) to (2)(ay) that have never had gross receipts over $6,000 during a calendar year are not required to maintain an active sales tax permit if retail sales are not expected to exceed the $6,000 threshold during the current calendar year. However, for the first calendar year when gross receipts exceed $6,000, all gross receipts over $6,000 are taxable in that calendar year. All gross receipts from sales by the seller are subject to tax in subsequent calendar years once a seller crosses the threshold in any previous calendar year (no annual reset). This threshold does not apply to a retailer that also engages in the business of selling tangible personal property, digital property or other taxable services. See KRS 139.470 (23) and (24) for additional information on registration thresholds.

​Taxable services providers must file and pay their taxes due online using the KY OneStop Business Portal. Monthly returns are due on the 20th day of the month following the previous month in which the services are provided and billed.

Online registration for a sales and use tax account may be completed through the Kentucky OneStop Business Portal. To obtain additional registration information, please refer to the online user guide.

When filing online, providers should report their total receipts for all services rendered (taxable and exempt) for the reporting period on the “Total Receipts" line of the return. They should then click on the “Deductions Worksheet" tab of the return and include all receipts from exempt services listed in the “Total Receipts" on the “Other" deduction line.  The system will then calculate the remaining receipts subject to sales tax on the “Total Taxable Amount" line.

Register for a Sales and Use Tax Account

Sales and Excise Taxes