Published: January 12, 2023

Kentucky General Assembly Passes House Bill 8


Kentucky Sales Tax Expansion – On April 13, 2022, the Kentucky General Assembly passed House Bill 8 over the governor’s veto. The bill expands Kentucky’s sales and use tax to cover additional services, effective January 1, 2023. The additional services include:

Photography and Event Services: Impact of Kentucky Sales Tax Expansion

  • Photography and photo finishing services
  • Rentals of space for meetings, conventions, short-term business uses, entertainment events, weddings, banquets, parties, and other short-term social events

Leisure and Instructional Services Affected by Kentucky Sales Tax Expansion

  • Leisure, recreational, and athletic instructional services
  • Recreational camp tuition and fees
  • Personal fitness training services

Interior and Repair Services

  • Interior decorating and design services
  • Labor to repair or alter apparel, footwear, watches, or jewelry not including sales of tangible personal property in the transaction
  • Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold (including service calls and trip charges)

Warranty and Marketing Services Under Sales Tax Expansion

  • Extended warranty services
  • Marketing services
  • Telemarketing services
  • Public opinion and research polling services
  • Lobbying services

Professional and IT Services Impacted

  • Executive employee recruiting services
  • Website design and development services
  • Website hosting services
  • Facsimile transmission services
  • Private mailroom services

Security and Investigation Services Affected by Kentucky Sales Tax Expansion

  • Bodyguard services
  • Residential and nonresidential security system monitoring services
  • Private investigation services
  • Process server services
  • Repossession of tangible personal property
  • Personal background check services

Parking and Travel Services Implicated

  • Parking services including valet services and the use of parking lot structures
  • Road and travel services provided by automobile clubs
  • Condominium time-share exchange services

Personal and Cosmetic Services Impacted

  • Social event planning and coordination services
  • Non-medically necessary massage services
  • Cosmetic surgery services
  • Body modification services

Testing and Moving Services Affected by Sales Tax Expansion

  • Testing services
  • Household moving services

Design and Software Services Details

  • Specialized design services
  • Lapidary services
  • Prewritten computer software access services

For further understanding of these changes and their implications, feel free to contact the Clarus team here.