Kentucky looks at tax renovation
A Kentucky tax proposal that could significantly raise revenue has been sent to the state’s Appropriations and Revenue Committee of the House of Representatives.
It has been suggested that the tax renovation, known as Kentucky Competes, could raise as much as $210 million more annually for the state. While the proposal includes adjustments to income, corporate and property taxes, the sales tax-specific items include:
- Change of the existing cost-of-performance based formula for apportioning “sales” of services to destination sourcing;
- The amount charged for labor or services rendered in installing or applying the tangible personal property, digital property, or service sold;
- Exemption of certain equine products and pharmaceuticals for food animals;
- A lowering of the wholesale tax on beer, wine, and distilled spirits while repealing the distilled spirits case tax.
- An increase on tax to cigarettes and other tobacco products
- A broadening of the sales tax to selected services including landscaping, janitorial, warranty contracts, launderers and linen suppliers, security system services, pet care, tanning salons, fitness centers, golf and country clubs and marinas, and overnight trailer campgrounds.
- A new sales tax for online travel companies.
Gov. Beshear will await a committee consensus before introducing formal legislation.
Lucinda Rowlands has been the general manager at Zip2Tax since 2010. She has extensively researched sales and use tax regulations in order to help small businesses navigate complicated tax rules.