By Greg Bird
The Kentucky Legislature unveiled a plan to raise revenue when they passed a proposal Monday, which opted to raise sales tax on some services in an effort to maintain funding for many programs targeted by Governor Matt Bevin’s proposed budget.
Through the tax reform most Kentuckians will see individual lower income tax, but may have to pay more for many services as several things that weren’t taxed before now will have to add an extra six percent sales tax.
The individual income tax rate has been set at a flat five percent, as well as the corporate tax rate. Previously, anyone earning more than $8,000 a year paid 5.8 percent, and those making more than $75,000 annually paid six percent.
The cigarette tax was increased by 50 cents per pack, up to $1.10 per pack. Additionally electronic cigarettes will be classified as tobacco products and will be taxed at 15 percent.
Here is a partial listing of some of the services that will now be taxed:
Labor and services for certain repair, installation and maintenance of personal property, such as your automobile, landscaping services, pet care veterinarian services for small animals, pet grooming and boarding services, fitness and recreational sports centers, golf courses and country clubs, diet and weight reducing centers, overnight trailer campgrounds and extended warranties.