These Services Will Be Taxed in Kentucky Starting in January.

Now that we are all speeding toward Christmas and the end of the year, what can we look forward to here in Kentucky as far as prices and income taxes in 2023? Well, it's a bit of a double-edged sword.

LOWER INCOME TAXES, BUT NEW TAXES FOR SERVICES

So while the Kentucky Legislature voted to lower income taxes starting next year for some breathing room for residents, however, to offset the cost, certain services will have a 6% sales tax added starting on January 1st.

House Bill 8, which passed earlier this year, drops the state's income tax from 5% to 4.5%. A person who earns $60,000/year will now pay $2,700 in state income taxes in 2023 as opposed to $3,000 this past year.

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WHICH SERVICES ARE NOW GETTING A SALES TAX?

Some of these services you'll look at and say "I have no idea what that is", however, a lot of them are very common for everyone.

Here is the list of services that will now have a sales tax tacked on:

Photography and photo finishing
Marketing
Telemarketing
Public opinion and research polling
Lobbying
Executive employee recruitment
Website design and development
Website Hosting
Facsimile transmission
Private mailroom
Bodyguard services
Security system monitoring
Private investigation services
Process server services
Repossession of personal property
Personal background check services
Parking services
Road and travel services
Condo time-share exchange services
Short-term rental of space
Social event planning and coordination
Leisure, recreational, and athletic instructional services
Recreational camp tuition and fees
Personal fitness training
Massage (non-medical)
Cosmetic surgery
Body modification (piercing, tattoos)
Testing services
Interior decorating and design
Household moving
Specialized design (fashion)
Lapidary services
Labor and services for commercial refrigeration
Labor to repair or alter apparel, footwear, watches, or jewelry
Prewritten computer software access services

Yeah, some of these are tough. I'd say photography and photo finishing is the one that stands out as very common services. If you love to see a show, a concert, or go to a big game, a sale tax will now be added on for parking rates.

Start planning ahead or review your plans for 2023.