Kentucky is Expanding Sales & Use Tax on Services

Kentucky has expanded its list of services subject to sales and use tax to include:

• photography and photo finishing services;
• marketing services;
• telemarketing services;
• public opinion and research polling services;
• lobbying services;
• executive employee recruitment services;
• Web site design and development services;
• Web site hosting services;
• facsimile transmission services;
• private mailroom services, including:
  • presorting mail and packages by postal code;
  • address barcoding;
  • tracking;
  • delivery to postal service; and
  • private mailbox rentals;
  • bodyguard services;
  • residential and nonresidential security system monitoring services;
  • private investigation services;
  • process server services;
  • repossession of tangible personal property services;
  • personal background check services;
  • parking services:
    • including valet services and the use of parking lots and parking structures; but
    • excluding any parking services at an educational institution;
    • road and travel services provided by automobile clubs;
    • condominium time-share exchange services;
    • rental of space for meetings, conventions, short-term business uses, entertainment events, weddings, banquets, parties and other         short-term social events;
    • social event planning and coordination services;
    • leisure, recreational, and athletic instructional services;
    • recreational camp tuition and fees;
    • personal fitness training services;
    • massage services, except when medically necessary;
    • cosmetic surgery services;
      • body modification services, including tattooing, piercings, scarification, branding, tongue splitting, transdermal and subdermal           implants, ear pointing, teeth pointing, and any other modifications that are not necessary for medical or dental health;
      • testing services, except testing for medical, educational, or veterinary reasons;
      • interior decorating and design services;
      • household moving services;
      • specialized design services, including the design of clothing, costumes, fashion furs, jewelry, shoes, textiles, and lighting;
      • lapidary services, including cutting, polishing, and engraving precious stones;
        • • • labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction including service calls and trip changes; labor to repair or alter apparel, footwear, watches, or jewelry when no tangible personal property is sold in that transaction; and
            • prewritten computer software access services.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.