The Kentucky Department of Revenue has alerted us that starting Jan. 1, 2023, many service-based industries will be required to impose a 6% sales tax. This applies to youth sports, camps, rentals, and instructional trainings. As a result, beginning January 2023, a 6% sales tax will be applied on all events, programs, rentals, and camps that meet that criterion under Lexington Parks & Recreation. Please see below for specific details:
2022 Kentucky legislation in House Bill 8 substantially changes how various services are taxed within the state. In the sales and use tax area, 34 additional service categories become subject to tax. Businesses that provide the new services are required to collect a 6% sales tax from their customers for providing these services. The bill also creates and amends several sales and use tax exemptions.