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:

  1. Photography and photo finishing
  2. Marketing
  3. Telemarketing
  4. Public opinion and research polling
  5. Lobbying
  6. Executive employee recruitment
  7. Website design and development
  8. Website Hosting
  9. Facsimile transmission
  10. Private mailroom
  11. Bodyguard services
  12. Security system monitoring
  13. Private investigation services
  14. Process server services
  15. Repossession of personal property
  16. Personal background check services
  17. Parking services
  18. Road and travel services
  19. Condo time-share exchange services
  20. Short-term rental of space
  21. Social event planning and coordination
  22. Leisure, recreational, and athletic instructional services
  23. Recreational camp tuition and fees
  24. Personal fitness training
  25. Massage (non-medical)
  26. Cosmetic surgery
  27. Body modification (piercing, tattoos)
  28. Testing services
  29. Interior decorating and design
  30. Household moving
  31. Specialized design (fashion)
  32. Lapidary services
  33. Labor and services for commercial refrigeration
  34. Labor to repair or alter apparel, footwear, watches, or jewelry
  35. 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.

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