Janitorial and dozens of other services in 12 business categories are now subject to Kentucky's 6 percent sales tax, which started July 1. The Paducah Sun reported recently that the move has caused frustrations among businesses and nonprofits, who will likely relay price increases down to their customers.
Janitorial services that are being taxed include residential and commercial cleaning companies, as well as those that provide specialty carpet, upholstery and window cleaning services.
Services falling under maintenance will also see a hike in tax. Landscape services, including lawn care and maintenance, tree trimming, pruning or removal, landscape design and installation, landscape care and maintenance, as well as snow plowing and removal are all subject to the additional tax.
Labor charges for installation or repair of tangible personal property, digital property or services sold are also being taxed, but labor associated with the repair of fixtures such as HVAC units, water heaters or plumbing fixtures will not see a tax increase.
Reports suggest that there are questions regarding why some services are seeing additional taxes, while others fall off the radar. To assist business owners, and the customers that will experience trickle-down from the pricing increase, Kentucky officials have launched a website to help answer questions.