I. 2022 LEGISLATIVE UPDATE -
There are several notable tax developments from the Kentucky 2022 regular session, including House Bill 8 (“HB 8”). HB 8 includes a proposal to reduce the individual income tax and continues to expand the sales tax base by imposing sales tax on more than thirty new services. Rather than reducing the individual income tax outright, HB 8 would establish a rate reduction evaluation, with any potential tax rate reduction beginning on January 1, 2023. Services proposing to be taxed include cosmetic surgery services, marketing services, photography and photo-finishing services, prewritten computer software access services, telemarketing services, lobbying services, executive employee recruitment services, website design and development services, website hosting, certain repair services. HB 8 as proposed includes specific statutory definitions for only some of the additional services. Also included in HB 8 is a proposed tax amnesty program, available to all taxpayers from October 1 through November 29, 2022. HB 8 has passed both the House and the Senate and is now before the Governor.
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