Kentucky Tax Changes


Kentucky’s legislature overrode Gov. Andy Beshear’s veto to enact several tax changes. The most significant change is the expansion of sales and use tax to many more services. The state legislature also created a tax amnesty program commencing in the Fall 2022.

The broadening of the state’s sales and use tax base to services, not previously subject to tax, is noteworthy as it will impact many taxpayers operating in Kentucky. The state has gradually increased the number of services it taxes since 2018 when only a handful of services were subject to tax. The state added several services in 2018 to its list of taxable services, but this current round of additions is the most substantial yet. A partial list of the newly taxable services in Kentucky includes photography, marketing, executive recruitment, web site hosting and design, security system monitoring, rental of space for meetings, entertainment, weddings, etc., household moving, and prewritten computer software access (SaaS). The complete listing of services subject to sales tax in Kentucky may be viewed here.

Kentucky will offer a tax amnesty program this year from October 1st through November 29th. The tax amnesty program applies to qualified tax liabilities established between October 1, 2011, and before December 1, 2021. The program applies to taxes, fees, interest, and penalties. Participating taxpayers will have penalty waived and will be responsible for one-half the interest normally due. The tax amnesty program applies to all taxes administered by the Department but does not include ad valorem taxes on real or personal property. The Kentucky Department of Revenue will be releasing more information on its tax amnesty program in the future. Please check the Department’s website or the HBK SALT page for updates.

If you have questions on Kentucky’s tax changes or other SALT matters, please contact HBK’s SALT Advisory Group at

About the Author(s)
Matt Dodge is a member of the HBK State and Local Tax (SALT) practice with a focus on sales/use tax. Matt has vast experience in the construction, oil & gas, manufacturing, retail, service provider and transportation industries. He can be reached at 724-934-5300, or by email at
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.