Taxation of Services in Kentucky to Expand

I played a lot of golf with a former colleague and the matches were quite competitive. Looking for an edge, I took lessons from a well-known local professional. These lessons allowed me to prevail more often than not in our friendly contests. Fortunately for me, the golf lessons always took place in Pennsylvania, a state that taxes relatively few services. Golfers in Kentucky will not be as lucky come January 1, 2023 when the state expands its taxation of services.

As previously reported here - Kentucky is expanding its sales tax base to include many more services in 2023. One of the most significant changes is the pending taxation of instructional, camp and training services. Training services including golf lessons, swimming lessons, yoga lessons, fitness classes and other instructor-led recreational classes and will be subject to Kentucky sales tax. Notably, camps where recreational activities represent more than 10% of planned activities will also be subject to tax even when operated by a nonprofit organization. The changes will increase the cost of these services to consumers, but more significantly, result in tax compliance responsibilities for the providers of these services. Service providers should review their obligations and register for sales tax with the Kentucky Department of Revenue (“Department”), if required.

The tax changes scheduled for 2023 are not limited to instruction and recreational activities. The Department’s recent publication here - addresses several types of transactions that will be taxable in the new year. The publication provides guidance and examples of services that may be taxable come January 1, 2023. Additional taxable services include photography, interior decorating and design, and certain repair, maintenance, and warranty services. The Department’s publication also discusses the pending taxation on the rental of space for meetings, weddings, etc. Rental charges related to hotel conference rooms, convention centers, picnic shelters and recreational spaces will be taxable in the new year.

Kentucky vendors and service providers should continue to monitor the Department of Revenue website for guidance on services subject to tax on January 1, 2023. If you have questions on Kentucky’s sales tax changes or other SALT matters, please contact the HBK SALT Advisory Group at

About the Author(s)
Matt Dodge is a Senior Manager, State and Local Tax, HBK CPAs & Consultants. He has more than 20 years of experience in state and local tax (SALT) with a focus on sales and use tax. He has served clients in various industries, including construction, manufacturing, oil and gas, retail, service providers, and transportation. He can be reached 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.