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US Kentucky 6% Sales Tax extension

Digital and traditional services brought into sales tax net to fund income tax cuts

The Kentucky general assembly has put aside a Governor attempt to stop an widening of the sales tax net which in turn is to be used to finance an income tax rate cut. This will apply from 1 January 2023.

Services now included are:

  • Website build and hosting
  • Software
  • Online servers
  • Body guard services
  • Parking
  • Event space rentals
  • Telemarketing
  • Cosmetic surgery
  • Testing and exams – except educational
  • Personal fitness coaching
  • Polishing and cutting of stones
  • Home moving and redesign

There are considerable variations on US sales tax on digital services as taxes are a local matter.

US sales tax digital services

State Taxable? Sales Tax Rate Comments
Alabama Yes 4%
Alaska No Sales Tax 0%
Arizona Yes 5.6%
Arkansas Yes 7%
California No 7.3% Partial on streaming services
Colorado Yes 2.9%
Connecticut Yes 6.35% Software 1%
Delaware No Sales Tax 0.0%
Florida No 6.0% Communications Tax. E-books exempt
Georgia No 4%
Hawaii Yes 4% General Excise Tax
Idaho Yes 5% Software exempt
Illinois No 6.25%
Indiana Yes 7%
Iowa Yes 6%
Kansas No 7%
Kentucky Yes 6%
Louisiana Yes 4.45%
Maine Yes 5.5%
Maryland  No 6%
Massachusetts No 6.25%
Michigan No 6%
Minnesota Yes 6.875%
Mississippi Yes 7%
Missouri No 4.225%
Montana No Sales Tax 0.0%
Nebraska Yes 5.5%
Nevada No 4.6%
New Hampshire No Sales Tax 0.0%
New Jersey Yes 6.625%
New Mexico  Yes 5.0%
New York No 4.0%
North Carolina Yes 4.75%
North Dakota No 5.0%
Ohio Yes 5.75%
Oklahoma No 4.5%
Oregon No Sales Tax 0.0%
Pennsylvania Yes 6%
Puerto Rico Yes 10.5%
Rhode Island Yes 7%
South Carolina No 6%
South Dakota Yes 4.5%
Tennessee Yes 7%
Texas Yes 6.375% Only if physcial equivilaent is taxable (e.g. books)
Utah Yes 4.7%
Vermont Yes 6%
Virginia No 4.3%
Washington Yes 6.5%
Washington, D.C. Yes 6%
West Virginia Yes 6% Confirmed 1 Sep 2021
Wisconsin Yes 5%
Wyoming Yes 4%

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