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 | Yes | 4.3% | 2024 |
| Washington | Yes | 6.5% | |
| Washington, D.C. | Yes | 6% | |
| West Virginia | Yes | 6% | Confirmed 1 Sep 2021 |
| Wisconsin | Yes | 5% | |
| Wyoming | Yes | 4% |
