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Non-profits among services to be hit by Kentucky sales tax expansion

Begins Sunday

Residents of Kentucky will begin paying a slew of new taxes next week because of a convergence of circumstances that could test voter loyalty in November.  Starting Sunday, prices for things like car repairs, tanning bed visits, veterinary care and gym memberships will jump 6 percent because of a new law passed by the Republican-controlled legislature.

On the same day, nonprofits will have to add an extra 6 percent for admission to cultural and athletic events. That includes things like tickets to the state's beloved University of Kentucky men's basketball games, according to Richard Dobson, executive director of the state Office of Sales and Excise Taxes. The change comes from a recent state Supreme Court ruling that says the Kentucky Constitution does not exempt nonprofits from state sales and use taxes.

Companies and nonprofits have begun notifying customers by posting signs in businesses and mailing letters. That has led to some angry social media posts and confrontations with state lawmakers as they campaign in their districts, where Republicans in November will defend their majority in the House of Representatives for the first time in nearly 100 years.

The same goes for all other services in the expansion.

"It's almost a punitive against, in my opinion, people who probably struggle as small businesses anyway," Perkins said.

Here's a list of other services included in the tax expansion:
• Labor and services for personal property
• Dry cleaning and laundry services
• Industrial and laundry services (uniforms)
• Janitorial services
• Pet grooming
• Pet boarding
• Veterinarian service (small animals)
• Fitness and recreational sports facilities
• Diet and weight reducing centers (non-medical)
• Golf courses and country clubs
• Extended warranties
• Landscaping services
• Overnight trailer campgrounds
• Limousine services
• Bowling centers

The revenue department has launched a website, TaxAnswers.ky.gov, to help explain the new laws.

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