Kentucky Passes Sales Tax on Janitorial Services as of July 1

07/13/18 | 8:00AM | Posted by TEAM Software

CATEGORIES: News

Sales Tax Update

Shifting Sales Tax Legislation in a Service-Based Economy

This article originally appeared on cleanlink.com

Janitorial and dozens of other services in 12 business categories are now subject to Kentucky’s six percent sales tax, which started July 1. The Paducah Sun reported recently that the move has caused frustrations among businesses and nonprofits, who will likely relay price increases down to their customers.

Janitorial services that are being taxed include residential and commercial cleaning companies, as well as those that provide specialty carpet, upholstery and window cleaning services.

Labor charges for installation or repair of tangible personal property, digital property or services sold are also being taxed, but labor associated with the repair of fixtures such as HVAC units, water heaters or plumbing fixtures will not see a tax increase.

Reports suggest that there are questions regarding why some services are seeing additional taxes, while others fall off the radar. To assist business owners, and the customers that will experience trickle-down from the pricing increase, Kentucky officials have launched a website to help answer questions.

As a TEAM customer, changes to sales tax regulations like this don’t have to be complicated or stressful. Avalara, one of our strategic integration partners, develops best-in-class sales tax compliance software that integrates with WinTeam — our core financial, operations and workforce management solution. With thousands of tax jurisdictions and tens of thousands of tax rules that are always changing, Avalara’s software delivers instant sales tax decisions based on precise geo-locations and continuously updated tax data. Additional information can also be found on avalara.com.