Businesses concerned about KY sales tax bill

Businesses concerned about KY sales tax bill

LOUISVILLE, KY (WAVE) – The price tag on some of the services you buy daily may soon be going up.

The Kentucky legislature passed a bill that would expand sales taxes to 11 services, which were previously untaxed.

House Bill 366, which was introduced with just days left in the legislative session, passed Monday.

"We have budgets made, we're in the middle of the year, and we're going to take a six percent hit," Jack McCarthy, the General Manager of Executive Strike & Spare, said.

Bowling alleys, fitness centers, landscaping, pet grooming, limousine services, some auto repair shops, janitorial services, veterinarian services for small animals, commercial laundries, golf courses and country clubs, dry cleaning, weight loss centers and campgrounds would be taxed under the new law.

"I kind of know how the teachers feel," McCarthy said. "It definitely was a blindside to us."

Carey Fieldhouse, the President of R&R Limousine, said the bill wouldn't just affect the rich.

"When in fact, it's not directed at the rich," Fieldhouse said. "It's directed at the practical method of transportation."

That includes services Fieldhouse said make roads safer.

"You're discouraging some of the safe driving programs, taking drunk drivers off the roads," Fieldhouse said.

Fieldhouse adds her business is large enough to weather the increase, but small businesses might have some trouble.

"I don't know how in the world they're going to be able to keep track of it," Fieldhouse said.

To stay on track, both business owners said the price of their services is going to have to increase.

"The bowlers are going to have to pay it," McCarthy said. "So, as we already have a dwindling supply of league bowlers, that's not going to help."

It's a bill both said will make their job tougher and be felt by all they serve.

"It's going to be an administrative nightmare," Fieldhouse said.

The governor will now have the opportunity to sign the bill or veto it. It also includes a flat income tax of five percent, and a cigarette tax increase.

The tax increases, along with other tools would raise nearly half a billion dollars over the next two fiscal years, according to a Kentucky Legislative Research Commission press release.

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