New Kentucky tax law still unclear to business owners

Business owners still unclear on new Kentucky tax law
Jackie Green, the owner of Bike Couriers. (Source: WAVE 3 News)
Jackie Green, the owner of Bike Couriers. (Source: WAVE 3 News)
Carey Fieldhouse, the President of R&R Limousine. (Source: WAVE 3 News)
Carey Fieldhouse, the President of R&R Limousine. (Source: WAVE 3 News)

LOUISVILLE, KY (WAVE) - A number of new Kentucky laws will be on the books starting Sunday, including a tax package that could see you spending more on everyday purchases.

The changes include a law that changes how cyclists ride.

"Those are good laws, relative to cyclists riding two abreast on the road," Jackie Green, the owner of Bike Couriers, said. "That's sane."

That law will also require passing drivers to keep vehicles at least three feet away from cyclists, but Green said more needs to be done to calm city traffic, like encouraging cyclists to ride in travel lanes.

"To slow down, to calm down," Green said. "Number two, the driver can see the cyclist right in front of them and the driver knows he's got to make a big move to get around them. All that translates to safety."

A number of other laws will be in effect in July as well, including the prevention of some teen marriages and aspects of foster care reform.

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A tax reform package is also expected to generate around $400 million of additional revenue over the next two years, but one it's one some business owners are still questioning.

"The Department of Revenue really does not have any idea of what they don't know," Carey Fieldhouse, the President of R&R Limousine, said.

It includes a cigarette tax increase, a five percent flat income tax, and an expansion of the six percent state sales tax to some services, such as landscaping, laundry and small-animal veterinary services, among others.

Limo services will be taxed under the new law, but Fieldhouse said those rules, as well as the ones that define a limousine, are still unclear hours before the law goes into affect.

"He got two answers back, one day apart," Fieldhouse said, discussing her request for information as to how to apply the rule, which was answered with conflicting responses.

So, in fear of an audit, Fieldhouse said she'll have to tax all her services, until the state can better tell her how to follow the new law.

Fieldhouse said she hopes to get more information before the tax law goes into effect this Sunday.

The state website has several FAQs related to the new tax law.

A press release which includes new Kentucky laws in the end of session section can be found here.

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