In Kentucky, there is no sales tax on groceries. Included in this are foods and drinks that are marketed for consumption off-site but are meant for human consumption. There are a few exceptions to this rule, such as prepared foods sold in eateries or food trucks, which must be subject to a 6% sales tax.
In Kentucky, clothing is typically subject to sales tax. There are a few exceptions to this rule, though. Sales tax is not applied to items of clothing made for sports or protective purposes, such as safety gear or football helmets. Additionally, clothing products costing $50 or less per are exempt from sales tax as well.
Only some services are taxable in Kentucky in terms of goods and services. Medical, legal, and educational services are only a few examples of the necessary services that are excluded from sales tax. However, there is a 6% sales tax that must be paid for non-essential or luxuries like landscaping, pet grooming, and spa services.
In Kentucky, sales tax is typically applied to packaging supplies. Items like boxes, bags, tape, and other supplies needed for packaging and shipping fall under this category. There are a few exceptions to this rule, though. Sales tax is not applied to packaging materials used to send goods outside of the state.
In conclusion, not all services are taxable in Kentucky, despite the fact that the state levies a 6% sales tax on the sale of tangible personal property and some services. While groceries are exempt from sales tax, apparel products and packaging materials typically are. In Kentucky, only luxuries or non-essential services are subject to sales tax, while necessary services are excluded.
Due to their intangibility and the absence of the transfer of tangible objects, services are exempt from taxation in several governments. Furthermore, because services are frequently illegible or challenging to quantify, taxing them can be challenging to administer and enforce. Taxing services also runs the risk of driving up service costs and stifling economic expansion.