Some Kentucky industries face additional tax

Posted at 6:27 PM, Apr 04, 2018
and last updated 2018-04-04 18:55:23-04

BURLINGTON, Ky. -- Some Kentucky industries could see an additional tax on their services under a tax bill approved by state lawmakers this week. 

The bill would change the state's tax code by cutting $194 million paid by taxpayers and adding $681 million in new taxes on cigarettes and services like auto repairs, home improvements, landscaping, cleaning, pet car for small animals, fitness and recreational sports centers, golf courses and country clubs, overnight trailer campgrounds and nonmedical diet and weight-reducing centers, the Associated Press reported. 

MORE: Kentucky lawmakers eyeing sales tax increases on services

At Steele's Hometown Tire in Burlington, owner John Steele said his customers don't want to pay more taxes.

"My initial thought was, 'Here we go again,'" Steele said. "Another sales tax, more work created for business owners to keep record of and pay the government." 

Rep. Adam Koenig, a Republican from Erlanger, said the tax bill is long overdue.

"Our tax code basically represents a 1950s economy where we tax the making of things, not services, and this is step one in hopefully making us more business friendly, but making our tax code represent the economy that we live in today," he said. 

The bill would also scale back corporate tax, which lawmakers in favor of the bill said would make Kentucky more enticing for business. 

"We need an opportunity to start reinvesting in our failing pension system, which is the worst funding in the nation, as well as we've started investing in education," Koenig said. 

Steele said he expected the bill wouldn't force him out of business.

"It's going to upset the customers, but is it going to stop them from dealing with places that do labor? No," he said.