Kentucky Legislation Adds Exemptions and Modifies Filing Thresholds

H.B. 8 is a broad bill that impacts various industries and tax types. While many of the changes only affected specific groups of taxpayers, there were a few broadly applicable changes. Specifically, the more broadly applicable changes include moving the sales tax filing threshold from $6,000 to $12,000 for certain service providers and establishing a new exemption for qualified data center projects. Below is an overview of these changes:

• Hybrid Vehicle Clarification: Hybrid vehicles are no longer considered electric vehicles, exempting them from certain fees.
• Severance Tax Refund Extension: The severance tax refund for eligible coal processors has been extended.
• Tax Definition Changes: Definitions related to bad debts and taxes for motor vehicle taxes have been updated.
• Local Tax Definitions: New definitions have been introduced for “designated city” and “gross receipts” in the context of peer-to-peer car-sharing transactions.
• Tire Fee Extension: The $2 tire fees imposed on retailers have been extended.

Please note that this is only an overview. For specific guidance, connect with our sales and use tax team here.

H.B. 8 Ch. 166 (2024)