Tax reform could impact businesses

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LEXINGTON, Ky. (WTVQ) – Customers and businesses reacted Tuesday to a tax bill passed the day before by state lawmakers in Frankfort that made the most significant changes to the state’s tax code in more than a decade.  If signed into law by the governor, some services would start charging a sales tax that hadn’t previously been taxed.

For example, do you need to take your car to a mechanic? Soon, tax reform could make that more expensive.

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Right now, only parts for your vehicle are taxed.  Places like Brian’s Automotive in Lexington, would have to start taxing labor if Governor Matt Bevin signs House Bill 366 into law.

Still, Brian Nigoff says he doesn’t think the tax would impact his sales.

“An additional six-percent is not going to make the difference between having your car repaired or not,” said Nigoff.

Similarly, if you’re looking for something fun to do, under the new tax plan, bowling would cost more, too.

“I can’t control what the government decides,” said Danny Collins of Collins Bowling Center. “Will it impact our business? I think a lot of people will understand it’s something they can’t control.”

One woman at the bowling alley says she does understand.

“There are sales taxes put on all sorts of services,” said D Ringe. “The government has to be funded somehow.”

Ringe’s family has been bowling since the 1950’s, first at Congress Lanes. That alley used to be on the second floor of Barney Miller’s on Main Street in Lexington.

Now, she and the rest of her family bowl at Collins all the time. For them, it’s not only fun, it’s a tradition. Ringe says an extra tax won’t change that.

“That extra six-percent shouldn’t slow anybody down,” said Ringe. “If you want to bowl, it’s here. Do it.”

These aren’t the only business or services potentially affected by the tax reform plan.

You would now pay tax every time you take your small animal to a veterinarian, or get them groomed. The same for landscape services, golf courses, country clubs, limousine services, non-medical diet and weight reduction centers, and dry cleaning.

The new tax also extends to overnight trailer campgrounds and admissions to movies, plays, concerts and sporting events. Race tracks, historic sites and county fairs are excluded from the tax.

To read the bill in its entirety, click here.