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The 2008-2010 Kentucky State Budget (House Bill 262) passed the House earlier this week. The bill now heads to the Senate. As part of the provisions to raise revenue, the budget expands the state’s 6% sales tax on five services: chartered air flights, armored cars, security services, commercial janitorial services, and commercial linen services (except for commercial uniforms and linen service to hospitals and nursing homes). If the exclusion for cleaning commercial uniforms is written out in the Senate, you might incur additional tax on this service as well.

In addition, once sales tax is added to these services, it might encourage imposing sales tax on other services in the future – further increasing the tax burden of small business.

If you agree this additional tax would have an adverse impact on your business, then we encourage you to contact your State Senator to let him/her know your position as they consider the Budget Bill over the next few days.

All you have to do is complete the required fields to the right and click “send” and a letter will be sent on your behalf to your State Senator.