As of July 1, 2018 our business became responsible for paying Kentucky sales tax. For our regular clients, this will of course affect the total amount normally charged. However, it should be noted this is NOT a rate increase. We simply must collect the 6 percent sales tax owed to the Commonwealth of Kentucky and pass it along to the revenue department.
This new law, passed by the Kentucky General Assembly back in the spring, affects several types of service businesses that prior to the passage were not subject to sales tax. For example, you'll notice too that your auto mechanic and your dry cleaner will now pass along the sales tax to consumers.
As Kentucky pet owners will also notice, your veterinarian will be responsible for collecting sales tax on certain services, as will your pet's groomer, day care facilities and other pet care service providers. Overall, the new law requires 17 types of service businesses to now collect sales tax.
Concerning the new law, Joe Schlich, manager of the Nicholasville Road Animal Hospital in Lexington, was quoted in the April 3, 2018 edition of the Lexington Herald-Leader as saying, "It looks to me like a picking-and-choosing kind of thing by the legislature. Why just taxing services on small animals? What about horses?"
That's a good question.
Other animals in need of veterinary and care services that are also excluded from the tax include cattle, sheep, goats, swine, buffalo, hoofed animals, flightless birds, alpacas and llamas. As far as animal care services, the law primarily affects small animal owners and amounts to more paperwork and tax filings for your vet, your groomer and for us.