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Salon de Sol

Tanning | Hair | Nails

859 East Main Street - 2D
Frankfort, Kentucky 40601
Phone: (502) 699-2226
questions@salondesol.com

2018 General Assembly Tax Law Changes

Per the Commonwealth of Kentucky tax answers website, "Multiple changes have been made to sales and excise taxes. The Kentucky Department of Revenue is committed to answering your questions and keeping you updated on recent tax law changes made during the 2018 session of the General Assembly. Effective July 1, 2018, businesses that provide many types of services are required to collect the Kentucky sales tax from their customers for providing these services. Retailers that make sales of these services will now charge 6% sales tax on the full sales price charged to their customers and may claim a resale exemption on their purchase of items provided to the customer as part of the service. This resale exemption is limited to tangible personal property or digital property sold to and received by the customers as part of the retail sale. There is no resale exemption for the resale of services under the provisions of KRS 139.260. While the new sales tax requirement applies to many types of services, it does not apply to all types of services. For example, personal care services provided by barbers and hairdressers are not part of the expansion of taxable services." According to the website, "New Services Subject to Sales Tax include Indoor Skin Tanning Services, including but not limited to: tanning booth or tanning bed; spray tanning."

Federal Indoor Tanning Services Excise Tax

Per IRS regulations, all businesses offering indoor tanning services are required to collect a 10% excise tax. This excise tax does not apply to spray tanning, topical creams, and lotions, which have standard 6% state tax associated.

Tax Summary

Tanning Bed and Tanning Booth services are now subject to 10% Federal AND 6% State Tax;
Spray tanning services are now subject to 6% State Tax.