Effective July 1, 2018, Kentucky has expanded its sales tax base to subject the following specified services to sales tax:
Per the legislation, “extended warranty services” means services provided through a service contract agreement between the contract provider and the purchaser where the purchaser agrees to pay compensation for the contract and the provider agrees to repair, replace, support, or maintain tangible personal property or digital property according to the terms of the contract if:
Additionally, the legislation revises the sales tax code to change references to tangible personal property and digital property to include extended warranty service. The legislation extends registration requirements to those who sell extended warranty services and expands “retailer engaged in business in this state” to include retailers if they (or those acting for them) engage in in-state activities involving extended warranty service. (H.B. 366, Laws 2018)