Kentucky’s sales tax expansion is about to take effect and nonprofit groups are scrambling. The tax expansion means organizations, businesses, and services that weren’t taxed before will be as of July 1st.
The Kentucky General Assembly’s decision to tax things like veterinary services, golf courses, and certain non-profit services is not sitting well with some. Madisonville YMCA CEO Chad Hart says the coming tax expansion could affect his branch in a big way.
“What we’re mostly concerned is that there is going to be that family that’s living paycheck to paycheck that although it is somewhat of a smaller fee it will hurt them since they are living paycheck to paycheck. We just don’t want the people who are most vulnerable to be impacted,” says Hart.
As the July 1st date approaches, Hart says he has seen people try an avoid the tax. “We have seen an influx of people paying prior to the date and we’ve seen a few cancellations because of it. People on that fringe. That this is the make or break, that extra twenty-five twenty-six dollars a year is hitting them in a bad way,” says Hart.
Even with the trouble, the tax is causing, there are plans in the works to try and make it easier for families. “We’re working with our CPA and our auditor to make sure we’re in full compliance and so if a person was to ask for an actual receipt on a membership it’ll say membership rate and then have an associated sales tax line,” says Hart.
Like many other organizations, the YMCA doesn’t think it should be included in this law.
“The Y-USA stance is that we did not support this bill in any way shape or form. I truly feel my personal self that we’re a community benefit, we help those that are most vulnerable. We truly feel that we alleviate governmental aid,” says Hart.
Hart hopes for more clarification on the law in the coming days before it is put in place.