2% Sales Tax Hike Proposed in Kentucky

How will Kentucky Governor Andy Beshear make good on all his campaign promises?

The answer may lie with a bill that just hit the House Appropriations and Revenue Committee this month.

It is too soon to tell if Governor Beshear’s plans to increase teacher pay are connected to a democratic sponsored bill to raise the sales tax in the state.

However, a clear outline of how the governor will find the money to increase teach pay, fund pensions, and lower health care costs has yet to be revealed in detail.

A bill sponsored by Representative John Sims Junior of Eastern Kentucky would raise the sales tax in the state by a whopping 2%.

Currently, the tax sits at 6% for all purchases and most services.

The bill being considered under a Republican-run legislature would hike the tax to 8%.

However, Kentucky is a state without local sales tax, making the current 6% the total sales tax you pay on an item. States like Illinois hit residents with both a local and a state tax that can land in the 11% range.

The bill is still in committee.

Again, it is unclear if this proposal to increase the state’s income is tied directly to the Governor’s term goals.

If passed, the hike would take place in 2021.



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