Kentucky House Bill 487 includes provisions related to expanded sales tax regulations. This bill does apply to nonprofit organizations and is effective July 1, 2018.
HB 487 imposes a sales tax on the furnishing of certain services and the sales of admissions which could impact your organization. Questions have been raised regarding the taxability of items such as:
- Admissions to fundraising and other events
- Membership fees paid to charitable organizations
- Camp registrations
- Proceeds from the sale of silent auction items or other tangible goods
We are currently seeking clarification from the Kentucky Department of Revenue regarding these matters and will communicate further information as it becomes available.
***UPDATE: The Department of Revenue has issued answers to some of the questions regarding memberships and childcare, summer camps and classes. If you have further questions or wish to discuss your individual organizations situation, please contact us.