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Tax reforms could affect costs on consumer services

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Updated: Mon 11:56 PM, Jan 07, 2013

LEXINGTON, Ky. (WKYT) - Kentucky lawmakers return to Frankfort Tuesday to kick off a 30-day general assembly. Governor Beshear hopes to sit down with them to talk about taxes.

A commission recently recommended changing Kentucky's tax system, and the proposals could affect everything from your income tax to how much you pay for some familiar services.

Having to pay taxes on a salon blow out could soon be common in Kentucky - so could paying for the labor on a car repair.

"I think these are transparent taxes, but ones that are probably fairly hard to avoid," notes University of Kentucky's Dr. William Hoyt. Dr. Hoyt was a consultant on the Blue Ribbon Task Force on Tax Reform, a group that made recommendations to state leaders recently.

Dr. Hoyt says a new tax code would bring in more than $600 million dollars in revenue.

"That's less about taxes and more about expenditures - what does Kentucky feel it needs to spend in the public sector," says Dr. Hoyt.

This talk of tax reform comes on the same day that local leaders, including Lexington Mayor Jim Gray, asked the governor for help with employee pensions.


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