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He credits Kentucky with the first tax levied exclusively on retailers. The initial tax, passed in 1930, was progressive, but was replaced in 1934 with a 3 percent flat rate tax and then was eliminated in 1936. The current Kentucky sales tax was adopted in 1960. The Commerce Clearing House credits Mississippi with the first sales tax, in 1930.
The caveat is that House Bill 8 attaches a 6% sales tax rate to a number of services that were previously exempt, according to a brief from the Kentucky Department of Revenue.
The business and occupation tax (often abbreviated as B&O tax or B/O tax) is a type of tax levied by the U.S. states of Washington, West Virginia, and, as of 2010, Ohio, [1] and by municipal governments in West Virginia and Kentucky. [2] It is a type of gross receipts tax because it is levied on gross income, rather than net income.
The first broad-based, general sales taxes in the United States were enacted by Kentucky and Mississippi in 1930, although Kentucky repealed its sales tax in 1936. The federal government's per-gallon tax of gasoline (beginning at one cent per gallon in 1932) and per-package tax of cigarettes ($1.01 per package since 2009) are the most well ...
Given that state taxation is often a matter of balancing income and sales tax — Kentucky has no significant state property tax — the state may be faced with a choice of either holding at 3% ...
The individual income tax rate in Kentucky is set to drop again at the start of 2026. Republican leaders in the General Assembly announced this week that the state’s budget has hit the required ...