Bill > HB175

This bill establishes an annual 3-day sales and use tax holiday, occurring on the first Friday through Sunday in August, to exempt certain eligible property from sales tax. Eligible property includes tangible personal property purchased for personal use, with a price limit of $3,000 per item, and clothing or clothing accessories and equipment, with a price limit of $200 per item. The bill defines "clothing" broadly to include apparel like coats, shoes, and uniforms, but excludes items sold separately such as belt buckles or sewing supplies. "Clothing accessories or equipment" are defined as items worn with clothing, such as handbags, jewelry, and watches. The bill specifies that the first sales tax holiday will take place from August 7 to August 9, 2026, and declares an emergency to allow the law to take effect immediately, partly due to Kentucky's participation in the Streamlined Sales and Use Tax Agreement, which requires advance notification of such exemptions.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb175.html