VINTNERS WINE REPORT - Kentucky Department of - revenue ky 2025

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The formula is the price of product tax rate quantity = tax liability.
Food and food ingredients: Most food and ingredients for home consumption are exempt in Kentucky. This includes groceries, meat, produce, bread, snacks, bottled water, and more. Prepared foods, dietary supplements, candy, soft drinks, and alcoholic beverages are taxable.
Kentucky also has a 6.00 percent state sales tax rate and does not have local sales taxes. Kentucky has a 0.74 percent effective property tax rate on owner-occupied housing value. Kentucky has an inheritance tax. Kentucky has a 30 cents per gallon gas tax rate and a $1.10 cigarette excise tax rate.
Excise taxes are independent of income taxes. Often, the retailer, manufacturer or importer must pay the excise tax to the IRS and file the Form 720. Some excise taxes are collected by a third party.
A 6% motor vehicle usage tax is levied upon the retail price of vehicles transferred in Kentucky. On used vehicles, the usage tax is 6% of the current average retail as listed in the NDA Used Car Guide or 6% of the total consideration paid.
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State Excise Tax Rates on Wine StateWine ($/Gal.)Notes IN $0.47 IA $1.75 KS $0.30 8% liquor enforcement tax on off-premises sales KY $0.50 6% sales tax on off-premise sales / 10% wholesale tax47 more rows
The tax rate is four (4) percent and allows itemized deductions and certain income reducing deductions as defined in KRS 141.019​. A full-year resident of Kentucky files Form 740 and a person who moves into or out of Kentucky during the year or is a full-year nonresident files Form 740-NP.
What Is an Excise Tax? For example, in the United States, common goods subject to excise taxes include motor fuel, tobacco, and airline tickets. These taxes are usually imposed at the federal level but can also be applied by state and local governments.

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