KYRep. Bill Farmer (R-88) introduced H.B. 196, which among many provisions would amend KRS 139.200 to add a new 7 percent sales and use tax on provision of “marketing research and public opinion polling services” (NAICS 54191) and any “telephone call center” (NAICS 56142) in Kentucky. The bill was referred to the House Appropriations and Revenue Committee.

Why Opinion and Marketing Research Should Not Be Subject to H.B. 196

  • Most research firms are small businesses with razor-thin profit margins, eminently susceptible to minor fluctuations in sales.
  • A new sales and use tax on research would lead to a decreased amount of research ordered by companies and organizations in Kentucky, who might then bring less well-tested and researched products and services to market, harming consumers in the end because the goods and services did not fulfill consumer expectations.

Next Steps
MRA will seek to amend or defeat this legislation, to prevent new research-specific taxes in Kentucky.