KY HB175

Creates an annual sales tax holiday from 12:01 a.m. on the first Friday in August through midnight the following Sunday, with the first occurring August 7-9, 2026

Exempts eligible personal-use tangible property priced at $3,000 or less from sales and use tax during the holiday period, with a $200 price cap for clothing and clothing accessories

Excludes from the exemption: business purchases, leases/rentals, alcoholic beverages, tobacco/vapor products, motor vehicles, motorboats, prepared food, marijuana products, kratom products, and taxable services

Clothing includes apparel such as shoes, coats, uniforms, diapers, and formal wear; accessories like jewelry, handbags, watches, and cosmetics are treated separately under the $200 threshold

Declares an emergency for immediate effect upon passage to comply with the Streamlined Sales and Use Tax Agreement's 60-day notification requirement before the exemption period begins