For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

SALES AND USE TAXES

KRS tit. XI, ch. 139
in effect

KRS 139.010 Definitions for chapter

139.010. Definitions for chapter As used in this chapter, unless the context otherwise provides: (1) (a) "Admissions" means the fees paid for: 1. The right of entrance to a display, program, sporting event, music concert, performance, play, show, movie, exhibit, fair, or other entertainment or amusement event or venue; and 2. The privilege of using facilities or participating in an event or activity, including but not limited to: a. Bowling centers; b. Skating rinks; c. Health spas; d. Swimming pools; e. Tennis courts; f. Weight training facilities; g. Fitness and recreational sports centers; and h. Golf courses, both public and private; regardless of whether the fee paid is per use or in any other form, including but not limited to an initiation fee, monthly fee, membership fee, or combination thereof. (b) "Admissions" does not include: 1. Any fee paid to enter or participate in a fishing tournament; or 2. Any fee paid for the use of a boat ramp for the purpose of allowing boats to be launched into or hauled out from the water; (2) "Advertising and promotional direct mail" means direct mail the primary purpose of which is to attract public attention to a product, person, business, or organization, or to attempt to sell, popularize, or secure financial support for a product, person, business, or organization. As used in this definition, "product" means tangible personal property, an item transferred electronically, or a service; (3) "Business" includes any activity engaged in by any person or caused to be engaged in by that person with the object of gain, benefit, or advantage, either direct or indirect; (4) "Commonwealth" means the Commonwealth of Kentucky; (5) (a) "Cosmetic surgery services" means modifications to all areas of the head, neck, and body to enhance appearance through surgical and medical techniques. (b) "Cosmetic surgery services" does not include surgery services that are medically necessary to reconstruct or correct dysfunctional areas of the face and body due to birth disorders, trauma, burns, or disease; (6) "Data brokering services" means the act of collecting, aggregating, and analyzing personal data for sale to a third party while possession of the personal data is maintained by the person providing the data brokering services or by the third party, wherever located, regardless of whether the charge for the services provided is on a per use, per user, per license, subscription, or some other basis; (7) "Department" means the Department of Revenue; (8) (a) "Digital audio-visual works" means a series of related images which, when shown in succession, impart an impression of motion, with accompanying sounds, if any. (b) "Digital audio-visual works" includes movies, motion pictures, musical videos, news and entertainment programs, and live events. (c) "Digital audio-visual works" does not include video greeting cards, video games, and electronic games; (9) (a) "Digital audio works" means works that result from the fixation of a series of musical, spoken, or other sounds. (b) "Digital audio works" includes ringtones, recorded or live songs, music, readings of books or other written materials, speeches, or other sound recordings. (c) "Digital audio works" does not include audio greeting cards sent by electronic mail; (10) (a) "Digital books" means works that are generally recognized in the ordinary and usual sense as books, including any literary work expressed in words, numbers, or other verbal or numerical symbols or indicia if the literary work is generally recognized in the ordinary or usual sense as a book. (b) "Digital books" does not include digital audio-visual works, digital audio works, periodicals, magazines, newspapers, or other news or information products, chat rooms, or weblogs; (11) (a) "Digital code" means a code which provides a purchaser with a right to obtain one (1) or more types of digital property. A "digital code" may be obtained by any means, including electronic mail messaging or by tangible means, regardless of the code's designation as a song code, video code, or book code. (b) "Digital code" does not include a code that represents: 1. A stored monetary value that is deducted from a total as it is used by the purchaser; or 2. A redeemable card, gift card, or gift certificate that entitles the holder to select specific types of digital property; (12) (a) "Digital property" means any of the following which is transferred electronically: 1. Digital audio works; 2. Digital books; 3. Finished artwork; 4. Digital photographs; 5. Periodicals; 6. Newspapers; 7. Magazines; 8. Video greeting cards; 9. Audio greeting cards; 10. Video games; 11. Electronic games; or 12. Any digital code related to this property. (b) "Digital property" does not include digital audio-visual works or satellite radio programming; (13) (a) "Direct mail" means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addressees on a mailing list provided by the purchaser or at the direction of the purchaser when the cost of the items are not billed directly to the recipient. (b) "Direct mail" includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail retailer for inclusion in the package containing the printed material. (c) "Direct mail" does not include multiple items of printed material delivered to a single address; (14) "Directly used in the manufacturing or industrial processing process" means the process that commences with the movement of raw materials from storage into a continuous, unbroken, integrated process and ends when the finished product is packaged and ready for sale; (15) (a) "Executive employee recruitment services" means services provided by a person to locate potential candidates to fill open senior-level management positions. (b) "Executive employee recruitment services" includes but is not limited to making a detailed list of client requirements, researching and identifying potential candidates, performing prescreening interviews, and providing contract and salary negotiations; (16) (a) "Extended warranty services" means services provided through a service contract agreement between the contract provider and the purchaser where the purchaser agrees to pay compensation for the contract and the provider agrees to repair, replace, support, or maintain tangible personal property, digital property, real property, or prewritten computer software access services according to the terms of the contract. (b) "Extended warranty services" does not include the sale of a service contract agreement for tangible personal property to be used by a small telephone utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in KRS 65.7621 to deliver communications services as defined in KRS 136.602 or broadband; (17) (a) "Finished artwork" means final art that is used for actual reproduction by photomechanical or other processes or for display purposes. (b) "Finished artwork" includes: 1. Assemblies; 2. Charts; 3. Designs; 4. Drawings; 5. Graphs; 6. Illustrative materials; 7. Lettering; 8. Mechanicals; 9. Paintings; and 10. Paste-ups; (18) (a) "Gross receipts" and "sales price" mean the total amount or consideration, including cash, credit, property, and services, for which tangible personal property, digital property, or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for any of the following: 1. The retailer's cost of the tangible personal property, digital property, or services sold; 2. The cost of the materials used, labor or service cost, interest, losses, all costs of transportation to the retailer, all taxes imposed on the retailer, or any other expense of the retailer; 3. Charges by the retailer for any services necessary to complete the sale; 4. Delivery charges, which are defined as charges by the retailer for the preparation and delivery to a location designated by the purchaser including transportation, shipping, postage, handling, crating, and packing; 5. Any amount for which credit is given to the purchaser by the retailer, other than credit for tangible personal property or digital property traded when the tangible personal property or digital property traded is of like kind and character to the property purchased and the property traded is held by the retailer for resale; and 6. The amount charged for labor or services rendered in installing or applying the tangible personal property, digital property, or service sold. (b) "Gross receipts" and "sales price" include consideration received by the retailer from a third party if: 1. The retailer actually receives consideration from a third party and the consideration is directly related to a price reduction or discount on the sale to the purchaser; 2. The retailer has an obligation to pass the price reduction or discount through to the purchaser; 3. The amount of consideration attributable to the sale is fixed and determinable by the retailer at the time of the sale of the item to the purchaser; a nd 4. One (1) of the following criteria is met: a. The purchaser presents a coupon, certificate, or other documentation to the retailer to claim a price reduction or discount where the coupon, certificate, or documentation is authorized, distributed, or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate, or documentation is presented; b. The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate, or other documentation presented by the purchaser; or c. The purchaser identifies himself or he rself to the retailer as a member of a group or organization entitled to a price reduction or discount. A "preferred customer" card that is available to any patron does not constitute membership in such a group. (c) "Gross receipts" and "sales price" do no t include: 1. Discounts, including cash, term, or coupons that are not reimbursed by a third party and that are allowed by a retailer and taken by a purchaser on a sale; 2. Interest, financing, and carrying charges from credit extended on the sale of tangible personal property, digital property, or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser; 3. Any taxes legally imposed directly on the purchaser that are separately stated on the invo ice, bill of sale, or similar document given to the purchaser; or 4. Local alcohol regulatory license fees authorized under KRS 243.075 that are separately stated on the invoice, bill of sale, or similar document given to the purchaser. (d) As used in this subsection, "third party" means a person other than the purchaser; (19) "In this state" or "in the state" means within the exterior limits of the Commonwealth and includes all territory within these limits owned by or ceded to the United States of America ; (20) "Industrial processing" includes: (a) Refining; (b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas; (c) Mining, quarrying, fabricating, and industrial assembling; (d) The processing and packaging of raw materials, in -process materials, and finished products; and (e) The processing and packaging of farm and dairy products for sale; (21) (a) "Lease or rental" means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consi deration. A lease or rental includes future options to: 1. Purchase the property; or 2. Extend the terms of the agreement and agreements covering trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. sec. 7701(h)(1). (b) "Lease or rental" does not include: 1. A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments; 2. A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of the required payments and payment of an option price that does not exceed the greater of one hundred dollars ($100) or one percent (1%) of the total required payments; or 3. Providing tangible personal property and an operator for the tangible personal property for a fixed or indeterminate period of time. To qualify for this exclusion, the operator must be necessary for the equipment to perform as designed, and the operator must do more than maintain, inspect, or setup the tangible personal property. (c) This definition shall apply regardless of the classification of a transaction under generally accepted accounting principles, the Internal Revenue Code, or other provisions of federal, state, or local law; (22) (a) "Lobbying services" means the act of promoting or securing passage of legislation or an attempt to influence or sway a public official or other public servant toward a desired action, including but not limited to the support of or opposition to a project or the passage, amendment, defeat, approval, or veto of any legislation, regulation, rule, or ordinance. (b) "Lobbying services" includes but is not limited to the performance of activities described as executive agency lobbying activities as defined in KRS 11A.201, activities described under the definition of lobby in KRS 6.611, and any similar activities performed at the local, state, or federal levels; (23) (a) "Machinery for new and expanded industry" means machinery: 1. Directly used in the manufacturing or industrial processing process of: a. Tangible personal property at a plant facility; b. Distilled spirits or wine at a plant facility or on the premises of a distiller, rectifier, winery, or small farm winery licensed under KRS 243.030 that includes a retail establishment on the premises; or c. Malt beverages at a plant facility or on the premises of a brewer or microbrewery licensed under KRS 243.040 that includes a retail establishment; 2. Which is incorporated for the first time into: a. A plant facility established in this state; or b. Licensed premises located in this state; and 3. Which does not replace machinery in the plant facility or licensed premises unless that machinery purchased to replace existing machinery: a. Increases the consumption of recycled materials at the plant facility by not less than ten percent (10%); b. Performs different functions; c. Is used to manufacture a different product; or d. Has a greater productive capacity, as measured in units of production, than the machinery being replaced. (b) "Machinery for new and expanded industry" does not include repair, replacement, or spare parts of any kind, regardless of whether the purchase of repair, replacement, or spare parts is required by the manufacturer or seller as a condition of sale or as a condition of warranty; (24) "Manufacturing" means any process through which material having little or no commercial value for its intended use before processing has appreciable commercial value for its intended use after processing by the machinery; (25) "Marketplace" means any physical or electronic means through which one (1) or more retailers may advertise and sell tangible personal property, digital property, or services, or lease tangible personal property or digital property, such as a catalog, internet website, or television or radio broadcast, regardless of whether the tangible personal property, digital property, or retailer is physically present in this state; (26) (a) "Marketplace provider" means a person, including any affiliate of the person, that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this paragraph as follows: 1. The person directly or indirectly: a. Lists, makes available, or advertises tangible personal property, digital property, or services for sale by a marketplace retailer in a marketplace owned, operated, or controlled by the person; b. Facilitates the sale of a marketplace retailer's product through a marketplace by transmitting or otherwise communicating an offer or acceptance of a retail sale of tangible personal property, digital property, or services between a marketplace retailer and a purchaser in a forum including a shop, store, booth, catalog, internet site, or similar forum; c. Owns, rents, licenses, makes available, or operates any electronic or physical infrastructure or an y property, process, method, copyright, trademark, or patent that connects marketplace retailers to purchasers for the purpose of making retail sales of tangible personal property, digital property, or services; d. Provides a marketplace for making retail sales of tangible personal property, digital property, or services, or otherwise facilitates retail sales of tangible personal property, digital property, or services, regardless of ownership or control of the tangible personal property, digital property, or services, that are the subject of the retail sale; e. Provides software development or research and development activities related to any activity described in this subparagraph, if the software development or research and development activities are directly related to the physical or electronic marketplace provided by a marketplace provider; f. Provides or offers fulfillment or storage services for a marketplace retailer; g. Sets prices for a marketplace retailer's sale of tangible personal property, digital property, or services; h. Provides or offers customer service to a marketplace retailer or a marketplace retailer's customers, or accepts or assists with taking orders, returns, or exchanges of tangible personal property, digital property, or services sold by a marketplace retailer; or i. Brands or otherwise identifies sales as those of the marketplace provider; and 2. The person directly or indirectly: a. Collects the sales price or purchase price of a retail sale of tangible personal property, digital property, or services; b. Provides payment processing services for a retail sale of tangible personal property, digital property, or services; c. Through terms and conditions, agreements, or arrangements with a third party, collects payment in connection with a retail sale of tangible personal property, digital property, or services from a purchaser and transmits that payment to the marketplace retailer, regardless of whether the person collecting and transmitting the payment receives compensation or other consideration in exchange for the service; or d. Provides a virtual currency that purchasers are allowed or required to use to purchase tangible personal property, digital property, or services. (b) "Marketplace provider" includes but is not limited to a person that satisfies the requirements of this subsection through the ownership, operation, or control of a digital distribution service, digital distribution platform, online portal, or application store; (27) "Marketplace retailer" means a seller that makes retail sales through any marketplace owned, operated, or controlled by a marketplace provider; (28) (a) "Occasional sale" includes: 1. A sale of tangible personal property or digital property not held or used by a seller in the course of an activity for which he or she is required to hold a seller's permit, provided such sale is not one (1) of a series of sales sufficient in number, scope, and character to constitute an activity requiring the holding of a seller's permit. In the case of the sale of the entire, or a substantial portion of the nonretail assets of the seller, the number of previous sales of similar assets shall be disregarded in determining whether or not the current sale or sales shall qualify as an occasional sale; or 2. Any transfer of all or substantially all the tangible personal property or digital property held or used by a person in the course of such an activity when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer. (b) For the purposes of this subsection, stockholders, bondholders, partners, or other persons holding an interest in a corporation or other entity are regarded as having the "real or ultimate ownership" of the tangible personal property or digital property of such corporation or other entity; (29) (a) "Other direct mail" means any direct mail that is not advertising and promotional direct mail, regardless of whether advertising and promotional direct mail is included in the same mailing. (b) "Other direct mail" includes but is not limited to: 1. Transactional direct mail that contains personal information specific to the addressee, including but not limited to invoices, bills, statements of account, and payroll advices; 2. Any legally required mailings, including but not limited to privacy notices, tax reports, and stockholder reports; and 3. Other nonpromotional direct mail delivered to existing or former shareholders, customers, employees, or agents, including but not limited to newsletters and informational pieces. (c) "Other direct mail" does not include the development of billing information or the provision of any data processing service that is more than incidental to the production of printed material; (30) "Person" includes any individual, firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, governmental unit or agency, or any other group or combination acting as a unit; (31) "Permanent," as the term applies to digital property, means perpetual or for an indefinite or unspecified length of time; (32) (a) "Photography and photofinishing services" means: 1. The taking, developing, or printing of an original photograph; or 2. Image editing, including shadow removal, tone adjustments, vertical and horizontal alignment and cropping, composite image creation, formatting, watermarking printing, and delivery of an original photograph in the form of tangible personal property, digital property, or other media. (b) "Photography and photofinishing services" does not include photography services necessary for medical or dental health; (33) "Plant facility" means a single location that is exclusively dedicated to manufacturing or industrial processing activities. A location shall be deemed to be exclusively dedicated to manufacturing or industrial processing activities even if retail sales are made there, provided that the retail sales are incidental to the manufacturing or industrial processing activities occurring at the location. The term "plant facility" does not include any restaurant, grocery store, shopping center, or other retail establishment; (34) (a) "Prewritten computer software" means: 1. Computer software, including prewritten upgrades, that are not designed and developed by the author or other creator to the specifications of a specific purchaser; 2. Software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the original purchaser; or 3. Any portion of prewritten computer software that is modified or enhanced in any manner, where the modification or enhancement is designed and developed to the specifications of a specific purchaser, unless there is a reasonable, separately stated charge on an invoice or other statement of the price to the purchaser for the modification or enhancement. (b) When a person modifies or enhances computer software of which the person is not the author or creator, the person shall be deemed to be the author or creator only of the modifications or enhancements the person actually made. (c) The combining of two (2) or more prewritten computer software programs or portions thereof does not cause the combination to be other than prewritten computer software; (35) "Prewritten computer software access services" means the right of access to prewritten computer software where the object of the transaction is to use the prewritten computer software while possession of the prewritten computer software is maintained by the seller or a third party, wherever located, regardless of whether the charge for the access or use is on a per use, per user, per license, subscription, or some other basis; (36) (a) "Purchase" means any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of: 1. Tangible personal property; 2. An extended warranty service; 3. Digital property transferred electronically; or 4. Services included in KRS 139.200; for a consideration. (b) "Purchase" includes: 1. When performed outside this state or when the customer gives a resale certificate, the producing, fabricating, processing, printing, or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing, or imprinting; 2. A transaction whereby the possession of tangible personal property or digital property is transferred but the seller retains the title as security for the payment of the price; and 3. A transfer for a consideration of the title or possession of t angible personal property or digital property which has been produced, fabricated, or printed to the special order of the customer, or of any publication; (37) "Recycled materials" means materials which have been recovered or diverted from the solid waste stream and reused or returned to use in the form of raw materials or products; (38) "Recycling purposes" means those activities undertaken in which materials that would otherwise become solid waste are collected, separated, or processed in order to be reused or returned to use in the form of raw materials or products; (39) "Remote retailer" means a retailer with no physical presence in this state; (40) (a) "Repair, replacement, or spare parts" means any tangible personal property used to maintain, restore, mend, or repair machinery or equipment. (b) "Repair, replacement, or spare parts" does not include machine oils, grease, or industrial tools; (41) (a) "Retailer" means: 1. Every person engaged in the business of making retail sales of tangible personal property, digital property, or furnishing any services in a retail sale included in KRS 139.200; 2. Every person engaged in the business of making sales at auction of tangible personal property or digital property owned by the person or others for storage, use or other consumption, except as provided in paragraph (c) of this subsection; 3. Every person making more than two (2) retail sales of tangible personal property, digital property, or services included in KRS 139.200 during any twelve (12) month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy; 4. Any person conducting a race meeting under the provision of KRS Chapter 230, with respect to horses which are claimed during the meeting. (b) When the department determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers, or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property, digital property, or services sold by them, irrespective of whether they are making sales on their own behalf or on behalf of the dealers, distributors, supervisors or employers, the department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter. (c) 1. Any person making sales at a charitable auction for a qualifying entity shall not be a retailer for purposes of the sales made at the charitable auction if: a. The qualifying entity, not the person making sales at the auction, is sponsoring the auction; b. The purchaser of tangible personal property at the auction directly pays the qualifying entity sponsoring the auction for the property and not the person making the sales at the auction; and c. The qualifying ent ity, not the person making sales at the auction, is responsible for the collection, control, and disbursement of the auction proceeds. 2. If the conditions set forth in subparagraph 1. of this paragraph are met, the qualifying entity sponsoring the auction shall be the retailer for purposes of the sales made at the charitable auction. 3. For purposes of this paragraph, "qualifying entity" means a resident: a. Church; b. School; c. Civic club; or d. Any other nonprofit charitable, religious, or educational organization; (42) "Retail sale" means any sale, lease, or rental for any purpose other than resale, sublease, or subrent; (43) (a) "Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication. (b) "Ringtones" does not include ringback tones or other digital files that are not stored on the purchaser's communications device; (44) (a) "Sale" means: 1. The furnishing of any services included in KRS 139.200; or 2. Any transfer of title or possession, exchange, barter, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of: a. Tangible personal property; or b. Digital property transferred electronically; for a consideration. (b) "Sale" includ es but is not limited to: 1. The producing, fabricating, processing, printing, or imprinting of tangible personal property or digital property for a consideration for purchasers who furnish, either directly or indirectly, the materials used in the producing, fabricating, processing, printing, or impri nting; 2. A transaction whereby the possession of tangible personal property or digital property is transferred, but the seller retains the title as security for the payment of the price; and 3. A transfer for a consideration of the title or possession of tangible personal property or digital property which has been produced, fabricated, or printed to the special order of the purchaser. (c) This definition shall apply regardless of the classification of a transaction under generally accepted accounting principles, the Internal Revenue Code, or other provisions of federal, state, or local law; (45) "Seller" includes every person engaged in the business of selling tangible personal property, digital property, or services of a kind, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax, and every person engaged in making sales for resale; (46) (a) "Storage" includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property, digital property, or prewritten computer software access services purchased from a retailer. (b) "Storage" does not include the keeping, retaining, or exercising any right or power over tangible personal property for the purpose of subsequently transporting it outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated int o, other tangible personal property to be transported outside the state and thereafter used solely outside the state; (47) "Tangible personal property" means personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses and includes natural, artificial, and mixed gas, electricity, water, steam, and prewritten computer software; (48) "Taxpayer" means any person liable for tax under this chapter; (49) "Telemarketing services" means services provided via telephone, facsimile, electronic mail, text messages, or other modes of communications to another person, which are unsolicited by that person, for the purposes of: (a) 1. Promoting products or services; 2. Taking orders; or 3. Providing info rmation or assistance regarding the products or services; or (b) Soliciting contributions; (50) "Transferred electronically" means accessed or obtained by the purchaser by means other than tangible storage media; and (51) (a) "Use" includes the exercise of : 1. Any right or power over tangible personal property or digital property incident to the ownership of that property, or by any transaction in which possession is given, or by any transaction involving digital property or tangible personal property where the right of access is granted; or 2. Any right or power to benefit from any services subject to tax under KRS 139.200(2)(p) to (ay). (b) "Use" does not include the keeping, retaining, or exercising any right or power over: 1. Tangible personal property or digital property for the purpose of: a. Selling tangible personal property or digital property in the regular course of business; or b. Subsequently transporting tangible personal property outside the state for use thereafter solely outside the state, or for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into, other tangible personal property to be transported outside the state and thereafter used solely outside the state; or 2. Prewritten computer software access services and data brokering services purchased for use outside the state and transferred electronically outside the state for use thereafter solely outside the state. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 11, effective August 1, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 6, effective March 24, 2023; and ch. 148, sec. 5, effective March 31, 2023. -- Amended 2022 Ky. Acts ch. 202, sec. 8, April 14, 2022; and ch. 212, sec. 2, effective January 1, 2023. -- Amended 2021 Ky. Acts ch. 156, sec. 28, effective July 1, 2021. -- Amended 2020 Ky. Acts ch. 91, sec. 34, effective August 1, 2020. -- Amended 2019 Ky. Acts ch. 151, sec. 19, effective June 27, 2019. -- Amended 2018 Ky. Act s ch. 171, sec. 36, effective April 14, 2018; and ch. 207, sec. 36, effective April 27, 2018. -- Amended 2011 Ky. Acts ch. 33, sec. 1, effective July 1, 2011. -- Amended 2009 Ky. Acts ch. 73, sec. 1, effective July 1, 2009; and ch. 86, sec. 13, effective A ugust 1, 2009. -- Amended 2008 Ky. Acts ch. 95, sec. 4, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 1, effective February 5, 1960. Legislative Research Commission Note (3/31/2023). This statute was amended by 2023 Ky. Acts chs. 9 2 and 148. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 148, which was last enacted by the General Assembly, prevails under KRS 446.250. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Com mission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 19 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018. Legislative Research Commission Note (8/1/2009). The Reviser of Statutes has altered the numbering of subsection (26 ) of this statute from the way it appeared in 2009 Ky. Acts ch. 73, sec. 1 under the authority of KRS 7.136(1)(c).

KRS 139.020 Repealed, 2008

139.020. Repealed, 2008 Catchline at repeal: Appropriation of tax receipts. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 1968 Ky. Acts ch. 40, Part I, sec. 1. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 1, and Art. II, sec. 1.

KRS 139.025 Regulations providing for use of tax basis other than accrual

139.025. Regulations providing for use of tax basis other than accrual The department may promulgate administrative regulations providing for the reporting of gross receipts and payment of taxes levied by this chapter on a basis other than accrual. Effective: August 1, 2008 History: Amended 2008 Ky. Acts ch. 95, sec. 5, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 407, effective June 20, 2005. -- Created 1990 Ky. Acts ch. 163, sec. 1, effective July 13, 1990.

KRS 139.030 Repealed, 2008

139.030. Repealed, 2008 Catchline at repeal: Construction of chapter. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 2, effective February 5, 1960.

KRS 139.040 Repealed, 2008

139.040. Repealed, 2008 Catchline at repeal: "Business." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 3, effective February 5, 1960.

KRS 139.050 Repealed, 2008

139.050. Repealed, 2008 Catchline at repeal: "Gross receipts" -- "Sales price." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 1, effective July 1, 2007. -- Amended 2003 Ky. Acts ch. 124, sec. 1, effective July 1, 2004. -- Amended 2000 Ky. Acts ch. 547, sec. 5, effective January 1, 2001. -- Amended 1996 Ky. Acts ch. 226, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 42, sec. 10, effective July 15, 1994; and ch. 54, sec. 4, effective July 15, 1994. -- Amended 1982 Ky. Acts ch. 390, sec. 1, effective June 1, 1982. -- Amended 1978 Ky. Acts ch. 233, sec. 26, effective June 17, 1978. -- Amended 1968 Ky. Acts ch. 40, Part 1, sec. 2. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 4.

KRS 139.060 Repealed, 2008

139.060. Repealed, 2008 Catchline at repeal: "In this state." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 5, effective February 5, 1960.

KRS 139.070 Repealed, 2008

139.070. Repealed, 2008 Catchline at repeal: "Occasional sale." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 1992 Ky. Acts ch. 361, sec. 6, effective July 14, 1992. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 6, effective February 5, 1960.

KRS 139.080 Repealed, 2008

139.080. Repealed, 2008 Catchline at repeal: "Person." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 7, effective February 5, 1960.

KRS 139.090 Repealed, 2008

139.090. Repealed, 2008 Catchline at repeal: "Purchase." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 6, effective August 1, 1985. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 8, effective February 5, 1960.

KRS 139.095 Repealed, 2008

139.095. Repealed, 2008 Catchline at repeal: "Recycling purposes." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1991 (1st Extra. Sess.) Ky. Acts ch. 12, sec. 45, effective February 26, 1991.

KRS 139.100 Repealed, 2008

139.100. Repealed, 2008 Catchline at repeal: "Retail sale." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2003 Ky. Acts ch. 124, sec. 2, effective July 1, 2004. -- Amended 2002 Ky. Acts ch. 69, sec. 1, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 547, sec. 6, effective January 1, 2001. -- Amended 1992 Ky. Acts ch. 165, sec. 3, effective July 14, 1992. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 9, effective February 5, 1960.

KRS 139.105 Sourcing of retail sales -- Communications services, digital property, and florist wire sales

139.105. Sourcing of retail sales -- Communications services, digital property, and florist wire sales (1) (a) For purposes of the retailer's obligation to pay or collect and remit the taxes imposed by KRS 65.7634, 139.200, and 139.310, the retailer shall source retail sales not addressed in subsections (2), (3), and (4) of this section as follows: 1. Over the counter. When the purchaser receives tangible personal property, digital property, or service at a business location of the retailer, the sale is sourced to that business location; 2. Delivery to a specified address. When a purchaser or purchaser's donee receives tangible personal property, digital property, or service at a location specified by the purchaser, the sale is sourced to that location; or 3. Address unknown. When the retailer of a product does not know the address where the tangible personal property, digital property, or service is received, the sale is sourced to the first address listed in this paragraph that is known to the retailer: a. The address of the purchaser; b. The billing address of the purchaser; c. The address of the purchaser's payment instrument; or d. The address from which the tangible personal property was shipped; from which the computer software delivered electronically or the digital property transferred electronically was first available for transmission by the retailer; or from which the service was provided, disregarding for these purposes any location that merely provided the actual digital transfer of the product sold. (b) Nothing included in this subsection shall affect the obligation of a purchaser to remit use tax pursuant to KRS 139.310. (2) The retailer shall source communications services as follows: (a) A sale of mobile telecommunications services, other than air-ground radiotelephone service and prepaid wireless calling service, shall be sourced to the customer's or other purchaser's place of primary use; (b) A sale of postpaid calling service shall be sourced to the origination point of the telecommunications signal as first identified by either the retailer's telecommunications system or information received by the retailer from its service provider, where the system used to transport the signals is not that of the retailer; (c) A sale of prepaid calling service or a sale of a prepaid wireless calling service shall be sourced according to the provisions of subsection (1) of this section. If the sale is of a prepaid wireless calling service and the retailer does not know the address where the service is received, the sale shall be sourced to the first of the following that is known by the retailer: 1. The address of the customer available from the business records of the retailer; 2. The billing address of the customer; 3. The address from which the service was provided; or 4. The location associated with the mobile telephone number; (d) A sale of a private communications service shall be sourced as follows: 1. Service for a separate charge related to a customer channel termination point shall be sourced to each level of jurisdiction in which the customer channel termination point is located. 2. Service where all customer termination points are located entirely within one (1) jurisdiction or levels of jurisdiction is sourced in the jurisdiction in which the customer channel termination points are located. 3. Service for segments of a channel between two (2) customer channel termination points located in different jurisdictions and which segments of channel are separately charged shall be sourced fifty percent (50%) in each level of jurisdiction in which the customer channel termination points are located. 4. Service for segments of a channel located in more than one (1) jurisdiction or levels of jurisdiction and which segments are not separately billed shall be sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in the jurisdiction by the total number of customer channel termination points; (e) A sale of an ancillary service is sourced to the customer's place of primary use; and (f) A sale of other communications services: 1. Sold on a call-by-call basis shall be sourced based on the taxing jurisdiction where the call either originates or terminates and in which the service address is also located; or 2. Sold on a basis other than a call-by-call basis shall be sourced to the customer's or other purchaser's place of primary use. (3) Florist wire sales shall be sourced in accordance with an administrative regulation promulgated by the department. (4) Advertising and promotional direct mail and other direct mail shall be sourced as provided in KRS 139.777. Effective: January 1, 2017 History: Amended 2016 Ky. Acts ch. 111, sec. 14, effective January 1, 2017. -- Amended 2011 Ky. Acts ch. 33, sec 2, effective July 1, 2011. -- Amended 2009 Ky. Acts ch. 73, sec. 2, effective July 1, 2009. -- Amended 2007 Ky. Acts ch. 141, sec. 2, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 154, sec. 1, effective June 20, 2005. -- Created 2003 Ky. Acts ch. 124, sec. 23, effective July 1, 2004. Legislative Research Commission Note (6/20/2005). Under KRS 7.136(1)(h), the Reviser of Statutes has corrected the capitalization and punctuation of an amendment that was made to subsection (2)(c) of this statute in 2005 Ky. Acts ch. 154, sec. 1.

KRS 139.110 Repealed, 2008

139.110. Repealed, 2008 Catchline at repeal: "Retailer." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008; and amended ch. 132, sec. 7, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 408, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 3, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 10, effective February 5, 1960. Legislative Research Commission Note (8/1/2008). Under KRS 446.260, the repeal of this section in 2008 Ky. Acts ch. 95 prevails over its amendment in 2008 Ky. Acts ch. 132.

KRS 139.120 Repealed, 2008

139.120. Repealed, 2008 Catchline at repeal: "Sale" -- "Lease or rental." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2003 Ky. Acts ch. 124, sec. 4, effective July 1, 2004. -- Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 7, effective August 1, 1985. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 11, effective February 5, 1960.

KRS 139.125 Procurement, processing or distribution of blood or human tissue deemed service and not sale

139.125. Procurement, processing or distribution of blood or human tissue deemed service and not sale The procurement, processing, distribution or use of whole blood, plasma, blood products, blood derivatives and other human tissues such as corneas, bones or organs for the purpose of injecting, transfusing or transplanting any of them into the human body is declared to be, for all purposes, the rendition of a service by every person participating therein and, whether or not any remuneration is paid therefor, is declared not to be a sale of such whole blood, plasma, blood products, blood derivatives or other tissues, for any purpose, subsequent to enactment of this section. History: Created 1968 Ky. Acts ch. 85, sec. 1.

KRS 139.130 Repealed, effective July 1, 2004

139.130. Repealed, effective July 1, 2004 Catchline at repeal: "Sales price." History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Amended 1996 Ky. Acts ch. 226, sec. 2, effective July 15, 1996. -- Amended 1968 Ky. Acts ch. 40, Part I, sec. 3. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 12.

KRS 139.140 Repealed, 2008

139.140. Repealed, 2008 Catchline at repeal: "Seller." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2003 Ky. Acts ch. 124, sec. 5, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 13, effective February 5, 1960.

KRS 139.150 Repealed, 2008

139.150. Repealed, 2008 Catchline at repeal: "Storage." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, secs. 14 and 15, effective February 5, 1960.

KRS 139.160 Repealed, 2008

139.160. Repealed, 2008 Catchline at repeal: "Tangible personal property" -- "Prewritten computer software." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2003 Ky. Acts ch. 124, sec. 6, effective July 1, 2004. -- Amended 2000 Ky. Acts ch. 547, sec. 7, effective January 1, 2001. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 16, effective February 5, 1960.

KRS 139.170 Repealed, 2008

139.170. Repealed, 2008 Catchline at repeal: Definitions. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2001 Ky. Acts ch. 68, sec. 1, effective March 15, 2001. -- Amended 1994 Ky. Acts ch. 501, sec. 1, effective July 15, 1994. – Amended 1991 (1st Extra. Sess.) Ky. Acts ch. 12, sec. 44, effective February 26, 1991. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 7, sec. 1. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 17, effective February 5, 1960.

KRS 139.180 Repealed, 2008

139.180. Repealed, 2008 Catchline at repeal: "Taxpayer" -- "Department." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 409, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 18, effective February 5, 1960.

KRS 139.185 Corporate officers, managers of limited liability companies, and partners of registered limited liability partnerships personally liable

139.185. Corporate officers, managers of limited liability companies, and partners of registered limited liability partnerships personally liable (1) Notwithstanding any other provisions of this chapter to the contrary, the president, vice president, secretary, treasurer, or any other person holding any equivalent corporate office of any corporation subject to the provisions of this chapter shall be personally and individually liable, both jointly and severally, for the taxes imposed under this chapter, and neither the corporate dissolution nor withdrawal of the corporation from the state nor the cessation of holding any corporate office shall discharge the foregoing liability of any person. The personal and individual liability shall apply to each and every person holding the corporate office at the time the taxes become or became due. No person will be personally and individually liable pursuant to this section who had no authority in the management of the business or financial affairs of the corporation at the time that the taxes imposed by this chapter become or became due. Taxes as used in this section shall include interest accrued at the rate provided by KRS 139.650 and all applicable penalties imposed under this chapter and all applicable penalties and fees imposed under KRS 131.180, 131.410 to 131.445, and 131.990. (2) Notwithstanding any other provisions of this chapter, KRS 275.150, 362.1-306(3) or predecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability company, the partners of a limited liability partnership, and the general partners of a limited liability limited partnership or any other person holding any equivalent office of a limited liability company, limited liability partnership, or limited liability limited partnership subject to the provisions of this chapter shall be personally and individually liable, both jointly and severally, for the taxes imposed under this chapter. Dissolution, withdrawal of the limited liability company, limited liability partnership, or limited liability limited partnership from the state, or the cessation of holding any office shall not discharge the liability of any person. The personal and individual liability shall apply to each and every manager of a limited liability company, partner of a limited liability partnership, and the general partners of a limited liability limited partnership at the time the taxes become or became due. No person shall be personally and individually liable under this subsection who had no authority to collect, truthfully account for, or pay over any tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due. "Taxes" as used in this section shall include interest accrued at the rate provided by KRS 131.183, all applicable penalties imposed under this chapter, and all applicable penalties and fees imposed under KRS 131.180, 131.410 to 131.445, and 131.990. Effective: July 12, 2006 History: Amended 2006 Ky. Acts ch. 149, sec. 201, effective July 12, 2006. -- Amended 2002 Ky. Acts ch. 366, sec. 16, effective January 1, 2003. -- Amended 1994 Ky. Acts ch. 65, sec. 16, effective July 15, 1994. -- Created 1988 Ky. Acts ch. 322, sec. 9, effective July 15, 1988. Legislative Research Commission Note (1/1/2003). The amendments made in 2002 Ky. Acts ch. 366, sec. 16, which created subsection (2) of this statute, "apply retroactively to July 15, 1994." 2002 Ky. Acts ch. 366, sec. 19.

KRS 139.190 Repealed, 2008

139.190. Repealed, 2008 Catchline at repeal: "Use." History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 19, effective February 5, 1960.

KRS 139.195 Definitions for KRS 139.105, 139.200, 139.215, and 139.775

139.195. Definitions for KRS 139.105, 139.200, 139.215, and 139.775 As used in KRS 139.105, 139.200, 139.215, and 139.775: (1) "Ancillary services" means services that are associated with or incidental to the provision of telecommunications services, including caller ID services, detailed telecommunications billing, directory assistance, vertical services, conference bridging services, and voice mail services; (2) "Air-to-ground radiotelephone service" means a radio service, as defined in 47 C.F.R. 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft; (3) "Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls; (4) "Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points; (5) (a) "Communications service" means telecommunications services and ancillary services. (b) "Communications service" does not include the sale of communications service to a communications provider that is buying the communications service for sale or incorporation into a communications service for sale if: 1. The seller separately itemizes the charges for these services on the bill provided to the purchaser; or 2. The seller can identify, by reasonable and verifiable standards, the charges for these services from its books and records kept in the regular course of business for other purposes including nontax purposes. These services include: a. Carrier access charges, excluding user access fees; b. Right of access charges; c. Interconnection charges paid by the provider of mobile telecommunications services or other communications providers; d. Charges for the sale of unbundled network elements as defined in 47 U.S.C. sec. 153(29) on January 1, 2001, to which access is provided on an unbundled basis in accordance with 47 U.S.C. sec. 251(c)(3); and e. Charges for use of facilities for providing or receiving communications service; (6) "Conference bridging services" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. "Conference bridging services" does not include the telecommunications services used to reach the conference bridge; (7) "Customer" means the person or entity that contracts with the seller of communications services. If the end user of communications services is not the contracting party, the end user of the communications service is the customer of the communications service, but only as it applies to the sourcing of the sale of communications services as provided in KRS 139.105. "Customer" does not include a reseller of communications service or a serving carrier providing mobile telecommunications service under an agreement to serve the customer outside the home service provider's licensed service area; (8) "Customer channel termination point" means the location where the customer or other purchaser either inputs or receives communications; (9) "Detailed telecommunications billing service" means an ancillary service of separately stated information pertaining to individual calls on a customer's billing statement; (10) "Directory assistance" means an ancillary service of providing telephone number information or address information; (11) "End user" means the person who utilized the communications service. In the case of an entity, "end user" means the individual who utilized the service on behalf of the entity; (12) "Fixed wireless service" means a telecommunications service that provides radio communications between fixed points; (13) "Home service provider" means the same as provided in 4 U.S.C. sec. 124(5); (14) "International" means a service that originates or terminates in the United States and terminates or originates outside the United States, respectively. United States includes the District of Columbia or a United States territory or possession; (15) "Interstate" means a service that originates in one (1) state of the United States or a United States territory or possession and terminates in a different state of the United States or United States territory or possession; (16) "Intrastate" means a service that originates in one (1) state of the United States or a United States territory or possession and terminates in the same state of the United States or a United States territory or possession; (17) "Mobile telecommunications service" means the same as provided in 4 U.S.C. sec. 124(7); (18) "Mobile wireless service" means a telecommunications service that is transmitted, conveyed, or routed regardless of the technology used, whereby the origination and termination points or the origination or termination points of the transmission, conveyance, or routing are not fixed, including, by the way of example only, telecommunications services that are provided by a commercial mobile radio service provider; (19) "Paging service" means a telecommunications service that provides a transmission of coded radio signals for the purpose of activating specific pagers. Such transmissions may include messages or sounds; (20) "Pay telephone service" means a telecommunications service provided through any pay telephone; (21) "Place of primary use" means the street address where the customer's or other purchaser's use of the communications service primarily occurs, and that is the residential street address or the primary business street address of the customer or other purchaser. In the case of mobile telecommunications service, "place of primary use" shall be within the licensed service area of the home service provider; (22) "Postpaid calling service" means a telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number not associated with the origination or termination of the telecommunications service. A postpaid calling service includes a telecommunications service, except a prepaid wireless calling service, that would be a prepaid service except that it is not exclusively a telecommunications service; (23) "Prepaid calling service" means the right to access exclusively telecommunications services, which are paid for in advance and which enable the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount; (24) "Prepaid wireless calling service" means a telecommunications service that: (a) Provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services; (b) Must be paid for in advance; and (c) Is sold in predetermined units of dollars of which the number declines with use in a known amount; (25) "Private communications service" means a telecommunications service that entitles the customer or other purchaser to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which the channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of a channel or channels; (26) (a) "Service address" means the location of communications equipment to which a customer's or other purchaser's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid. (b) If the location of the communications equipment is not known, "service address" means the origination point of the signal of the communications services first identified by either the seller's communications system or in information received by the seller from its service provider, where the system used to transport the signals is not that of the seller. (c) If the location cannot be determined according to the guidelines set forth in paragraphs (a) and (b) of this subsection, "service address" means the location of the customer's or other purchaser's place of primary use; (27) "Telecommunications nonrecurring charges" means an amount billed for the installation, connection, change, or initiation of telecommunications service received by the customer; (28) (a) "Telecommunications service" means the electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points. (b) "Telecommunications service" includes but is not limited to: 1. The transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether the service is referred to as voice over Internet protocol (VOIP) services or is classified by the Federal Communications Commission as enhanced or value-added; 2. Paging service; 3. Telegraph and teletypewriter services; 4. Local and long distance telephone services; 5. Fixed wireless service; 6. Mobile wireless service; 7. Private communications service; 8. Telecommunications nonrecurring charges; 9. Value-added nonvoice data service; 10. 800 service; and 11. 900 service. (c) "Telecommunications service" does not include: 1. Data processing and information services that allow data to be generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a purchaser where the purchaser's primary purpose for the underlying transaction is the processed data or information; 2. Installation or maintenance of wiring or equipment on a customer's premises; 3. Tangible personal property or digital property; 4. Advertising, including but not limited to directory advertising; 5. Billing and collection services provided to third parties; 6. Internet access service as defined in 47 U.S.C. sec. 151; 7. Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance, and routing of such services by the programming service provider. Radio and television audio and video programming services shall include but not be limited to cable services as defined in 47 U.S.C. sec. 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 C.F.R. 20.3; 8. Ancillary services; 9. Digital products delivered electronically, including but not limited to software, music, video, rating materials, or ring tones; or 10. Telephone answering services; (29) "Value-added nonvoice data service" means a service that otherwise meets the definition of telecommunications service in which computer processing applications are used to act on the form, content, code, or protocol of the information or data primarily for the purpose other than transmission, conveyance, or routing; (30) "Vertical service" means an ancillary service that is offered in connection with one (1) or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services; (31) "Voice mail service" means an ancillary service that enables the customer to store, send, or receive recorded messages. "Voice mail service" does not include any vertical services that the customer may be required to have in order to utilize the voice mail service; (32) "800 service" means a telecommunications service that allows a caller to dial a toll- free number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877," and "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission; and (33) "900 service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live serve. "900 service" does not include the charge for collections services provided to the seller of the telecommunications services to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service and any subsequent numbers designated by the Federal Communications Commission. Effective: July 1, 2009 History: Amended 2009 Ky. Acts ch. 73, sec. 3, effective July 1, 2009. -- Amended 2007 Ky. Acts ch. 141, sec. 3, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 168, sec. 126, effective January 1, 2006. -- Created 2003 Ky. Acts ch. 124, sec. 8, effective July 1, 2004. Legislative Research Commission Note (7/1/2007). Under the authority of KRS 7.135(1)(h), during codification a manifest clerical or typographical error occurring in 2007 Ky. Acts ch. 141, sec. 3(1), has been corrected by changing "detailed communications billing" to "detailed telecommunications billing" to conform with definitions for that section.

KRS 139.200 Imposition of sales tax

139.200. Imposition of sales tax A tax is hereby imposed upon all retailers at the rate of six percent (6%) of the gross receipts derived from: (1) Retail sales of: (a) Tangible personal property, regardless of the method of delivery, made within this Commonwealth; and (b) Digital property regardless of whether: 1. The purchaser has the right to permanently use the property; 2. The purchaser's right to access or retain the property is not permanent; or 3. The purchaser's right of use is conditioned upon continued payment; and (2) The furnishing of the following services: (a) The rental of any room or rooms, lodgings, campsites, or accommodations furnished by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or any other place in which rooms, lodgings, campsites, or accommodations are regularly furnished to transients for a consideration. The tax shall not apply to rooms, lodgings, campsites, or accommodations supplied for a continuous period of thirty (30) days or more to a person; (b) Sewer services; (c) The sale of admissions, except: 1. Admissions to enter the grounds or enclosure of any track licensed under KRS Chapter 230 at which live horse racing or historical horse racing is being conducted under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation; 2. Admissions taxed under KRS 229.031; 3. Admissions that are charged by nonprofit educational, charitable, or religious institutions and for which an exemption is provided under KRS 139.495; and 4. Admissions that are charged by nonprofit civic, governmental, or other nonprofit organizations and for which an exemption is provided under KRS 139.498; (d) Prepaid calling service and prepaid wireless calling service; (e) Intrastate, interstate, and international communications services as defined in KRS 139.195, including the furnishing of pay telephone service as defined in KRS 139.195; (f) Distribution, transmission, or transportation services for natural gas that is for storage, use, or other consumption in this state, excluding those services furnished: 1. For natural gas that is classified as residential use as provided in KRS 139.470(7); or 2. To a seller or reseller of natural gas; (g) Landscaping services, including but not limited to: 1. Lawn care and maintenance services; 2. Tree trimming, pruning, or removal services; 3. Landscape design and installation services; 4. Landscape care and maintenance services; and 5. Snow plowing or removal services; (h) Janitorial services, including but not limited to residential and commercial cleaning services, and carpet, upholstery, and window cleaning services; (i) Small animal veterinary services, excluding veterinary services for equine, cattle, poultry, swine, sheep, goats, llamas, alpacas, ratite birds, buffaloes, and cervids; (j) Pet care services, including but not limited to grooming and boarding services, pet sitting services, and pet obedience training services; (k) Industrial laundry services, including but not limited to industrial uniform supply services, protective apparel supply services, and industrial mat and rug supply services; (l) Non-coin-operated laundry and dry cleaning services; (m) Linen supply services, including but not limited to table and bed linen supply services and nonindustrial uniform supply services; (n) Indoor skin tanning services, including but not limited to tanning booth or tanning bed services and spray tanning services; (o) Non-medical diet and weight reducing services; (p) Extended warranty services; (q) Photography and photofinishing services; (r) Telemarketing services; (s) Public opinion and research polling services; (t) Lobbying services; (u) Executive employee recruitment services; (v) Website design and development services; (w) Website hosting services; (x) Facsimile transmission services; (y) Private mailroom services, including: 1. Presorting mail and packages by postal code; 2. Address barcoding; 3. Tracking; 4. Delivery to postal service; and 5. Private mailbox rentals; (z) Bodyguard services; (aa) Residential and nonresidential security system monitoring services, e xcluding separately stated onsite security guard services; (ab) Private investigation services; (ac) Process server services; (ad) Repossession of tangible personal property services; (ae) Personal background check services; (af) Parking services; 1. Including: a. Valet services; and b. The use of parking lots and parking structures; but 2. Excluding any parking services at an educational institution; (ag) Road and travel services provided by automobile clubs as defined in KRS 281.010; (ah) Condominium time-share exchange services; (ai) Rental of space for meetings, conventions, short -term business uses, entertainment events, weddings, banquets, parties, and other short -term social events; (aj) Social event planning and coordination services; (ak) Leisure, recreational, and athletic instr uctional services; (al) Recreational camp tuition and fees; (am) Personal fitness training services; (an) Massage services, except when medically necessary; (ao) Cosmetic surgery services; (ap) Body modification services, including tattooing, piercing, sca rification, branding, tongue splitting, transdermal and subdermal implants, ear pointing, teeth pointing, and any other modifications that are not necessary for medical or dental health; (aq) Laboratory testing services, excluding laboratory testing: 1. For medical, educational, or veterinary reasons; or 2. Required by a federal, state, or local statute, regulation, court order, or other government-related requirement; (ar) Interior decorating and design services; (as) Household moving services; (at) Specialized design services, including the design of clothing, costumes, fashion, furs, jewelry, shoes, textiles, and lighting; (au) Lapidary services, including cutting, polishing, and engraving precious stones; (av) Labor and services to repair or maintain commercial refrigeration equipment and systems when no tangible personal property is sold in that transaction including service calls and trip charges; (aw) Labor to repair or alter apparel, footwear, watches, or jewelry when no tangible personal property is sold in that transaction; (ax) Prewritten computer software access services; and (ay) Data brokering services. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 12, effective August 1, 2026. -- Amended 2024 Ky. Acts ch. 171, sec. 49, e ffective July 1, 2024. -- Amended 2023 Ky. Acts ch. 92, sec. 7, effective March 24, 2023. -- Amended 2022 Ky. Acts ch. 124, sec. 6, effective July 14, 2022; and ch. 212, sec. 3, effective January 1, 2023. -- Amended 2020 Ky. Acts ch. 91, sec. 42, effective August 1, 2020. -- Amended 2019 Ky. Acts ch. 151, sec. 20, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 37, effective April 14, 2018; and ch. 207, sec. 37, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 4, effective Jul y 1, 2009. -- Amended 2007 Ky. Acts ch. 141, sec. 4, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 168, sec. 72, effective January 1, 2006; and ch. 173, Pt. VI, sec. 2, effective June 1, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 7, effective July 1, 2004. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 617, effective July 1, 1990. -- Amended 1968 Ky. Acts ch. 40, Part I, sec. 4. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 20. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 9 2, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Commission Not e (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 20 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Ac ts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.202 Exclusions from additional taxable services

139.202. Exclusions from additional taxable services (1) Excluded from the additional taxable services imposed by KRS 139.200(2)(q) to (ax) are gross receipts derived from: (a) Sales of the services in fulfillment of a lump-sum, fixed-fee contract or a fixed price sales contract executed on or before February 25, 2022; and (b) A lease or rental agreement entered into on or before February 25, 2022. (2) Excluded from the additional taxable services imposed by KRS 139.200(2)(a) are gross receipts derived from: (a) Sales of the services in fulfillment of a lump-sum, fixed-fee contract or a fixed price sales contract executed on or before February 25, 2026; and (b) A lease or rental agreement entered into on or before February 25, 2026. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 13, effective August 1, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 8, effective March 24, 2023. -- Created 2022 Ky. Acts ch. 212, sec. 13, effective January 1, 2023. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments.

KRS 139.210 Retailer's powers to collect from purchaser -- Separate display of tax -- Retailers that provide road and travel services -- Taxes collected constitute debt to Commonwealth

139.210. Retailer's powers to collect from purchaser -- Separate display of tax -- Retailers that provide road and travel services -- Taxes collected constitute debt to Commonwealth (1) Except as provided in subsections (2) and (3) of this section, t he tax shall be required to be collected by the retailer from the purchaser. The tax shall be displayed separately from the sales price, the price advertised in the premises, the marked price, or other price on the sales receipt or other proof of sales. (2) The department may relieve certain retailers from the requirement in subsection (1) of this section of separate display of the tax when the circumstances of the retailer make compliance impracticable. If the retailer establishes to the satisfaction of th e department that the sales tax has been added to the total amount of the sales price and has not been absorbed by the retailer, the amount of the sales price shall be the amount received exclusive of the tax imposed. (3) Retailers that provide road and tr avel services that are taxable under KRS 139.200 shall not be required to state the tax separately from the sales price if the retailer can establish and provide evidence that the sales tax has been added to the total amount of the sales price charged to t he purchaser and has not been absorbed by the retailer. The amount of the sales price shall be the amount received exclusive of the tax imposed. (4) The taxes collected under this section shall be deemed to be held in trust by the retailer for and on accou nt of the Commonwealth. (5) The taxes to be collected under this section shall constitute a debt of the retailer to the Commonwealth. (6) Regardless of a purchaser's method of payment, a retailer shall not be relieved of the retailer's responsibility to co llect and remit the correct amount of tax due. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 24, effective July 15, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 48, effective March 24, 2023. -- Amended 2008 Ky. Acts ch. 95, sec. 6, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 5, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 410, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 9, effective July 1, 2004. -- Amended 1990 Ky. Acts ch. 137, sec. 1, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 21, effective February 5, 1960.

KRS 139.215 Taxation of bundled transactions

139.215. Taxation of bundled transactions (1) Unless otherwise provided by federal law, the following rules shall apply to a bundled transaction, as defined in subsection (3) of this section, that includes any or all of a telecommunications service, ancillary service, Internet access, audio programming, or video programming: (a) If the price is attributable to products that are taxable and products that are nontaxable, the portion of the price attributable to the nontaxable product is subject to tax unless the provider can identify, by reasonable and verifiable standards, the portion of the products that are nontaxable from its books and records that are kept in the regular course of business for other purposes, including nontax purposes; or (b) If the price is attributable to products that are subject to tax at different rates, the total price shall be treated as attributable to the products subject to tax at the highest rate unless the provider can identify, by reasonable and verifiable standards, the portion of the price attributable to the products subject to tax at the lower rate from its books and records that are kept in the regular course of business for other purposes, including nontax purposes. (2) The following rules shall apply to all bundled transactions, except as provided in subsection (1) of this section: (a) If the price is attributable to products where taxable and exempt tangible personal property have been bundled together and sold by the retailer as a bundled transaction, the entire charge is subject to tax; (b) If the price is attributable to products where taxable products and exempt services have been bundled together and sold by the retailer as a bundled transaction, the entire charge is subject to tax. (3) For purposes of this section: (a) "Bundled transaction" means the retail sale of two (2) or more products, except real property and services to real property, where: 1. The products are otherwise distinct and identifiable; and 2. The products are sold for one (1) nonitemized price; (b) "Distinct and identifiable products" do not include: 1. Packaging such as containers, boxes, sacks, bags, bottles, wrapping materials, labels, tags, or instruction guides that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples include grocery sacks, shoe boxes, dry cleaning garment bags, and express delivery envelopes and boxes. 2. A product provided free of charge with the required purchase of another product. A product is provided free of charge if the sales price of the product purchased does not vary depending on the inclusion of the product provided free of charge; or 3. Items included in the definition of sales price: and (c) "One (1) nonitemized price" does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form, including but not limited to an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list. (4) A "bundled transaction" does not include: (a) The retail sale of any products in which the sales price varies or is negotiable, based on the selection by the purchaser of the products included in the transaction; (b) The retail sale of tangible personal property and a service where the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service; (c) The retail sale of digital property and a service where the digital property is essential to the use of the service, and is provided exclusively in connection with the service, and if the true object of the transaction is the service; (d) The retail sale of services where one (1) service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service; (e) A transaction that includes taxable products and nontaxable products if the purchase price or sales price of the taxable products is de minimis. For purposes of this section, "de minimis" means the seller's purchase price or the sales price of the taxable products is ten percent (10%) or less of the total purchase price or sales price of the bundled products. Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimis. Sellers shall not use a combination of the purchase price and the sales price of the products to determine if the taxable products are de minimis. Sellers shall use the full term of a service contract to determine if the taxable products are de minimis; or (f) The retail sale of exempt tangible personal property and taxable tangible personal property where: 1. The transaction includes: a. Food and food ingredients as defined in KRS 139.485; b. Drugs as defined in KRS 139.472; c. Durable medical equipment as defined in KRS 139.472; d. Mobility enhancing equipment as defined in KRS 139.472; e. Medical supplies; or f. Over-the-counter drugs as defined in KRS 139.472; and 2. The seller's purchase price or sales price of the taxable tangible personal property is fifty percent (50%) or less of the total purchase price or sales price of the bundled tangible personal property. Sellers shall not use a combination of the purchase price and the sales price of the tangible personal property when making the fifty percent (50%) determination for a transaction. Effective: July 1, 2009 History: Amended 2009 Ky. Acts ch. 73, sec. 5, effective July 1, 2009. -- Amended 2008 Ky. Acts ch. 95, sec. 7, effective August 1, 2008. -- Created 2007 Ky. Acts ch. 141, sec. 6, effective July 1, 2007.

KRS 139.220 Prohibited advertising

139.220. Prohibited advertising It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax levied by KRS 139.200 or required to be collected under KRS 139.340 or any part thereof will be assumed or absorbed by the retailer or that the tax will not be added to the selling price of the tangible personal property, digital property, or services sold or that if added the tax or any part thereof will be refunded. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 38, effective April 14, 2018; and ch. 207, sec. 38, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 6, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 168, sec. 153, effective March 18, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 10, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 22, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.230 Elimination of fractions of a cent

139.230. Elimination of fractions of a cent To eliminate fractions of one cent ($0.01), and to ensure that the aggregate collections of taxes by a retailer, so far as may be practicable, shall be equal to six percent (6%) of gross receipts or sales price, as the case may be, the tax shall be computed by applying the six percent (6%) rate to the sales price carried to the third decimal place and rounded to the nearest cent by eliminating any fraction less than one-half of one cent ($0.005) and increasing any fraction of one-half of one cent ($0.005) or over to the next higher cent. Effective: July 1, 2004 History: Amended 2003 Ky. Acts ch. 124, sec. 11, effective July 1, 2004. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 618, effective July 1, 1990. -- Amended 1968 Ky. Acts ch. 40, Part 1, sec. 5. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 23.

KRS 139.240 Application for retailer's or seller's permit to do business

139.240. Application for retailer's or seller's permit to do business (1) Every person presently engaged or desiring to engage in or conduct business as a retailer or seller within this state shall file with the department an application for a permit for each place of business. (2) Every application for a permit shall: (a) Be made upon a form prescribed by the department; (b) Set forth the name under which the applicant transacts or intends to transact business and the location of the place or places of business; and (c) Set forth other information as the department may require. (3) The application shall be signed by: (a) The owner, if he or she is a natural person; (b) A member or partner, if the entity is an association, limited liability company, limited liability partnership, or partnership; (c) An executive officer, if the entity is a corporation, or some person specifically authorized by the corporation to sign the application, to which shall be attached written evidence of his or her authority; or (d) A licensed certified public accountant, or an attorney licensed to practice law in the Commonwealth, specifically authorized by and acting on behalf of an owner, an association, a partnership, a limited liability company, a limited liability partnership, a corporation, or other business entity. (4) A written signature shall not be required if the applicant registers electronically. Effective: August 1, 2008 History: Amended 2008 Ky. Acts ch. 95, sec. 8, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 411, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 12, effective July 1, 2004. -- Amended 2002 Ky. Acts ch. 44, sec. 2, effective July 15, 2002. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 24, effective February 5, 1960.

KRS 139.250 Seller's permit to do business -- Issuance -- Nonassignability -- Display

139.250. Seller's permit to do business -- Issuance -- Nonassignability -- Display After compliance with KRS 139.240 and 139.660 by the applicant, the department shall grant and issue to each applicant a separate permit for each place of business within the state. A permit shall not be assignable, and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein. It shall at all times be conspicuously displayed at the place for which issued. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 412, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 25, effective February 5, 1960.

KRS 139.260 Presumption that all gross receipts and tangible personal property, digital property, and services sold for delivery in this state are taxable -- Burden of proof

139.260. Presumption that all gross receipts and tangible personal property, digital property, and services sold for delivery in this state are taxable -- Burden of proof For the purpose of the proper administration of this chapter and to prevent eva sion of the duty to collect the taxes imposed by KRS 139.200 and 139.310, it shall be presumed that all gross receipts and all tangible personal property, digital property, and services sold by any person for delivery or access in this state are subject to the tax until the contrary is established. The burden of proving the contrary is upon the person who makes the sale of: (1) (a) Except as provided in paragraph (b) of this subsection, tangible personal property or digital property unless the person takes from the purchaser a certificate to the effect that the property is either: 1. Purchased for resale according to the provisions of KRS 139.270; 2. Purchased through a fully completed certificate of exemption or fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption in accordance with KRS 139.270; or 3. Purchased according to administrative regulations promulgated by the department governing a direct pay authorization; or (b) Tangible personal property to a purchaser claiming an agr iculture exemption under KRS 139.480(4) to (9), (11), (13) to (15), (22) to (29), or (32) unless the person obtains from the purchaser an agriculture exemption license number or a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption that contains an agriculture exemption license number in accordance with KRS 139.270; (2) A service included in KRS 139.200(2)(a) to (f) unless the person takes from the purchaser a certificate to the effect that the service is purchased through a ful ly completed certificate of exemption or fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption in accordance with KRS 139.270; and (3) A service included in KRS 139.200(2)(g) to (ay) unless the person takes from the purchaser a certificate to the effect that the service is: (a) Purchased for resale according to KRS 139.270; (b) Purchased through a fully completed certificate of exemption or fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption in accordance with KRS 139.270; or (c) Purchased according to administrative regulations promulgated by the department governing a direct pay authorization. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 14, effective August 1, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 9, effective March 24, 2023. -- Amended 2022 Ky. Acts ch. 58, sec. 2, effective March 30, 2022; and ch. 212, sec. 5, effective Janua ry 1, 2023. -- Amended 2020 Ky. Acts ch. 91, sec. 6, effective April 15, 2020. - - Amended 2019 Ky. Acts ch. 151, sec. 21, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 39, effective April 14, 2018; and ch. 207, sec. 39, effective April 27 , 2018. -- Amended 2011 Ky. Acts ch. 33, sec. 3, effective July 1, 2011. -- Amended 2009 Ky. Acts ch. 73, sec. 7, effective July 1 2009. -- Amended 2007 Ky. Acts ch. 141, sec. 19, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 413, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 13, effective July 1, 2004. -- Amended 1988 Ky. Acts ch. 135, sec. 1, effective July 15, 1988. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 26, effective February 5, 1960. Legislative Research Commissi on Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendme nts. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 21 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission N ote (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.270 Resale certificate and certificates of exemption

139.270. Resale certificate and certificates of exemption (1) The resale certificate, certificate of exemption, agriculture exemption license number, or Streamlined Sales and Use Tax Agreement Certificate of Exemption relieves the retailer or seller from the burden of proof if the retailer or seller: (a) Within ninety (90) days after the date of sale: 1. Obtains a fully completed resale certificate, certificate of exemption, or Streamlined Sales and Use Tax Agreement Certificate of Exemption; 2. Obtains an agriculture exemption license number from the purchaser or a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption that contains an agriculture exemption license number; or 3. Captures the relevant data elements that correspond to the information that the purchaser would otherwise provide to the retailer or seller on the Streamlined Sales and Use Tax Agreement Certificate of Exemption; and (b) Maintains a file of the certificate, agriculture exemption license number, or Streamlined Sales and Use Tax Agreement Certificate of Exemption obtained or relevant data elements captured in accordance with KRS 139.720. (2) The relief from liability provided to the retailer or the seller in this section does not apply to a retailer or seller who: (a) Fraudulently fails to collect the tax; (b) Solicits purchasers to participate in the unlawful claiming of an exemption; or (c) Accepts an exemption certificate when the purchaser claims an entity-based exemption when: 1. The product sought to be covered by the exemption certificate is actually received by the purchaser at a location operated by the retailer or seller; and 2. The state in which that location resides provides an exemption certificate that clearly and affirmatively indicates that the claimed exemption is not available in that state. For purposes of this paragraph, "entity-based exemption" means an exemption based on who purchases the product or who sells the product. An exemption available to all individuals shall not be considered an entity-based exemption. (3) (a) If the department requests that the seller or retailer substantiate that the sale was a sale for resale or an exempt sale and the retailer or seller has not complied with subsection (1) of this section, the seller or retailer shall be relieved of any liability for the tax on the transaction if the seller or retailer, within one hundred twenty (120) days of the department's request: 1. Obtains a fully completed resale certificate, exemption certificate, agriculture exemption license number, or Streamlined Sales and Use Tax Agreement Certificate of Exemption from the purchaser for an exemption that: a. Was available under this chapter on the date the transaction occurred; b. Could be applicable to the item being purchased; and c. Is reasonable for the purchaser's type of business; or 2. Obtains other information establishing that the transaction was not subject to the tax. (b) Notwithstanding paragraph (a) of this subsection, if the department discovers through the audit process that the seller or retailer had knowledge or had reason to know at the time the information was provided that the information relating to the exemption claimed was materially false, or the seller or retailer otherwise knowingly participated in activity intended to purposefully evade the tax that is properly due on the transaction, the seller or retailer shall not be relieved of the tax on the transaction. The department shall bear the burden of proof that the seller or retailer had knowledge or had reason to know at the time the information was provided that the information was materially false. (4) Notwithstanding subsections (1) and (3) of this section, the seller or retailer may still offer additional documentation that is acceptable by the department that the transaction is not subject to tax and to relieve the seller or retailer from the tax liability. (5) If the department later finds that the retailer or seller complied with subsections (1), (3), and (4) of this section, but that the purchaser used the property or service in a manner that would not have qualified for resale status or the purchaser issued a certificate of exemption, an agriculture exemption license number, or a Streamlined Sales and Use Tax Agreement Certificate of Exemption and used the property or service in some other manner or for some other purpose, the department shall hold the purchaser liable for the remittance of the tax originally due and may apply penalties provided in KRS 139.990. Effective:March 30, 2022 History: Amended 2022 Ky. Acts ch. 58, sec. 3, effective March 30, 2022. -- Amended 2019 Ky. Acts ch. 151, sec. 22, effective June 27, 2019. -- Amended 2011 Ky. Acts ch. 33, sec. 4, effective July 1, 2011. -- Amended 2009 Ky. Acts ch. 73, sec. 8, effective July 1, 2009. -- Amended 2007 Ky. Acts ch. 141, sec. 7, effective July 01, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 414, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 14, effective July 1, 2004. -- Amended 1988 Ky. Acts ch. 135, sec. 2, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 208, sec. 1, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 27, effective February 5, 1960. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 22 of that Act apply to transactions occurring on or after July 1, 2019.

KRS 139.280 Contents and form of certificate

139.280. Contents and form of certificate (1) The resale certificate shall: (a) Be signed by and bear the name and address of the purchaser; (b) Indicate the number of the permit issued to the purchaser; (c) Indicate the general character of the tangible personal property, digital property, or services sold by the purchaser in the regular course of business. (2) The certificate shall be substantially in a form as the department may prescribe. (3) A signature shall not be required if the purchaser provides the retailer with an electronic resale certificate. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 151, sec. 23, effective June 27, 2019. -- Amended 2009 Ky. Acts ch. 73, sec. 9, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 415, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 15, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 28, effective February 5, 1960. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 23 of that Act apply to transactions occurring on or after July 1, 2019.

KRS 139.290 Property used by purchaser after giving certificate -- When retailer may deduct purchase price

139.290. Property used by purchaser after giving certificate -- When retailer may deduct purchase price (1) If a retailer or seller who gives a resale certificate makes any use of the tangible personal property or digital property other than retention, demonstration or display while holding it for sale in the regular course of business, the use shall be taxable to the retailer or seller as of the time the property is first used by the retailer or seller, and the sales price of the property to the retailer or seller shall be deemed the measure of the tax. (2) If the sole use of the property by the retailer other than retention, demonstration or display in the regular course of business is the rental of the property while holding it for sale, the retailer shall include in gross receipts the amount of the rental charged rather than the sales price of the property. (3) If a retailer sells tangible personal property or digital property before making any use thereof, other than retention, demonstration, or display while holding it for sale in the regular course of business, the retailer may take a deduction of the purchase price of the property if, with respect to its purchase, the retailer has reimbursed the vendor for the sales tax or has paid the use tax. If a deduction is taken by the retailer, no refund or credit shall be allowed to the vendor with respect to the sale of that property. Effective: July 1, 2009 History: Amended 2009 Ky. Acts ch. 73, sec. 10, effective July 1, 2009. -- Amended 2003 Ky. Acts ch. 124, sec. 16, effective July 1, 2004. -- Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 8, effective August 1, 1985. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 29, effective February 5, 1960. Legislative Research Commission Note. 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 11, directed that the provisions of this section would be effective August 1, 1985.

KRS 139.300 Fungible goods bought under certificate commingled with goods bought otherwise

139.300. Fungible goods bought under certificate commingled with goods bought otherwise If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods shall be deemed to be sales of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold. Effective: February 5, 1960 History: Created 1960 Ky. Acts ch. 5, Art. I, sec. 30, effective February 5, 1960.

KRS 139.310 Imposition of excise tax on storage, use, or other consumption

139.310. Imposition of excise tax on storage, use, or other consumption (1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property, digital property, and services listed under KRS 139.200(2)(p) to (ay) purchased for storage, use, or other consumption in this state at the rate of six percent (6%) of the sales price. (2) The excise tax applies to the purchase of digital property regardless of whether: (a) The purchaser has the right to permanently use the goods; (b) The purchaser's right to access or retain the digital property is not permanent; or (c) The purchaser's right of use is conditioned upon continued payment. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 15, effective August 1, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 10, effective March 24, 2023. -- Amended 2022 Ky. Acts ch. 212, sec. 6, effective January 1, 2023. -- Amended 2018 Ky. Acts ch. 171, sec. 40, effective April 14, 2018; and ch. 207, sec. 40, e ffective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 11, effective July 1, 2009. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 619, effective July 1, 1990. -- Amended 1968 Ky. Acts ch. 40, Part I, sec. 6. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 31. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.320 Repealed, 2007

139.320. Repealed, 2007 Catchline at repeal: Use tax on machinery brought into state for construction project. Effective: July 1, 2007 History: Repealed 2007 Ky. Acts ch. 141, sec. 29, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 416, effective June 20, 2005. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 620, effective July 1, 1990. -- Amended 1978 Ky. Acts ch. 233, sec. 27, effective June 17, 1978. -- Amended 1968 Ky. Acts ch. 40, Part I, sec. 7. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 57.

KRS 139.330 Purchaser's liability for tax imposed by KRS 139.310

139.330. Purchaser's liability for tax imposed by KRS 139.310 Every person storing, using or otherwise consuming in this state tangible personal property, digital property, or an extended warranty service purchased from a retailer is liable for the use tax levied under KRS 139.310. His liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer engaged in business in this state or from a retailer who is authorized by the department, under such rules and regulations as it may prescribe, to collect the tax and who is, for the purpose of this chapter relating to the use tax, regarded as a retailer engaged in business in this state, given to the purchaser pursuant to KRS 139.340 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 41, effective April 14, 2018; and ch. 207, sec. 41, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 12, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 417, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 32, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.340 Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust -- Registration and collection by remote retailer

139.340. Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust -- Registration and collection by remote retailer (1) Except as provided in KRS 139.470 and 139.480, every retailer engaged in business in this state shall collec t the tax imposed by KRS 139.310 from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the department. The taxes collected or required to be collected by the retailer under this section shall be deemed to be h eld in trust for and on account of the Commonwealth. (2) "Retailer engaged in business in this state" as used in KRS 139.330 and this section includes any of the following: (a) Any retailer maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary or any other related entity, representative, or agent, by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business. Property ow ned by a person who has contracted with a printer for printing, which consists of the final printed product, property which becomes a part of the final printed product, or copy from which the printed product is produced, and which is located at the premise s of the printer, shall not be deemed to be an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business maintained, occupied, or used by the person; (b) Any retailer having any representative, age nt, salesman, canvasser, or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling, delivering, or the taking of orders for any tangible personal property, digital property, or any services subjec t to tax under KRS 139.200(2)(p) to (ay). An unrelated printer with which a person has contracted for printing shall not be deemed to be a representative, agent, salesman, canvasser, or solicitor for the person; (c) Any retailer soliciting orders for tangi ble personal property, digital property, or any services subject to tax under KRS 139.200(2)(p) to (ay) from residents of this state on a continuous, regular, or systematic basis in which the solicitation of the order, placement of the order by the custome r or the payment for the order utilizes the services of any financial institution, telecommunication system, radio or television station, cable television service, print media, or other facility or service located in this state; (d) Any retailer deriving r eceipts from the lease or rental of tangible personal property situated in this state; (e) Any retailer soliciting orders for tangible personal property, digital property, or any services subject to tax under KRS 139.200(2)(p) to (ay) from residents of this state on a continuous, regular, systematic basis if the retailer benefits from an agent or representative operating in this state under the authority of the retailer to repair or service tangible personal property or digital property sold by the retailer ; (f) Any retailer located outside Kentucky that uses a representative in Kentucky, either full -time or part -time, if the representative performs any activities that help establish or maintain a marketplace for the retailer, including receiving or exchanging returned merchandise; or (g) 1. Any remote retailer selling tangible personal property, digital property, or services delivered, transferred electronically, or provided to a purchaser in this state, including retail sales facilitated by a marketplace provider on behalf of the remote retailer if the remote retailer's gross receipts derived from the sale of tangible personal property, digital property, or services delivered, transferred electronically, or provided to a purchaser in this state in the previous calendar year or current calendar year exceeds one hundred thousand dollars ($100,000). 2. Any remote retailer that meets the threshold provided in subparagraph 1. of this paragraph shall register for a sales and use tax permit and collect the tax imposed by KRS 139.310 from the purchaser no later than the first day of the calendar month that is at the most sixty (60) days after the threshold is reached. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 16, effective August 1, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 11, effective March 24, 2023. -- Amended 2022 Ky. Acts c h. 212, sec. 7, effective January 1, 2023. -- Amended 2021 Ky. Acts ch. 156, sec. 7, effective July 1, 2021. -- Amended 2019 Ky. Acts ch. 151, sec. 24, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 42, effective April 14, 2018; and ch. 20 7, sec. 42, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 13, effective July 1, 2009. -- Amended 2008 Ky. Acts ch. 95, sec. 9, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 168, sec. 73, effective August 1, 2005; and ch. 85, sec. 418, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 17, effective July 1, 2004. -- Amended 1996 Ky. Acts ch. 215, sec. 1, effective July 15, 1996. -- Amended 1990 Ky. Acts ch. 137, sec. 2, effective July 13, 1990; and ch. 414, sec. 1, eff ective July 13, 1990. -- Amended 1988 Ky. Acts ch. 111, sec. 2, effective July 15, 1988; and ch. 171, sec. 1, effective July 15, 1988. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 33, effective February 5, 1960. Legislative Research Commission Note (3/24/2 023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislativ e Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 24 of that Act apply to transactions occurring on or after July 1, 2019.

KRS 139.350 Exception in the case of bad debts

139.350. Exception in the case of bad debts (1) A retailer may deduct as a bad debt the amount found to be worthless and charged off for income tax purposes provided the retailer is reporting and remitting the tax on the accrual basis. The retailer may take the deduction on the return for the period during which the bad debt is written off as uncollectable in the retailer's books and records and is eligible to be charged off for income tax purposes. For purposes of this section, "charged off for income tax purposes" includes the charging off of unpaid balances due on accounts determined to be uncollectable, or declaring as uncollectable the unpaid balance due on accounts if a retailer is not required to file federal income tax returns. (2) In determining the basis for calculating bad debt recovery, the definition of "bad debt" as provided in 26 U.S.C. sec. 166 shall be used, except "bad debt" shall not include financing charges or interest, sales or use taxes charged on the purchase price, uncollectable amounts on property that remains in the possession of the retailer until the full purchase price is paid, expenses incurred in attempting to collect any debt, or repossessed property. (3) Notwithstanding KRS 131.183, any deduction taken for bad debts shall not include interest. (4) A retailer may obtain a refund of tax on the amount of bad debt that exceeds the amount of taxable sales for the period during which the bad debt is written off. Notwithstanding KRS 131.183, the refund claim must be made within four (4) years from the due date of the return on which the bad debt could first be claimed. (5) If any bad debt accounts are thereafter in whole or in part collected by the retailer, the amount collected shall be included in the return filed for the period in which the collection is made and the amount of the tax due shall be paid with the return. (6) If a retailer's filing responsibilities have been assumed by a certified service provider as provided by KRS 139.795, the certified service provider may claim, on behalf of the retailer, any bad debt allowance provided by this section. The certified service provider shall credit or refund the full amount of any bad debt allowance or refund received to the retailer. (7) For purposes of computing a bad debt deduction or reporting a payment received on a previously claimed bad debt, any payments made on a debt or account shall be applied first to the price of the property or service and the sales tax on it, proportionally, and secondly to interest, service charges, and any other charges. Effective: July 1, 2004 History: Amended 2003 Ky. Acts ch. 124, sec. 18, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 34, effective February 5, 1960.

KRS 139.360 Tax due is retailer's debt

139.360. Tax due is retailer's debt The tax or any part thereof required by KRS 139.340 to be collected by the retailer constitutes a debt owed by the retailer to this state. Effective: February 5, 1960 History: Created 1960 Ky. Acts ch. 5, Art. I, sec. 35, effective February 5, 1960.

KRS 139.365 Exemption from collection duty for out-of-state commercial printers and mailers

139.365. Exemption from collection duty for out-of-state commercial printers and mailers (1) Notwithstanding KRS 139.340, a commercial printer or mailer engaged in business in this state shall not be required to collect use tax on sales of printing, advertising and promotional direct mail, or other direct mail that are printed out of state and delivered out of state to the United States Postal Service for mass mailing to third- party Kentucky residents who are not purchasers of the advertising and promotional direct mail or other direct mail if the commercial printers or mailers: (a) Maintain records relating to those sales to assist the department in the collection of use tax; and (b) File reports as provided by KRS 139.730 if requested by the department. (2) If the commercial printer or mailer complies with the provisions of subsection (1) of this section, the purchaser of the printing, advertising and promotional direct mail, or other direct mail shall have the sole responsibility for reporting and paying the use tax imposed by KRS 139.310. Effective: July 1, 2011 History: Amended 2011 Ky. Acts ch. 33, sec. 5, effective July 1, 2011. -- Created 2006 Ky. Acts ch. 251, sec. 7, effective July 12, 2006.

KRS 139.370 Repealed, effective July 1, 2004

139.370. Repealed, effective July 1, 2004 Catchline at repeal: Prohibited advertising. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 36, effective February 5, 1960.

KRS 139.380 Separate display of tax and price

139.380. Separate display of tax and price The tax required to be collected by the retailer under KRS 139.340 from the purchaser shall be displayed separately from the list price, the price advertised in the premises, the marked price, or other price on the sales check or other proof of sales. If taxable goods are bundled with services and are sold as a single package for one (1) price, the tax required to be collected by the retailer from the purchaser shall be computed on the entire amount and shall be displayed separately from the list price, the price advertised on the premises, the marked price, or other price on the sales check or other proof of sales. Effective: July 1, 2004 History: Amended 2003 Ky. Acts ch. 124, sec. 19, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 37, effective February 5, 1960.

KRS 139.390 Registration by retailer

139.390. Registration by retailer Every retailer selling tangible personal property, digital property, or an extended warranty service for storage, use or other consumption in this state shall register with the department and give: (1) The name and address of all agents operating in this state; (2) The location of all distribution or sales houses or offices or other places of business in this state; (3) Such other information as the department may require. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 43, effective April 14, 2018; and ch. 207, sec. 43, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 14, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 419, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 38, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.400 Repealed, effective July 1, 2004

139.400. Repealed, effective July 1, 2004 Catchline at repeal: Presumption that property sold is for use in this state. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Amended 1988 Ky. Acts ch. 135, sec. 3, effective July 15, 1988. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 39, effective February 5, 1960.

KRS 139.410 Repealed, effective July 1, 2004

139.410. Repealed, effective July 1, 2004 Catchline at repeal: Resale certificate. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Amended 1988 Ky. Acts ch. 135, sec. 4, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 208, sec. 2, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 40, effective February 5, 1960.

KRS 139.420 Repealed, effective July 1, 2004

139.420. Repealed, effective July 1, 2004 Catchline at repeal: Contents and form of certificate. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 41, effective February 5, 1960.

KRS 139.430 Property used by purchaser after giving certificate

139.430. Property used by purchaser after giving certificate If a purchaser who gives a certificate makes any storage or use of the property other than retention, demonstration or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the property is first so stored or used. If the sole use of the property, other than retention, demonstration or display in the regular course of business, is the rental of the property while holding it for sale, the purchaser shall pay the tax on the use measured by the amount of the rental charged rather than the sales price of the property to him. Effective: August 1, 1985 History: Amended 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 9, effective August 1, 1985. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 42, effective February 5, 1960. Legislative Research Commission Note. 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 11, directed that the provisions of this section would be effective August 1, 1985.

KRS 139.440 Fungible goods bought under certificate commingled with goods bought otherwise

139.440. Fungible goods bought under certificate commingled with goods bought otherwise If a purchaser gives a certificate with respect to the purchase of fungible goods and thereafter commingles those goods with other fungible goods not so purchased but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales from the mass of commingled goods shall be deemed to be sales of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold. Effective: February 5, 1960 History: Created 1960 Ky. Acts ch. 5, Art. I, sec. 43, effective February 5, 1960.

KRS 139.450 Presumption regarding property shipped, brought, or electronically transferred into state, and services provided in state -- Duties of marketplace provider -- No class action relating to overpayment of tax

139.450. Presumption regarding property shipped, brought, or electronically transferred into state, and services provided in state -- Duties of marketplace provider -- No class action relating to overpayment of tax (1) It shall be presumed th at: (a) Tangible personal property shipped or brought to this state by the purchaser; (b) Digital property delivered or transferred electronically into this state; or (c) A service provided to a purchaser in this state; was purchased from a retailer for s torage, use, or other consumption in this state. (2) (a) A marketplace provider that makes retail sales on its own behalf or facilitates retail sales of tangible personal property, digital property, or services that are delivered, transferred electronicall y, or provided to a purchaser in this state for one (1) or more marketplace retailers that in any sales combination exceeds one hundred thousand dollars ($100,000) shall be subject to this section. (b) The marketplace provider shall: 1. Register for a sale s and use tax permit number to report and remit the tax due; and 2. Collect tax imposed under this chapter; no later than the first day of the calendar month that is at the most sixty (60) days after the threshold in paragraph (a) of this subsection is reached. (c) The marketplace provider may register for: 1. A single sales and use tax permit number to report a nd remit all the tax due on the marketplace provider's direct sales and sales the marketplace provider facilitates for one (1) or more marketplace retailers; or 2. a. One (1) sales and use tax permit number to report and remit the tax due on the marketplac e provider's direct sales; and b. One (1) additional sales and use tax permit number to report and remit the tax due on all sales the marketplace provider facilitates for one (1) or more marketplace retailers. (d) 1. If the marketplace provider elects to r eport and remit the tax due on a single sales and use tax permit number as provided in paragraph (c)1. of this subsection, the marketplace provider shall, upon request of the department, provide a separate breakdown of receipts from the marketplace provide r's direct sales and the sales the marketplace provider facilitates for the preceding fiscal year ending June 30. 2. The department may request the breakdown of receipts no more than once annually. (e) The marketplace provider shall collect Kentucky tax o n the entire sales price or purchase price paid by a purchaser on each retail sale subject to tax under this chapter that is made on its own behalf or that is facilitated by the marketplace provider, regardless of whether the seller would have been required to collect the tax had the retail sale not been facilitated by the marketplace provider. (3) Nothing in this section shall be construed to relieve the marketplace provider of liability for collecting but failing to remit the taxes imposed under this chapter. (4) (a) The marketplace provider shall be subject to audit on all sales made on its own behalf and on all sales facilitated by the marketplace provider. (b) The marketplace retailer shall be relieved of all liability for the collection and remittance of the sales or use tax on sales facilitated by the marketplace provider. (5) No class action may be brought against a marketplace provider on behalf of purchasers arising from or in any way related to an overpayment of tax collected by the marketplace provider. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 1, effective August 1, 2026. -- Amended 2021 Ky. Acts ch. 156, sec. 8, effective July 1, 2021. -- Amended 2019 Ky. Acts ch. 151, sec. 25, effective June 27, 2019. -- Amended 2013 Ky. Acts ch. 119, sec. 12, effective July 1, 2013. -- Amended 2009 Ky. Acts ch. 73, sec. 15, effective July 1, 2009. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 621, effective July 1, 1990. -- Amended 1968 Ky. Acts ch. 40, Part 1, sec. 8. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 44. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 25 of that Act apply to transactions occurring on or after July 1, 2019.

KRS 139.460 Repealed, effective July 1, 2004

139.460. Repealed, effective July 1, 2004 Catchline at repeal: Presumption as to property delivered outside state to Kentucky resident -- How controverted. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 45, effective February 5, 1960.

KRS 139.470 Exempt transactions

139.470. Exempt transactions There are excluded from the computation of the amount of taxes imposed by this chapter: (1) Gross receipts from the sale of, and the storage, use, or other consumption in this state of, tangible personal property or digital property which this state is prohibited from taxing under the Constitution or laws of the United States, or under the Constitution of this state; (2) Gross receipts from sales of, and the storage, use, or other consumption in this state of: (a) Nonreturnable and returnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container; and (b) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling; As used in this subsection the term "returnable containers" means containers of a kind customarily returned by the buyer of the contents for reuse. All other containers are "nonreturnable containers"; (3) Gross receipts from occasional sales of tangible personal property or digital property and the storage, use, or other consumption in this state of tangible personal property or digital property, the transfer of which to the purchaser is an occasional sale; (4) Gross receipts from sales of tangible personal property to a common carrier, shipped by the retailer via the purchasing carrier under a bill of lading, whether the freight is paid in advance or the shipment is made freight charges collect, to a point outside this state and the property is actually transported to the out-of-state destination for use by the carrier in the conduct of its business as a common carrier; (5) Gross receipts from sales of tangible personal property sold through coin-operated bulk vending machines, if the sale amounts to fifty cents ($0.50) or less, if the retailer is primarily engaged in making the sales and maintains records satisfactory to the department. As used in this subsection, "bulk vending machine" means a vending machine containing unsorted merchandise which, upon insertion of a coin, dispenses the same in approximately equal portions, at random and without selection by the customer; (6) Gross receipts from sales: (a) To any cabinet, department, bureau, commission, board, or other statutory or constitutional agency of the state and gross receipts from sales to counties, cities, or special districts as defined in KRS 65.005. This exemption shall apply only to purchases of tangible personal property, digital property, or services for use solely in the government function. A purchaser not qualifying as a governmental agency or unit shall not be entitled to the exemption even though the purchaser may be the recipient of public funds or grants; and (b) Of data brokering services by: 1. Any cabinet, department, bureau, commission, board, or other statutory or constitutional agency of this state; or 2. Counties, cities, or special districts as defined in KRS 65.005; (7) (a) Gross receipts from the sale of sewer services, water, and fuel to Kentucky residents for use in heating, water heating, cooking, lighting, and other residential uses if the sewer services, water, and fuel are purchased and declared by the resident as used in his or her place of domicile. (b) As used in this subsection: 1. "Fuel" includes but is not limited to natural gas, electricity, fuel oil, bottled gas, coal, coke, and wood; and 2. "Place of domicile" means the place where an individual has his or her legal, true, fixed, and permanent home and principal establishment, and to which, whenever the individual is absent, the individual has the intention of returning. (c) Determinations of eligibility for the exemption shall be made by the department. (d) The exemption shall apply to charges for sewer service, water, and fuel billed to an owner or operator of a multi-unit residential rental facility or mobile home and recreational vehicle park if the owner or operator declares that the sewer services, water, and fuel are purchased for Kentucky residents to be used in the resident's place of domicile. (e) The exemption shall apply also to residential property which may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by the stock ownership or membership representing the owner's or member's proprietary interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight (98) years if the sewer services, water, and fuel are purchased for and declared by the Kentucky resident as used in his or her place of domicile; (8) Gross receipts from sales to an out-of-state agency, organization, or institution exempt from sales and use tax in its state of residence when that agency, organization, or institution gives proof of its tax-exempt status to the retailer and the retailer maintains a file of the proof; (9) (a) Gross receipts derived from the sale of tangible personal property, as provided in paragraph (b) of this subsection, to a manufacturer or industrial processor if the property is to be directly used in the manufacturing or industrial processing process of: 1. Tangible personal property at a plant facility; 2. Distilled spirits or wine at a plant facility or on the premises of a distiller, rectifier, winery, or small farm winery licensed under KRS 243.030 that includes a retail establishment on the premises; or 3. Malt beverages at a plant facility or on the premises of a brewer or microbrewery licensed under KRS 243.040 that includes a retail establishment; and which will be for sale. (b) The following tangible personal property shall qualify for exemption under this subsection: 1. Materials which enter into and become an ingredient or component part of the manufactured product; 2. Other tangible personal property which is directly used in the manufacturing or industrial processing process, if the property has a useful life of less than one (1) year. Specifically, these items are categorized as follows: a. Materials. This refers to the raw mat erials which become an ingredient or component part of supplies or industrial tools exempt under subdivisions b. and c. below; b. Supplies. This category includes supplies such as lubricating and compounding oils, grease, machine waste, abrasives, chemical s, solvents, fluxes, anodes, filtering materials, fire brick, catalysts, dyes, refrigerants, and explosives. The supplies indicated above need not come in direct contact with a manufactured product to be exempt. "Supplies" does not include repair, replacem ent, or spare parts of any kind; and c. Industrial tools. This group is limited to hand tools such as jigs, dies, drills, cutters, rolls, reamers, chucks, saws, and spray guns and to tools attached to a machine such as molds, grinding balls, grinding wheels, dies, bits, and cutting blades. Normally, for industrial tools to be considered directly used in the manufacturing or industrial processing process, they shall come into direct contact with the product being manufactured or processed; and 3. Materials and supplies that are not reusable in the same manufacturing or industrial processing process at the completion of a single manufacturing or processing cycle. A single manufacturing cycle shall be considered to be the period elapsing from the time the raw m aterials enter into the manufacturing process until the finished product emerges at the end of the manufacturing process. (c) The property described in paragraph (b) of this subsection shall be regarded as having been purchased for resale. (d) For purposes of this subsection, a manufacturer or industrial processor includes an individual or business entity that performs only part of the manufacturing or industrial processing activity, and the person or business entity need not take title to tangible personal property that is incorporated into, or becomes the product of, the activity. (e) The exemption provided in this subsection do es not include repair, replacement, or spare parts; (10) Any water use fee paid or passed through to the Kentucky River Authority by facilities using water from the Kentucky River basin to the Kentucky River Authority in accordance with KRS 151.700 to 151. 730 and administrative regulations promulgated by the authority; (11) (a) 1. Gross receipts from the sale of newspaper inserts or catalogs purchased for storage, use, or other consumption outside this state and delivered by the retailer's own vehicle to a location outside this state, or delivered to the United States Postal Service, a common carrier, or a contract carrier for delivery outside this state, regardless of whether the carrier is selected by the purchaser or retailer or an agent or representative of the purchaser or retailer, or whether the F.O.B. is retailer's shipping point or purchaser's destination. 2. As used in this paragraph: a. "Catalogs" means tangible personal property that is printed to the special order of the purchaser and composed su bstantially of information regarding goods and services offered for sale; and b. "Newspaper inserts" means printed materials that are placed in or distributed with a newspaper of general circulation. (b) The retailer shall be responsible for establishing t hat delivery was made to a non-Kentucky location through shipping documents or other credible evidence as determined by the department; (12) Gross receipts from the sale of water used in the raising of equine as a business; (13) (a) 1. Gross receipts from the sale of metal retail fixtures manufactured in this state and purchased for storage, use, or other consumption outside this state and delivered by the retailer's own vehicle to a location outside this state, or delivered to the United States Postal Serv ice, a common carrier, or a contract carrier for delivery outside this state, regardless of whether the carrier is selected by the purchaser or retailer or an agent or representative of the purchaser or retailer, or whether the F.O.B. is the retailer's shipping point or the purchaser's destination. 2. As used in this paragraph, "metal retail fixtures" means check stands and belted and nonbelted checkout counters, whether made in bulk or pursuant to specific purchaser specifications, that are to be used dire ctly by the purchaser or to be distributed by the purchaser. (b) The retailer shall be responsible for establishing that delivery was made to a non-Kentucky location through shipping documents or other credible evidence as determined by the department; (14) Gross receipts from the sale of unenriched or enriched uranium purchased for ultimate storage, use, or other consumption outside this state and delivered to a common carrier in this state for delivery outside this state, regardless of whether the carrier is selected by the purchaser or retailer, or is an agent or representative of the purchaser or retailer, or whether the F.O.B. is the retailer's shipping point or purchaser's destination; (15) Amounts received from a tobacco buydown. As used in this subse ction, "buydown" means an agreement whereby an amount, whether paid in money, credit, or otherwise, is received by a retailer from a manufacturer or wholesaler based upon the quantity and unit price of tobacco products sold at retail that requires the reta iler to reduce the selling price of the product to the purchaser without the use of a manufacturer's or wholesaler's coupon or redemption certificate; (16) Gross receipts from the sale of tangible personal property or digital property returned by a purchaser when the full sales price is refunded either in cash or credit. This exclusion shall not apply if the purchaser, in order to obtain the refund, is required to purchase other tangible personal property or digital property at a price greater than the amount charged for the property that is returned; (17) Gross receipts from the sales of gasoline and special fuels subject to tax under KRS Chapter 138; (18) The amount of any tax imposed by the United States upon or with respect to retail sales, whether imposed on the retailer or the consumer, not including any manufacturer's excise or import duty; (19) Gross receipts from the sale of any motor vehicle as defined in KRS 138.450 which is: (a) Sold to a Kentucky resident, registered for use on the public highways, and upon which any applicable tax levied by KRS 138.460 has been paid; or (b) Sold to a nonresident of Kentucky if the nonresident registers the motor vehicle in a state that: 1. Allows residents of Kentucky to purchase motor vehicles without payment of that state's sales tax at the time of sale; or 2. Allows residents of Kentucky to remove the vehicle from that state within a specific period for subsequent registration and use in Kentucky without payment of that state's sales tax; (20) Gross receipts from the sale of a semi-trailer as defined in KRS 189.010(12) and trailer as defined in KRS 189.010(17); (21) Gross receipts from the collection of: (a) Any fee or charge levied by a local government pursuant to KRS 65.760; (b) The charge imposed by KRS 65.7629(3); (c) The fee imposed by KRS 65.7634; and (d) The service charge imposed by KRS 65.7636; (22) Gross receipts derived from charges for labor or services to apply, install, repair, or maintain tangible personal property directly used in manufacturing or industrial processing process of: (a) Tangible personal property at a plant facility; (b) Distilled spirits or wine at a plant facility or on the premises of a distiller, rectifier, winery, or small farm winery licensed under KRS 243.030; or (c) Malt beverages at a plant facility or on the premises of a brewer or microbrewery licensed under KRS 243.040; that is not otherwise exempt under subsection (9) of this section or KRS 139.480(10), if the charges for labor or services are separately stated on the invoice, bill of sale, or similar document given to purchaser; (23) (a) For persons selling services included in KRS 139.200(2)(g) to (ax) prior to January 1, 2025, gross receipts derived from the sale of those services if the gross receipts were less than twelve thousand dollars ($12,000) during calendar year 2024. When gross receipts from these services exceed twelve thousand dollars ($12,000) in a calendar year: 1. All gross receipts over twelve thousand dollars ($12,000) are taxable in that calendar year; and 2. All gross receipts are subject to tax in subsequent calendar years. (b) The exemption provided in this subsection shall not apply to a person also engaged in the business of selling tangible personal property, digital property, or services included in KRS 139.200(2)(a) to (f); and (24) (a) For persons that first begin making sales of services included in KRS 139.200(2)(g) to (ax) on or after January 1, 2025, gross receipts derived from the sale of those services if the gross receipts are less than twelve thousand dollars ($12,000) within the first calendar year of operation. When gross receipts from these services exceed twelve thousand dollars ($12,000) in a calendar year: 1. All gross receipts over twelve thousand dollars ($12,000) are taxable in that calendar year; and 2. All gross receipts are subject to tax in subsequent calendar years. (b) The exemption provided in this subsection shall not apply to a person that is also engaged in the business of selling tangible personal property, digital property, or services included in KRS 139.200(2)(a) to (f). Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 17, effective August 1, 2026. -- Amended 2024 Ky. Acts ch. 166, sec. 10, effective January 1, 2025. -- Amended 2023 Ky. Acts ch. 92, sec. 12, effective March 24, 2023. -- Amended 2022 Ky. Acts ch. 212, sec. 8, effective January 1, 2023. -- Amended 2020 Ky. Acts ch. 91, sec. 35, effective August 1, 2020. -- Amended 2019 Ky. Acts ch. 151, sec. 26, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 207, sec. 121, effective April 27, 2018. -- Amended 2016 Ky. Acts ch. 111, sec. 28, effective January 1, 2017. -- Amended 2013 Ky. Ac ts ch. 119, sec. 13, effective July 1, 2013. -- Amended 2009 Ky. Acts ch. 2 sec. 3, effective April 1, 2009; and ch. 73, sec. 16, effective July 1, 2009. -- Amended 2008 Ky. Acts ch. 95, sec. 10, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 8, effective July 1, 2007. -- Amended 2006 Ky. Acts ch. 252, Pt. XXXVI, sec. 1, effective August 1, 2006. -- Amended 2005 Ky. Acts ch. 85, sec. 420, effective June 20, 2005; and ch. 184, sec. 17, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 1 24, sec. 20, effective July 1, 2004; and ch. 100, sec. 1, effective June 24, 2003. -- Amended 2002 Ky. Acts ch. 361, sec. 14, effective August 1, 2002. -- Amended 2001 Ky. Acts ch. 68, sec. 2, effective March 15, 2001. -- Amended 2000 Ky. Acts ch. 352, sec . 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 125, sec. 2, effective July 15, 1998; ch. 412, sec. 1, effective August 1, 1998; and ch. 536, sec. 1, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 229, sec. 5, effective July 15, 1996; and ch. 344, sec. 10, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 501, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 214, sec. 1, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 414, sec. 2, effective July 13, 1990. -- Amended 1 988 Ky. Acts ch. 136, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 312, sec. 1, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 162, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 395, sec. 8, effective July 15, 1982. -- Amended 1979 (1st Extra. Sess.) Ky. Acts ch. 18, sec. 1, effective June 1, 1979. -- Amended 1976 Ky. Acts ch. 77, Pt. III, sec. 1, effective July 1, 1976; and ch. 155, sec. 18, effective July 1, 1976. -- Amended 1966 Ky. Acts ch. 240, sec. 1. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 46. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section. Legislative Research Commission Note (6/24/2003). This section was amended by 2003 Ky. Acts ch. 100, sec. 1, effective June 24, 2003. Section 2 of that Act said, "The provisions of this Act shall also apply retroactively to periods beginning prior to the effective date of this Act."

KRS 139.471 Transactions excluded from additional tax

139.471. Transactions excluded from additional tax Excluded from the additional taxes imposed by KRS 139.200 and 139.310 are gross receipts: (1) Derived from sales of and the storage, use, or other consumption of tangible personal property purchased for use in the performance of a lump-sum, fixed-fee contract executed on or before March 9, 1990; (2) Derived from sales made under fixed price sales contracts executed on or before March 9, 1990, provided the contract specifies a five percent (5%) sales tax rate; and (3) Derived from a lease or rental agreement entered into on or before March 9, 1990. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 20, effective July 1, 2007. -- Created 1990 Ky. Acts ch. 476, Pt. VII A, sec. 623, effective July 1, 1990.

KRS 139.472 Exemption for certain medical items

139.472. Exemption for certain medical items (1) Notwithstanding any other provisions of this chapter, the taxes imposed by this chapter shall not apply to the sale or purchase of: (a) A drug purchased for the treatment of a human being for which a prescription is required by state or federal law, whether the drug is dispensed by a licensed pharmacist, administered by a physician or other health care provider, or distributed as a free sample to or from a physician's office; (b) An over-the-counter drug purchased for the treatment of a human being for which a prescription is issued; (c) Medical oxygen and oxygen delivery equipment purchased for home use. Oxygen delivery equipment includes: 1. High pressure cylinders, cryogenic tanks, oxygen concentrators, or similar medical oxygen delivery equipment including repair and replacement parts for the equipment; and 2. Tubes, masks, and similar items required for the delivery of oxygen to the patient; (d) Insulin and diabetic supplies, including hypodermic syringes, needles, and sugar (urine and blood) testing materials purchased by an individual for private use; (e) Colostomy, urostomy, or ileostomy supplies purchased by an individual for private use; (f) Prosthetic devices purchased by any health care provider for use in the treatment of a specific individual or purchased by an individual as prescribed by a person authorized under the laws of the Commonwealth to issue prescriptions; (g) Prosthetic devices that are individually designed or created for an individual regardless of the purchaser; (h) Mobility enhancing equipment for which a prescription is issued; and (i) Durable medical equipment, including hospital beds for which a prescription is issued. (2) Except as specifically provided in subsection (1) of this section, supplies or equipment used to deliver a drug to a patient are taxable. (3) As used in this section and KRS 139.480: (a) "Drug" means a compound, substance, or preparation and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages as defined in KRS 139.485, that is recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or a supplement to any of them, or is: 1. Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or 2. Intended to affect the structure or any function of the body; (b) "Grooming and hygiene products" means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions, regardless of whether the items meet the definition of an over-the-counter drug; (c) 1. "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug as required by 21 C.F.R. sec. 201.66. The "over-the-counter drug" label shall include: a. A "Drug Facts" panel; or b. A statement of the active ingredients with a list of those ingredients contained in the compound, substance, or preparation. 2. "Over-the-counter drug" shall not include grooming and hygiene products; (d) "Prescription" means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmiss ion by a person authorized under the laws of the Commonwealth to prescribe a drug; (e) 1. "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts for the device, worn on or in the body to: a. Artificially replace a missing portion of the body; b. Prevent or correct a physical deformity or malfunction; or c. Support a weak or deformed portion of the body. 2. "Prosthetic device" shall not include any of the following: a. Corrective eyeglasses; b. Contact lenses; or c. Dental prosthesis; (f) 1. "Mobility enhancing equipment" means equipment, including repair and replacements part for same, which: a. Is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either in a home or a motor vehicle; b. Is not generally used by persons with normal mobility; and c. Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer. 2. "Mobility enhancing equipment" shall not include durable medical equipment; and (g) 1. "Durable medical equipment" means equipment, inc luding repair and replacement parts for same, which: a. Can withstand repeated use; b. Is primarily and customarily used to serve a medical purpose; c. Generally is not useful to a person in the absence of illness or injury; and d. Is not worn in or on the body. 2. "Durable medical equipment" shall not include mobility enhancing equipment or oxygen delivery equipment that is not worn in or on the body. 3. As used in this paragraph, "repair and replacement parts" includes all components or attachments used in connection with durable medical equipment. Effective: January 1, 2023 History: Amended 2022 Ky. Acts ch. 212, sec. 45, effective January 1, 2023. -- Amended 2009 Ky. Acts ch. 73, sec. 17, effective July 1, 2009. -- Amended 2008 Ky. Acts ch. 39, sec. 1, effective August 1, 2008; and ch. 95, sec. 1, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 9, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 154, sec. 2, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 21, effective July 1, 2004. -- Amended 2001 Ky. Acts ch. 9, sec. 1, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 209, sec. 1, effective July 14, 2000. -- Amended 1986 Ky. Acts ch. 471, sec. 1, effective July 15, 1986. -- Created 1970 Ky. Acts ch. 12, sec. 1, effective January 1, 1971. Legislative Research Commission Note (8/1/2008). Under the authority of KRS 7.136(1), the Reviser of Statutes has inserted subparagraph and subdivision designations in subsection (3)(f) of this statute during codification. The words in the text were not changed.

KRS 139.474 Repealed, 1978

139.474. Repealed, 1978 Catchline at repeal: State owned and operated college bookstores competing with off- campus privately operated stores subject to tax. History: Repealed 1978 Ky. Acts ch. 258, sec. 3, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 275, sec. 1.

KRS 139.480 Property exempt. (See LRC Note below)

139.480. Property exempt. (See LRC Note below) Any other provision of this chapter to the contrary notwithstanding, the terms "sale at retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, do not include the sale, use, storage, or other consumption of: (1) Locomotives or rolling stock, including materials for the construction, repair, or modification thereof, or fuel or supplies for the direct operation of locomotives and trains, used or to be used in interstate commerce; (2) Coal for the manufacture of electricity; (3) (a) All energy or energy-producing fuels used in the course of manufacturing, processing, mining, or refining and any related distribution, transmission, and transportation services for this energy that are billed to the user, to the extent that the cost of the energy or energy-producing fuels used, and related distribution, transmission, and transportation services for this energy that are billed to the user exceed three percent (3%) of the cost of production. (b) Cost of production shall be computed on the basis of a plant facility, which includes all operations within the continuous, unbroken, integrated manufacturing or industrial processing process that ends with a product packaged and ready for sale. (c) A person who performs a manufacturing or industri al processing activity for a fee and does not take ownership of the tangible personal property that is incorporated into, or becomes the product of, the manufacturing or industrial processing activity is a toller. For periods on or after July 1, 2018, the costs of the tangible personal property shall be excluded from the toller's cost of production at a plant facility with tolling operations in place as of July 1, 2018. (d) For plant facilities that begin tolling operations after July 1, 2018, the costs of tangible personal property shall be excluded from the toller's cost of production if the toller: 1. Maintains a binding contract for periods after July 1, 2018, that governs the terms, conditions, and responsibilities with a separate legal entity, which holds title to the tangible personal property that is incorporated into, or becomes the product of, the manufacturing or industrial processing activity; 2. Maintains accounting records that show the expenses it incurs to fulfill the binding contract that include but are not limited to energy or energy - producing fuels, materials, labor, procurement, depreciation, maintenance, taxes, administration, and office expenses; 3. Maintains separate payroll, bank accounts, tax returns, and other records that demonstrate its independent operations in the performance of its tolling responsibilities; 4. Demonstrates one (1) or more substantial business purposes for the tolling operations germane to the overall manufacturing, industrial processing activities, or corporate structure at the plant facility. A business purpose is a purpose other than the reduction of sales tax liability for the purchases of energy and energy-producing fuels; and 5. Provides information to the department upon request that documents fulfillment of the requirements in subparagraphs 1. to 4. of this paragraph and gives an overview of its tolling operations with an explanation of how the tolling operations relate and connect with all other manufacturing or industrial processing activities occurring at the plant facility; (4) Livestock of a kind the products of which ordinarily constitute food for human consumption, provided the sales are made for breeding or dairy purposes and by or to a person regularly engaged in the business of farming; (5) Poultry for use in breeding or egg production; (6) Farm work stock for use in farming operations; (7) Seeds, the products of which ordinarily constitute food for human consumption or are to be sold in the regular course of business, and commercial fertilizer to be applied on land, the products from which are to be used for food for human consumption or are to be sold in the regular course of business; provided the sales are made to farmers who are regularly engaged in the occupation of tilling and cultivating the soil for the production of crops as a business, or who are regularly engaged in the occupation of raising and feeding livestock or poultry or producing milk for sale; and provided further that tangible personal property so sold is to be used only by those persons designated above who are so purchasing; (8) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals to be used in the production of crops as a business, or in the raising and feeding of livestock or poultry, the products of which ordinarily constitute food for human consumption; (9) Feed, including pre-mixes and feed additives, for livestock or poultry of a kind the products of which ordinarily constitute food for human consumption; (10) Machinery for new and expanded industry; (11) Farm machinery. As used in this section, the term "farm machinery": (a) Means machinery used exclusively and directly in the occupation of: 1. Tilling the soil for the production of crops as a business; 2. Raising and feeding livestock or poultry for sale; or 3. Producing milk for sale; (b) Includes machinery, attachments, and replacements therefor, repair parts, and replacement parts which are used or manufactured for use on, or in the operation of farm machinery and which are necessary to the operation of the machinery, and are customarily so used, including but not limited to combine header wagons, combine header trailers, or any other implements specifically designed and used to move or transport a combine head; and (c) Does not include: 1. Automobiles; 2. Trucks; 3. Trailers, except combine header trailers; or 4. Truck-trailer combinations; (12) Tombstones and other memorial grave markers; (13) On-farm facilities used exclusively for grain or soybean storing, drying, processing, or handling. The exemption applies to the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (14) On-farm facilities used exclusively for raising poultry or livestock. The exemption shall apply to the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, re novation, or repair of the facilities. The exemption shall apply but not be limited to vent board equipment, waterer and feeding systems, brooding systems, ventilation systems, alarm systems, and curtain systems. In addition, the exemption shall apply whet her or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilitie s; (15) Gasoline, special fuels, liquefied petroleum gas, and natural gas used exclusively and directly to: (a) Operate farm machinery as defined in subsection (11) of this section; (b) Operate on-farm grain or soybean drying facilities as defined in subsection (13) of this section; (c) Operate on-farm poultry or livestock facilities defined in subsection (14) of this section; (d) Operate on-farm ratite facilities defined in subsection (23) of this section; (e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this section; or (f) Operate on-farm dairy facilities; (16) Textbooks, including related workbooks and other course materials, purchased for use in a course of study conducted by an institution which qualifies as a nonprofit educational institution under KRS 139.495. The term "course materials" means only those items specifically required of all students for a particular course but does not include notebooks, paper, pencils, calculators, tape recorders, or similar student aids; (17) Any property which has been certified as an alcohol production facility as defined in KRS 247.910; (18) Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the direct operation of aircraft in interstate commerce and used exclusively for the conveyance of property or passengers for hire. Nominal intrastate use shall not subject the property to the taxes imposed by this chapter; (19) (a) 1. Any property to be incorporated into the construction, rebuilding, modification, or expansion of a blast furnace or any of its components or appurtenant equipment or structures as part of an approved supplemental project, as defined in KRS 154.26 -010; and 2. Materials, supplies, and repair or replacement parts purchased for use in the operation and maintenance of a blast furnace and related carbon steel-making operations as part of an approved supplemental project, as defined in KRS 154.26-010. (b) The exemptions provided in this subsection shall be effective for sales made: 1. On and after July 1, 2018; and 2. During the term of a supplemental project agreement entered into pursuant to KRS 154.26-090; (20) Beginning on October 1, 1986, food or food products purchased for human consumption with food coupons issued by the United States Department of Agriculture pursuant to the Food Stamp Act of 1977, as amended, and required to be exempted by the Food Security Act of 1985 in order for the Commonwealth to continue participation in the federal food stamp program; (21) Machinery or equipment purchased or leased by a business, industry, or organization in order to collect, source separate, compress, bale, shred, or otherwise handle waste materials if the machinery or equipment is primarily used for recycling purposes; (22) Ratite birds and eggs to be used in an agricultural pursuit for the breeding and production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by- products, and the following items used in this agricultural pursuit: (a) Feed and feed additives; (b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; and (c) On-farm facilities, including equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities. The exemption shall apply to incubation systems, egg processing equipment, waterer and feeding systems, brooding systems, ventilation systems, alarm systems, and curtain systems. In addition, the exemption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (23) Embryos and semen that are used in the reproduction of livestock, if the products of these embryos and semen ordinarily constitute food for human consumption, and if the sale is made to a person engaged in the business of farming; (24) Llamas and alpacas to be used as beasts of burden or in an agricultural pursuit for the breeding and production of hides, breeding stock, fiber and wool products, meat, and llama and alpaca by-products, and the following items used in this pursuit: (a) Feed and feed additives; (b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; and (c) On-farm facilities, including equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities. The exemption shall apply to waterer and feeding systems, ventilation systems, and alarm systems. In addition, the exemption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (25) Baling twine and baling wire for the baling of hay and straw; (26) Water sold to a person regularly engaged in the business of farming and used in the: (a) Production of crops; (b) Production of milk for sale; or (c) Raising and feeding of: 1. Livestock or poultry, the products of which ordinarily constitute food for human consumption; or 2. Ratites, llamas, alpacas, buffaloes, cervids or aquatic organisms; (27) Buffaloes to be used as beasts of burden or in an agricultural pursuit for the production of hides, breeding stock, meat, and buffalo by-products, and the following items used in this pursuit: (a) Feed and feed additives; (b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; and (c) On-farm facilities, including equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities. The exemption shall apply to waterer and feeding systems, ventilation systems, and alarm systems. In addition, the exemption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (28) Aquatic organisms sold directly to or raised by a person regularly engaged in the business of producing products of aquaculture, as defined in KRS 260.960, for sale, and the following items used in this pursuit: (a) Feed and feed additives; (b) Water; (c) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; and (d) On-farm facilities, including equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities and, any gasoline, special fuels, liquefied petroleum gas, or natural gas used to operate the facilities. The exemption shall apply, but not be limited to: waterer and feeding systems; ventilation, aeration, and heating systems; processing and storage systems; production systems such as ponds, tanks, and raceways; harvest and transport equipment and systems; and alarm systems. In addition, the exemption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (29) Members of the genus cervidae permitted by KRS Chapter 150 that are used for the production of hides, breeding stock, meat, and cervid by-products, and the following items used in this pursuit: (a) Feed and feed additives; (b) Insecticides, fungicides, herbicides, rodenticides, and other chemicals; and (c) On-site facilities, including equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities. In addition, the exem ption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, renovation, or repair of the facilities; (30) (a) Repair or replacement parts for the direct operation or maintenance of a motor vehicle, including any towed unit, used exclusively in interstate commerce for the conveyance of property or passengers for hire, provided the motor vehicle is licensed for use on the highway and its declared gross vehicle weight with any towed unit is forty-four thousand and one (44,001) pounds or greater. Nominal intrastate use shall not subject the property to the taxes imposed by this chapter; and (b) Repair or replacement parts for the direct operation and maintenance of a motor vehicle operating under a charter bus certificate issued by the Transportation Cabinet under KRS Chapter 281, or under similar authority granted by the United States Department of Transportation. (c) For the purposes of this subsection, "repair or replacement parts" means tires, brakes, engines, transmissions, drive trains, chassis, body parts, and their components. "Repair or replacement parts" does not include fuel, machine oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential to the operation of the motor vehicle itself, except when sold as part of the assembled unit, such as cigarette lighters, radios, lighting fixtures not otherwise required by the manufacturer for operation of the vehicle, or tool or utility boxes; (31) Food donated by a retail food establishment or any other entity regulated under KRS 217.127 to a nonprofit organization for distribution to the needy; (32) Drugs and over-the-counter drugs, as defined in KRS 139.472, that are purchased by a person regularly engaged in the business of farming and used in the treatment of cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, buffaloes, aquatic organisms, or cervids; (33) (a) Building materials, fixtures, or supplies purchased by a construction contractor if: 1. Fulfilled by a construction contract for a sewer or water project with: a. A municipally owned water utility organized under KRS Chapter 96; b. A water district or water commission formed or organized under KRS Chapter 74; c. A sanitation district established under KRS Chapter 220 or formed pursuant to KRS Chapter 65; d. A nonprofit corporation created under KRS 58.180 to act on behalf of a governmental agency in the acquisition and financing of public projects; e. Regional wastewater commissions formed under KRS Chapter 278; f. A municipally owned joint sewer agency formed under KRS Chapter 76; or g. Any other governmental agency; and 2. The building materials, fixtures, or supplies: a. Will be permanently incorporated into a structure or improvement to real property, or will be completely consumed, in fulfilling a construction contract for the purpose of furnishing water or sewer services to the general public; and b. Would be exempt if purchased directly by the entities listed in subparagraph 1. of this paragraph. (b) As used in this subsection, "construction contract" means a: 1. Lump sum contract; 2. Cost plus contract; 3. Materials only contract; 4. Labor and materials contract; or 5. Any other type of contract. (c) The exemption provided in this subsection shall apply without regard to the payment arrangement between the con struction contractor, the retailer, and the entities listed in paragraph (a)1. of this subsection or to the place of delivery for the building materials, fixtures, or supplies; (34) (a) On or after February 25, 2022, the rental of space for meetings, conve ntions, short-term business uses, entertainment events, weddings, banquets, parties, and other short-term social events, as referenced in KRS 139.200, if the tax established in KRS 139.200 is paid by the primary lessee to the lessor. (b) For the purpose of this subsection, "primary lessee" means the person who leases the space and who has a contract with the lessor of the space only if: 1. The contract between the lessor and the lessee specifies that the lessee may sublease, subrent, or otherwise sell the s pace; and 2. The space is then sublet, subrented, or otherwise sold to exhibitors, vendors, sponsors, or other entities and persons who will use the space associated with the event to be conducted under the primary lease; (35) Prewritten computer software access services sold to or purchased by a retailer that develops prewritten computer software for print technology and uses and sells prewritten computer software access services for print technology; (36) (a) Currency or bullion. (b) As used in this subsection: 1. "Bullion": a. Means bars, ingots, or coins, which are: i. Made of gold, silver, platinum, palladium, or a combination of these metals; ii. Valued based on the content of the metal and not its form; and iii. Used, or have been used, as a medium of exchange, security, or commodity by any state, the United States government, or a foreign nation; and b. Does not include medallions or coins that are incorporated into a pendant or other jewelry; and 2. "Currency": a. Means a coin or currency made of gold, silver, platinum, palladium, or other metal or paper money that is or has been used as legal tender and is sold based on its value as a collectib le item rather than the value as a medium of exchange; and b. Does not include a coin or currency that has been incorporated into jewelry; and (37) Medicinal cannabis as defined in KRS 218B.010 when sold, used, stored, or consumed in accordance with KRS C hapter 218B. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 48, effective July 15, 2026. -- Amended 2024 Ky. Acts ch. 166, secs. 33 and 34, effective August 1, 2024. -- Amended 2023 Ky. Acts ch. 92, sec. 13, effective March 24, 2023; and ch. 146, sec. 32, effective July 1, 2024. -- Amended 2022 Ky. Acts ch. 212, sec. 46, effective January 1, 2023. - - Amended 2019 Ky. Acts ch. 151, sec. 27, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 44, effective April 14, 2018; and ch. 207, sec. 44, effective April 27, 2018. -- Amended 2016 Ky. Acts ch. 109, sec. 4, effective August 1, 2016. -- Amended 2014 Ky. Acts ch. 129, sec. 6, effective August 1, 2014. -- Amended 2013 Ky. Acts ch. 119, sec. 14, effective July 1, 2013. -- Amended 2006 Ky. Acts ch. 64, sec. 4, effective July 12, 2006. -- Amended 2005 Ky. Acts ch. 173, Pt. XIX, sec. 2, effective August 1, 2005; and Pt. XVI, sec. 3, effective June 1, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 40, effective January 1, 2004. -- Amended 2002 Ky. Acts ch. 254, sec. 1, effective April 8, 2002. -- Amended 1998 Ky. Acts ch. 29, sec. 1, effective August 1, 1998; ch. 35, sec. 1, effective July 15, 1998; ch. 125, sec. 1, effective July 15, 1998; ch. 264, sec. 1, effective August 1, 1998; c h. 265, sec. 1, effective August 1, 1998; ch. 366, sec. 1, effective July 15, 1998; and ch. 536, sec. 3, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 333, sec. 1, effective April 10, 1996, retroactive to January 1, 1980. -- Amended 1994 Ky. Acts ch. 68, sec. 4, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 7, sec. 1, effective July 14, 1992; ch. 364, sec. 1, effective July 14, 1992; and ch. 380, sec. 1, effective July 14, 1992. -- Amended 1991 (1st Extra. Sess.) Ky. Acts ch. 12, sec. 46, effective February 26, 1991. -- Amended 1990 Ky. Acts ch. 344, sec. 1, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 302, sec. 1, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 206, sec. 1, effective July 15, 1986; ch. 210, sec. 1, effective July 15, 1986; ch. 211, sec. 1, effective July 15, 1986; ch. 396, sec. 1, effective July 15, 1986; and ch. 476, sec. 3, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 431, sec. 5, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 210, sec. 4, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 135, sec. 1, effective June 17, 1978; ch. 233, sec. 28, effective June 17, 1978; and ch. 258, sec. 1, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 226, sec. 1; and ch. 286, sec. 1. -- Amended 1974 Ky. Acts ch. 137, sec. 2. -- Amended 1968 Ky. Acts ch. 36, sec. 1. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 47. Legislative Research Commission Note (8/1/2024). During the 2024 Regular Session, the General Assembly enacted House Bill 8, which included amendments to this statute establishing subsection (37) to exempt the sale of currency or bullion from the taxes imposed by KRS Chapter 139. On April 9, 2024, the Governor vetoed House Bill 8, in part, including the amendments to this section. On April 12, 2024, the House of Representatives ruled that House Bill 8 is not an appropriation bill and that the Governor's line-item vetoes had no effect on the bill. Upon request by the Speaker of the House and President of the Senate for an opinion on whether the Governor's purported line-item vetoes of House Bill 8 are valid and whether those vetoed sections should be included in the Kentucky Acts and Kentucky Revised Statutes, the Attorney General issued OAG 24-06 on May 20, 2024, stating, in part, that because House Bill 8 is not an appropriation bill, the Governor’s purported use of the line-item veto exceeds the powers granted to him by Section 88 of the Kentucky Constitution, the attempted line-item vetoes are invalid and nullities, the sections that the Governor purported to veto became law along with the rest of the bill, and the purportedly vetoed provisions must be incorporated into the permanent laws of the Commonwealth. Legislative Research Commission Note (4/17/2024). The effective date of the amendments to this statute in 2023 Ky. Acts ch. 146, sec. 32, was changed from January 1, 2025, to July 1, 2024, in 2024 Ky. Acts ch. 195, sec. 24. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Commission Note (6/27/2019). This statute was amended in Section 27 of 2019 Ky. Acts ch. 151. Section 86 of that Act reads, "No claim for refund or credit of a tax overpayment for any taxable period ending prior to July 1, 2018, made by an amended return, tax refund application, or any other method after June 30, 2018, and based on the amendments to subsection (3) of Section 27 of this Act [this statute] or based on the amendments to Section 74 or 75 of this Act, shall be recognized for any purpose."' Legislative Research Commission Note (6/27/2019). This statute was amended in Section 27 of 2019 Ky. Acts ch. 151. Section 87 of that Act reads, 'Notwithstanding "Notwithstanding KRS 446.090, the amendments to subsection (3) of Section 27 of this Act [this statute] and the amendments to Sections 74 [KRS 160.613] and 75 [KRS 160.6131] of this Act are not severable. If the amendment made to subsection (3) of Section 27 of this Act or the amendments to Section 74 or 75 of this Act is declared invalid for any reason, then all amendments to subsection (3) of Section 27 of this Act and the amendments to Sections 74 and 75 of this Act shall also be invalid.'" Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018. Legislative Research Commission Note (4/8/2002). The amendment made to this statute in 2002 Ky. Acts ch. 254, sec. 1 which created subsection (31) of this statute, "applies to sales made on or after July 1, 2002." 2002 Ky. Acts ch. 254, sec. 3. Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 29, 35, 125, 264, 265, 366, and 536. Where these Acts are not in conflict, they have been codified together. Where a conflict exists between chs. 29 and 35 and ch. 536, Acts ch. 536, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 139.481 Agriculture exemption license number required for exemption -- Eligibility for application -- Documentation to seller for receipt of exemption -- Administrative regulations -- Expiration and renewal of exemption number -- Searchable database of agriculture exemption numbers

139.481. Agriculture exemption license number required for exemption -- Eligibility for application -- Documentation to seller for receipt of exemption -- Administrative regulations -- Expiration and renewal of exemption number -- Searchable database of agriculture exemption numbers (1) On and after January 1, 2023, every person claiming an exemption provided under KRS 139.480(4) to (9), (11), (13) to (15), (22) to (29), and (32) shall provide to the seller or retailer a valid agriculture exemption li cense number issued by the department. (2) A person is eligible to apply for an agriculture exemption license number if the person is: (a) Regularly engaged in the occupation of tilling and cultivating the soil for the production of crops as a business; (b) Regularly engaged in the occupation of raising and feeding livestock of a kind the products of which ordinarily constitute food for human consumption; (c) Raising and feeding poultry; (d) Producing milk for sale; or (e) Regularly engaged in raising ratite birds, llamas, alpacas, buffaloes, cervids, or aquatic organisms as an agricultural pursuit. (3) (a) On and after January 1, 2023, persons that receive an agriculture exemption license number and choose to claim the exemptions outlined in subsection (1) of this section shall, at least one (1) time, provide the seller or retailer from whom they purchase exempt tangible personal property with one (1) of the following: 1. The agriculture exemption license number issued by the department; or 2. A fully completed Streamlined Sales Tax Certificate of Exemption which shall include the agriculture exemption license number. (b) A purchaser that has met the requirements of paragra ph (a) of this subsection may issue the agriculture exemption license number to the seller or retailer for subsequent purchases as evidence of an exempt purchase for as long as the agriculture exemption license number is valid. (c) Persons that meet the requirements of subsection (2) of this section but have not yet received an agriculture exemption license number from the department prior to January 1, 2023, may issue a fully completed exemption certificate or a fully completed Streamlined Sales Tax Certif icate of Exemption without the agriculture exemption license number prior to January 1, 2023. (4) (a) The department, by administrative regulation, shall develop an application form for the agriculture exemption license number and procedures by which the application form may also be submitted either electronically or by paper filing. (b) The application shall include: 1. The person's name and mailing address; 2. The farm address, if different from the person's mailing address; 3. An affirmation that the person meets at least one (1) of the criteria outlined in subsection (2) of this section; 4. The person's driver's license number; and 5. One (1) of the following forms of documentation: a. IRS Schedule F, Profit or Loss from Farming; b. IRS Form 4835, Farm Rental Income and Expenses; c. The farm service agency number or numbers assigned by the United States Department of Agriculture pertaining to the parcels of land on which agriculture activity will take place; or d. Any other type of information that may es tablish to the satisfaction of the Commissioner that the applicant qualifies for the agriculture exemption license number. (5) (a) The agriculture exemption license number shall expire: 1. On December 31, 2026, and every four (4) years thereafter; or 2. When the person ceases to engage in the agriculture activity for which the agriculture exemption license number was granted; whichever comes first. (b) The department shall extend the December 31, 2026, deadline for a period not to exceed six (6) months, as needed to allow persons with agriculture exemption license numbers to renew before expiration. (c) When a person ceases to engage in the agriculture activity for which the license number was granted, the person shall notify the department within sixty (60) days. (d) The person may apply for a renewal of the agriculture exemption license number prior to the expiration date if the person continues to meet the requirements of subsection (2) of this section and provides documentation required by subsection (4) (b)5. of this section. The department shall, by administrative regulation, prescribe the electronic process for renewing an agriculture exemption license number. (6) (a) On or before January 1, 2023, the department shall develop and provide an online searchable database on the department's website that the seller or retailer may use to confirm the agriculture exemption license number if the purchaser cannot produce documentation of the agriculture exemption license number at the time of sale. (b) To search the database, the seller or retailer shall provide the name of the person assigned the agriculture exemption license number and one (1) of the following: 1. The agriculture exemption license number; 2. The agriculture exemption license number expiration date; 3. The person's driver's license number; 4. The farm service agency parcel number; or 5. Any other unique identifier that may be accepted by the department. (c) The seller or retailer shall be relie ved of the liability for collecting and remitting the sales and use tax if the seller or retailer meets the requirements of KRS 139.260 and 139.270. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 50, effective July 15, 2026. -- Amended 2023 Ky. Acts ch. 92, sec. 14, effective March 24, 2023. -- Amended 2022 Ky. Acts ch. 58, sec. 1, effective March 30, 2022. -- Created 2020 Ky. Acts ch. 38, sec. 1, effective July 15, 2020. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments.

KRS 139.482 Historical sites

139.482. Historical sites (1) "Historical site," as used in this section, means properties listed by the United States department of interior in the National Register as authorized by title 16, United States Code, section 470(f). (2) There is excluded from the computation of the amount of taxes imposed by this chapter gross receipts from the sales of materials, supplies, and services to a nonprofit corporation, society, or organization to be used to restore, maintain, or operate a historical site. Effective: January 1, 2023 History: Amended 2022 Ky. Acts ch. 212, sec. 4, effective January 1, 2023. -- Created 1976 Ky. Acts ch. 318, secs. 2 and 3.

KRS 139.483 Exemption of vessels and maritime supplies

139.483. Exemption of vessels and maritime supplies The taxes imposed under the provisions of this chapter shall not apply to the sale of, or the storage, use, or other consumption of, ships and vessels, including property used in the repair or construction of, supplies and fuel consumed in the operation of, and supplies consumed by crew members aboard such ships and vessels which are used principally in the transportation of property or in the conveyance of persons for hire. History: Created 1966 Ky. Acts ch. 64, sec. 12.

KRS 139.484 Exemption of moneys paid for lease or rental of films by commercial motion picture theaters

139.484. Exemption of moneys paid for lease or rental of films by commercial motion picture theaters There shall be excluded from the computation of the amount of taxes imposed by this chapter moneys paid for the lease or rental of films by commercial motion picture theaters when the lease or rental is for the sole purpose of use in the normal course of business, if an admission fee is charged and if the commercial motion picture theater collects and remits all other applicable sales and use taxes, including, but not limited to, that on admissions. Effective: July 13, 1990 History: Created 1990 Ky. Acts ch. 121, sec. 1, effective July 13, 1990.

KRS 139.485 Exemption of food items -- Definitions

139.485. Exemption of food items -- Definitions (1) Except as otherwise provided, the terms "retail sale," "use," "storage," and "consumption" as used in this chapter shall not include the sale, use, storage or consumption of food and food ingredients for human consumption. (2) The term "food and food ingredients" as used in subsection (1) of this section means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. "Food and food ingredients" shall not include: (a) Alcoholic beverages; (b) Tobacco; (c) Candy; (d) Dietary supplements; (e) Soft drinks; and (f) Prepared food. (3) For purposes of this section: (a) "Alcoholic beverages" means beverages that are suitable for human consumption and contain one-half of one percent (0.5%) or more of alcohol by volume; (b) "Tobacco" means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco; (c) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" shall not include: 1. Any preparation containing flour; or 2. Any item requiring refrigeration; (d) "Dietary supplement" means any product, other than tobacco, intended to supplement the diet that: 1. Contains one (1) or more of the following dietary ingredients: a. A vitamin; b. A mineral; c. An herb or other botanical; d. An amino acid; e. A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or f. A concentrate, metabolite, constituent, extract, or combination of any ingredient described above; 2. Is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form or, if not intended for ingestion in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and 3. Is required to be labeled as a dietary supplement, identifiable by the "Supplement facts" box found on the label as required pursuant to 21 C.F.R. 101.36; (e) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent (50%) of vegetable or fruit juice by volume; (f) "Food sold through vending machines" means food dispensed from a machine or other mechanical device that accepts payment; (g) "Prepared food" means: 1. Food sold in a heated state or heated by the retailer; 2. Two (2) or more food ingredients mixed or combined by the retailer for sale as a single item except food that is only cut, repackaged, or pasteurized by the retailer, eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration in Chapter 3, Part 401.11 of the FDA Food Code so as to prevent food-borne illnesses; or 3. Food sold with eating utensils provided by the retailer, including plates, knives, forks, spoons, glasses, cups, napkins, or straws; (h) Notwithstanding paragraph (g) of this subsection, "prepared food" shall not include the following items if sold without eating utensils provided by the seller: 1. Food sold by a seller whose proper primary North American Industry Classification System classification is manufacturing in sector 311, except subsector 3118; or 2. Bakery items, including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danishes, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas. (4) Notwithstanding the provisions of subsection (1) of this section, "food and food ingredients" sold through vending machines or nonmechanical self-service vending systems shall be subject to the tax imposed by this chapter. Effective: Ju1y 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 10, effective July 1, 2007. -- Amended 2003 Ky. Acts ch. 124, sec. 22, effective July 1, 2004. -- Amended 1994 Ky. Acts ch. 65, sec. 17, effective July 15, 1994. -- Created 1972 Ky. Acts ch. 62, Pt. I, sec. 1, effective October 1, 1972

KRS 139.486 Sale, use, storage, or consumption of "industrial machinery" -- Definitions for section

139.486. Sale, use, storage, or consumption of "industrial machinery" -- Definitions for section (1) As used in this section: (a) "Industrial machinery" means machinery manufactured in Kentucky directly used in manufacturing or processing which operations encompass all activities commencing with the receipt of the raw materials through the point at which the finished product is ready for sale and delivery to the purchaser. (b) The term "processing" shall include: the processing and packaging of raw materials, in-process materials and finished products; the processing and packaging of farm and dairy products for sale; and the extraction of minerals, ores, coal, clay, stone, and natural gas. (2) Any other provision of this section to the contrary notwithstanding, the terms "sale at retail," "retail sale," "use," "storage," and "consumption," do not include the sale, use, storage, or other consumption of "industrial machinery," when the "industrial machinery" is delivered to a manufacturer or processor, or their agent for use out of state. (3) For purposes of the exemptions provided in subsection (2) of this section, "industrial machinery" will be presumed for sale, use, storage, or consumption outside the state if: (a) Delivery is to a common carrier, whether chosen by the seller or by the purchaser, and whether F.O.B. seller's shipping point or F.O.B. purchaser's destination, provided the shipping document indicates delivery to a location outside the state; or (b) Delivery is made by seller's own transportation vehicles to a location outside the state. Effective: August 1, 2008 History: Amended 2008 Ky. Acts ch. 95, sec. 11, effective August 1, 2008. -- Created 1982 Ky. Acts ch. 431, sec. 2, effective July 15, 1982.

KRS 139.487 Repealed, 2008

139.487. Repealed, 2008 Catchline at repeal: Exemption of industrial machinery. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1982 Ky. Acts ch. 431, sec. 3, effective July 15, 1982.

KRS 139.488 Repealed, 2008

139.488. Repealed, 2008 Catchline at repeal: Determination of presumption of out-of-state sale, use, storage or consumption. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1982 Ky. Acts ch. 431, sec. 4, effective July 15, 1982.

KRS 139.490 Repealed, effective July 1, 2004

139.490. Repealed, effective July 1, 2004 Catchline at repeal: Purchaser's liability for using property in other than exempt way after certification. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Amended 1988 Ky. Acts ch. 135, sec. 5, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 102, sec. 1, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 49, effective February 5, 1960.

KRS 139.495 Application of taxes to certain resident nonprofit institutions and limited liability companies -- Definitions for section -- Exemptions -- Refund

139.495. Application of taxes to certain resident nonprofit institutions and limited liability companies -- Definitions for section -- Exemptions -- Refund (1) As used in this section: (a) "Educational or charitable institution" means: 1. A resident, nonprofit educational or charitable institution that has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code; or 2. Any resident, single member limited liability company that is: a. Wholly owned and cont rolled by a resident or nonresident, nonprofit educational or charitable institution that has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code; and b. Disregarded as an entity separate from the resident or n onresident, nonprofit educational or charitable institution for federal income tax purposes pursuant to 26 C.F.R. sec. 301.7701 -2; and (b) "Religious institution" means: 1. A resident nonprofit religious institution that has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code; 2. Any resident, single member limited liability company that is: a. Wholly owned and controlled by a resident or nonresident, nonprofit religious institution that has qualified for exemption from income taxation under Section 501(c)(3) of the Internal Revenue Code; and b. Disregarded as an entity separate from the resident or nonresident, nonprofit religious institution for federal income tax purposes pursuant to 26 C.F.R. sec. 301.7701 -2; or 3. A resident nonprofit religious institution that has chosen not to apply to the Internal Revenue Service for a Section 501(c)(3) de signation but would otherwise qualify for that designation by demonstrating that the institution has: a. A recognized creed and form of worship; b. A distinct religious history; c. Ordained minister that ministers to the congregation of believers; d. An established place of worship where worship services are held in the same location on a regular basis; e. A congregation of who regularly attend worship services; and f. Regularly scheduled and promoted religious services for the public to attend. (2) (a) For educational or charitable institutions, except as provided in paragraph (b) of this subsection, the taxes imposed by this chapter do not apply to any of the following: 1. Purchases of tangible personal property, digital property, or services made by these institutions, provided the tangible personal property, digital property, or service is to be used solely in this state within the educational or charitable function; 2. Sales of food to students in school cafeterias or lunchrooms; 3. Sales by school bookstores of textbooks, workbooks, and other course materials; 4. Sales by nonprofit, school sponsored clubs and organizations, provided the sales do not include tickets for athletic events; 5. Sales of admissions, including the sales of admissions to a golf course when the admission is the result of a fundraising event, by educational or charitable institutions. All other sales of admissions to a golf course by these institutions are not exempt from tax under this section; or 6. a. Fundraising event sales made by educational or charitable institutions. b. As used in this subparagraph, "fundraising event sales" does not include sales related to the operation of a retail business, including but not limited to thrift stores, bookstores, surplus property auctions, recycle and reuse stores, or any ongoing operations in competition with for-profit retailers. (b) The exemptions provided in paragraph (a)5. and 6. of this subsection shall not apply to sales generated by or arising at a tourism development project approved under KRS 148.851 to 148.860. (3) (a) An educational or charitable institution shall be entitled to a refund equal to twenty-five percent (25%) of the tax collected on its sale of donated goods if the refund is used exclusively as reimbursement for capit al construction costs of additional retail locations in this state, provided the institution: 1. Routinely sells donated items; 2. Provides job training and employment to individuals with workplace disadvantages and disabilities; 3. Spends at least seventy -five percent (75%) of its annual revenue on job training, job placement, or other related community services; 4. Submits a refund application to the department within sixty (60) days after the new retail location opens for business; and 5. Provides records of capital construction costs for the new retail location and any other information the department deems necessary to process the refund. The maximum refund allowed for any location shall not exceed one million dollars ($1,000,000). (b) As used in this subsection, "capital construction cost": 1. Means the cost of construction of any new facilities or the purchase and renovation of any existing facilities; and 2. Does not include the cost of real property other than real property designated as a brownfield site as defined in KRS 65.680(4). (4) Notwithstanding any other provision of law to the contrary, refunds under subsection (3) of this section shall be made directly to the institution. Interest shall not be allowed or paid on the refund. The department may examine any refund within four (4) years from the date the refund application is received. Any overpayment shall be subject to the interest provisions of KRS 131.183 and the penalty provisions of KRS 131.180. (5) All other sales made by educational or charitable institutions are taxable and the tax may be passed on to the purchaser as provided in KRS 139.210. (6) For religious institutions, the taxes imposed by this chapter do not apply to any of the following: (a) Sales of tangible personal property, digital property, or services made by a religious institution, provided the tangible personal property, digital property, or service is sold in this state within the religious function; or (b) Purchases of tangible personal property, digital property, or services made by a religious institution, provided the tangible personal property, digital property, or service is to be used solely in this state within the religious function. Effective: August 1, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 116, effective August 1, 2026. -- Amended 2020 Ky. Acts ch. 91, sec. 40, effective August 1, 2020. -- Amended 2019 Ky. Acts ch. 151, sec. 28, effective March 26, 2019. -- Amended 2016 Ky. Acts ch. 110, sec. 13, effective August 1, 2016. -- Amended 20 09 Ky. Acts ch. 73, sec. 18, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 46, sec. 1, effective August 1, 2005; and ch. 173, Part XVI, sec. 1, effective August 1, 2005. -- Amended 1980 Ky. Acts ch. 392, sec. 18, effective June 1, 1980. -- Amended 1 978 Ky. Acts ch. 258, sec. 2, effective June 17, 1978. -- Created 1976 Ky. Acts ch. 77, Pt. III, sec. 2, effective March 29, 1976. Legislative Research Commission Note (3/26/2019). Under the authority of KRS 7.136(1), the Reviser of Statutes has modified t he internal lettering of subsection (2) of this statute from the way it appeared in 2019 Ky. Acts ch. 151, sec. 28. The words in the text were not changed. Legislative Research Commission Note (3/26/2019). Section 82 of 2019 Ky. Acts ch. 151 states that th e amendments to this statute made in Section 28 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (8/1/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

KRS 139.496 Exemption of certain sales

139.496. Exemption of certain sales (1) The taxes imposed in this chapter do not apply to the first one thousand dollars ($1,000) of sales made in any calendar year by individuals not engaged in the business of selling. This exemption is limited to garage or yard sales of household items by an individual or family which are in no way associated with or related to the operation of a business. (2) The exemption does not apply to activities in which all or substantially all the household goods of a person are offered for sale. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 151, sec. 30, effective June 27, 2019. -- Amended 1990 Ky. Acts ch. 476, Pt. V, sec. 360; and Pt. VII A, sec. 624, effective July 1, 1990. -- Amended 1984 Ky. Acts ch. 331, sec. 2, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 77, Pt. III, sec. 3, effective July 1, 1976. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 30 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (7/13/90). The amendment to this section contained in Section 624 of Acts ch. 476 prevails over its repeal and reenactment in Section 360 of that Act, pursuant to Section 653(1) of the Act.

KRS 139.497 Exemption for sales by schools, school-sponsored clubs and organizations or affiliated groups, certain nonprofit educational youth programs, and federally chartered education-related corporation at annual national convention held in state

139.497. Exemption for sales by schools, school-sponsored clubs and organizations or affiliated groups, certain nonprofit educational youth programs, and federally chartered education-related corporation at annual national convention held in state Notwithstanding any other provisions of this chapter, the taxes imposed herein do not apply to: (1) Sales by elementary or secondary schools or nonprofit elementary or secondary school-sponsored clubs and organizations or any nonprofit, elementary, or secondary school-affiliated groups such as parent-teacher organizations and booster clubs, whose membership may be composed of individuals other than students, provided the net proceeds from the sales are used solely for the benefit of the elementary or secondary school or its students. Nontaxable sales shall include sales resulting from agreements or contracts entered into with resident or nonresident organizations to participate in fund-raising campaigns for a percentage of the gross receipts where students act as agents or salesmen for the organizations by selling or taking orders for the sale of tangible personal property, and no one shall be required to pay sales or use taxes on such sales; (2) Sales made by nonprofit educational youth programs affiliated with a land grant university cooperative extension service, if the net proceeds from the sales are used solely for the benefit of the affiliated programs; or (3) (a) Sales of tangible personal property made by a federally chartered corporation at the corporation's annual national convention held in the Commonwealth. (b) As used in this subsection, "federally chartered corporation" means a corporation federally chartered under Title 36 of the United States Code and whose stated purpose is to serve students and former students of vocational agriculture in middle and secondary schools to develop character, train for useful citizenship, and foster patriotism. (c) The exemption provided in this subsection applies to sales made on and after October 1, 2014, but before December 31, 2021. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 103, sec. 1, effective July 15, 2014. -- Amended 1998 Ky. Acts ch. 80, sec. 1, effective July 15, 1998. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 361, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 167, sec. 1, effective July 15, 1986. -- Created 1984 Ky. Acts ch. 331, sec. 1, effective July 13, 1984.

KRS 139.498 Exemption for sale of admissions and fundraising event sales by nonprofit organizations

139.498. Exemption for sale of admissions and fundraising event sales by nonprofit organizations (1) (a) For nonprofit civic, governmental, or other nonprofit organizations, except as described in KRS 139.495 and 139.497, the taxes imposed by this chapter do not apply to: 1. The sale of admissions, including the sales of admissions to a golf course when the admission is the result of a fundraising event. All other sales of admissions to a golf course by these organizations are not exempt from tax under this section; or 2. a. Fundraising event sales. b. For the purposes of this paragraph, "fundraising event sales" does not include sales related to the operation of a retail business, including but not limited to thrift stores, bookstores, surplus property auctions, recycle and reuse stores, or any ongoing operations in competition with for -profit retailers. (b) For nonprofit civic or other nonprofit organizations, except as described in KRS 139.495 and 139.497, that operate fundraising events solely with volunteers, the taxes imposed by this chapter also do not apply to sales of: 1. Concessions for leisure, recreational, or athletic fundraising purposes; or 2. Leisure, recreational, or athletic services. (c) The exemption provided in subparagraph 1. of paragraph (a) of this subsection shall not apply to the sale of admissions to a public facility that qualifies for a sales tax rebate under KRS 139.533. (2) All other sales made by organizations referred to in s ubsection (1) of this section are taxable. Effective: March 24, 2023 History: Amended 2023 Ky. Acts ch. 92, sec. 15, effective March 24, 2023. -- Amended 2020 Ky. Acts ch. 91, sec. 41, effective August 1, 2020. -- Created 2019 Ky. Acts ch. 151, sec. 29, effective March 26, 2019. Legislative Research Commission Note (3/24/2023). 2023 Ky. Acts ch. 92, sec. 57, provides that the amendments to this statute in that Act apply retroactively to January 1, 2023, and notwithstanding KRS 131.183, interest shall not be allowed or paid on a refund related to those amendments. Legislative Research Commission Note (3/26/2019). Section 82 of 2019 Ky. Acts ch. 151 states that this statute, which was created in Section 29 of that Act, applies to transactions occurring on or after July 1, 2019.

KRS 139.499 Exemption for certain data center equipment

139.499. Exemption for certain data center equipment (1) As used in this section: (a) 1. "Approved company"; 2. "Authority"; 3. "Data center equipment"; 4. "Eligible costs"; 5. "Memorandum of agreement"; 6. "Preliminarily approved company"; 7. "Qualified data center project"; and 8. "Term"; have the same meaning as in KRS 154.20-220; (b) "Certificate of exemption" means a completed form provided by the department stating at least: 1. The name, address, and federal employer identification number of the approved company or preliminarily approved company; 2. That the approved company or preliminarily approved company is exempt from sales and use tax on data center equipment purchased for use in a qualified data center project in the Commonwealth; and 3. The date of expiration based on the term of the memorandum of agreement; and (c) "Fiscal year" means a period beginning on July 1 and continuing until the following June 30. (2) The taxes imposed by this chapter shall not apply to the sale, purchase, use, storage, consumption, installation, repair, and replacement of data center equipment to or by a preliminarily approved company or an approved company in accordance with the memorandum of agreement with the preliminarily approved company or the approved company as provided in subsection (4) of this section. (3) (a) The exemption provided in subsection (2) of this section shall apply whether or not the seller is under contract to deliver, assemble, and incorporate the data center equipment into real estate for the qualified data center project. (b) An approved company or preliminarily approved company may provide the seller the certificate of exemption issued by the department to claim the exemption. The certificate may be executed by either: 1. An approved company or preliminarily approved company; or 2. Jointly by a contractor and an approved company or preliminarily approved company in any case in which a contractor under contract with the approved company or preliminarily approved company purchases the data center equipment. (4) Upon notification that the authority has executed a memorandum of agreement with a preliminarily approved company, the department shall issue a certificate of exemption to the preliminarily approved company or the approved company. (5) (a) Upon notification that the authority has terminated the sales and use tax exemptions available to the preliminarily approved company or the approved company as provided in KRS 154.20-229, the department shall issue a notice of assessment to the approved company or preliminarily approved company. (b) The aggregate amount of sales and use tax recovered shall not exceed the sum of the aggregate value of tax not paid as a result of the tax exemption under this section together with interest required under KRS Chapter 131. (c) If the notice of assessment is issued to: 1. A preliminarily approved company, notwithstanding KRS 139.620, the notice of assessment under paragraph (b) of this subsection shall be considered timely if the department issues the notice of assessment the later of: a. One hundred eighty (180) days from the date the department is notified by the authority related to termination of the memorandum of agreement; or b. The date on which a notice of assessment could otherwise be issued in a timely manner under KRS 139.620; 2. An approved company, the notice of assessment shall be assessed on the open periods and subject to KRS 139.620; and 3. A subsequent owner under KRS 154.20 -229(8)(b)1., the notice of assessment shall include the tax assumed by the subsequent owner and the open periods for assessment shall be determined under subparagraphs 1. and 2. of this paragraph and depend solely on whether the subsequent owner is a preliminarily approved company or an approved company. (6) Beginning September 1, 2025, and on or before September 1 for each year thereafter, a preliminarily approved company shall report to the department annually: (a) The name, address, and any other identifying information the department may require for the qualified data center project; (b) The county in which the qualified data center project is located; and (c) An itemized schedule of qualified data center equipment purchased during the fiscal year and the applicable sales and use tax that was not paid as a result of the sales and use tax exemption, including ver ification and certification by an independent third party unrelated to the preliminarily approved company. (7) Beginning November 1, 2025, and on or before November 1 of each year thereafter, the department shall report to the authority and the Interim Joint Committee on Appropriations and Revenue the data reported for data center project under subsection (6) of this section. (8) All information required to be reported under this section shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information. Effective: July 15, 2024 History: Created 2024 Ky. Acts ch. 166, sec. 42, effective July 15, 2024.

KRS 139.500 Exemption from use tax of property subject to sales or gasoline tax

139.500. Exemption from use tax of property subject to sales or gasoline tax (1) The storage, use, or other consumption in this state of property, the gross receipts from the sale of which are required to be included in the measure of the tax levied under KRS 139.200 is not subject to the use tax. (2) The storage, use, or other consumption in this state of gasoline or special fuels on which the tax under KRS Chapter 138 has been paid and which is not subject to refund under KRS 138.341, 138.344, 138.445, 279.200, or 279.530 shall not be subject to the use tax. Effective: July 13, 1990 History: Amended 1990 Ky. Acts ch. 414, sec. 3, effective July 13, 1990. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 48, effective February 5, 1960.

KRS 139.505 Refundable credit of portion of sales tax paid on interstate business communications service

139.505. Refundable credit of portion of sales tax paid on interstate business communications service (1) For the purpose of this section, "gross receipts" means: (a) Sales of tangible personal property in this state if: 1. The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within this state regardless of the f.o.b. point or other conditions of the sale; or 2. The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and the purchaser is the United States government; and (b) Sales other than sales of tangible personal property in this state if the income- producing activity is performed in this state; or the income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on cost of performance, or gross receipt allocation method as provided by statute and elected by the taxpayer. (2) Any business whose interstate communications service, subject to the sales tax imposed under KRS Chapter 139 and deducted for federal income tax purposes, exceeds five percent (5%) of the business's Kentucky gross receipts during the preceding calendar year is entitled to a refundable credit if: (a) The business's annual Kentucky gross receipts are equal to or more than one million dollars ($1,000,000); and (b) The majority of the interstate communications service billed to a Kentucky service address for the annual period is for communications service originating outside of this state and terminating in this state. (3) The refundable credit shall be equal to the sales tax paid on the difference by which the interstate communications service purchased by the business exceeds five percent (5%) of the business's Kentucky gross receipts. (4) Any business that qualifies for the refundable credit authorized by subsection (2) of this section shall make an annual application for the refund on or after June 1, 2002, and on or after every June 1 thereafter. The application shall be made to the department on forms as the department may prescribe and shall contain information regarding interstate communications service purchases and any other information deemed necessary for the department to determine the business's eligibility to receive a refund. (5) Notwithstanding the provisions of KRS 134.580 to the contrary, the department, upon receipt of a properly documented refund application, shall cause a timely refund to be made directly to the eligible business. Interest shall not be allowed or paid on any refund made under this section. (6) To facilitate the administration of the refundable tax credit, the department shall grant eligible businesses that apply for the tax credit permission to directly report and pay the sales tax applicable to the purchase of communications service. Once the business receives permission to directly report and pay the tax, refunds issued according to subsection (2) of this section shall not include any sales tax collected and paid by a communications service provider. (7) Any refund application submitted under this section is subject to examination by the department. The examination shall occur within four (4) years from the date the refund application is received by the department. Any overpayment resulting from the examination shall be repaid to the State Treasury. In addition, the amount required to be repaid is subject to the interest provisions of KRS 131.183 and to the penalty provisions of KRS 131.180. (8) If a business owns directly or indirectly fifty percent (50%) or more of another business, the credit computed under subsection (2) of this section shall be computed on a combined basis, excluding any intercompany Kentucky gross receipts. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 421, effective June 20, 2005; ch. 168, sec. 127, effective June 1, 2005; and ch. 173, Pt. XVI, sec. 4, effective March 20, 2005. -- Created 2000 Ky. Acts ch. 547, sec. 8, effective January 1, 2001. Legislative Research Commission Note (3/20/2005). This section was amended by 2005 Ky. Acts chs. 85, 168 and 173, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (3/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section. Legislative Research Commission Note (3/20/2005). 2005 Ky. Acts ch. 173, Part XVI, sec. 7, provides that the amendments made to this section in Section 4 of that Part (and coincidentally in 2005 Ky. Acts ch. 168, sec. 127), relating to the sales tax on communication services, shall apply to applicants filing on or after June 1, 2003.

KRS 139.510 Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications service

139.510. Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications service (1) The tax levied by KRS 139.310 shall not apply with respect to the storage, use, or other consumption of tangible personal property, digital property, or extended warranty services in this state upon which a tax substantially identical to the tax levied under KRS 139.200 (not including any special excise taxes such as are imposed on alcoholic beverages, cigarettes, and the like) equal to or greater than the amount of tax imposed by KRS 139.310 has been legally paid in another state. Proof of payment of such tax shall be according to rules and regulations of the department. If the amount of tax paid in another state is not equal to or greater than the amount of tax imposed by KRS 139.310, then the taxpayer shall pay to the department an amount sufficient to make the tax paid in the other state and in this state equal to the amount imposed by KRS 139.310. No credit shall be given under this section for sales taxes paid in another state if that state does not grant credit for sales taxes paid in this state. (2) To prevent actual multistate taxation of a communications service subject to taxation under this chapter, any provider or purchaser, upon proof that the provider or purchaser has paid a tax in another state on the same communications services, shall be allowed a credit against the tax imposed by this chapter to the extent of the amount of the tax legally paid in the other state. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 45, effective April 14, 2018; and ch. 207, sec. 45, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 19, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 422, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 547, sec. 9, effective January 1, 2001. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 72, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.512 Refundable sales and use tax credit

139.512. Refundable sales and use tax credit Notwithstanding any other provision of this chapter or KRS 134.580, a refundable sales and use tax credit may be allowed under KRS 141.389 related to the distilled spirits income tax credit. Effective: March 31, 2023 History: Created 2023 Ky. Acts ch. 148, sec. 10, effective March 31, 2023.

KRS 139.515 Sales tax refund program for qualifying signature projects

139.515. Sales tax refund program for qualifying signature projects (1) As used in this section: (a) "Agency" has the same meaning as in KRS 154.30-010; (b) "Signature project" means a project that meets the requirements established by KRS 154.30-050; and (c) "Tangible personal property used in the construction of a signature project" means tangible personal property that: 1. Consists of: a. Permanently incorporated building materials and fixtures that are an improvement to real property on the signature project; b. Building materials temporarily incorporated into the signature project for infrastructure support during construction; or c. Temporarily incorporated specialized forms for concrete that are for exclusive use on the qualifying signature project; and 2. Is not machinery or equipment. (2) (a) Notwithstanding any other provision of KRS Chapter 139 and KRS 134.580, the sales or use tax paid on the purchase of tangible personal property used in the construction of the portion of a signature project that does not relate to approved public infrastructure costs or approved signature project costs, as defined in KRS 154.30-010, may be refunded to the agency under the conditions established by subsection (3) of this section. (b) The authority, as defined in KRS 154.30-010, shall notify the department upon the approval of a signature project. The notification shall include the name of the signature project, the name of the agency, the name of the project developer, the commencement date of the tax incentive agreement, and the percentage of total anticipated expenditures for tangible personal property used in the construction of a signature project that are not included in the project grant agreement as approved public infrastructure costs or approved signature project costs. (c) The department shall determine the total amount of eligible refund due under each application for refund based upon the actual percentage of total expenditures for tangible personal property used in the construction of a signature project that are not included in the project grant agreement as approved public infrastructure costs reported in the refund request reduced by the amount of vendor compensation taken in accordance with KRS 139.570. (3) To qualify for the refund established by subsection (2) of this section, the agency shall collect from the purchasers of tangible personal property used in the construction of the signature project all documentation relating to the payment of sales or use tax, and shall file an application for refund of the sales or use tax paid by the purchasers as reflected in the documentation collected. Requests for refund shall be filed annually during the first twelve (12) years the project grant agreement is in effect, and shall cover purchases made during the immediately preceding year. Requests for refund shall be filed in the manner directed by the department. (4) (a) The agency shall file the first year refund request within sixty (60) days following the end of the fiscal year in which the project grant agreement is executed. The agency shall file the final refund request within sixty (60) days following the end of the eleventh fiscal year following the fiscal year in which the project grant agreement was executed, or within sixty (60) days after construction is complete, whichever date is earlier. All other annual refund requests shall be filed within sixty (60) days after the completion of each fiscal year. (b) Failure to file a refund request within the timeframes provided in paragraph (a) of this subsection shall result in an adjustment to the refund amount paid as follows: 1. For late refund requests filed within the first one hundred twenty (120) days after the request was due, for each month or portion thereof that the refund request is late, the refund amount shall be reduced by one twelfth (1/12) of the total amount determined by the department to be due to the agency. 2. Any refund request filed more than one hundred twenty (120) days after the timeframes provided in paragraph (a) of this subsection shall be rejected and no refunds shall be paid for the time period covered by the request. (5) Interest shall not be allowed or paid on any refund made under the provisions of this section. (6) The agency shall execute information sharing agreements prescribed by the department with contractors, vendors, and other related parties to verify construction material costs. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 12, sec. 40, effective June 25, 2009. -- Amended 2008 Ky. Acts ch. 178, sec. 13, effective July 15, 2008. -- Created 2007 Ky. Acts ch. 95, sec. 28, effective March 23, 2007.

KRS 139.516 Exemption for sale or purchase of electricity used in commercial mining of cryptocurrency

139.516. Exemption for sale or purchase of electricity used in commercial mining of cryptocurrency (1) As used in this section: (a) "Blockchain technology" means shared or distributed data structures or digital ledgers governed by consensus protocols and maintained by peer-to-peer networks that: 1. Store digital transactions; and 2. Verify and secure transactions cryptographically; (b) "Colocation facility" means a facility which houses tangible personal property that functions as a computing system node or nodes, or hosts such node or nodes, in the commercial mining of cryptocurrency and which the computing system node or nodes of the facility consume no less than two hundred thousand (200,000) kilowatt hours of electricity per month; (c) "Commercial mining of cryptocurrency" means the process through which blockchain technology is used to mine cryptocurrency at a colocation facility; (d) "Consensus protocol" means a set of rules and procedures that control how and when blockchain transactions are verified, validated, recorded, and recognized; (e) "Cryptocurrency" means a type of virtual currency that utilizes blockchain technology and that: 1. Can be digitally traded between users; or 2. Can be converted or exchanged for legal tender; (f) "Mine" means the process through which blockchain transactions are verified and accepted by adding the transactions to a blockchain ledger, which involves solving complex mathematical cryptographic proble ms associated with a block containing transaction data; and (g) "Peer-to-peer networks" has the same meaning as in KRS 42.747. (2) (a) The tax imposed by KRS 139.200 or 139.310 shall not apply to the sale or purchase of electricity that is used or consumed in the commercial mining of cryptocurrency. (b) Applications for the exemption shall be made on or after July 1, 2021, and on or before June 30, 2025. (c) The exemption shall apply to electricity sold or purchased on or after the effective date of application and before July 1, 2030. (3) (a) To qualify for the exemption provided in subsection (2) of this section, each person seeking the exemption shall file an application for each location when the commercial mining of cryptocurrency takes place in this state. (b) The application shall be in the form prescribed by the department and shall include: 1. The name and mailing address of the person seeking the exemption; 2. A description of the person's business activities; 3. The business location where the operations will be located, including the street address, city, and county; and 4. Any other information the department may require. (4) If the application is approved by the department: (a) The department shall issue a certificate which shall be effective as of the date of the application. The effective date of the application shall be: 1. The postmark date, if a paper application is filed; 2. The date received at the department's office, if an application is delivered in person; or 3. The electronic time stamp, if the application is filed electronically; and (b) The approved applicant shall report the amounts of the tax exemption claimed in subsection (2) of this section from the date of application to September 1, 2021, on or before November 1, 2021, and for each fiscal year thereafter on or before each November 1, as long as the exemption applies. (5) On or before January 1, 2022, and on or before each January 1 thereafter as long as the exemption applies, the department shall report to the Interim Joint Committee on Appropriations and Revenue: (a) The total amount of tax exemption that has been claimed for the immediately preceding fiscal year; and (b) The total cumulative amount of the exemption claimed. Effective: July 1, 2021 History: Created 2021 Ky. Acts ch. 122, sec. 1, effective July 1, 2021.

KRS 139.517 Sales tax incentive for alternative fuel, gasification, and renewable energy facilities

139.517. Sales tax incentive for alternative fuel, gasification, and renewable energy facilities (1) As used in this section: (a) "Approved company" has the same meaning as in KRS 154.27-010; (b) "Authority" means the Kentucky Economic Development Finance Authority established under KRS 154.20-010; (c) "Eligible project" has the same meaning as in KRS 154.27-010; and (d) "Tax incentive agreement" has the same meaning as in KRS 154.27-010. (2) Notwithstanding any other provision of KRS 134.580 or this chapter, an approved company constructing, retrofitting, or upgrading an eligible project may be eligible for a sales tax incentive of up to one hundred percent (100%) of the Kentucky sales or use tax paid on tangible personal property purchased during the construction, retrofit, or upgrade of the eligible project as provided in KRS 154.27-070. The tangible personal property shall be incorporated into the eligible project to qualify for the sales tax incentive. (3) The authority shall notify the department upon approval of an eligible project. The notification shall include the name of the eligible project, the name of the approved company, and the date on which the approved company is eligible to receive incentives under this section. (4) (a) An approved company seeking an incentive under this section shall file a request for incentives within sixty (60) days following the end of the calendar year in which the activation date occurs. The request shall include all documentation relating to the payment of the sales and use tax. (b) In subsequent years, the approved company shall file a request for incentives within sixty (60) days following the end of each calendar year. (c) The approved company shall file a final request for incentives within sixty (60) days from the earlier of the completion of the construction, retrofit, or upgrade of the eligible project, or the five (5) year anniversary of the activation date. (d) The request for incentives shall be in the form prescribed by the department through the promulgation of administrative regulations in accordance with KRS Chapter 13A. (5) Interest shall not be allowed or paid on any sales tax incentive payment made under the provisions of this section. (6) The sales tax incentive shall be reduced by the amount of vendor compensation allowed under KRS 139.570. (7) The approved company seeking the sales tax incentive payment shall execute information-sharing agreements prescribed by the department with contractors, vendors, and other related parties to verify the costs of tangible personal property eligible for the sales tax incentive payment under this section. (8) The department shall notify the authority of the incentive distributed to each approved company upon request. Effective: August 30, 2007 History: Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective August 30, 2007.

KRS 139.518 Sales or use tax refund on energy-efficiency products used at manufacturing plant

139.518. Sales or use tax refund on energy-efficiency products used at manufacturing plant (1) "Energy efficiency project" means a project undertaken by a person engaged in manufacturing whereby the person purchases new or replacement machinery or equipment that reduces the consumption of energy or energy-producing fuels in the manufacturing process at a plant facility in this state by at least fifteen percent (15%) measured in megawatts, gallons, or other measurable units of energy, while maintaining or increasing the number of units of production for that same period. For purposes of this section, "machinery or equipment" does not include: (a) Windows, lighting, or other improvements to buildings; or (b) Repair, replacement, and spare parts as defined in KRS 139.010. (2) (a) The consumption reduction and the production rate shall be calculated by comparing the consumption and production rates during a twelve (12) month period immediately after the new or replacement machinery or equipment is placed in service with the consumption and production rates for the twelve (12) month period submitted with the application for preapproval as required in subsection (4) of this section. (b) If the manufacturer believes that the method described in paragraph (a) of this subsection does not accurately reflect the reduction in energy or energy- producing fuels used in the manufacturing process, the manufacturer may submit additional information to the department for consideration. (3) Notwithstanding KRS 134.580(3) and 139.770, a person engaged in manufacturing at a plant facility located in this state may apply for a refund equal to the amount of Kentucky sales or use tax paid on the purchase of new or replacement machinery or equipment for an energy efficiency project purchased on or after July 1, 2008, reduced by the amount of vendor compensation allowed under KRS 139.570. (4) The manufacturer shall file an application for preapproval with the department, on a form provided by the department, prior to purchasing the new or replacement machinery or equipment that includes: (a) A description of the new or replacement machinery or equipment; (b) Documentation of the amount of energy or energy-producing fuels consumed in the twelve (12) month period prior to the application for preapproval; and (c) Any other information the department may request. (5) The department shall acknowledge receipt of the application for preapproval. (6) The manufacturer shall file an application for incentives that includes documentation of: (a) The achievement of the energy-efficiency standards required by subsection (1) of this section within eighteen (18) months from the time the machinery or equipment was placed in service; and (b) Verification that the Kentucky sales and use tax was paid on the purchase of the new or replacement machinery or equipment. (7) The burden of proof that the purchase of the machinery or equipment resulted in a decrease in the consumption of energy or energy-producing fuels shall be upon the applicant. (8) Interest shall not be allowed or paid on any refund made under this section. Effective: August 1, 2008 History: Amended 2008 Ky. Acts ch. 95, sec. 12, effective August 1, 2008. -- Created 2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 17, effective August 30, 2007.

KRS 139.519 Sales and use tax refund on building materials used for disaster recovery

139.519. Sales and use tax refund on building materials used for disaster recovery (1) As used in this section: (a) "Building materials" means all tangible personal property which enters into and becomes a permanent part of a building; (b) "Disaster" means damage resulting from a flood, rain storm, ice storm, wind storm, tornado, hurricane, earthquake, or terrorist attack; and (c) "Disaster area" means a county that has been declared a disaster by the President of the United States pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. secs. 5121 to 5206. (2) (a) Notwithstanding KRS 139.770, a legal owner of a building located in a disaster area and damaged, in whole or in part, as a result of a disaster may qualify for a refund of the sales and use tax paid on the purchase of building materials used to: 1. Repair that building; or 2. Construct a new building in a disaster area to replace the building damaged or destroyed by the disaster. (b) The refund allowed by paragraph (a) of this subsection shall be limited to the lesser of: 1. One hundred percent (100%) of the Kentucky sales and use tax actually paid, reduced by the amount of vendor compensation allowed under KRS 139.570; or 2. Six thousand dollars ($6,000) for each building in the disaster area which is damaged or destroyed by the disaster regardless of the number of legal owners. (3) Notwithstanding KRS 134.580 and 139.770, to qualify for the refund provided by subsection (2) of this section: (a) The building materials for which the sales and use tax refund is sought shall be purchased: 1. For the purpose of repairing or constructing a building within a disaster area; 2. a. By the legal owner of the building; or b. By a contractor who is under contract with the legal owner to incorporate the building materials into the building; and 3. On or after the date the disaster area is declared a disaster; and (b) The legal owner of the building for which the sales and use tax refund is sought shall: 1. Provide documentation that the legal owner is eligible for assistance from the Federal Emergency Management Agency, United States Department of Homeland Security; or 2. Provide a copy of the claim filed for insurance purposes for verification of the building in the disaster area that was damaged by the disaster, in whole or in part. (4) The application for the sales and use tax refund provided by subsection (2) of this section shall be filed with the department: (a) Within three (3) years from the date the disaster area is declared a disaster; and (b) By the legal owner of the building on the form prescribed by the department. (5) (a) The legal owner of the building shall file an application for refund and submit sales receipts, invoices, photographs, and any other documents supporting the legal owner's claim for refund, as requested by the department. (b) If the legal owner repairs or replaces more than one (1) building destroyed by the disaster, the legal owner shall file a separate application for refund for each building. (c) The legal owner of the building shall execute information-sharing agreements prescribed by the department with contractors, vendors, and other related parties so that the department may verify expenditures and the sales and use tax paid. (d) The legal owner of the building shall have no obligation to refund or otherwise return any amount of the sales and use tax refund received to any person who originally collected the tax and remitted it to the Commonwealth or to a contractor or subcontractor who paid the tax on the purchase of the materials to fulfill the terms of a construction contract. (6) Interest shall not be allowed or paid on any refund made under this section. (7) (a) The department shall prescribe and make available the forms required under this section, and may promulgate administrative regulations in accordance with KRS Chapter 13A that are necessary to implement this section. (b) By October 1 of each year, the department shall report to the Legislative Research Commission, for the preceding fiscal year, the number of owners that have applied for refunds under this section by disaster area and the value of the refunds issued by disaster area. Effective: April 16, 2012 History: Created 2012 Ky. Acts ch. 145, sec. 1, effective April 16, 2012. Legislative Research Commission Note (4/16/2012). 2012 Ky. Acts ch. 145, which created this statute as emergency legislation in Section 1, took effect upon being signed by the Governor on April 16, 2012. However, Section 5 of that Act provides that the Act applies retroactively to the disaster occurring on Wednesday, February 29, 2012, to Saturday, March 3, 2012.

KRS 139.520 Inapplicability of other statutory exemptions

139.520. Inapplicability of other statutory exemptions Unless otherwise expressly provided in this chapter, the exemptions provided for in any section, or sections, of the Kentucky Revised Statutes, including KRS 279.200 and 279.530, shall not be applicable with respect to the taxes levied by this chapter, and to the extent such section, or sections, are inconsistent herewith, the same are hereby repealed. Effective: February 5, 1960 History: Created 1960 Ky. Acts ch. 5, Art. I, sec. 84, effective February 5, 1960.

KRS 139.528 Tax rebate for sale of alternative jet fuel -- Definitions for section -- Use of rebate by commercial airport -- Application -- Administrative regulations -- Request and payment

139.528. Tax rebate for sale of alternative jet fuel -- Definitions for section -- Use of rebate by commercial airport -- Application -- Administrative regulations -- Request and payment (1) As used in this section: (a) "Agriculturally based alternative jet fuel" has the same meaning as in KRS 141.417; (b) "Alternative jet fuel" has the same meaning as in KRS 141.417; (c) "Commercial airport" has the same meaning as in KRS 183.011; and (d) "Effective date" means the first day of the month following the mo nth in which the department notifies the commercial airport that it is eligible to receive a sales tax rebate. (2) (a) Notwithstanding KRS 134.580 and 139.770, effective August 1, 2026, a commercial airport may be granted a sales tax rebate of up to sevent y-five percent (75%) of the Kentucky sales tax generated by the sale of agriculturally based alternative jet fuel and alternative jet fuel at a commercial airport located in Kentucky. The tax rebate shall be reduced by the vendor compensation allowed under KRS 139.570 on or after August 1, 2026. (b) The commercial airport shall have no obligation to refund or otherwise return any amount of the sales tax rebate to the persons from whom the sales tax was collected. (c) The total tax rebate for each commercial airport shall be reinvested by the commercial airport to maintain, improve, upgrade, and repair commercial airport facilities and operations. (3) (a) To be eligible for a sales tax rebate under this section, the commercial airport shall file an application with the department in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A. (b) The department shall: 1. Review the application; 2. Determine whether the applicant meets the requirements of this section; and 3. Notify the applicant in writing whether the applicant qualifies for a rebate and the effective date of qualification . (4) A qualified applicant shall file a request for a sales tax rebate within sixty (60) days following the end of each calendar quarter for sales made during the quarter. The request shall be submitted in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A, and shall include supporting information and documentation as determined necessary by the department to verify the requested tax rebate. (5) The department shall review the request, verify the amount of sales tax rebate due to the commercial airport, and pay the amount determined due within forty -five (45) days of receipt of the request and all necessary supporting information. (6) Interest shall not be allowed or paid on any sales tax rebate payment made under this section. Effective: April 27, 2026 History: Created 2026 Ky. Acts ch. 198, sec. 43, effective April 27, 2026.

KRS 139.530 Sales and use taxes are in addition to other taxes

139.530. Sales and use taxes are in addition to other taxes The taxes imposed by this chapter shall be in addition to any excise, license, privilege or other tax imposed under existing provisions of the Kentucky Revised Statutes, including KRS 279.200 and 279.530. Effective: February 5, 1960 History: Created 1960 Ky. Acts ch. 5, Art. I, sec. 85, effective February 5, 1960.

KRS 139.531 Application of taxes to horse industry

139.531. Application of taxes to horse industry (1) Notwithstanding any other provisions of this chapter to the contrary, the taxes imposed by this chapter shall apply to: (a) Fees paid for breeding a stallion to a mare in this state; (b) Sales of horses unless exempted under the provisions of subsections (2)(a) or (2)(d) of this section; and (c) The sales price of any horse claimed at any race meeting within this state. (2) In addition to any other exemptions provided for the horse industry in this chapter, the taxes imposed under the provisions of this chapter shall not apply to the following activities: (a) The sale or use of horses, or interests or shares in horses, provided the purchase or use is made for breeding purposes only; (b) The use of a stallion for breeding purposes by an owner or shareholder of the stallion; (c) The trading of stallion services by an owner or shareholder of the stallion; (d) The sale of horses less than two (2) years of age at the time of sale, provided the sale is made to a nonresident of Kentucky. For the purposes of this section, a nonresident means a person as defined in KRS 141.010 who is not a resident in this state as defined by KRS 141.010 or who is not commercially domiciled in this state as defined in KRS 141.901; (e) The boarding and training of horses within this state; and (f) The temporary use of horses within this state for purposes of racing, exhibiting, or performing. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 75, effective April 14, 2018; and ch. 207, sec. 75, effective April 27, 2018. -- Amended 2005 Ky. Acts ch. 168, sec. 132, effective June 1, 2005. -- Created 1976 Ky. Acts ch. 155, sec. 29. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together.

KRS 139.532 Repealed, effective July 1, 2004

139.532. Repealed, effective July 1, 2004 Catchline at repeal: Applicability of sales or use tax to gross receipts from various sources. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1985 (1st Extra. Sess.) Ky. Acts ch. 6, Pt. III, sec. 10, effective August 1, 1985.

KRS 139.533 Sales tax rebate on sales of admissions and tangible personal property at governmental facility -- Limitation beginning July 1, 2020

139.533. Sales tax rebate on sales of admissions and tangible personal property at governmental facility -- Limitation beginning July 1, 2020 (1) Beginning July 1, 2020, no additional applications for a sales tax rebate shall be accepted under this section. Any qualified applicant which has applied and been granted a sales tax rebate under this section shall continue to receive the sales tax rebates provided by this section as long as the governmental entity continues to qualify for the sales tax rebate under this section. (2) As used in this section: (a) "Effective date" means the first day of the month following the month in which the department notifies the governmental entity that it is eligible to receive a sales tax rebate; (b) "Governmental entity" means: 1. Any county with a population of less than one hundred thousand (100,000) residents; or 2. Any city, agency, instrumentality, quasi-governmental entity, or other political subdivision of the Commonwealth that is located in a county with a population of less than one hundred thousand (100,000) residents; and (c) 1. "Public facility" means a building owned and operated by a governmental entity that is a multipurpose facility open to the general public for performances and programs relating to arts, sports, and entertainment and which includes at least five hundred (500) seats but not more than eight thousand (8,000) seats. 2. "Public facility" does not include a university, college, or school gymnasium or auditorium. (3) (a) Notwithstanding KRS 134.580 and 139.770, effective July 1, 2010, a governmental entity may be granted a sales tax rebate of up to one hundred percent (100%) of the Kentucky sales tax generated by the sale of admissions to the public facility and the sale of tangible personal property at the public facility. The tax rebate shall be reduced by the vendor compensation allowed under KRS 139.570 on or after July 1, 2010. (b) The governmental entity shall have no obligation to refund or otherwise return any amount of the sales tax rebate to the persons from whom the sales tax was collected. (c) The total tax rebate for each public facility shall not exceed two hundred fifty thousand dollars ($250,000) in each calendar year. (4) (a) To be eligible for a sales tax rebate under this section, the governmental entity shall file an application with the department in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A. (b) The department shall: 1. Review the application; 2. Determine whether the applicant meets the requirements of this section; and 3. Notify the applicant in writing whether the applicant qualifies for a rebate and the effective date of qualification. (5) A qualified applicant shall file a request for a sales tax rebate within sixty (60) days following the end of each calendar quarter for sales made during the quarter. The request shall be submitted in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A, and shall include supporting information and documentation as determined necessary by the department to verify the requested tax rebate. (6) The department shall review the request, verify the amount of sales tax rebate due to the governmental entity, and pay the amount determined due within forty-five (45) days of receipt of the request and all necessary supporting information to the extent the cap established by subsection (3)(c) of this section has not been met. (7) Interest shall not be allowed or paid on any sales tax rebate payment made under this section. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 151, sec. 31, effective June 27, 2019. -- Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 74, effective June 26, 2009.

KRS 139.534 Tax refund for purchases and operation of certain communications and computer systems costing $100 million or more

139.534. Tax refund for purchases and operation of certain communications and computer systems costing $100 million or more (1) As used in this section: (a) "Approved company" means an eligible company that has received preliminary approval from the department for a sales and use tax refund under this section; (b) "Communications system" means a system composed of equipment used to provide communications services as defined in KRS 139.195. "Communications system" does not include repair, replacement, or spare parts as defined in KRS 139.010, installation materials, operating supplies, office supplies, or supplies to maintain the system; (c) "Computer software" means a set of coded instructions designed to cause a computer or automatic processing equipment to perform a task; (d) "Computer system" means a system composed of personal computers, laptops, computer software, computer servers, processors, coprocessors, memory devices, storage devices, input and output devices, and other similar devices deployed as part of the system configuration. "Computer system" does not include repair, replacement, or spare parts as defined in KRS 139.010, installation materials, operating supplies, office supplies, or supplies to maintain the system; (e) "Eligible company" means a corporation, limited liability company, partnership, registered limited liability partnership, sole proprietorship, business trust, or any other entity that is classified under the following 2007 North American Industry Classification System (NAICS) industry codes, including any subsequent updates or revisions thereto: 1. NAICS 511210, Software publishers; 2. NAICS 518210, Data processing, hosting, and related services; 3. NAICS 519130, Internet publishing, broadcasting, and web search portal business; or 4. NAICS 541511, Custom computer programming services; and (f) "Qualifying system" means: 1. A communications system; 2. A computer system; or 3. A combination thereof; that is subject to depreciation under Section 167 or 168 of the Internal Revenue Code, including assets expensed under Section 179 of the Internal Revenue Code. (2) Notwithstanding KRS 134.580(3) and 139.770, an approved company may qualify for a refund of up to one hundred percent (100%) of the Kentucky sales and use tax paid, reduced by the amount of vendor compensation allowed under KRS 139.570, on the purchase of a qualifying system. (3) To qualify for the refund provided in subsection (2) of this section, all of the following requirements shall be met: (a) The eligible company shall file an application for preliminary approval with the department prior to making the purchase; (b) Upon receiving preliminary approval, the approved company shall purchase the qualifying system on or after July 1, 2010, and shall spend one hundred million dollars ($100,000,000) or more on the purchase or purchases, excluding tax; (c) The qualifying system shall be installed at a single location in the Commonwealth within eighteen (18) months from the date the department preliminarily approves the eligible company for a sales and use tax refund as provided in subsection (5) of this section; and (d) The approved company shall use the qualifying system: 1. At the specified location until the property is fully depreciated or, if the approved company elects to expense the property under Section 179 of the Internal Revenue Code, the property shall be operated at the Kentucky location for the same time as if the property were depreciated under Section 167 or 168 of the Internal Revenue Code; and 2. In the business activities that are included within the NAICS industry codes listed in subsection (1)(e) of this section. (4) The eligible company shall file an application for preliminary approval with the department prior to purchasing the qualifying system. The application shall be in the form prescribed by the department and shall include: (a) The name and address of the eligible company; (b) A description of the eligible company's business activities and applicable NAICS code; (c) A description of the qualifying system and an explanation of how the components thereof will be used by the eligible company in its business activities; (d) The estimated cost of the system; (e) The business location where the system will be located; (f) The date of anticipated purchase; (g) The anticipated installation completion date; and (h) Any other information the department may require. (5) The department shall notify the eligible company that the application for preliminary approval has been approved or denied. (6) (a) To be eligible to receive a full refund, the approved company shall file a request for a sales and use tax refund within sixty (60) days following the completed installation of qualifying system. (b) Failure to file a refund request within sixty (60) days shall result in an adjustment to the refund amount paid as follows: 1. For late refund requests filed on or after the sixty-first day and prior to the one hundred eighty-first day after the completed installation, for each thirty (30) days, or portion thereof, that the refund request is late, the refund amount shall be reduced by one-twelfth (1/12) of the total amount determined by the department; and 2. Any refund request filed more than one hundred eighty (180) days after the completed installation shall be rejected, and no refunds shall be paid for the time period covered by the request. (7) Interest shall not be allowed or paid on any sales and use tax refund made under this section. (8) (a) If the approved company does not operate the qualifying system at the business location where the system was initially installed for the time period required under subsection (3)(d)1. of this section, or in the manner required under subsection (3)(d)2. of this section, the approved company shall notify the department that the requirements of subsection (3) of this section have not been met. The approved company shall repay the previously received sales and use tax refunds plus interest at the rate established in KRS 131.183 computed from the date the refund was issued. (b) If the approved company fails to pay the tax and interest within thirty (30) days of the notification, the department shall apply all applicable penalties provided in KRS 131.180. Effective: June 26, 2009 History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 35, effective June 26, 2009.

KRS 139.535 Sales and use tax incentive for approved companies on qualifying purchases for economic development projects approved under KRS 154.31- 030

139.535. Sales and use tax incentive for approved companies on qualifying purchases for economic development projects approved under KRS 154.31- 030 (1) As used in this section: (a) "Agreement" has the same meaning as in KRS 154.31-010; (b) "Approved company" has the same meaning as in KRS 154.31-010; (c) "Economic development project" has the same meaning as in KRS 154.31- 010; (d) "Electronic processing" has the same meaning as in KRS 154.31-010; (e) "Equipment" has the same meaning as in KRS 154.31-010; (f) "Project term" has the same meaning as in KRS 154.31-010; and (g) "Research and development" has the same meaning as in KRS 154.31-010. (2) Notwithstanding any provision of KRS 139.770 to the contrary, an approved company may receive a refund of sales and use tax paid on approved expenses after execution of the agreement for building and construction materials, and equipment used in research and development or for electronic processing at an economic development project as provided in the agreement executed under KRS 154.31-030. (3) (a) The approved company shall apply for the sales and use tax incentives as provided in this subsection. (b) For an economic development project with a project term of three (3) years or less, the approved company shall submit an application to receive the sales and use tax incentives to the department within sixty (60) days of the earlier of the completion of the economic development project or the expiration of the project term. (c) 1. For an economic development project with a project term of greater than three (3) years, the approved company shall, beginning with the third year of the project term, file with the department annually an information return, and any supporting documentation required by the department. The approved company shall not be eligible to receive the sales and use tax incentives until the project is complete and the application for incentives is submitted to the department as required by subparagraph 3. of this paragraph. 2. The information return and documentation shall be filed with the department within sixty (60) days following the end of the calendar year, and shall include information relating to prior unreported years. 3. The approved company shall file a final request for sales and use tax incentives within sixty (60) days of the earlier of the completion of the economic development project or the expiration of the project term. (4) The approved company shall have no obligation to refund or otherwise return any amount of the sales and use tax refund received to the person who originally collected the tax and remitted it to the Commonwealth. (5) An approved company shall execute information-sharing agreements prescribed by the department with contractors, vendors, and other related parties so that the department may verify expenditures and sales and use tax paid. (6) Interest shall not be allowed or paid on any incentives paid under this section. The department may examine any distribution of sales and use tax incentives within four (4) years from the date the final application for sales and use tax incentives is received. An overpayment resulting from the examination shall be repaid to the State Treasury. Any amount required to be repaid is subject to the interest provisions of KRS 131.183 and to the penalty provisions of KRS 131.180. (7) The department may promulgate administrative regulations in accordance with KRS Chapter 13A, and shall require the filing of forms designed by the department to reflect the intent of this section. Effective: June 26, 2009 History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 23, effective June 26, 2009. Legislative Research Commission Note (6/26/2009). In codification, the Reviser of Statutes has corrected a manifest clerical or typographical error in 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 23, subsection (7) (this statute), by replacing an incorrect reference to "this subchapter" with the correct reference to "this section" under the authority of KRS 7.136.

KRS 139.536 Tourism attraction project credit against sales tax

139.536. Tourism attraction project credit against sales tax (1) As used in this section: (a) "Agreement" means the same as defined in KRS 148.851; (b) "Approved company" means the same as defined in KRS 148.851; (c) "Approved costs" means the same as defined in KRS 148.851; (d) "Authority" means the same as defined in KRS 148.851; (e) "Cabinet" means the same as defined in KRS 148.851; (f) "Secretary" means the secretary of the Tourism, Arts and Heritage Cabinet; and (g) "Tourism development project" means the same as defined in KRS 148.851. (2) (a) In consideration of the execution of the agreement and notwithstanding any provision of KRS 139.770 to the contrary, the approved company excluding its lessees, may be granted a sales tax incentive based on the Kentucky sales tax imposed by KRS 139.200 on the sales generated by or arising at the tourism development project as provided in KRS 148.853. (b) The approved company shall have no obligation to refund or otherwise return any amount of this sales tax refund to the persons from whom the sales tax was collected. (3) The authority shall notify the department upon approval of a tourism development project. The notification shall include the name of the approved company, the name of the tourism development project, the date on which the approved company is eligible to receive incentives under this section, the term of the agreement, the estimated approved costs, and the specified percentage of the approved costs that the approved company is eligible to receive and any other information that the department may require. (4) The sales tax incentive shall be reduced by the amount of vendor compensation allowed under KRS 139.570. (5) The approved company seeking the incentives shall execute information-sharing agreements prescribed by the department with its lessees and other related parties to verify the amount of sales tax eligible for the sales tax refund under this section. (6) By October 1 of each year, the department shall certify to the authority and the secretary the sales tax liability of the approved companies receiving incentives under this section and KRS 148.851 to 148.860, and their lessees, and the amount of the sales tax refunds issued pursuant to this section for the preceding fiscal year. (7) Interest shall not be allowed or paid on any refund made under the provisions of this section. (8) The department may promulgate administrative regulations and require the filing of forms designed by the department to reflect the intent of this section and KRS 148.851 to 148.860. Effective: June 26, 2009 History: Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 42, effective June 26, 2009. -- Amended 2009 Ky. Acts ch. 16, sec. 12, effective June 25, 2009. -- Amended 2008 Ky. Acts ch. 95, sec. 13, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 423, effective June 20, 2005; ch. 95, sec. 14, effective June 20, 2005; ch. 184, sec. 14, effective June 20, 2005; and ch. 173, Pt. XXIV, sec. 1, effective March 20, 2005. -- Amended 2001 Ky. Acts ch. 1, sec. 8, effective June 21, 2001. -- Amended 2000 Ky. Acts ch. 315, sec. 2, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 48, sec. 5, effective July 15, 1998; and ch. 238, sec. 6, effective April 1, 1998. -- Created 1996 Ky. Acts ch. 335, sec. 6, effective July 15, 1996. Legislative Research Commission Note (6/27/2019). This statute was amended in 2019 Ky. Acts ch. 151, sec. 32 (HB 354). Although HB 354 was enacted, 2019 Ky. Acts ch. 196, sec. 16 (HB 458) repealed certain sections of that prior Act, including Section 32, and directed the Reviser of Statutes to not codify them. Therefore, the amendment to this statute in 2019 Ky. Acts ch. 151, sec. 32, was not codified. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

KRS 139.537 Exemption for coal-based near zero emission power plant

139.537. Exemption for coal-based near zero emission power plant (1) As used in this section, "coal-based near zero emission power plant" means a facility designed to achieve minimum emissions, built in Kentucky for demonstrating the feasibility of producing electricity and hydrogen from coal, whose site has been determined acceptable from an environmental impact perspective in a record of decision published by the United States Department of Energy after January 1, 2006, and that has received all applicable local planning and zoning approvals. (2) Notwithstanding all other provisions of this chapter, effective July 1, 2006, the taxes imposed by this chapter shall not apply to the sale, rental, storage, use, or other consumption of tangible personal property used to construct, repair, renovate, or upgrade a coal-based near zero emission power plant, including repair and replacement parts purchased for the plant. (3) The Cabinet for Economic Development, with input from the Energy and Environment Cabinet, shall establish standards for making applications for the exemptions provided in this section. Prior to the Cabinet for Economic Development granting approval, the Office of the Budget Director shall determine if the power plant results in a net positive economic impact to the Commonwealth and shall provide a certification in writing to the Cabinet for Economic Development. The Cabinet for Economic Development shall notify the department in writing that a power plant has qualified for the exemptions. (4) The Cabinet for Economic Development may promulgate administrative regulations necessary to administer the application and certification process of this section. (5) The department may promulgate administrative regulations necessary to administer the exemptions provided in this section. (6) The provisions of this section shall not apply to sales or purchases made after December 31, 2030. Effective: June 25, 2009 History: Amended 2009 Ky. Acts ch. 16, sec. 13, effective June 25, 2009. -- Created 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 72, effective June 28, 2006. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an earlier tax year, the provisions of this Act shall apply to taxable years beginning on or after January 1, 2007." Legislative Research Commission Note (7/15/2010). A reference to the "Environmental and Public Protection Cabinet" in this section has been changed in codification to the "Energy and Environment Cabinet" to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2009-535 and confirmed by the General Assembly in 2010 Ky. Acts ch. 24. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

KRS 139.538 Encouragement of motion picture industry -- Legislative purpose -- Definitions -- Tax credit -- Administrative regulations

139.538. Encouragement of motion picture industry -- Legislative purpose -- Definitions -- Tax credit -- Administrative regulations (1) It is the intent and purpose of the General Assembly in enacting this section and KRS 139.990(5), to encourage the motion picture industry to choose locations in the Commonwealth for the filming or producing of motion pictures, by providing an exemption from sales and use taxes. The exemption is accomplished by granting a refundable credit for sales and use taxes pa id on purchases made in connection with the filming or producing of motion pictures in Kentucky. (2) (a) On or after July 1, 2030, the department shall not accept any new applications as provided by subsection (4) of this section. (b) On or before November 1, 2026, and each November 1 thereafter as long as this refundable credit is available, the department shall report to the Legislative Research Commission for referral to the Interim Joint Committee on Appropriations and Revenue for all fiscal years data is available: 1. The name and address of the motion picture company; 2. By county, the filming location or locations in this state; 3. A brief description of the production or productions; 4. The amount of sales and use tax refunded to the motion picture company; 5. The total number of motion picture companies claiming the credit; and 6. The total amount of all sales and use tax refunded to motion picture production companies during each fiscal year reported. (c) The information required to be reported under this section shall not be considered confidential taxpayer information and shall n ot be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information. (3) As used in this section and KRS 139.990(5): (a) "Financial institution" means any bank or savings and loan ins titution in the Commonwealth which carries FDIC or FSLIC insurance; (b) "Motion picture production company" means a company engaged in the business of producing motion pictures intended for a theatrical release or for exhibition on national television either by a network or for national syndication, or television programs which will serve as a pilot for or a segment of a nationally televised dramatic series, either by a network or for national syndication; and (c) "Secretary" means the secretary of the Kent ucky Finance and Administration Cabinet. (4) Any motion picture production company that intends to film all or parts of a motion picture in the Commonwealth and desires to receive the credit provided for in subsection (7) of this section shall, prior to th e commencement of filming: (a) Provide the department with the address of a Kentucky location at which records of expenditures qualifying for the tax credit will be maintained, and with the name of the individual maintaining these records; and (b) File an application for the tax credit within sixty (60) days after the completion of filming or production in Kentucky. The application shall include a final expenditure report providing documentation for expenditures in accordance with administrative regulations promulgated by the department. (5) To qualify as a basis for the financial incentive, expenditures must be made by check drawn upon any Kentucky financial institution. (6) The twelve (12) month period during which expenditures may qualify for the tax credit shall begin on the date of the earliest expenditure reported. (7) Any motion picture production company which films or produces one (1) or more motion pictures in the Commonwealth during any twelve (12) month period shall, upon making application therefor and meeting the other requirements prescribed in this section, be entitled to a refundable tax credit equal to the amount of Kentucky sales and use tax paid for purchases made in connection with the filming or production of a motion picture. (8) The department shall, within sixty (60) days following the receipt of an application for a credit for sales and use tax paid, calculate the total expenditures of the motion picture production company for which there is documentation for funds expended in the Commonwealth, calculate the amount of credit to which the applicant is entitled, and certify the amount of the credit to the secretary. In the case of an audit, as provided for in subsection (13) of this section, the department shall certify the amount of the credit due to the secretary within one hundred eighty (180) days following the receipt of the motion picture production company's application. (9) Upon receipt of the certification of the amount of credit from the department, the secretary shall cause the refund of sales taxes paid to be remitted to the motion picture production company. For purposes of payment and funding thereof, the credit shall be paid in the same manner as other claims on the State Treasury are paid. They shall not be charged against any appropriation but shall be deducted from tax receipts for the current fiscal year. (10) The sales and use taxes paid by the motion picture production company for which a refundable tax credit is granted shall be deemed not to have been legally paid into the State Treasury, and the refund of the credit shall not be in violation of Section 59 of the Kentucky Constitution. (11) Any tax credit or part thereof paid to a motion picture production company as a result of error by the department shall be repaid by such company to the secretary. (12) Any tax credit or part thereof paid to a motion picture production company as a result of error or fraudulent statements made by the motion picture production company shall be repaid by such company to the secretary, together with interest, at the tax interest rate provided for in KRS 131.010(6). (13) The department may require that reported expenditures and the application for the tax credit from a motion picture production company be subjected to an audit by the department auditors to verify expenditures. (14) For companies in the business of producing films or television shows other than those which would qualify them for the credit under the definition of "motion picture production company," the department may require separate accounting records for the reporting of expenditures made in connection with the application for a refundable tax credit. (15) The department may promulgate appropriate administrative regulations to carry out the intent and purposes of this section. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 46, effective July 15, 2026. -- Amended 2018 Ky. Acts 171, sec. 46, effective April 14, 2018; and ch. 207, sec. 46, effective April 27, 2018. -- Amended 2008 Ky. Acts ch. 95, sec. 14, effective August 1, 2008. -- Created 1986 Ky. Acts ch. 464, sec. 1, effective July 15, 1986. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018. Legislative Research Commission Note (11/16/90). Because of the amendment of KRS 139.990 in 1988 Acts Ch. 135, § 6, the text of subsection (6) of that statute was reassigned as subsection (5). Pursuant to KRS 7.136(1), the cross -reference to that subsection in this statute has been changed to agree with this renumbering.

KRS 139.540 Taxes are due monthly

139.540. Taxes are due monthly The taxes imposed by this chapter are due and payable to the department monthly and shall be remitted on or before the twentieth day of the next succeeding calendar month. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 429, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 50, effective February 5, 1960.

KRS 139.550 Required monthly return

139.550. Required monthly return (1) On or before the twentieth day of the month following each calendar month, a return for the preceding month shall be filed with the department in a form the department may prescribe. (2) (a) For purposes of the sales tax, a return shall be filed by every retailer or seller. (b) For purposes of the use tax, a return shall be filed by every retailer engaged in business in the state and by every person purchasing tangible personal property, digital property, or an extended warranty service, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. (c) If a retailer's responsibilities have been assumed by a certified service provider as defined by KRS 139.795, the certified service provider shall file the return. (d) When a remote retailer's product is sold through a marketplace, then the marketplace provider that facilitated the sale shall file the return and remit the tax due on those sales. (3) Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath. (4) Persons not regularly engaged in selling at retail and not having a permanent place of business, but who are temporarily engaged in selling from trucks, portable roadside stands, concessionaires at fairs, circuses, carnivals, and the like, shall report and remit the tax on a nonpermit basis, under rules as the department shall provide for the efficient collection of the sales tax on sales. (5) The return shall show the amount of the taxes for the period covered by the return and other information the department deems necessary for the proper administration of this chapter. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 151, sec. 33, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 47, effective April 14, 2018; and ch. 207, sec. 47, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 20, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 430, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 26, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 51, effective February 5, 1960. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 33 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.560 Repealed, effective July 1, 2004

139.560. Repealed, effective July 1, 2004 Catchline at repeal: Contents of monthly return. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Amended 1972 Ky. Acts ch. 84, Pt. I, sec. 1. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 52.

KRS 139.570 Reimbursement of seller's collection costs

139.570. Reimbursement of seller's collection costs (1) (a) For reimbursement of the cost of collecting and remitting the tax, the seller shall deduct on each return one and three-quarters percent (1.75%) of the first one thousand dollars ($1,000) of tax due and one and one-half percent (1.5%) of the tax due in excess of one thousand dollars ($1,000), provided the amount due is not delinquent at the time of payment. (b) The total reimbursement allowed for each seller in any reporting period shall not exceed fifty dollars ($50). (2) Notwithstanding subsection (1) of this section, the rate of compensation for taxes collected or returns filed by certified service providers and other model sellers participating in the agreement as defined in KRS 139.781 shall be determined according to the terms of the agreement as provided in KRS 139.789(7). Effective: July 1, 2013 History: Amended 2013 Ky. Acts ch. 119, sec. 15, effective July 1, 2013. -- Repealed and reenacted 2009 Ky. Acts ch. 92, sec. 1, effective June 25, 2009. -- Amended 2008 Ky. Acts ch. 39, sec. 2, effective July 1, 2008. -- Amended 2005 Ky. Acts ch. 154, sec. 3, effective June 20, 2005. -- Amended 1990 Ky. Acts ch. 476, Pt. VII A, sec. 622, effective July 1, 1990. -- Amended 1972 Ky. Acts ch. 84, Pt. I, sec. 2. -- Amended 1968 Ky. Acts ch. 40, Part 1, sec. 9. -- Created 1960 Ky. Acts ch. 5, Art I, sec. 53.

KRS 139.580 Delivery of return and remittance of tax

139.580. Delivery of return and remittance of tax The person required to file the return shall deliver the return together with a remittance of the amount of the tax due to the department. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 431, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 54, effective February 5, 1960.

KRS 139.590 Returns for other than monthly periods

139.590. Returns for other than monthly periods (1) For purposes of facilitating the administration, payment, or collection of the taxes levied by this chapter, the department may, within its discretion, permit or require returns or tax payments for periods other than those prescribed by KRS 139.540 and 139.550. (2) Notwithstanding the provisions of KRS 139.550, any retailer who desires to file his return on a quarterly basis shall make application in writing to the department at least ninety (90) days prior to the due date of such quarterly return. When permitted, quarterly returns shall be filed in such manner as the department may prescribe. No retailer may change from a quarterly reporting system to monthly reporting without authorization of the department. (3) In no case shall a retailer be permitted to file quarterly unless monthly payments for the immediately preceding month are made on the basis of taxable gross receipts or total sales price of property used, consumed, or stored, as the case may be. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 432, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 55, effective February 5, 1960.

KRS 139.600 Sales tax on rental receipts

139.600. Sales tax on rental receipts For the purposes of the sales tax, gross receipts from rentals or leases of tangible personal property shall be reported and the tax paid in accordance with such rules and regulations as the department may prescribe. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 433, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 56, effective February 5, 1960.

KRS 139.610 Extension of time for filing return

139.610. Extension of time for filing return (1) The department shall upon written request received on or prior to the due date of the return or tax, for good cause satisfactory to the department, extend the time for filing the return or paying the tax for a period not exceeding thirty (30) days. (2) Any person to whom an extension is granted and who pays the tax within the period for which the extension is granted shall pay, in addition to the tax, interest at the tax interest rate as defined in KRS 131.010(6) from the date on which the tax would otherwise have been due. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 434, effective June 20, 2005. -- Amended 1992 Ky. Acts ch. 338, sec. 5, effective August 1, 1992. -- Amended 1976 Ky. Acts ch. 155, sec. 19. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 58, effective February 5, 1960.

KRS 139.620 Time for assessing taxes shown owing by the return

139.620. Time for assessing taxes shown owing by the return (1) As soon as practicable after each return is received, the department shall examine and audit it. If the amount of tax computed by the department is greater than the amount returned by the taxpayer, the excess shall be assessed by the department within four (4) years from the date the return was filed, except as provided in subsection (2), and except that in the case of a failure to file a return or of a fraudulent return the excess may be assessed at any time. A notice of such assessment shall be mailed to the taxpayer. The time herein provided may be extended by agreement between the taxpayer and the department. (2) For the purposes of this section, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day. (3) When a business is discontinued, a determination may be made at any time thereafter within the periods specified in subsection (1) as to liability arising out of that business, irrespective of whether the determination is issued prior to the due date of the liability as otherwise specified in this chapter. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 435, effective June 20, 2005. -- Amended 1990 Ky. Acts ch. 414, sec. 4, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 233, sec. 29, effective June 17, 1978. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 59, effective February 5, 1960.

KRS 139.630 Repealed, 1976

139.630. Repealed, 1976 Catchline at repeal: Interest on tax shown owing by return. History: Repealed 1976 Ky. Acts ch. 155, sec. 30. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 60, effective February 5, 1960.

KRS 139.640 Offset of overpayments against tax owing

139.640. Offset of overpayments against tax owing In making a determination of tax liability the department may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on the underpayments. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 436, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 61, effective February 5, 1960.

KRS 139.650 Interest on overdue tax

139.650. Interest on overdue tax In every case, any tax not paid on or before the due date shall bear interest at the tax interest rate as defined in KRS 131.010(6) from the date due until the date of payment. Effective: July 1, 1982 History: Amended 1982 Ky. Acts ch. 452, sec. 20, effective July 1, 1982. -- Amended 1976 Ky. Acts ch. 155, sec. 21. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 62, effective February 5, 1960.

KRS 139.660 Security for compliance with chapter

139.660. Security for compliance with chapter (1) Whenever it is deemed necessary to insure compliance with this chapter, the department may require any person subject thereto to place with it such security as the department may determine. The amount of the security shall be fixed by the department but, except as provided in subsection (2), shall not be greater than twice the estimated average liability of persons filing returns for quarterly periods or three (3) times the estimated average liability of persons required to file returns for monthly periods, determined in such manner as the department deems proper. (2) In case of persons habitually delinquent in their obligations under this chapter, the amount of the security shall not be greater than three (3) times the average liability of persons filing returns for quarterly periods or five (5) times the average liability of persons required to file returns for monthly periods. (3) The limitations herein provided apply regardless of the type of security placed with the department. (4) The amount of the security may be increased or decreased by the department subject to the limitations herein provided. (5) (a) The department may sell the security at public auction if it becomes necessary to do so in order to recover any tax, interest or penalty due. Security in the form of a bearer bond issued by the United States or any state or local governmental unit which has a prevailing market price may, however, be sold by the department at a private sale at a price not lower than the prevailing market price thereof. (b) The department shall give notice of the date, time and place of the sale to the person who placed the security by certified mail addressed to him at his last known address as it appears in the records of the department, or delivery to such person. (c) Delivery means handing it to such person or leaving it at his place of business with the person in charge thereof; or, if there is no one in charge, leaving it in a conspicuous place therein; or, if the place of business is closed or the person to be served has no place of business, leaving it at his dwelling house with some person of suitable age and discretion residing therein. Said notice, if by certified mail, shall be postmarked no later than ten (10) days prior to said sale; if by delivery, said notice shall be given no later than ten (10) days prior to said sale. (6) Upon any sale any surplus above the amounts due shall be returned to the person who placed the security. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 437, effective June 20, 2005. -- Amended 1976 Ky. Acts ch. 155, sec. 20. -- Amended 1972 Ky. Acts ch. 84, Pt. I, sec. 3. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 63, effective February 5, 1960.

KRS 139.670 Withholding amount of tax liability by purchaser of business

139.670. Withholding amount of tax liability by purchaser of business If any retailer liable for any amount under this chapter sells out his business or stock of goods, or otherwise quits business, his successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the department showing that it has been paid or a certificate stating that no amount is due. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 438, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 64, effective February 5, 1960.

KRS 139.680 Procedure in case of failure to withhold

139.680. Procedure in case of failure to withhold (1) If the purchaser of a business or stock of goods fails to withhold the purchase price as required, he becomes personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price, valued in money. Within sixty (60) days after receiving a written request from the purchaser for a certificate, or within sixty (60) days from the date the former owner's records are made available for audit, whichever period expires the later, but in any event not later than ninety (90) days after receiving the request, the department shall either issue the certificate or mail notice to the purchaser at his address as it appears on the records of the department of the amount that must be paid as a condition to issuing the certificate. (2) Failure of the department to mail the notice will release the purchaser from any further obligation to withhold the purchase price as above provided. (3) The time within which the obligation of a successor may be enforced shall start to run at the time the retailer sells out his business or stock of goods or at the time that the determination against the retailer becomes final, whichever event occurs the later. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 439, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 65, effective February 5, 1960.

KRS 139.690 Repealed, effective July 1, 2004

139.690. Repealed, effective July 1, 2004 Catchline at repeal: Condition of refund on ground that use tax is not applicable. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 66, effective February 5, 1960.

KRS 139.700 Collection of tax by out-of-state retailer

139.700. Collection of tax by out-of-state retailer The department may, in its discretion, upon application authorize the collection of the tax imposed herein by any retailer not engaged in business within this state who, to the satisfaction of the department furnishes adequate security to insure collection and payment of the tax. Such retailer shall be issued a permit to collect such tax in such manner, and subject to such regulation and agreements as the department shall prescribe. When so authorized, it shall be the duty of such retailer to collect the tax upon all tangible personal property, digital property, or extended warranty services sold to his knowledge for use within this state, in the same manner and subject to the same requirements as a retailer engaged in business within this state. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 48, effective April 14, 2018; and ch. 207, sec. 48, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 21, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 440, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 67, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.710 Administration by department

139.710. Administration by department The department shall administer the provisions of this chapter and shall have all of the powers, rights, duties, and authority with respect to the assessment, collection, refunding, and administration of the taxes levied by this chapter, conferred generally upon the department by the Kentucky Revised Statutes including Chapters 131, 134, and 135. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 441, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 68, effective February 5, 1960.

KRS 139.720 Records required to be kept -- For how long

139.720. Records required to be kept -- For how long (1) Every seller, every retailer, and every person storing, using and otherwise consuming in this state tangible personal property, digital property, or services included in KRS 139.200 purchased from a retailer shall keep such records, receipts, invoices, and other pertinent papers in such form as the department may require. (2) Every such seller, retailer, or person who files the returns required under this chapter shall keep such records for not less than four (4) years from the making of such records unless the department in writing sooner authorizes their destruction. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 151, sec. 34, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 171, sec. 49, effective April 14, 2018; and ch. 207, sec. 49, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 22, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 442, effective June 20, 2005. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 69, effective February 5, 1960. Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 34 of that Act apply to transactions occurring on or after July 1, 2019. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.730 Sales and use tax reports -- Vendor list

139.730. Sales and use tax reports -- Vendor list (1) In the administration of the sales and use tax, the department may require the filing of reports by any person or class of persons with possession or custody of information relating to sales of tangible personal property, digital property, or an extended warranty service, the storage, use, or other consumption of which is subject to the tax. (2) Any event coordinator of a festival or similar event shall provide the department with a list of vendors selling at the event any tangible property, digital property, or services listed in KRS 139.200. (3) The report shall be filed at the time specified by the department and shall contain such information as the department may require. Effective: July 14, 2022 History: Amended 2022 Ky. Acts ch. 212, sec. 43, effective July 14, 2022. -- Amended 2018 Ky. Acts ch. 171, sec. 50, effective April 14, 2018; and ch. 207, sec. 50, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 23, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 443, effective June 20, 2005. -- Amended 1994 Ky. Acts ch. 11, sec. 1, effective July 15, 1994. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 70, effective February 5, 1960.

KRS 139.735 Restrictions on administrative regulations and policies

139.735. Restrictions on administrative regulations and policies (1) The department shall not promulgate any administrative regulation or policy, either written or unwritten, whose provisions are more stringent than KRS 139.270 regarding the acceptance of resale certificates, exemption certificates, agriculture exemption license numbers, Streamlined Sales and Use Tax Agreement Certificates of Exemption, and direct pay authorizations. (2) It shall be mandatory upon the department during any audit process to honor resale certificates, exemption certificates, agriculture exemption license numbers, Streamlined Sales and Use Tax Agreement Certificates of Exemption, and direct pay authorizations when executed according to KRS 139.270 and any administrative regulation promulgated by the department concerning direct pay authorizations. Effective:March 30, 2022 History: Amended 2022 Ky. Acts ch. 58, sec. 4, effective March 30, 2022. -- Amended 2011 Ky. Acts ch. 33, sec. 6, effective July 1, 2011. -- Amended 2008 Ky. Acts ch. 95, sec. 15, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 444, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 27, effective July 1, 2004. -- Created 1988 Ky. Acts ch. 135, sec. 7, effective July 15, 1988.

KRS 139.740 Requirements in action on debt arising out of sale of tangible personal property

139.740. Requirements in action on debt arising out of sale of tangible personal property (1) No judgment shall be entered and no garnishment or attachment shall be permitted by any court in this Commonwealth in an action for the collection of a debt arising out of the sale of tangible personal property, digital property, or extended warranty services unless an affidavit containing a certificate of service is executed by the plaintiff to the effect that all use taxes due the Commonwealth have been paid. (2) Prior to the filing of the affidavit, required under subsection (1) of this section, the plaintiff (including counterclaimants or crossclaimants) shall, by first-class mail, serve upon the department a copy of the affidavit. Within fifteen (15) days from the date of the filing of the affidavit the department may file a counteraffidavit. In such event no judgment shall be entered or garnishment or attachment issued until proof has been taken concerning the matters at issue in the affidavit and counteraffidavit. (3) In the event the use tax levied by this chapter is found to be due and unpaid the plaintiff may elect to pay the tax to the department, and the amount of the tax paid by the plaintiff shall be recovered as a part of any judgment entered. If the plaintiff does not elect to pay the use tax found to be due and unpaid, judgment for the amount of the tax shall be awarded to the Commonwealth. (4) Any judgment awarded to the Commonwealth under this section shall constitute a prior claim to any judgment obtained by the plaintiff. (5) Tax as defined herein includes interest accrued thereon at the tax interest rate as defined in KRS 131.010(6). (6) The provisions of this section shall not apply to a plaintiff holding a retail permit issued pursuant to this chapter. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 51, effective April 14, 2018; and ch. 207, sec. 51, effective April 27, 2018. -- Amended 2009 Ky. Acts ch. 73, sec. 24, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 445, effective June 20, 2005. -- Amended 1982 Ky. Acts ch. 452, sec. 21, effective July 1, 1982. -- Amended 1976 Ky. Acts ch. 155, sec. 22. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 71, effective February 5, 1960. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch. 207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.

KRS 139.750 Repealed, effective July 1, 2004

139.750. Repealed, effective July 1, 2004 Catchline at repeal: Deliveryman's duty to collect use tax -- Exceptions. History: Repealed 2003 Ky. Acts ch. 124, sec. 45, effective July 1, 2004. -- Created 1960 Ky. Acts ch. 5, Art. I, sec. 73, effective February 5, 1960.

KRS 139.760 Revocation or suspension of permit -- Prohibition of suit to delay or restrain collection of tax

139.760. Revocation or suspension of permit -- Prohibition of suit to delay or restrain collection of tax (1) Whenever any person fails to comply with any provisions of this chapter or any administrative regulation of the department relating to the provisions of this chapter, the department may revoke or suspend any one (1) or more of the permits held by the person. (2) Whenever any person uses an automated business record falsification device, as described in KRS 517.130, to violate any provision of this chapter or any administrative regulation of the department relating to the provisions of this chapter, the department shall revoke each permit held by the person for a period of ten (10) years. (3) The department shall not issue a new permit after the revocation of a permit unless it is satisfied that the former holder of the permit will comply with the provisions of this chapter and the regulations relating thereto. (4) No suit shall be maintained in any court to restrain or delay the collection or payment of any tax levied by this chapter. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 9, sec. 2, effective July 15, 2014. -- Amended 2005 Ky. Acts ch. 85, sec. 446, effective June 20, 2005. -- Amended 1964 Ky. Acts ch. 141, sec. 39. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 74.

KRS 139.770 Refund or credit of taxes paid -- Claims

139.770. Refund or credit of taxes paid -- Claims (1) The taxes paid pursuant to the provisions of this chapter shall be refunded or credited in the manner provided in KRS 134.580. (2) A claim for refund or credit shall be made on a form prescribed by the department and shall contain such information as the department may require. (3) No taxpayer or certified service provider as provided by KRS 139.795 shall be entitled to a refund or credit of the taxes paid pursuant to the provisions of this chapter where the taxes have been collected from a purchaser as provided by KRS 139.210 and 139.340, unless the amount of taxes collected from the purchaser are refunded to the purchaser by the taxpayer or certified service provider as provided by KRS 139.795 who paid the taxes to the State Treasury. (4) Where applicable, the amount of any claim for refund or credit shall be reduced by the amount deducted by the taxpayer or certified service provider as provided by KRS 139.795 pursuant to KRS 139.570 at the time the taxes were paid to the State Treasury. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 447, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 28, effective July 1, 2004. -- Amended 1996 Ky. Acts ch. 344, sec. 5, effective July 15, 1996. -- Created 1978 Ky. Acts ch. 233, sec. 31, effective June 17, 1978.

KRS 139.771 Overcollection of sales or use taxes

139.771. Overcollection of sales or use taxes (1) For all sales and use tax transactions where the purchaser believes that tax has been charged in error, a cause of action against the retailer for the overcollected sales or use taxes does not accrue until the purchaser has provided notice to the retailer and the retailer has had sixty (60) days to respond. The notice to the retailer shall contain the information necessary to determine the validity of the inquiry. (2) In connection with a purchaser's inquiry to a retailer regarding overcollected sales or use taxes, a retailer shall be presumed to have a reasonable business practice, if in the collection of the sales or use tax the retailer: (a) Uses either a certified service provider, certified automated system, or a proprietary system as provided by KRS 139.795; and (b) Has remitted all taxes collected less any deductions, credits or collection allowances. (3) Nothing in this section shall extend any person's time to seek a refund of sales or use taxes collected or remitted to the state beyond the provisions of KRS 134.580. Effective: July 1, 2004 History: Created 2003 Ky. Acts ch. 124, sec. 30, effective July 1, 2004.

KRS 139.775 Mobile telecommunications services -- Adoption of federal provisions -- Notification of home service provider about errors -- Correction and refund -- Exhaustion of remedies

139.775. Mobile telecommunications services -- Adoption of federal provisions -- Notification of home service provider about errors -- Correction and refund -- Exhaustion of remedies (1) As it relates to the taxation under this chapter of mobile telecommunications services as defined in KRS 139.195, the provisions of 4 U.S.C. secs. 116 to 126 are hereby adopted and incorporated by reference. (2) If a communications services or mobile telecommunications services customer believes that a tax, charge, fee, or assignment of place of primary use or taxing jurisdiction on a bill is incorrect, the customer shall, within four (4) years of the date of the bill, notify the home service provider about the alleged error, in writing. This notification shall include the street address for the customer's place of primary use, the account name and number for which the customer seeks a correction, a description of the alleged error, and any other information that the home service provider reasonably requires. Within sixty (60) days of receiving the customer's notification, the home service provider shall either correct the error and refund or credit all taxes, charges, and fees incorrectly charged to the customer, or explain to the customer in writing why the bill was correct and why a refund or credit will not be made. (3) A customer shall not have a cause of action against a home service provider for any erroneously collected taxes, charges, or fees until the customer has exhausted the procedure set forth in subsection (2) of this section. (4) Nothing in this section shall extend any person's time to seek a refund of sales or use taxes collected or remitted to the state beyond the provisions of KRS 134.580. Effective: July 1, 2004 History: Amended 2003 Ky. Acts ch. 124, sec. 29, effective July 1, 2004. -- Created 2002 Ky. Acts ch. 69, sec. 2, effective July 15, 2002. Legislative Research Commission Note (7/15/2002). The provisions of this statute created in 2002 Ky. Acts ch. 69, sec. 2, "take effect for customer service bills issued after August 1, 2002." 2002 Ky. Acts ch. 69, sec. 6.

KRS 139.776 Repealed, 2007

139.776. Repealed, 2007 Catchline at repeal: Multiple points of use exemption form. Effective: July 1, 2007 History: Repealed 2007 Ky. Acts ch. 141, sec. 29, effective July 1, 2007. -- Created 2003 Ky. Acts ch. 124, sec. 24, effective July 1, 2004.

KRS 139.777 Direct mail sourcing

139.777. Direct mail sourcing (1) (a) This section applies for purposes of uniformly sourcing: 1. Advertising and promotional direct mail transactions; 2. Other direct mail transactions; and 3. Bundled transactions that include advertising and promotional direct mail if the primary purpose of the transaction is the sale of advertising and promotional direct mail. (b) This section does not: 1. Impose requirements regarding the taxation of advertising and promotional direct mail or other direct mail or the application of sales for resale or other exemptions; or 2. Apply to any transaction that includes the development of billing information or the provision of any data processing services that is more than incidental, regardless of whether advertising and promotion direct mail is included in the same mailing. (c) For a transaction characterized as a sale of services, this section applies only if the service is an integral part of the production and distribution of printed material that meets the definition of advertising and promotional direct mail or other direct mail. (2) (a) A purchaser of advertising and promotional direct mail may provide the retailer with: 1. A direct pay permit; 2. A fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption or other written statement approved, authorized, or accepted by the department; or 3. Information to show the jurisdictions to which the advertising and promotional direct mail is to be delivered to recipients. (b) If the purchaser provides the retailer with a direct pay permit, a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption, or other written statement approved, authorized, or accepted by the department: 1. The retailer, in the absence of bad faith, shall be relieved of all obligations to collect, pay, or remit the applicable tax involving other direct mail to which the direct pay permit, Streamlined Sales and Use Tax Agreement Certificate of Exemption, or written statement apply; and 2. The purchaser shall source the sale to the jurisdictions to which the advertising and promotional direct mail is to be delivered to the recipients and shall pay or remit the applicable tax on a direct-pay basis. (c) If the purchaser provides the retailer information showing the jurisdictions to which the advertising and promotional direct mail is delivered to recipients, the retailer shall source the sale and collect the tax according to the delivery information provided by the purchaser. In the absence of bad faith, the retailer is relieved of any further obligation to collect the tax on any transaction where the retailer has collected the tax pursuant to the delivery information provided by the purchaser. (d) If the purchaser of advertising and promotional direct mail does not provide the retailer with a direct pay permit, a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption, or other written statement approved, authorized, or accepted by the department or delivery information, as provided by subsection (2)(a)of this section, the retailer shall source the sale to the address from where the advertising and promotional direct mail was shipped. (e) Nothing in this subsection shall prohibit the department from disallowing credit for tax paid in another jurisdiction on sales sourced according to this subsection if the advertising and promotional direct mail is delivered to recipients in this state. (3) (a) The purchaser of other direct mail may provide the retailer with: 1. A direct pay permit; or 2. A fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption or other written statement approved, authorized, or accepted by the department. (b) If the purchaser provides the retailer a direct pay permit, a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption, or other written statement approved, authorized, or accepted by the department: 1. The retailer, in the absence of bad faith, shall be relieved of all obligations to collect, pay, or remit the applicable tax involving other direct mail to which the direct pay permit, Streamlined Sales and Use Tax Agreement Certificate of Exemption, or written statement apply; and 2. The purchaser shall source the sale to the jurisdictions to which the other direct mail is to be delivered to the recipients and shall report and remit the applicable tax on a direct-pay basis. (c) If the purchaser of other direct mail does not provide the retailer with a direct pay permit, a fully completed Streamlined Sales and Use Tax Agreement Certificate of Exemption, or other written statement approved, authorized, or accepted by the department as provided in paragraph (a) of this subsection, the retailer shall source the sale to the location indicated by an address for the purchaser that is available from the retailer's business records that are maintained in the ordinary course of the retailer's business when use of this address does not constitute bad faith. (4) If both advertising and promotional direct mail and other direct mail are combined in a single mailing, the sale shall be sourced as other direct mail as provided in subsection (3) of this section. (5) Nothing in this section shall limit a purchaser's: (a) Obligation for sales or use tax to any state to which the advertising and promotional direct mail or other direct mail is delivered; (b) Right under local, state, federal, or constitutional law to a credit for sales or use taxes legally due and paid to other jurisdictions; or (c) Right to a refund of sales or use taxes overpaid to any jurisdiction. Effective: July 1, 2011 History: Amended 2011 Ky. Acts ch. 33, sec. 7, effective July 1, 2011. -- Created 2003 Ky. Acts ch. 124, sec. 25, effective July 1, 2004. Legislative Research Commission Note (7/1/2011). The Reviser of Statutes has corrected a manifest clerical or typographical error in subsection (2)(e) of this statute under the authority of KRS 7.136.

KRS 139.778 Tangible personal property purchased out of state -- Collection of tax at titling or first registration -- Exemptions -- Remittance to department

139.778. Tangible personal property purchased out of state -- Collection of tax at titling or first registration -- Exemptions -- Remittance to department (1) The county clerk shall collect any applicable sales and use tax for the following tangible personal property purchased out of state at the time the property is offered for titling or first registration: (a) Recreational vehicles as defined in KRS 186.650; (b) Manufactured homes as defined in KRS 186.650; (c) Motorboats as defined in KRS 235.010; (d) Vessels as defined in KRS 235.010; and (e) Any other tangible personal property offered for titling or first registration in Kentucky. (2) The tax shall be collected unless the owner: (a) Presents a tax receipt from the seller verifying that the tax has been previously paid; (b) Demonstrates that the transfer of the property is exempt under KRS 139.470(3); or (c) Provides a properly executed resale certificate or certificate of exemption in accordance with KRS 139.270. (3) The tax collected by the county clerk shall be reported and remitted to the department on forms provided by the department. (4) For services provided in collecting the tax, the county clerk shall deduct a fee of three percent (3%) of the tax collected and remit the balance to the department as provided in KRS 138.464. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 207, sec. 161, effective April 27, 2018. -- Created 2006 Ky. Acts ch. 252, Pt. XIV, sec. 1, effective January 1, 2007.

KRS 139.779 Tax receipts, interest, and penalties from sale of motor vehicle to be deposited in road fund -- Exceptions

139.779. Tax receipts, interest, and penalties from sale of motor vehicle to be deposited in road fund -- Exceptions All tax receipts, interest, and penalties resulting from the sale of a motor vehicle subject to sales tax under KRS 139.200 and not otherwise exempt from sales tax under KRS 139.470 shall be deposited in the road fund, unless the motor vehicle has been exempted from the motor vehicle usage tax under KRS 138.460(3) for nonhighway use. All tax receipts, interest, and penalties resulting from the sale of a motor vehicle, as defined in KRS 138.450, which is purchased for nonhighway use shall continue to be deposited in the general fund. Effective: August 1, 2006 History: Created 2006 Ky. Acts ch. 252, Pt. XXXVI, sec. 2, effective August 1, 2006.

KRS 139.780 Short title

139.780. Short title KRS 139.780 to 139.795 may be cited as the Uniform Sales and Use Tax Administration Act. Effective: June 21, 2001 History: Created 2001 Ky. Acts ch. 6, sec. 2, effective June 21, 2001.

KRS 139.781 Definitions for KRS 139.780 to 139.795

139.781. Definitions for KRS 139.780 to 139.795 As used in KRS 139.780 to 139.795: (1) "SSUTA agreement" means the streamlined sales and use tax agreement; (2) "Certified automated system" means software certified jointly by the states that are signatories to the SSUTA agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction; (3) "Certified service provider" means an agent certified jointly by the states that are signatories to the SSUTA agreement to perform all of the seller's sales tax functions; (4) "Governing board" means a group of representatives from each member state that has the authority and responsibility for the administration and operation of the SSUTA agreement; (5) "Member state" means a state that is found to be in compliance with the SSUTA agreement and that has made the necessary changes to statutes, rules, regulations, or other authorities necessary to bring the state into compliance and those changes are currently in effect; (6) "Model 1 seller" means a seller that has selected a certified service provider as its agent to perform all the seller's sales and use tax functions, other than the seller's obligation to remit the tax on its own purchases; (7) "Model 2 seller" means a seller that has selected a certified service provider to perform a part of its sales and use tax functions, but retains responsibility for remitting the tax; (8) "Model 3 seller" means a seller that: (a) Has sales in at least five (5) member states; (b) Has total annual sales of at least five hundred million dollars ($500,000,000); (c) Has a proprietary system that calculates the amount of tax due each jurisdiction; and (d) Has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. For purposes of this subsection, a seller shall include an affiliated group of sellers using the same proprietary system; (9) "Person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity; (10) "Product-based exemption" means an exemption based on the description of the product, and not based on who purchases the product or how the purchaser intends to use the product; (11) "Sales tax" means the tax levied under KRS 139.200; (12) "Seller" means any person making sales, leases, or rentals of personal property or services; (13) "State" means any state of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; (14) "Taxability matrix" means a downloadable preformatted table approved by the governing board that contains the member state's interpretation as to the taxability of the terms found in the SSUTA agreement Appendix C, Library of Definitions and made available electronically on the member state's Web site; (15) "Use-based exemption" means an exemption based on a specific use of the product by the purchaser; and (16) "Use tax" means the tax levied under KRS 139.310. Effective: August 1, 2008 History: Amended 2008 Ky. Acts ch. 95, sec. 2, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 11, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 3, effective June 21, 2001.

KRS 139.783 Purpose of KRS 139.780 to 139.795

139.783. Purpose of KRS 139.780 to 139.795 It is the intent and purpose of the General Assembly in enacting KRS 139.780 to 139.795 to encourage and increase voluntary compliance with Kentucky's sales and use tax law by entering into the SSUTA agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 21, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 1, effective June 21, 2001.

KRS 139.785 Authority of department -- Representation of state

139.785. Authority of department -- Representation of state (1) The department is authorized and directed to enter into the SSUTA agreement with one (1) or more states to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance for all sellers and for all types of commerce. To further the SSUTA agreement, the department is authorized to act jointly with other states that are members of the SSUTA agreement to establish standards for certification of a certified service provider and certified automated system and establish performance standards for multistate sellers. (2) The department is further authorized to take other actions reasonably required to implement the provisions set forth in KRS 139.780 to 139.795. Other actions authorized by this section include but are not limited to the adoption of rules and regulations and the joint procurement, with other member states, of goods and services to further the cooperative agreement. Notwithstanding the provisions of KRS Chapter 13A, the department may issue educational bulletins to the extent necessary to enhance the understanding of and compliance with terms of the agreement. (3) The commissioner of the Department of Revenue or the commissioner's designee, the state budget director or the director's designee, and two (2) legislators are authorized to represent this state before the other states that are signatories to the SSUTA agreement. One (1) member of the Senate shall be appointed by the President of the Senate, and one (1) member of the House of Representatives shall be appointed by the Speaker of the House of Representatives. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 22, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 448, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 31, effective July 1, 2004. -- Created 2001 Ky. Acts ch. 6, sec. 4, effective June 21, 2001.

KRS 139.787 Effect of agreement on Kentucky law

139.787. Effect of agreement on Kentucky law No provision of the SSUTA agreement authorized by KRS 139.780 to 139.795 in whole or in part invalidates or amends any provision of the law of this state. Adoption of the SSUTA agreement by the state does not amend or modify any law of this state. Implementation of any condition of the SSUTA agreement in this state, whether adopted before, during, or after membership of this state in the SSUTA agreement, shall be by action of this state. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 23, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 5, effective June 21, 2001.

KRS 139.789 Requirements for entering into agreement

139.789. Requirements for entering into agreement The department shall not enter into the SSUTA agreement unless the SSUTA agreement requires each state to abide by the following requirements: (1) The SSUTA agreement shall set restrictions to achieve more uniform state rates through the following: (a) Limiting the number of state rates; (b) Limiting the application of maximums on the amount of state tax that is due on a transaction; and (c) Limiting the application of thresholds on the application of state tax. (2) The SSUTA agreement shall establish uniform standards for the following: (a) The sourcing of transactions to taxing jurisdictions; (b) The administration of exempt sales; (c) The allowances a seller can take for bad debts; and (d) Sales and use tax returns and remittances. (3) The SSUTA agreement shall require states to develop and adopt uniform definitions of sales and use tax terms. The definitions shall enable a state to preserve its ability to make policy choices not inconsistent with the uniform definitions. (4) The SSUTA agreement shall provide a central, electronic registration system that allows a seller to register to collect and remit sales and use taxes for all signatory states. (5) The SSUTA agreement shall provide that registration with the central registration system and the collection of sales and use taxes in the signatory state will not be used as a factor in determining whether the seller has nexus with a state for any tax. (6) The SSUTA agreement shall provide for a reduction of the burdens of complying with local sales and use taxes through the following: (a) Restricting variances between the state and local tax bases; (b) Requiring states to administer any sales and use taxes levied by local jurisdictions within the state so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from local taxing jurisdictions; (c) Restricting the frequency of changes in the local sales and use tax rates and setting effective dates for the application of local jurisdictional boundary changes to local sales and use taxes; and (d) Providing notice of changes in local sales and use tax rates and of changes in the boundaries of local taxing jurisdictions. (7) The SSUTA agreement shall outline any monetary allowances that are to be provided by the states to sellers or certified service providers. (8) The SSUTA agreement shall require each state to certify compliance with the terms of the agreement prior to joining and to maintain compliance under the laws of the member state, with all provisions of the SSUTA agreement while a member. (9) The SSUTA agreement shall require each state to adopt a uniform policy for certified service providers that protects the privacy of consumers and maintains the confidentiality of tax information. (10) The SSUTA agreement shall provide for the appointment of an advisory council of private sector representatives and an advisory council of non-member state representatives to consult with in the administration of the SSUTA agreement. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 24, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 449, effective June 20, 2005. -- Created 2001 Ky. Acts ch. 6, sec. 6, effective June 21, 2001.

KRS 139.791 Cooperating sovereigns

139.791. Cooperating sovereigns The SSUTA agreement authorized by KRS 139.780 to 139.795 is an accord among individual, cooperating sovereigns in furtherance of their governmental functions. The SSUTA agreement provides a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes under the duly adopted law of each member state. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 25, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 7, effective June 21, 2001.

KRS 139.793 Applicability of agreement -- Limitation of action

139.793. Applicability of agreement -- Limitation of action (1) The SSUTA agreement authorized by KRS 139.780 to 139.795 binds and inures only to the benefit of this state and the other member states. No person, other than a member state, is an intended beneficiary of the SSUTA agreement. Any benefit to a person other than a state is established by the law of the state and the other member states and not by the terms of the SSUTA agreement. (2) Consistent with subsection (1) of this section, no person shall have any cause of action or defense under the SSUTA agreement or by virtue of this state's approval of the SSUTA agreement. No person may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of this state, or any political subdivision of this state on the ground that the action or inaction is inconsistent with the SSUTA agreement. (3) No law of this state, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the SSUTA agreement. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 26, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 8, effective June 21, 2001.

KRS 139.794 Conditions for exemption from assessment for uncollected or unpaid sales or use tax

139.794. Conditions for exemption from assessment for uncollected or unpaid sales or use tax (1) According to the provisions of the SSUTA agreement, a seller who registers under the terms of the SSUTA agreement to pay or to collect and remit applicable sales and use tax on sales made in Kentucky shall be exempt from assessment for uncollected or unpaid sales or use tax together with penalty and interest for sales made during the period the seller was not registered in Kentucky if: (a) The seller was not registered in Kentucky in the twelve (12) month period preceding the effective date of Kentucky's participation in the SSUTA agreement; and (b) The seller registers in Kentucky within twelve (12) months of the effective date of Kentucky's participation in the SSUTA agreement. (2) The exemption is not available to a seller with respect to any matter or matters for which the seller received notice of the commencement of an audit and which audit is not yet finally resolved, including any related administrative and judicial processes. (3) The exemption is not available for sales or use taxes already paid or remitted to the state or to taxes collected by the seller. (4) The exemption is fully effective, absent the seller's fraud or intentional misrepresentation of a material fact, if the seller remains registered and continues payment or collection and remittance of applicable sales or use taxes for a period of at least thirty-six (36) months. During this thirty-six (36) month period, the statute of limitations shall be suspended for the seller remaining in compliance with registration and payment requirements. Failure to meet these terms will result in a revocation of the exemption. (5) This exemption shall apply to sales or use taxes due from a seller in its capacity as a seller and shall not apply to sales and use taxes due from a seller in its capacity as a buyer. Effective: July 1, 2007 History: Amended 2007 Ky. Acts ch. 141, sec. 27, effective July 1, 2007. -- Created 2005 Ky. Acts ch. 154, sec. 4, effective June 20, 2005.

KRS 139.795 Certified service provider is agent of seller -- Liability -- Exemption for purchaser, seller, and certified service provider

139.795. Certified service provider is agent of seller -- Liability -- Exemption for purchaser, seller, and certified service provider (1) (a) A certified service provider is the agent of a seller, with whom the certified service provider has contracted, for the collection and remittance of sales and use taxes. (b) The certified service provider is liable for sales and use tax due each member state on all sales transactions it processes for the seller, except when the liability for not collecting the sales or use taxes results from the certified service provider's reliance on software certified by the state. Relief from liability shall not be granted if the certified service provider has incorrectly classified an item or transaction into a product-based exemption certified by the state, except when the item or transaction is classified based upon the individual listing of items or transactions within a product definition approved by the governing board or the member state. (c) A person that is responsible for the certified automated system is responsible for the functioning of the system and is liable to the state for underpayments of tax attributable to errors in the functioning of the certified automated system. (2) (a) A seller that contracts with a certified service provider is not liable to the state for sales or use tax due on transactions processed by the certified service provider unless the seller misrepresented the type of items it sells or committed fraud; (b) In the absence of probable cause to believe that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on the transactions processed by the certified service provider; and (c) A seller is subject to audit for transactions not processed by the certified service provider. (3) The member states acting jointly may perform a system check of the seller and review the seller's procedures to determine if the certified service provider's system is functioning properly and the extent to which the seller's transactions are being processed by the certified service provider. (4) (a) A model 2 seller shall be relieved of liability for not collecting sales and use taxes if the liability resulted from the model 2 seller's reliance on software previously certified by the state. Relief from liability shall not be granted if the certified service provider has incorrectly classified an item or transaction into a product-based exemption certified by the state, except when the item or transaction is classified based upon the individual listing of items or transactions with a product definition approved by the governing board or the member state. (b) The department shall notify the certified service provider or model 2 seller if an item or transaction has been incorrectly classified as to its taxability. (c) The certified service provider or a model 2 seller shall have ten (10) days to revise the classification after the receipt of notice. (d) Upon expiration of the ten (10) days, the certified service provider or the model 2 seller shall be liable for the failure to collect the amount of sales or use taxes due and owing. (5) A model 3 seller that has signed a performance agreement establishing a performance standard for that system is liable for the failure of the system to meet the performance standard. (6) A purchaser, purchaser's seller, or certified service provider shall not be subject to the additional tax, related penalties imposed under KRS 131.180, or related interest provided under KRS 131.183 for having failed to pay the correct amount of sales or use tax on specific transactions if: (a) The purchaser's seller or certified service provider relied on erroneous data provided by the department on tax rates, boundaries, or taxing jurisdiction assignments; or (b) The purchaser, purchaser's seller, or purchaser's certified service provider relied on erroneous data in the taxability matrix completed and made available to the public by the department. The relief prescribed in this paragraph for additional tax and related interest provided under KRS 131.183 shall be limited to the department's erroneous classification in the taxability matrix as "taxable" or "exempt," "included in sales price" or "excluded from sales price," or "included in the definition" or "excluded in the definition." (7) (a) If the department does not provide the seller with at least thirty (30) days' notice from the enactment of a sales and use tax rate change to the effective date of the rate change, the seller shall be relieved of liability for failing to collect tax at the new rate if: 1. The seller collected tax at the immediately preceding effective rate; and 2. The seller's failure to collect tax at the new rate does not extend beyond thirty (30) days after the date of enactment of the new rate. (b) Notwithstanding paragraph (a) of this subsection, if the department establishes that the seller fraudulently failed to collect tax at the new rate or solicits purchasers based on the immediately preceding effective rate, the relief provided to the seller in paragraph (a) of this subsection shall not apply. (8) A purchaser shall not be subject to the additional tax, related penalties imposed under KRS 131.180, or related interest provided under KRS 131.183 for failing to pay the correct amount of sales or use tax on specific transactions if the purchaser holds a direct pay authorization and relied on erroneous data provided by the department on the tax rates, boundaries, or taxing jurisdiction assignments. Effective: July 1, 2011 History: Amended 2011 Ky. Acts ch. 33, sec. 8, effective July 1, 2011. -- Amended 2008 Ky. Acts ch. 95, sec. 3, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 12, effective July 1, 2007. -- Created 2001 Ky. Acts ch. 6, sec. 9, effective June 21, 2001. Legislative Research Commission Note (7/1/2007). A manifest clerical or typographical error in this section has been corrected by the Reviser of Statutes under the authority of KRS 7.136.

KRS 139.980 Civil penalties

139.980. Civil penalties Any person who violates any provision of this chapter shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180 and interest upon the unpaid amount at the tax interest rate as defined in KRS 131.010(6) from the date prescribed for its payment until payment is actually made to the department. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 450, effective June 20, 2005. -- Amended 1992 Ky. Acts ch. 403, sec. 14, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 28, sec. 1, effective July 15, 1982; and ch. 452, sec. 22, effective July 1, 1982. -- Amended 1978 Ky. Acts ch. 233, sec. 30, effective June 17, 1978. -- Amended 1976 ch. 155, sec. 23. -- Amended 1972 Ky. Acts ch. 84, Pt. I, sec. 4. -- Created 1960 Ky. Acts ch. 5, Art. I, secs. 75, 76, 77, 78, and 79, effective February 5, 1960.

KRS 139.990 Criminal penalties

139.990. Criminal penalties (1) Any person who executes: (a) A resale certificate for property in accordance with KRS 139.270 knowing at the time of purchase that such property is not to be resold by him in the regular course of business, for the purpose of evading the tax imposed under this chapter; (b) An exemption certificate, agriculture exemption license number, or a Streamlined Sales and Use Tax Agreement Certificate of Exemption for property in accordance with KRS 139.270, knowing at the time of the purchase that he is not engaged in an occupation that would entitle him to exemption status or any person who does not intend to use the property in the prescribed manner; or (c) A direct pay authorization for property not in accordance with an administrative regulation promulgated by the department governing direct pay authorizations; shall be guilty of a Class B misdemeanor. (2) A person who engages in business as a seller in this state without a permit or permits as required by this chapter or after a permit has been suspended, and each officer of any corporation which is so engaged in business, shall be guilty of a Class B misdemeanor. (3) Any person who violates any of the provisions of KRS 139.220, 139.380, or 139.700 shall be guilty of a Class B misdemeanor. (4) Any person who violates any of the regulations promulgated by the department shall be guilty of a Class B misdemeanor. (5) Any person, business, or motion picture production company falsifying expenditure reports, applications, or any other statements made in securing the tax credit afforded by KRS 139.538 shall be guilty of a Class D felony. Such motion picture production companies shall be denied any tax credit to which they would otherwise be entitled, and shall be prohibited from applying for any future credit afforded by KRS 139.538. Effective:March 30, 2022 History: Amended 2022 Ky. Acts ch. 58, sec. 5, effective March 30, 2022. -- Amended 2011 Ky. Acts ch. 33, sec. 9, effective July 1, 2011. -- Amended 2008 Ky. Acts ch. 95, sec. 16, effective August 1, 2008. -- Amended 2007 Ky. Acts ch. 141, sec. 28, effective July 1, 2007. -- Amended 2005 Ky. Acts ch. 85, sec. 451, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 124, sec. 32, effective July 1, 2004. -- Amended 1992 Ky. Acts ch. 463, sec. 16, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 135, sec. 6, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 464, sec. 6, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 102, sec. 2, effective July 15, 1982; and ch. 208, sec. 3, effective July 15, 1982. -- Created 1960 Ky. Acts ch. 5, Art. I, secs. 80, 81, 82, and 83, effective February 5, 1960.

KRS 139.4802 Restriction on notice or instruction to collect or remit sales and use tax on the sale, use, storage, or other consumption of currency or bullion currency -- Refund of tax paid -- Cause of action -- Damages -- Waiver of immunity

139.4802. Restriction on notice or instruction to collect or remit sales and use tax on the sale, use, storage, or other consumption of currency or bullion currency -- Refund of tax paid -- Cause of action -- Damages -- Waiver of immunity (1) (a) On or after March 27, 2025, a violation shall occur when an official notice published by the secretary of the Finance and Administration Cabinet or the commissioner of the department instructs that taxpayers should continue to collect and remit sales and us e tax on the sale, use, storage, or other consumption of currency or bullion currency under this chapter. (b) Any notice or instruction, published at any time, that states that on or after August 1, 2024, the sale, use, storage, or other consumption of cur rency or bullion currency under this chapter is taxable is void and unenforceable. (2) Notwithstanding KRS 49.220 and 139.770, on and after August 1, 2024, any person who paid sales tax under KRS 139.200 or use tax under KRS 139.310 on currency or bullion currency that is exempt from sales and use tax under KRS 139.480(36) may maintain an action for a refund of the tax paid, as an individual or by seeking certification as a class under Rule 23 of the Kentucky Rules of Civil Procedure, for a refund on behalf of the person and other persons similarly situated against the Commonwealth. (3) An action for a refund pursuant to subsection (2) of this section, or alleging a violation under subsection (1) of this section, may be brought in the Circuit Court of any county where the named plaintiff resides or where the currency or bullion currency transaction took place. (4) In addition to a refund of the sales or use tax, persons seeking a refund pursuant to subsection (2) of this section or alleging a violation under subsection (1) of this section who prevail shall be entitled to: (a) Prejudgment and post-judgment interest; (b) Temporary or permanent injunctive relief; (c) Reasonable attorney's fees and costs; and (d) For allegations of a violation under subsection (1) of this section, liquidated damages of one thousand dollars ($1,000) for each day that the violation occurred, which shall be paid from the administrative budget of the Finance and Administration Cabinet, the department, or the Office of the Governor. (5) It is the intent of the General Assembly to waive sovereign, governmental, and qualified immunity for claims under this section, including immunity afforded to the Commonwealth pursuant to the Eleventh Am endment to the Constitution of the United States. (6) Any person who directs, instructs, or causes a violation of any provision of this section shall be personally, jointly, and severally liable for any awarded damages. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 161, sec. 49, effective July 15, 2026. -- Created 2025 Ky. Acts ch. 100, sec. 1, effective March 27, 2025. Legislative Research Commission Note (3/27/2025). 2025 Ky. Acts ch. 100, sec. 2, provides that subsection (2) of this statute shall be retroactive to August 1, 2024.

KRS 139.5313 Application of taxes to mortuary industry

139.5313. Application of taxes to mortuary industry Notwithstanding any other provisions of this chapter, morticians, undertakers, and funeral directors are consumers of all items including caskets and vaults, which they use or consume in the performance of their services and the taxes imposed by this chapter apply at the time of the sale to the mortician, undertaker, or funeral director. Effective: July 13, 1990 History: Created 1990 Ky. Acts ch. 275, sec. 1, effective July 13, 1990.

KRS 139.5325 Sales tax incentives for qualified attraction -- Applications -- Eligibility -- Report -- Sunset

139.5325. Sales tax incentives for qualified attraction -- Applications -- Eligibility -- Report -- Sunset (1) As used in this section: (a) "Entertainment event": 1. Means a live performance or exhibition of musical, theatrical, cultural, culinary, or other artistic presentation; and 2. Does not include sporting events or tournaments; (b) "Facility operator" means a person who owns or operates a venue; (c) "Qualifying attraction" means a series of entertainment events which is: 1. Held at a venue over a duration of at least two (2) consecutive days; 2. Hosted by a sponsoring entity pursuant to an agreement with a facility operator that authorizes the sponsoring entity to conduct one (1) or more series of entertainment events annually during at least five (5) consecutive years; and 3. Open to the public upon purchase of tickets, with attendance totaling at least sixty thousand (60,000) admissions over the duration of each series of entertainment events; (d) "Sponsoring entity" means the person hosting a qualifying attraction; and (e) "Venue" means: 1. Public property located in a consolidated local government or an urban- county government which is owned, operated, or controlled by the consolidated local government, the urban-county government, or the Commonwealth; 2. A park located in a consolidated local government that is: a. Open to the general public; and b. Owned, operated, or controlled by any nonprofit corporation established under KRS 273.161 to 273.390; 3. Property located in a consolidated local government or an urban -county government that is owned, operated, or controlled by a public university; or 4. Privately owned property located in a consolidated local government or an urban-county government that is suitable for hosting entertainment events and qualifying attractions. (2) Notwithstanding KRS 134.580 and 139.770: (a) A sponsoring entity and facility operator shall be granted a sales tax incentive totaling fifty percent (50%) of the Kentucky sales tax generated by the sale of admissions to a qualifying attraction held at a venue, and the sales of tangible personal property and services at the qualifying attraction, including but not limited to the sale of food and beverage concessions, souvenirs, camping, and parking; (b) The amount of the sales tax incentive authorized in paragraph (a) of this subsection shall be allocated as follows: 1. Fifty percent (50%) shall be paid to the facility operator and utilized to support operations and maintenance at the venue; and 2. Fifty percent (50%) shall be paid to the sponsoring entity of the qualifying attraction from which the sales taxes were generated; (c) Only one (1) incentive request shall be made for each qualifying attraction each year; (d) The sponsoring entity and facility operator shall have no obligation to refund or otherwise return any amount of the sales tax incentive to the persons from whom the sales tax was collected; (e) The sales tax incentive shall be reduced by the vendor compensation allowed under KRS 139.570; and (f) Interest shall not be allowed or paid on any sales tax incentive pay ment made under this section. (3) The department shall accept initial applications for sales tax incentives under this section for qualifying attractions held on or after July 1, 2025. (4) To be eligible for a sales tax incentive under this section, the sp onsoring entity shall file an initial application with the department, which: (a) Includes sufficient information regarding the qualifying attraction to demonstrate whether it qualifies for the sales tax incentive; and (b) Is filed at least sixty (60) days prior to the date of the first entertainment event constituting the qualifying attraction. (5) Within thirty (30) days of receipt of the initial application, the department shall notify the sponsoring entity of its preliminary approval or denial of the qu alifying attraction. (6) If the initial application is denied, the department shall provide the reason for the denial. (7) After approval of its initial application and the completion of the qualifying attraction, a sponsoring entity shall apply for a sale s tax incentive no earlier than thirty (30) days following the end of the month during which sales taxes that were generated from the qualifying attraction are collected. The application may aggregate eligible sales taxes from previous months if the events comprising the qualifying attraction were held in more than one (1) month. (8) The department shall review each application for a sales tax incentive and determine if it meets the requirements of this section, pending the verification of required attendance. (9) In determining eligibility for a sales tax incentive authorized under th is section, the department shall waive the duration and attendance requirements listed in subsection (1)(c)1. and 3. of this section if the person requesting an incentive demonstrates that any delays, cancellations, or postponements were due to inclement weather or other extraordinary events beyond the control of the parties involved and that the weather or other extraordinary events rendered the satisfaction of the requirement impossible. (10) Both the initial application and the sales tax incentive applic ation shall be in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A. (11) The department shall verify the amount of sales tax incentive and pay the allocations determined to be due in accordance with subsection (2)(b) of this section within forty-five (45) days of receipt of the later of: (a) The application submitted under subsection (7) of this section; or (b) All necessary supporting information required by the department to determine that the sponsoring entity is eligible for the incentive. (12) (a) Prior to November 1, 2026, and continuing each November 1 thereafter to November 1, 2035, the department shall provide an annual report detailing information related to each qualifying attraction receiving incentives during the fiscal year concluding on June 30 of the reporting period. (b) The department shall include the following information in the report: 1. The name of the qualifying attraction; 2. The venue where the qualifying attraction was held; 3. The name of the facility operator; 4. The name of the sponsoring entity; 5. The duration of the qualifying attraction and the number of admissions over that duration; 6. The amount of incentive paid to the facility operator; and 7. The amount of incentive paid to the sponsoring entity. (c) The information required to be reported under this subsection shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information. (13) The provisions of this section shall expire on June 30, 2035, and a qualifying attraction held after June 30, 2035, shall not be eligible for the incentives authorized in this section. (14) The General Assembly is committed to the research and development of tourism policies, including the aspiration to hold other entertainment events across the Commonwealth and especially in rural Kentucky. Effective: July 1, 2025 History: Created 2025 Ky. Acts ch. 98, sec. 26, effective July 1, 2025; and amended ch. 159, sec. 2, effective July 1, 2025. Legislative Research Commission Note (7/1/2025). This statute was created by 2025 RS HB 775 (2025 Ky. Acts ch. 98, sec. 26) and subsequently amended by 2025 RS HB 606 (2025 Ky. Acts ch. 159, sec. 2), and the amendment has been incorporated in codification.

KRS 139.5327 Incentive for certain professional golf sporting events -- Definitions for section -- Terms -- Application -- Sunset -- Administrative regulation -- Annual report

139.5327. Incentive for certain professional golf sporting events -- Definitions for section -- Terms -- Application -- Sunset -- Administrative regulation -- Annual report (1) As used in this section: (a) "Facility operator" means a person who owns or operates a venue; (b) "Professional golf sporting event" means an organized, competitive golf event, governed by rules and a sporting body, where participants compete for compensation beyond actual expenses; (c) "Qualifying attraction" means a series o f professional golf sporting events which is: 1. Held at a venue over a duration of at least three (3) consecutive days; 2. Hosted by a sponsoring entity pursuant to an agreement with a facility operator that authorizes the sponsoring entity to conduct one (1) or more series of a professional golf sporting event; and 3. Open to the public upon purchase of tickets, with attendance totaling at least one hundred thousand (100,000) admissions over the duration of each series of professional golf sporting events ; (d) "Sponsoring entity" means the person hosting a qualifying attraction; and (e) "Venue" means: 1. Public property located in a consolidated local government or in an urban-county government that is owned, operated, or controlled by the consolidated local government or urban-county government; 2. A park located in a consolidated local government that is : a. Open to the general public; and b. Owned, operated, or controlled by any nonprofit corporation established under the provisions of KRS 273.161 to 273.390; 3. Property located in a consolidated local government or in an urban - county government that is owned, operated, or controlled by a public university; or 4. Privately owned property located in a consolidated local government or in an urban-county government that is suitable for hosting professional golf sporting events and qualifying attractions. (2) Notwithstanding KRS 134.580 and 139.770: (a) A sponsoring entity shall be granted a sales tax incentive equal to one hundred percent (100%) of the Kentucky sales tax generated by the sale of admissions to a qualifying attraction held at a venue, and the s ales of tangible personal property and services related to the qualifying attraction, including but not limited to the sale of: 1. Food and beverage concessions; 2. Souvenirs; 3. Parking; 4. Suites; 5. Sponsorships; and 6. Other hospitality services; sold at the qualifying attraction; (b) One hundred percent (100%) of the sales tax incentive authorized in paragraph (a) of this subsection shall be paid to the sponsoring entity of the qualifying attraction from which the sales taxes were generated; (c) Only one (1) incentive request shall be made for each qualifying attraction each year; (d) The sponsoring entity shall have no obligation to refund or otherwise return any amount of the sales tax incentive to the persons from whom the sales tax was collected; (e) The sales tax incentive shall be reduced by the vendor compensation allowed under KRS 139.570; and (f) Interest shall not be allowed or paid on any sales tax incentive payment made under this section. (3) The department shall accept initial applicati ons for sales tax incentives under this section for qualifying attractions held on or after July 1, 2026. (4) To be eligible for a sales tax incentive under this section, the sponsoring entity shall file an initial application with the department, which: (a) Includes sufficient information regarding the qualifying attraction to demonstrate whether it qualifies for the sales tax incentive; and (b) Is filed at least sixty (60) days prior to the date of the first professional golf sporting event constituting the qualifying attraction. (5) Within thirty (30) days of receipt of the initial application, the department shall notify the sponsoring entity of its preliminary approval or denial of the qualifying attraction. (6) If the initial application is denied, the department shall provide the reason for the denial. (7) After approval of its initial application and the completion of the qualifying attraction, a sponsoring entity shall apply for a sales tax incentive no earlie r than thirty (30) days following the end of the month during which sales taxes that were generated from the qualifying attraction are collected. The application may aggregate eligible sales taxes from previous months if the events comprising the qualifying attraction were held in more than one (1) month. (8) The department shall review each application for a sales tax incentive and determine if it meets the requirements of this section, pending the verification of required attendance. (9) In determining eligibility for a sales tax incentive authorized under this section, the department shall waive the duration and attendance requirements listed in subsection (1)(c)1. and 3. of this section if the person requesting an incentive demonstrates that any delays, cancellations, or postponements were due to inclement weather or other extraordinary events beyond the control of the parties involved and that the weather or other extraordinary events rendered the satisfaction of the requirement impossible. (10) Both the initial application and the sales tax incentive application shall be in the form prescribed by the department through the promulgation of an administrative regulation in accordance with KRS Chapter 13A. (11) The department shall verify the amount of sales tax incentive and pay the allocations determined to be due in accordance with subsection (2)(b) of this section within forty-five (45) days of receipt of the later of: (a) The application submitted under subsection (7) of this section; or (b) All necessary supporting information required by the department to determine that the sponsoring entity is eligible for the incentive. (12) (a) Prior to November 1, 2027, and continuing each November 1 thereafter to November 1, 2037, the department shall provide an annual report detailing information related to each qualifying attraction receiving incentives during the fiscal year concluding on June 30 of the reporting period. (b) The department shall include the following information in the report: 1. The name of the qualifying attraction; 2. The venue where the qualifying attraction was held; 3. The name of the facility operator; 4. The name of the sponsoring entity; 5. The duration of the qualifying attraction and the number of admissions over that duration; 6. The amount of incentive paid to the facility operator; and 7. The amount of incentive paid to the sponsoring entity. (c) The information required to be reported under this subsection shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information. (13) The provisions of this section shall expire on November 30, 2036, and a qualifying attraction held after November 30, 2036, shall not be eligible for the incentives authorized in this section. (14) The General Assembly is committed to the research and development of tourism policies, including the aspiration to hold other professional sporting events across the Commonwealth and especially in rural Kentucky. Effective: July 1, 2026 History: Created 2026 Ky. Acts ch. 161, sec. 128, effective July 1, 2026; and amended 2026 Ky. Acts ch. 198, sec. 54, effective July 1, 2026. Legislative Research Commission Note (7/1/2026). This statute was created by 2026 RS HB 757 (2026 Ky. Acts ch. 161, sec. 128), which was subsequently amended by 2026 RS HB 869 (2026 Ky. Acts ch. 198, sec. 54), and the amendment has been incorporated in codification.

KRS 139.5381 Repealed, 2008

139.5381. Repealed, 2008 Catchline at repeal: Definitions for KRS 139.5382 to 139.5386 and 139.990(5). History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 424, effective June 20, 2005. -- Created 1986 Ky. Acts ch. 464, sec. 2, effective July 15, 1986.

KRS 139.5382 Repealed, 2008

139.5382. Repealed, 2008 Catchline at repeal: Requirements for eligibility to receive refund. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 425, effective June 20, 2005. -- Created 1986 Ky. Acts ch. 464, sec. 4, effective July 15, 1986.

KRS 139.5383 Repealed, 2008

139.5383. Repealed, 2008 Catchline at repeal: Refund of sales and use tax paid for purchases made in connection with filming or production of motion picture. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Created 1986 Ky. Acts ch. 464, sec. 3, effective July 15, 1986.

KRS 139.5384 Repealed, 2008

139.5384. Repealed, 2008 Catchline at repeal: Duty of Department of Revenue -- Duty of secretary of Finance and Administration Cabinet. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 426, effective June 20, 2005. -- Created 1986 Ky. Acts ch. 464, sec. 5, effective July 15, 1986.

KRS 139.5385 Repealed, 2008

139.5385. Repealed, 2008 Catchline at repeal: Repayment of tax credit by motion picture production company. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 427, effective June 20, 2005. -- Created 1986 Ky. Acts ch. 464, sec. 6, effective July 15, 1986.

KRS 139.5386 Repealed, 2008

139.5386. Repealed, 2008 Catchline at repeal: Audit -- Separate accounting records -- Regulations. History: Repealed 2008 Ky. Acts ch. 95, sec. 20, effective August 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec. 428, effective June 20, 2005. -- Created 1986 Ky. Acts ch. 464, sec. 7, effective July 15, 1986.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37663Fetched: 10/20/2026

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