Title XI, Revenue and Taxation
15 chapters · 869 sections in this title.
KRS § 139.010 Definitions for chapter
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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…
KRS § 139.025 Regulations providing for use of tax basis other than accrual
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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.
KRS § 139.105 Sourcing of retail sales -- Communications services, digital property, and florist wire sales
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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 …
KRS § 139.125 Procurement, processing or distribution of blood or human tissue deemed service and not sale
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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 …
KRS § 139.185 Corporate officers, managers of limited liability companies, and partners of registered limited liability partnerships personally liable
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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…
KRS § 139.195 Definitions for KRS 139.105, 139.200, 139.215, and 139.775
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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…
KRS § 139.200 Imposition of sales tax
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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:…
KRS § 139.202 Exclusions from additional taxable services
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(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 le…
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
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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, the tax shall be required to be collected by the retailer from the purchaser. The tax shall be displayed separate…
KRS § 139.215 Taxation of bundled transactions
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(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 programm…
KRS § 139.220 Prohibited advertising
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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…
KRS § 139.230 Elimination of fractions of a cent
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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 pe…
KRS § 139.240 Application for retailer's or seller's permit to do business
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(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 presc…
KRS § 139.250 Seller's permit to do business -- Issuance -- Nonassignability -- Display
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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 issue…
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
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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 evasion of the duty to collect the taxes imposed by KRS 139.200 and 139.310, it shall be presumed that all gross rece…
KRS § 139.270 Resale certificate and certificates of exemption
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(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 th…
KRS § 139.280 Contents and form of certificate
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(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 purcha…
KRS § 139.290 Property used by purchaser after giving certificate -- When retailer may deduct purchase price
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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 taxab…
KRS § 139.300 Fungible goods bought under certificate commingled with goods bought otherwise
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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 determi…
KRS § 139.310 Imposition of excise tax on storage, use, or other consumption
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(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 perce…
KRS § 139.330 Purchaser's liability for tax imposed by KRS 139.310
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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 pa…
KRS § 139.340 Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust -- Registration and collection by remote retailer
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-- 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 collect the tax imposed by KRS 139.310 from the purchaser and give to the purchaser a receipt therefor in the manner and fo…
KRS § 139.350 Exception in the case of bad debts
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(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 de…
KRS § 139.360 Tax due is retailer's debt
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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.
KRS § 139.365 Exemption from collection duty for out-of-state commercial printers and mailers
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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 …
KRS § 139.380 Separate display of tax and price
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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…
KRS § 139.390 Registration by retailer
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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 o…
KRS § 139.430 Property used by purchaser after giving certificate
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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…
KRS § 139.440 Fungible goods bought under certificate commingled with goods bought otherwise
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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 determi…
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
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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 that: (a) Tangible personal property shipped or brought to this state by the purchaser; (b) Digital property delive…
KRS § 139.470 Exempt transactions
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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 unde…
KRS § 139.471 Transactions excluded from additional tax
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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 befor…
KRS § 139.472 Exemption for certain medical items
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(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 dispen…
KRS § 139.480 Property exempt. (See LRC Note below)
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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, includin…
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
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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 an…
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
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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 u…
KRS § 139.482 Historical sites
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(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…
KRS § 139.483 Exemption of vessels and maritime supplies
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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 …
KRS § 139.484 Exemption of moneys paid for lease or rental of films by commercial motion picture theaters
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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 …
KRS § 139.485 Exemption of food items -- Definitions
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(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 s…
KRS § 139.486 Sale, use, storage, or consumption of "industrial machinery" -- Definitions for section
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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 fin…
KRS § 139.495 Application of taxes to certain resident nonprofit institutions and limited liability companies -- Definitions for section -- Exemptions -- Refund
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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 Secti…
KRS § 139.496 Exemption of certain sales
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(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 …
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
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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 elem…
KRS § 139.498 Exemption for sale of admissions and fundraising event sales by nonprofit organizations
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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 ad…
KRS § 139.499 Exemption for certain data center equipment
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(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 154.20-22…
KRS § 139.500 Exemption from use tax of property subject to sales or gasoline tax
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(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 o…
KRS § 139.505 Refundable credit of portion of sales tax paid on interstate business communications service
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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 with…
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
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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 sta…
KRS § 139.512 Refundable sales and use tax credit
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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.