Title XI, Revenue and Taxation

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…

(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…

(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…

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…

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…

(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…

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…

-- 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…

(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…

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.

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 …

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…

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…

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…

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…

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…

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…

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…

(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…

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…

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…

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…

(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…

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 …

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 …

(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…

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…

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…

(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 …

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…

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…

(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…

(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…

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…

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…

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.

(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 tangi…

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 transactio…

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;…

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 proces…

(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 terro…

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 sect…

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…

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.

(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 t…

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 …

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 …

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 b…

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 c…

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 co…