Title XI, Revenue and Taxation

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 me…

(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) "Ca…

(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 …

Definitions -- Tax credit -- Administrative regulations. (Effective July 15, 2026) (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 filmin…

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.

(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. (…

(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 thous…

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.

(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) Notwithsta…

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.

(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 e…

(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 …

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.

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.

(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…

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 depart…

(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 rece…

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.…

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…

(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 pap…

(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…

(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, Strea…

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…

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 t…

(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 requir…

(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…

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 adop…

(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 …

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: …

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 vehicl…

KRS 139.780 to 139.795 may be cited as the Uniform Sales and Use Tax Administration Act.

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 jurisdictio…

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 ta…

(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 f…

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 …

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 stat…

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 syst…

(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 esta…

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 …

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 sa…

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 i…

(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…

All real and personal property within the jurisdiction of this state and any interest therein belonging to inhabitants of this state, all tangible personal property wherever situated belonging to inhabitants of this state that has not acquired a situs for purposes of taxation out…

service. (1) The payment of any gratuity pay, death compensation or other award or benefit, by the federal government, to the surviving spouse or heirs of any person by reason or arising out of service by such person in the Armed Forces of the United States in time of war shall n…

Presumption of contemplation -- When presumption does not apply. (1) The terms of this chapter shall apply to any property or interest therein, of which the decedent has made a transfer by trust or otherwise, in contemplation of or intended to take effect in possession or enjoyme…

insurance policies -- Exemptions. (1) If it appears, either from the will of the decedent or from extrinsic evidence, that an obligation of a contractual nature exists in favor of any person payable at or after death of the decedent, the sum so payable shall be treated for the pu…

to take place -- Date as of which value of property determined -- Remainder interests -- Rates and exemptions. (1) As used in this section, "power of appointment": (a) Means only a general power of appointment that may be exercised in favor of: 1. The individual holding the power…

Whenever any real or personal property is held jointly in the names of two (2) or more persons, or as tenants by the entirety, or is deposited in banks or other depositories jointly in the names of two (2) or more persons and is payable to either or to the survivor upon the death…

institutions, and to cities and public institutions. All transfers to educational, religious or other institutions, societies, or associations, whose sole object and purpose are to carry on charitable, educational, or religious work, all transfers for or upon trust for any charit…

Retirement annuities -- Individual retirement bonds, accounts, and annuities. (1) There shall be excluded from taxation under KRS Chapter 140, to the extent attributable to employer's contributions, the value of an annuity or other payment receivable by any beneficiary (other tha…