2006 Kentucky Revised Statutes - .320   Use tax on machinery brought into state for construction project.

139.320 Use tax on machinery brought into state for construction project. (1) The use tax of six percent (6%) is hereby levied upon the storage, use, or other consumption in this state of any machines, machinery, tools, or other equipment brought, imported or caused to be brought into this state for use in constructing, building, or repairing any building, highway, street, sidewalk, bridge, culvert, sewer or water system, drainage, or dredging system, electric or steam railway system, reservoir or dam, hydraulic or power plant, transmission line, tower, dock, wharf, excavation, grading, or other improvement or structures, or any part thereof. The owner or, if the property is leased the lessee of any such machine, machinery, tools, or other equipment shall be liable for the tax provided for in this chapter, to be computed as set out below. The useful life of such machines, tools, or other equipment shall be determined by the department in accordance with the depreciable value permitted under KRS Chapter 141 and regulations issued pursuant thereto. Said use tax shall be computed on the basis of such proportion of the original purchase price of such property as the duration of time of use in this state bears to the total useful life. Such tax shall become due immediately upon such property's being brought into this state, and in the absence of satisfactory evidence as to the period of use intended in this state, it shall be presumed that such property will remain in this state for the remainder of its useful life. (2) The provisions of this section shall not be applicable with respect to sales of such property within this state or to the use, storage, or consumption of such property when purchased for use in this state, and in such cases the full sales or use tax shall be paid as in all other cases, irrespective of the period of intended use in this state. (3) For the purposes of this section, the total useful life of property which is fully depreciated at the time of being brought into this state or becomes fully depreciated while in use in this state shall be extended to include the time of use in this state. In the absence of satisfactory evidence as to the period of use in this state, the tax shall be computed on an annual basis and shall be paid as provided by KRS 139.540. Effective: June 20, 2005 History: 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.