2014 Kentucky Revised Statutes CHAPTER 139 - SALES AND USE TAXES 139.105 Sourcing of retail sales -- Communications services, digital property, and florist wire sales.
Download as PDF
139.105 Sourcing of retail sales -- Communications services, digital property,
and florist wire sales.
(1)
(2)
(a)
For purposes of the retailer's obligation to pay or collect and remit the
taxes imposed by KRS 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.
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;
(3)
(4)
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.
Florist wire sales shall be sourced in accordance with an administrative
regulation promulgated by the department.
Advertising and promotional direct mail and other direct mail shall be sourced
as provided in KRS 139.777.
Effective:July 1, 2011
History: 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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.