2015 Kentucky Revised Statutes CHAPTER 139 - SALES AND USE TAXES 139.450 Presumption as to property shipped or brought into state -- Duty of retailers that do not collect tax to provide use tax liability notification to Kentucky customers -- Exemption.
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139.450 Presumption as to property shipped or brought into state -- Duty of
retailers that do not collect tax to provide use tax liability notification to
Kentucky customers -- Exemption.
(1)
(2)
(3)
(4)
It shall be presumed that tangible personal property shipped or brought to this state
by the purchaser was purchased from a retailer for storage, use, or other
consumption in this state.
(a) Except as provided in subsection (8) of this section, every retailer that:
1.
Is making sales of tangible personal property or digital property from a
place outside this state for storage, use, or other consumption in this
state; and
2.
Is not required to collect the use tax under KRS 139.340;
shall notify the purchaser that the purchaser is required to report and pay the
Kentucky use tax directly to the department on purchases from that retailer
unless the purchases are otherwise exempt under this chapter.
(b) The required use tax notification shall be readily visible and shall be included
on the retailer's Internet Web site, retail catalog, and invoices provided to the
purchaser, as provided in subsection (4) of this section.
(c) A retailer shall not advertise, state, display, or imply on the retailer's Internet
Web site or retail catalog that there is no Kentucky tax due on the purchases
made from the retailer.
The use tax notification required by subsection (2) of this section shall contain the
following language:
(a) "The retailer is not required to and does not collect Kentucky sales or use
tax.";
(b) "The purchase may be subject to Kentucky use tax unless the purchase is
exempt from taxation in Kentucky.";
(c) "The purchase is not exempt merely because it is made over the Internet, by
catalog, or by other remote means."; and
(d) "The Commonwealth of Kentucky requires Kentucky purchasers to report all
purchases of tangible personal property or digital property that are not taxed
by the retailer and pay use tax on those purchases unless exempt under
Kentucky law. The tax may be reported and paid on the Kentucky individual
income tax return or by filing a consumer use tax return with the Kentucky
Department of Revenue. These forms and corresponding instructions may be
found on the Kentucky Department of Revenue's Internet Web site.".
Except as provided in subsection (5) of this section, the retailer shall include the
exact required use tax notification language provided in subsection (3) of this
section on the:
(a) Internet Web site page necessary to facilitate an online sales transaction;
(b) Electronic order confirmation or, if an electronic order confirmation is not
issued, the required use tax notification shall be included on the purchase
order, invoice, bill, receipt, sales slip, order form, or packing statement; and
(c)
(5)
(6)
(7)
(8)
Catalog order form, purchase order, invoice, bill, receipt, sales slip, or packing
statement.
If the retailer provides a prominent reference to a supplemental page in the retailer's
catalog or on the retailer's Internet Web site, or provides a prominent electronic
linking notice on the retailers' Internet Web site, that states, "See important
Kentucky sales and use tax information regarding tax you may owe directly to the
Commonwealth of Kentucky," and that supplemental page or electronic link
contains the required use tax notification language as provided in subsection (3) of
this section, the retailer is relieved from the requirements of subsection (4) of this
section.
If the retailer is required to provide a similar use tax notification for another state in
addition to the use tax notification required by this section, the retailer may provide
a consolidated notification if the consolidated notification meets the requirements of
this section.
Except for the notification requirement on invoices in subsection (4)(c) of this
section, subsections (2) to (8) of this section shall also apply to online auction Web
sites. For purposes of this section, "online auction Web site" means a collection of
Internet Web pages that allows persons to display tangible personal property or
digital property for sale that is purchased through a competitive process where
participants place bids with the highest bidder purchasing the item when the bidding
period ends.
Any retailer that made total gross sales of less than one hundred thousand dollars
($100,000) to Kentucky residents or businesses located in Kentucky, and that
reasonably expects that its Kentucky sales in the current calendar year will be less
than one hundred thousand dollars ($100,000), shall be exempt from subsections (2)
to (8) of this section.
Effective: July 1, 2013
History: Amended 2013 Ky. Acts ch. 119, sec. 12, effective July 1, 2013. -- Amended
2009 Ky. Acts ch. 73, sec. 15, effective July 1, 2009. -- Amended 1990 Ky. Acts ch.
476, Pt. VII A, sec. 621, effective July 1, 1990. -- Amended 1968 Ky. Acts ch. 40,
Part 1, sec. 8. -- Created 1960 Ky. Acts ch. 5, Art. 1, sec. 44.
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