Kentucky Statutes 139.450 – Presumption about property shipped, brought, or electronically transferred into state — Duties of marketplace provider — No class action relating to overpayment of tax
Current as of: 2024 | Check for updates
|
Other versions
(1) It shall be presumed that:
(a) Tangible personal property shipped or brought to this state by the purchaser; or
(b) Digital property delivered or transferred electronically into this state;
was purchased from a retailer for storage, use, or other consumption in this state.
(2) (a) A marketplace provider that makes retail sales on its own behalf or facilitates retail sales of tangible personal property, digital property, or services that are delivered or transferred electronically to a purchaser in this state for one (1) or more marketplace retailers that in any sales combination exceeds one hundred thousand dollars ($100,000) or reaches two hundred (200) or more separate transactions in the immediately preceding calendar year or current calendar year shall be subject to this section.
(b) The marketplace provider shall:
1. Register for a sales and use tax permit number to report and remit the tax due; and
2. Collect tax imposed under this chapter;
no later than the first day of the calendar month that is at the most sixty (60) days after either threshold in paragraph (a) of this subsection is reached.
(c) The marketplace provider may register for:
1. A single sales and use tax permit number to report and remit all the tax due on the marketplace provider’s direct sales and sales the marketplace provider facilitates for one (1) or more marketplace retailers; or
2. a. One (1) sales and use tax permit number to report and remit the tax due on the marketplace provider’s direct sales; and
b. One (1) additional sales and use tax permit number to report and remit the tax due on all sales the marketplace provider facilitates for one (1) or more marketplace retailers.
(d) 1. If the marketplace provider elects to report and remit the tax due on a single sales and use tax permit number as provided in paragraph (c)1. of this subsection, the marketplace provider shall, upon request of the department, provide a separate breakdown of receipts from the marketplace provider’s direct sales and the sales the marketplace provider facilitates for the preceding fiscal year ending June 30.
2. The department may request the breakdown of receipts no more than once annually.
(e) The marketplace provider shall collect Kentucky tax on the entire sales price or purchase price paid by a purchaser on each retail sale subject to
tax under this chapter that is made on its own behalf or that is facilitated by the marketplace provider, regardless of whether the seller would have been required to collect the tax had the retail sale not been facilitated by the marketplace provider.
(3) Nothing in this section shall be construed to relieve the marketplace provider of liability for collecting but failing to remit the taxes imposed under this chapter.
(4) (a) The marketplace provider shall be subject to audit on all sales made on its own behalf and on all sales facilitated by the marketplace provider.
(b) The marketplace retailer shall be relieved of all liability for the collection and remittance of the sales or use tax on sales facilitated by the marketplace provider.
(5) No class action may be brought against a marketplace provider on behalf of purchasers arising from or in any way related to an overpayment of tax collected by the marketplace provider.
Effective:July 1, 2021
History: Amended 2021 Ky. Acts ch. 156, sec. 8, effective July 1, 2021. — Amended 2019 Ky. Acts ch. 151, sec. 25, effective June 27, 2019. — 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.
Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 25 of that Act apply to transactions occurring on or after July 1, 2019.
(a) Tangible personal property shipped or brought to this state by the purchaser; or
Terms Used In Kentucky Statutes 139.450
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- consumption: as used in this chapter , shall not include the sale, use, storage, or other consumption of:
(1) Locomotives or rolling stock, including materials for the construction, repair, or modification thereof, or fuel or supplies for the direct operation of locomotives and trains, used or to be used in interstate commerce. See Kentucky Statutes 139.480 - Department: means the Department of Revenue. See Kentucky Statutes 139.010
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Marketplace: means any physical or electronic means through which one (1) or more retailers may advertise and sell tangible personal property, digital property, or services, or lease tangible personal property or digital property, such as a catalog, Internet website, or television or radio broadcast, regardless of whether the tangible personal property, digital property, or retailer is physically present in this state. See Kentucky Statutes 139.010
- Marketplace provider: includes but is not limited to a person that satisfies the requirements of this subsection through the ownership, operation, or control of a digital distribution service, digital distribution platform, online portal, or application store. See Kentucky Statutes 139.010
- Month: means calendar month. See Kentucky Statutes 446.010
- Personal property: All property that is not real property.
- Purchase: includes :
1. See Kentucky Statutes 139.010 - Retail sale: means any sale, lease, or rental for any purpose other than resale, sublease, or subrent. See Kentucky Statutes 139.010
- Retailer: means :
1. See Kentucky Statutes 139.010 - Sale: includes but is not limited to:
1. See Kentucky Statutes 139.010 - sales price: shall include consideration received by the retailer from a third party if:
1. See Kentucky Statutes 139.010 - Seller: includes every person engaged in the business of selling tangible personal property, digital property, or services of a kind, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax, and every person engaged in making sales for resale. See Kentucky Statutes 139.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Storage: includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property, digital property, or prewritten computer software access services purchased from a retailer. See Kentucky Statutes 139.010
- Transferred electronically: means accessed or obtained by the purchaser by means other than tangible storage media. See Kentucky Statutes 139.010
- Use: includes the exercise of:
1. See Kentucky Statutes 139.010 - Year: means calendar year. See Kentucky Statutes 446.010
(b) Digital property delivered or transferred electronically into this state;
was purchased from a retailer for storage, use, or other consumption in this state.
(2) (a) A marketplace provider that makes retail sales on its own behalf or facilitates retail sales of tangible personal property, digital property, or services that are delivered or transferred electronically to a purchaser in this state for one (1) or more marketplace retailers that in any sales combination exceeds one hundred thousand dollars ($100,000) or reaches two hundred (200) or more separate transactions in the immediately preceding calendar year or current calendar year shall be subject to this section.
(b) The marketplace provider shall:
1. Register for a sales and use tax permit number to report and remit the tax due; and
2. Collect tax imposed under this chapter;
no later than the first day of the calendar month that is at the most sixty (60) days after either threshold in paragraph (a) of this subsection is reached.
(c) The marketplace provider may register for:
1. A single sales and use tax permit number to report and remit all the tax due on the marketplace provider’s direct sales and sales the marketplace provider facilitates for one (1) or more marketplace retailers; or
2. a. One (1) sales and use tax permit number to report and remit the tax due on the marketplace provider’s direct sales; and
b. One (1) additional sales and use tax permit number to report and remit the tax due on all sales the marketplace provider facilitates for one (1) or more marketplace retailers.
(d) 1. If the marketplace provider elects to report and remit the tax due on a single sales and use tax permit number as provided in paragraph (c)1. of this subsection, the marketplace provider shall, upon request of the department, provide a separate breakdown of receipts from the marketplace provider’s direct sales and the sales the marketplace provider facilitates for the preceding fiscal year ending June 30.
2. The department may request the breakdown of receipts no more than once annually.
(e) The marketplace provider shall collect Kentucky tax on the entire sales price or purchase price paid by a purchaser on each retail sale subject to
tax under this chapter that is made on its own behalf or that is facilitated by the marketplace provider, regardless of whether the seller would have been required to collect the tax had the retail sale not been facilitated by the marketplace provider.
(3) Nothing in this section shall be construed to relieve the marketplace provider of liability for collecting but failing to remit the taxes imposed under this chapter.
(4) (a) The marketplace provider shall be subject to audit on all sales made on its own behalf and on all sales facilitated by the marketplace provider.
(b) The marketplace retailer shall be relieved of all liability for the collection and remittance of the sales or use tax on sales facilitated by the marketplace provider.
(5) No class action may be brought against a marketplace provider on behalf of purchasers arising from or in any way related to an overpayment of tax collected by the marketplace provider.
Effective:July 1, 2021
History: Amended 2021 Ky. Acts ch. 156, sec. 8, effective July 1, 2021. — Amended 2019 Ky. Acts ch. 151, sec. 25, effective June 27, 2019. — 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.
Legislative Research Commission Note (6/27/2019). Section 82 of 2019 Ky. Acts ch. 151 states that the amendments to this statute made in Section 25 of that Act apply to transactions occurring on or after July 1, 2019.