More information about Use Tax Look-Up Table
Recent statistics on retail sales confirm that more and more consumers are establishing a tax liability for themselves through increased use of online shopping. Every year, internet sales continue to increase more rapidly than traditional brick and mortar stores.
Kentucky consumers are required to report use tax on their individual income tax returns to accurately reflect their tax liability, and to ensure that our Kentucky-based retailers are not unfairly undercut by competing out-of-state retailers that fail to collect the tax on taxable products delivered into Kentucky.
When a web-based retailer or any out-of-state retailer does not collect the 6 percent Kentucky sales and use tax, the consumer is responsible for reporting and paying use tax on those untaxed purchases, in accordance with KRS 139.330. The easiest way for the individual consumer to report and pay the use tax is on the state income tax return.
The Look-Up Table provides an option to report estimated use tax owed on retail purchases based upon Kentucky adjusted gross income when receipts are not readily available to calculate the actual unpaid use tax liability.