Disaster Relief Sales and Use Tax Legislation
On April 16, 2012, Gov. Beshear signed into law the provisions of House Bill 255 which provide a refund of sales and use tax paid for building materials permanently installed in the repair or replacement of buildings damaged in counties covered under a federal disaster relief declaration. The legislation is retroactive to provide tax relief for property owners in the 23 disaster counties affected by the storms in late February and early March of 2012.
The Kentucky Department of Revenue has promulgated an administrative regulation (103 KAR 31:170) to provide additional guidance on the sales and use tax refund process. Click here to access this guidance.
Telephone assistance is available at 502-564-5170 (Option 1).
Also, applicable forms for property owners who have completed repairs or reconstruction of buildings damaged or destroyed in the disaster areas are available at the link below:
For answers to Frequently Asked Questions, click here.
Filing Information for Retailers Affected by Recent Storms
Due to the storms of Feb.29 – Mar. 2, 2012 President Obama has issued a major disaster declaration for the 23 counties in Kentucky listed below. The Kentucky DOR advises taxpayers that have been affected by the disaster to continue filing their sales tax returns using the established due dates. Thirty-day extensions are available upon request.
Taxpayers who cannot locate their sales tax return and need a replacement may contact the DOR Division of Sales and Use Tax at 502-564-5170 (Option 1) for assistance. Taxpayers who are having difficulty meeting filing deadlines for their sales tax returns can also contact the Division of Sales and Use Tax which will work with them on a case-by-case basis.
The IRS has information available regarding federal Disaster Assistance and Emergency Relief for Individuals and Businesses. It is designed to help homeowners and businesses in a federally declared disaster area. It can be found at http://www.irs.gov/businesses/small/article/0,,id=156138,00.html
For more information about any federal relief or extensions, taxpayers should visit the IRS website at www.irs.gov or call the IRS at 800-829-1040 for individuals. For businesses with federal tax-related questions, they should call the IRS at 800-829-4933.
The following counties are included in the disaster declaration:
Adair, Ballard, Bath, Campbell, Carroll, Grant, Grayson, Johnson, Kenton, Larue, Laurel, Lawrence, Magoffin, Martin, Menifee, Montgomery, Morgan, Ohio, Pendleton, Rowan, Russell, Trimble, and Wolfe.
Click here Frequently Asked Questions
IMPORTANT NOTICE: The Kentucky Sales & Use Tax returns (forms 51A102, 51A102E, 51A103, 51A113) are not available online or by fax. The forms are scannable forms for processing purposes. Failure to use the original forms delays processing, could lead to transposition errors and may cause your return to be considered late. If the original is lost, please call (502)564-5170, or visit one of the Department of Revenue's offices for replacement.
Sales & Use Tax Forms
Use Tax Look-Up Table to Assist Taxpayers in Reporting Untaxed Retail Purchases
In the 2012 Income Tax Instructions, the Kentucky Department of Revenue has again included a Use Tax Look-Up Table that allows individuals to estimate use tax owed on their total annual purchases from out-of-state retailers.
Recent statistics on 2012 holiday retail sales confirm that more and more consumers are establishing a tax liability for themselves through increased use of online shopping. Internet sales during November and December increased at more than four times the rate of 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.
For questions or further assistance on sales and use tax matters, contact the Kentucky Department of Revenue at 502-564-5170.
The Sales Tax is imposed on the gross receipts derived from both retail sales of tangible personal property and sales of certain services to the final customer in Kentucky.
The Use Tax is imposed on the purchase price of tangible personal property purchased for storage, use or other consumption in Kentucky. The use tax is a "back stop" for sales tax and generally applies to property purchased outside the state for storage, use or consumption within the state.
Kentucky Sales and Use Tax is imposed at the rate of 6 percent of gross receipts or purchase price. There are no local sales and use taxes in Kentucky.
Kentucky Sales and Use Tax Laws are located in Chapter 139 of the Kentucky Revised Statutes.
You may contact the Division of Sales and Use Tax by telephone (502) 564-5170, by fax (502) 564-2041 or by e-mail.
For return information please click here.
Streamlined Sales Tax
Kentucky Sales and Use Tax Laws have changed recently as the General Assembly enacted legislation to include Kentucky in the Streamlined Sales Tax Agreement. The Streamlined Sales Tax Agreement is a compact of states joining together to give common definitions and rules for sales and use taxes across the participating states. Please see links below to specific Streamlined Sales Tax information.
Registration and Filing Instructions
Registration Under the Streamlined Sales Tax System (March 3, 2008)
CSP Providers (July 30, 2008)
Filing Procedures For Model 4, Voluntary Filers (November 28, 2005)
Frequently Asked Questions about Streamlined Sales Tax New
KY SST Resources
SST Recertification [PDF - 81KB] (08-06-12)
2012 Certificate of Compliance [TIF - 3305KB] (11-14-12)
2012 Taxability Matrix [TIF - 1306KB] (11-14-12)
Kentucky State Specifications for Streamlined Sales Tax Participants - Contacts [PDF - 35KB] (4-02-08)
Health Care Item List (June 2, 2006 - SST Bylaws and Rules Appendix L) [PDF - 510KB] (4-30-08)
Health Care Item List Addendum (January 29, 2007 - SST Bylaws and Rules Appendix M) [PDF - 490KB] (4-30-08)
E-mail SST questions to the Division of Sales and Use Tax, DOR.WEBResponseSSTP@ky.gov, or by calling (502) 564-5170.
Sales & Use Tax Links
SEATA Exchange of Information [PDF - 30KB]
Current Issue of Kentucky Sales Tax Facts
Archived Sales Tax Facts Newsletters
County Clerks: FAQ on Sales & Use Tax and MVU Tax [PDF - 52KB] (8-08-07)
HB 144, Effective April 1, 2009 -- Sales Tax Changes for Packaged Liquors and Tobacco Tax Modifications [PDF - 12KB]
E-Mail DOR Taxing Areas
Questions can be directed to the Kentucky Department of Revenue, Division of Sales and Use Tax, Station 67, PO Box 181, Frankfort, KY 40602-0181, (502) 564-5170