Kentucky: Department of Revenue

Sales & Use Tax 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

The Kentucky Department of Revenue is offering Kentuckians another tool in the 2011 Income Tax Instructions to calculate the 6 percent use tax owed on purchases made from out-of-state retailers. Included in the instructions for calendar year 2011 is a new 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 2011 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 three times the rate of traditional brick and mortar stores.

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.

As the popularity of web-based and mobile e-commerce continues to increase, the liability of purchasers for payment of the 6 percent Kentucky use tax also increases. Kentucky consumers are required 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.

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% 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.