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Kentucky DOR Releases Use Tax Notification Reminder


 Amazon is required to collect sales tax in Kentucky, so customers don't need to worry about use tax.

Although use tax has been around almost as long as sales tax, many people still don't know about it. Many who know about it ignore it. Don't believe it? Ask your friends whether or not they submit use tax when they shop out of state or buy something--tax-free--online. They're sure to stare at you as if you've lost your mind.

Given that, numerous states are working to raise consumer awareness. To that end, many have enlisted the help of out-of-state retailers. For example, both South Carolina and Tennessee require Amazon and other large remote retailers to explain the state's use tax requirement to customers. Vermont has taken a slightly different approach, inviting businesses to audit themselves in order to learn more about use tax obligations.

Last spring, Kentucky lawmakers enacted a use tax notification requirement for certain out-of-state retailers that took effect July 1, 2013.

Under the new law, certain out-of-state retailers are required to notify Kentucky customers that if sales tax wasn't collected by the seller, the buyer is required to submit the applicable use tax directly to the Kentucky Department of Revenue.

The law applies to remote retailers who made total gross sales of $100,000 or more during the previous year from Kentucky residents and businesses and who expect to make a similar amount of sales in the coming year. All qualifying retailers not required by law to collect sales tax on Kentucky sales are required to display a use tax notification on customer invoices, retail catalogs, and Web sites.

Additional information is available here or on the Kentucky Department of Revenue website. The Kentucky DOR explains consumer use tax here.

photo credit: Ben K Adams via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.