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Kentucky’s Use Tax Notification Requirement


 Remote retailers making a certain amount of sales must notify Kentucky residents of their use tax obligation.

According to the Kentucky Department of Revenue, consumers spent close to $2 billion on Cyber Monday, 2013--the “heaviest online spending day in history” up to that point. Perhaps it was this impressive figure that prompted the DOR to remind taxpayers and tax professionals of Kentucky’s use tax notification requirement, which took effect on July 1, 2013.

Under the new law, certain out-of-state retailers not already required to collect use tax directly to the department on purchases from that retailer unless the purchases are otherwise exempt….” Said notification must be “readily visible” on the retailer’s web site, catalog and invoices.

Retailers are exempt from the notification requirement if they:

  • “made total gross sales of less than one hundred thousand dollars ($100,000) to Kentucky residents or businesses located in Kentucky,” and
  • if they “reasonably” expect that “Kentucky sales in the current calendar year will be less than one hundred thousand dollars ($100,000).

Additional information is available in HB 440. Click on the link to the bill and scroll to page 38 on the downloaded document (section 12 (1) ff).

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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.