Kentucky’s Use Tax Notification Requirement
- Feb 6, 2014 | Gail Cole
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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