KRS § 139.340 — KY Code / Title XI / Chapter 139 / Section 139.340
139.340 Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust -- Registration and collection by remote retailer
Status: in_force

139.340 Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust

-- Registration and collection by remote retailer.

(1) Except as provided in KRS 139.470 and 139.480, every retailer engaged in business

in this state shall collect the tax imposed by KRS 139.310 from the purchaser and

give to the purchaser a receipt therefor in the manner and form prescribed by the

department. The taxes collected or required to be collected by the retailer under this

section shall be deemed to be held in trust for and on account of the

Commonwealth.

(2) "Retailer engaged in business in this state" as used in KRS 139.330 and this section

includes any of the following:

(a) Any retailer maintaining, occupying, or using, permanently or temporarily,

directly or indirectly, or through a subsidiary or any other related entity,

representative, or agent, by whatever name called, an office, place of

distribution, sales or sample room or place, warehouse or storage place, or

other place of business. Property owned by a person who has contracted with

a printer for printing, which consists of the final printed product, property

which becomes a part of the final printed product, or copy from which the

printed product is produced, and which is located at the premises of the

printer, shall not be deemed to be an office, place of distribution, sales or

sample room or place, warehouse or storage place, or other place of business

maintained, occupied, or used by the person;

(b) Any retailer having any representative, agent, salesman, canvasser, or solicitor

operating in this state under the authority of the retailer or its subsidiary for

the purpose of selling, delivering, or the taking of orders for any tangible

personal property, digital property, or any services subject to tax under KRS

139.200(2)(p) to (ax). An unrelated printer with which a person has contracted

for printing shall not be deemed to be a representative, agent, salesman,

canvasser, or solicitor for the person;

(c) Any retailer soliciting orders for tangible personal property, digital property,

or any services subject to tax under KRS 139.200(2)(p) to (ax) from residents

of this state on a continuous, regular, or systematic basis in which the

solicitation of the order, placement of the order by the customer or the

payment for the order utilizes the services of any financial institution,

telecommunication system, radio or television station, cable television

service, print media, or other facility or service located in this state;

(d) Any retailer deriving receipts from the lease or rental of tangible personal

property situated in this state;

(e) Any retailer soliciting orders for tangible personal property, digital property,

or any services subject to tax under KRS 139.200(2)(p) to (ax) from residents

of this state on a continuous, regular, systematic basis if the retailer benefits

from an agent or representative operating in this state under the authority of

the retailer to repair or service tangible personal property or digital property

sold by the retailer;

(f) Any retailer located outside Kentucky that uses a representative in Kentucky,

either full-time or part-time, if the representative performs any activities that

help establish or maintain a marketplace for the retailer, including receiving or

exchanging returned merchandise; or

(g) 1. Any remote retailer selling tangible personal property or digital property

delivered or transferred electronically to a purchaser in this state,

including retail sales facilitated by a marketplace provider on behalf of

the remote retailer, if:

a. The remote retailer sold tangible personal property or digital

property that was delivered or transferred electronically to a

purchaser in this state in two hundred (200) or more separate

transactions in the previous calendar year or the current calendar

year; or

b. The remote retailer's gross receipts derived from the sale of

tangible personal property or digital property delivered or

transferred electronically to a purchaser in this state in the previous

calendar year or current calendar year exceeds one hundred

thousand dollars ($100,000).

2. Any remote retailer that meets either threshold provided in subparagraph

1. of this paragraph shall register for a sales and use tax permit and

collect the tax imposed by KRS 139.310 from the purchaser no later

than the first day of the calendar month that is at the most sixty (60)

days after either threshold is reached.