KRS § 139.010 — KY Code / Title XI / Chapter 139 / Section 139.010
139.010 Definitions for chapter
Status: in_force

139.010 Definitions for chapter.

As used in this chapter, unless the context otherwise provides:

(1) (a) "Admissions" means the fees paid for:

1. The right of entrance to a display, program, sporting event, music

concert, performance, play, show, movie, exhibit, fair, or other

entertainment or amusement event or venue; and

2. The privilege of using facilities or participating in an event or activity,

including but not limited to:

a. Bowling centers;

b. Skating rinks;

c. Health spas;

d. Swimming pools;

e. Tennis courts;

f. Weight training facilities;

g. Fitness and recreational sports centers; and

h. Golf courses, both public and private;

regardless of whether the fee paid is per use or in any other form,

including but not limited to an initiation fee, monthly fee, membership

fee, or combination thereof.

(b) "Admissions" does not include:

1. Any fee paid to enter or participate in a fishing tournament; or

2. Any fee paid for the use of a boat ramp for the purpose of allowing

boats to be launched into or hauled out from the water;

(2) "Advertising and promotional direct mail" means direct mail the primary purpose of

which is to attract public attention to a product, person, business, or organization, or

to attempt to sell, popularize, or secure financial support for a product, person,

business, or organization. As used in this definition, "product" means tangible

personal property, an item transferred electronically, or a service;

(3) "Business" includes any activity engaged in by any person or caused to be engaged

in by that person with the object of gain, benefit, or advantage, either direct or

indirect;

(4) "Commonwealth" means the Commonwealth of Kentucky;

(5) (a) "Cosmetic surgery services" means modifications to all areas of the head,

neck, and body to enhance appearance through surgical and medical

techniques.

(b) "Cosmetic surgery services" does not include surgery services that are

medically necessary to reconstruct or correct dysfunctional areas of the face

and body due to birth disorders, trauma, burns, or disease;

(6) "Department" means the Department of Revenue;

(7) (a) "Digital audio-visual works" means a series of related images which, when

shown in succession, impart an impression of motion, with accompanying

sounds, if any.

(b) "Digital audio-visual works" includes movies, motion pictures, musical

videos, news and entertainment programs, and live events.

(c) "Digital audio-visual works" shall not include video greeting cards, video

games, and electronic games;

(8) (a) "Digital audio works" means works that result from the fixation of a series of

musical, spoken, or other sounds.

(b) "Digital audio works" includes ringtones, recorded or live songs, music,

readings of books or other written materials, speeches, or other sound

recordings.

(c) "Digital audio works" shall not include audio greeting cards sent by electronic

mail;

(9) (a) "Digital books" means works that are generally recognized in the ordinary and

usual sense as books, including any literary work expressed in words,

numbers, or other verbal or numerical symbols or indicia if the literary work

is generally recognized in the ordinary or usual sense as a book.

(b) "Digital books" shall not include digital audio-visual works, digital audio

works, periodicals, magazines, newspapers, or other news or information

products, chat rooms, or weblogs;

(10) (a) "Digital code" means a code which provides a purchaser with a right to obtain

one (1) or more types of digital property. A "digital code" may be obtained by

any means, including electronic mail messaging or by tangible means,

regardless of the code's designation as a song code, video code, or book code.

(b) "Digital code" shall not include a code that represents:

1. A stored monetary value that is deducted from a total as it is used by the

purchaser; or

2. A redeemable card, gift card, or gift certificate that entitles the holder to

select specific types of digital property;

(11) (a) "Digital property" means any of the following which is transferred

electronically:

1. Digital audio works;

2. Digital books;

3. Finished artwork;

4. Digital photographs;

5. Periodicals;

6. Newspapers;

7. Magazines;

8. Video greeting cards;

9. Audio greeting cards;

10. Video games;

11. Electronic games; or

12. Any digital code related to this property.

(b) "Digital property" shall not include digital audio-visual works or satellite

radio programming;

(12) (a) "Direct mail" means printed material delivered or distributed by United States

mail or other delivery service to a mass audience or to addressees on a mailing

list provided by the purchaser or at the direction of the purchaser when the

cost of the items are not billed directly to the recipient.

(b) "Direct mail" includes tangible personal property supplied directly or

indirectly by the purchaser to the direct mail retailer for inclusion in the

package containing the printed material.

(c) "Direct mail" does not include multiple items of printed material delivered to

a single address;

(13) "Directly used in the manufacturing or industrial processing process" means the

process that commences with the movement of raw materials from storage into a

continuous, unbroken, integrated process and ends when the finished product is

packaged and ready for sale;

(14) (a) "Executive employee recruitment services" means services provided by a

person to locate potential candidates to fill open senior-level management

positions.

(b) "Executive employee recruitment services" includes but is not limited to

making a detailed list of client requirements, researching and identifying

potential candidates, performing prescreening interviews, and providing

contract and salary negotiations;

(15) (a) "Extended warranty services" means services provided through a service

contract agreement between the contract provider and the purchaser where the

purchaser agrees to pay compensation for the contract and the provider agrees

to repair, replace, support, or maintain tangible personal property, digital

property, real property, or prewritten computer software access services

according to the terms of the contract.

(b) "Extended warranty services" does not include the sale of a service contract

agreement for tangible personal property to be used by a small telephone

utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in

KRS 65.7621 to deliver communications services as defined in KRS 136.602

or broadband;

(16) (a) "Finished artwork" means final art that is used for actual reproduction by

photomechanical or other processes or for display purposes.

(b) "Finished artwork" includes:

1. Assemblies;

2. Charts;

3. Designs;

4. Drawings;

5. Graphs;

6. Illustrative materials;

7. Lettering;

8. Mechanicals;

9. Paintings; and

10. Paste-ups;

(17) (a) "Gross receipts" and "sales price" mean the total amount or consideration,

including cash, credit, property, and services, for which tangible personal

property, digital property, or services are sold, leased, or rented, valued in

money, whether received in money or otherwise, without any deduction for

any of the following:

1. The retailer's cost of the tangible personal property, digital property, or

services sold;

2. The cost of the materials used, labor or service cost, interest, losses, all

costs of transportation to the retailer, all taxes imposed on the retailer, or

any other expense of the retailer;

3. Charges by the retailer for any services necessary to complete the sale;

4. Delivery charges, which are defined as charges by the retailer for the

preparation and delivery to a location designated by the purchaser

including transportation, shipping, postage, handling, crating, and

packing;

5. Any amount for which credit is given to the purchaser by the retailer,

other than credit for tangible personal property or digital property traded

when the tangible personal property or digital property traded is of like

kind and character to the property purchased and the property traded is

held by the retailer for resale; and

6. The amount charged for labor or services rendered in installing or

applying the tangible personal property, digital property, or service sold.

(b) "Gross receipts" and "sales price" shall include consideration received by the

retailer from a third party if:

1. The retailer actually receives consideration from a third party and the

consideration is directly related to a price reduction or discount on the

sale to the purchaser;

2. The retailer has an obligation to pass the price reduction or discount

through to the purchaser;

3. The amount of consideration attributable to the sale is fixed and

determinable by the retailer at the time of the sale of the item to the

purchaser; and

4. One (1) of the following criteria is met:

a. The purchaser presents a coupon, certificate, or other

documentation to the retailer to claim a price reduction or discount

where the coupon, certificate, or documentation is authorized,

distributed, or granted by a third party with the understanding that

the third party will reimburse any seller to whom the coupon,

certificate, or documentation is presented;

b. The price reduction or discount is identified as a third-party price

reduction or discount on the invoice received by the purchaser or

on a coupon, certificate, or other documentation presented by the

purchaser; or

c. The purchaser identifies himself or herself to the retailer as a

member of a group or organization entitled to a price reduction or

discount. A "preferred customer" card that is available to any

patron does not constitute membership in such a group.

(c) "Gross receipts" and "sales price" shall not include:

1. Discounts, including cash, term, or coupons that are not reimbursed by a

third party and that are allowed by a retailer and taken by a purchaser on

a sale;

2. Interest, financing, and carrying charges from credit extended on the

sale of tangible personal property, digital property, or services, if the

amount is separately stated on the invoice, bill of sale, or similar

document given to the purchaser;

3. Any taxes legally imposed directly on the purchaser that are separately

stated on the invoice, bill of sale, or similar document given to the

purchaser; or

4. Local alcohol regulatory license fees authorized under KRS 243.075 that

are separately stated on the invoice, bill of sale, or similar document

given to the purchaser.

(d) As used in this subsection, "third party" means a person other than the

purchaser;

(18) "In this state" or "in the state" means within the exterior limits of the

Commonwealth and includes all territory within these limits owned by or ceded to

the United States of America;

(19) "Industrial processing" includes:

(a) Refining;

(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas;

(c) Mining, quarrying, fabricating, and industrial assembling;

(d) The processing and packaging of raw materials, in-process materials, and

finished products; and

(e) The processing and packaging of farm and dairy products for sale;

(20) (a) "Lease or rental" means any transfer of possession or control of tangible

personal property for a fixed or indeterminate term for consideration. A lease

or rental shall include future options to:

1. Purchase the property; or

2. Extend the terms of the agreement and agreements covering trailers

where the amount of consideration may be increased or decreased by

reference to the amount realized upon sale or disposition of the property

as defined in 26 U.S.C. sec. 7701(h)(1).

(b) "Lease or rental" shall not include:

1. A transfer of possession or control of property under a security

agreement or deferred payment plan that requires the transfer of title

upon completion of the required payments;

2. A transfer of possession or control of property under an agreement that

requires the transfer of title upon completion of the required payments

and payment of an option price that does not exceed the greater of one

hundred dollars ($100) or one percent (1%) of the total required

payments; or

3. Providing tangible personal property and an operator for the tangible

personal property for a fixed or indeterminate period of time. To qualify

for this exclusion, the operator must be necessary for the equipment to

perform as designed, and the operator must do more than maintain,

inspect, or setup the tangible personal property.

(c) This definition shall apply regardless of the classification of a transaction

under generally accepted accounting principles, the Internal Revenue Code, or

other provisions of federal, state, or local law;

(21) (a) "Lobbying services" means the act of promoting or securing passage of

legislation or an attempt to influence or sway a public official or other public

servant toward a desired action, including but not limited to the support of or

opposition to a project or the passage, amendment, defeat, approval, or veto of

any legislation, regulation, rule, or ordinance;

(b) "Lobbying services" includes but is not limited to the performance of

activities described as executive agency lobbying activities as defined in KRS

11A.201, activities described under the definition of lobby in KRS 6.611, and

any similar activities performed at the local, state, or federal levels;

(22) (a) "Machinery for new and expanded industry" means machinery:

1. Directly used in the manufacturing or industrial processing process of:

a. Tangible personal property at a plant facility;

b. Distilled spirits or wine at a plant facility or on the premises of a

distiller, rectifier, winery, or small farm winery licensed under

KRS 243.030 that includes a retail establishment on the premises;

or

c. Malt beverages at a plant facility or on the premises of a brewer or

microbrewery licensed under KRS 243.040 that includes a retail

establishment;

2. Which is incorporated for the first time into:

a. A plant facility established in this state; or

b. Licensed premises located in this state; and

3. Which does not replace machinery in the plant facility or licensed

premises unless that machinery purchased to replace existing machinery:

a. Increases the consumption of recycled materials at the plant

facility by not less than ten percent (10%);

b. Performs different functions;

c. Is used to manufacture a different product; or

d. Has a greater productive capacity, as measured in units of

production, than the machinery being replaced.

(b) "Machinery for new and expanded industry" does not include repair,

replacement, or spare parts of any kind, regardless of whether the purchase of

repair, replacement, or spare parts is required by the manufacturer or seller as

a condition of sale or as a condition of warranty;

(23) "Manufacturing" means any process through which material having little or no

commercial value for its intended use before processing has appreciable

commercial value for its intended use after processing by the machinery;

(24) "Marketplace" means any physical or electronic means through which one (1) or

more retailers may advertise and sell tangible personal property, digital property, or

services, or lease tangible personal property or digital property, such as a catalog,

Internet website, or television or radio broadcast, regardless of whether the tangible

personal property, digital property, or retailer is physically present in this state;

(25) (a) "Marketplace provider" means a person, including any affiliate of the person,

that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this

paragraph as follows:

1. The person directly or indirectly:

a. Lists, makes available, or advertises tangible personal property,

digital property, or services for sale by a marketplace retailer in a

marketplace owned, operated, or controlled by the person;

b. Facilitates the sale of a marketplace retailer's product through a

marketplace by transmitting or otherwise communicating an offer

or acceptance of a retail sale of tangible personal property, digital

property, or services between a marketplace retailer and a

purchaser in a forum including a shop, store, booth, catalog,

Internet site, or similar forum;

c. Owns, rents, licenses, makes available, or operates any electronic

or physical infrastructure or any property, process, method,

copyright, trademark, or patent that connects marketplace retailers

to purchasers for the purpose of making retail sales of tangible

personal property, digital property, or services;

d. Provides a marketplace for making retail sales of tangible personal

property, digital property, or services, or otherwise facilitates retail

sales of tangible personal property, digital property, or services,

regardless of ownership or control of the tangible personal

property, digital property, or services, that are the subject of the

retail sale;

e. Provides software development or research and development

activities related to any activity described in this subparagraph, if

the software development or research and development activities

are directly related to the physical or electronic marketplace

provided by a marketplace provider;

f. Provides or offers fulfillment or storage services for a marketplace

retailer;

g. Sets prices for a marketplace retailer's sale of tangible personal

property, digital property, or services;

h. Provides or offers customer service to a marketplace retailer or a

marketplace retailer's customers, or accepts or assists with taking

orders, returns, or exchanges of tangible personal property, digital

property, or services sold by a marketplace retailer; or

i. Brands or otherwise identifies sales as those of the marketplace

provider; and

2. The person directly or indirectly:

a. Collects the sales price or purchase price of a retail sale of tangible

personal property, digital property, or services;

b. Provides payment processing services for a retail sale of tangible

personal property, digital property, or services;

c. Through terms and conditions, agreements, or arrangements with a

third party, collects payment in connection with a retail sale of

tangible personal property, digital property, or services from a

purchaser and transmits that payment to the marketplace retailer,

regardless of whether the person collecting and transmitting the

payment receives compensation or other consideration in exchange

for the service; or

d. Provides a virtual currency that purchasers are allowed or required

to use to purchase tangible personal property, digital property, or

services.

(b) "Marketplace provider" includes but is not limited to a person that satisfies the

requirements of this subsection through the ownership, operation, or control

of a digital distribution service, digital distribution platform, online portal, or

application store;

(26) "Marketplace retailer" means a seller that makes retail sales through any

marketplace owned, operated, or controlled by a marketplace provider;

(27) (a) "Occasional sale" includes:

1. A sale of tangible personal property or digital property not held or used

by a seller in the course of an activity for which he or she is required to

hold a seller's permit, provided such sale is not one (1) of a series of

sales sufficient in number, scope, and character to constitute an activity

requiring the holding of a seller's permit. In the case of the sale of the

entire, or a substantial portion of the nonretail assets of the seller, the

number of previous sales of similar assets shall be disregarded in

determining whether or not the current sale or sales shall qualify as an

occasional sale; or

2. Any transfer of all or substantially all the tangible personal property or

digital property held or used by a person in the course of such an activity

when after such transfer the real or ultimate ownership of such property

is substantially similar to that which existed before such transfer.

(b) For the purposes of this subsection, stockholders, bondholders, partners, or

other persons holding an interest in a corporation or other entity are regarded

as having the "real or ultimate ownership" of the tangible personal property or

digital property of such corporation or other entity;

(28) (a) "Other direct mail" means any direct mail that is not advertising and

promotional direct mail, regardless of whether advertising and promotional

direct mail is included in the same mailing.

(b) "Other direct mail" includes but is not limited to:

1. Transactional direct mail that contains personal information specific to

the addressee, including but not limited to invoices, bills, statements of

account, and payroll advices;

2. Any legally required mailings, including but not limited to privacy

notices, tax reports, and stockholder reports; and

3. Other nonpromotional direct mail delivered to existing or former

shareholders, customers, employees, or agents, including but not limited

to newsletters and informational pieces.

(c) "Other direct mail" does not include the development of billing information or

the provision of any data processing service that is more than incidental to the

production of printed material;

(29) "Person" includes any individual, firm, copartnership, joint venture, association,

social club, fraternal organization, corporation, estate, trust, business trust, receiver,

trustee, syndicate, cooperative, assignee, governmental unit or agency, or any other

group or combination acting as a unit;

(30) "Permanent," as the term applies to digital property, means perpetual or for an

indefinite or unspecified length of time;

(31) (a) "Photography and photofinishing services" means:

1. The taking, developing, or printing of an original photograph; or

2. Image editing, including shadow removal, tone adjustments, vertical and

horizontal alignment and cropping, composite image creation,

formatting, watermarking printing, and delivery of an original

photograph in the form of tangible personal property, digital property, or

other media.

(b) "Photography and photofinishing services" does not include photography

services necessary for medical or dental health;

(32) "Plant facility" means a single location that is exclusively dedicated to

manufacturing or industrial processing activities. A location shall be deemed to be

exclusively dedicated to manufacturing or industrial processing activities even if

retail sales are made there, provided that the retail sales are incidental to the

manufacturing or industrial processing activities occurring at the location. The term

"plant facility" shall not include any restaurant, grocery store, shopping center, or

other retail establishment;

(33) (a) "Prewritten computer software" means:

1. Computer software, including prewritten upgrades, that are not designed

and developed by the author or other creator to the specifications of a

specific purchaser;

2. Software designed and developed by the author or other creator to the

specifications of a specific purchaser when it is sold to a person other

than the original purchaser; or

3. Any portion of prewritten computer software that is modified or

enhanced in any manner, where the modification or enhancement is

designed and developed to the specifications of a specific purchaser,

unless there is a reasonable, separately stated charge on an invoice or

other statement of the price to the purchaser for the modification or

enhancement.

(b) When a person modifies or enhances computer software of which the person

is not the author or creator, the person shall be deemed to be the author or

creator only of the modifications or enhancements the person actually made.

(c) The combining of two (2) or more prewritten computer software programs or

portions thereof does not cause the combination to be other than prewritten

computer software;

(34) "Prewritten computer software access services" means the right of access to

prewritten computer software where the object of the transaction is to use the

prewritten computer software while possession of the prewritten computer software

is maintained by the seller or a third party, wherever located, regardless of whether

the charge for the access or use is on a per use, per user, per license, subscription, or

some other basis;

(35) (a) "Purchase" means any transfer of title or possession, exchange, barter, lease,

or rental, conditional or otherwise, in any manner or by any means

whatsoever, of:

1. Tangible personal property;

2. An extended warranty service;

3. Digital property transferred electronically; or

4. Services included in KRS 139.200;

for a consideration.

(b) "Purchase" includes:

1. When performed outside this state or when the customer gives a resale

certificate, the producing, fabricating, processing, printing, or imprinting

of tangible personal property for a consideration for consumers who

furnish either directly or indirectly the materials used in the producing,

fabricating, processing, printing, or imprinting;

2. A transaction whereby the possession of tangible personal property or

digital property is transferred but the seller retains the title as security

for the payment of the price; and

3. A transfer for a consideration of the title or possession of tangible

personal property or digital property which has been produced,

fabricated, or printed to the special order of the customer, or of any

publication;

(36) "Recycled materials" means materials which have been recovered or diverted from

the solid waste stream and reused or returned to use in the form of raw materials or

products;

(37) "Recycling purposes" means those activities undertaken in which materials that

would otherwise become solid waste are collected, separated, or processed in order

to be reused or returned to use in the form of raw materials or products;

(38) "Remote retailer" means a retailer with no physical presence in this state;

(39) (a) "Repair, replacement, or spare parts" means any tangible personal property

used to maintain, restore, mend, or repair machinery or equipment.

(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or

industrial tools;

(40) (a) "Retailer" means:

1. Every person engaged in the business of making retail sales of tangible

personal property, digital property, or furnishing any services in a retail

sale included in KRS 139.200;

2. Every person engaged in the business of making sales at auction of

tangible personal property or digital property owned by the person or

others for storage, use or other consumption, except as provided in

paragraph (c) of this subsection;

3. Every person making more than two (2) retail sales of tangible personal

property, digital property, or services included in KRS 139.200 during

any twelve (12) month period, including sales made in the capacity of

assignee for the benefit of creditors, or receiver or trustee in bankruptcy;

4. Any person conducting a race meeting under the provision of KRS

Chapter 230, with respect to horses which are claimed during the

meeting.

(b) When the department determines that it is necessary for the efficient

administration of this chapter to regard any salesmen, representatives,

peddlers, or canvassers as the agents of the dealers, distributors, supervisors or

employers under whom they operate or from whom they obtain the tangible

personal property, digital property, or services sold by them, irrespective of

whether they are making sales on their own behalf or on behalf of the dealers,

distributors, supervisors or employers, the department may so regard them and

may regard the dealers, distributors, supervisors or employers as retailers for

purposes of this chapter.

(c) 1. Any person making sales at a charitable auction for a qualifying entity

shall not be a retailer for purposes of the sales made at the charitable

auction if:

a. The qualifying entity, not the person making sales at the auction, is

sponsoring the auction;

b. The purchaser of tangible personal property at the auction directly

pays the qualifying entity sponsoring the auction for the property

and not the person making the sales at the auction; and

c. The qualifying entity, not the person making sales at the auction, is

responsible for the collection, control, and disbursement of the

auction proceeds.

2. If the conditions set forth in subparagraph 1. of this paragraph are met,

the qualifying entity sponsoring the auction shall be the retailer for

purposes of the sales made at the charitable auction.

3. For purposes of this paragraph, "qualifying entity" means a resident:

a. Church;

b. School;

c. Civic club; or

d. Any other nonprofit charitable, religious, or educational

organization;

(41) "Retail sale" means any sale, lease, or rental for any purpose other than resale,

sublease, or subrent;

(42) (a) "Ringtones" means digitized sound files that are downloaded onto a device

and that may be used to alert the customer with respect to a communication.

(b) "Ringtones" shall not include ringback tones or other digital files that are not

stored on the purchaser's communications device;

(43) (a) "Sale" means:

1. The furnishing of any services included in KRS 139.200;

2. Any transfer of title or possession, exchange, barter, lease, or rental,

conditional or otherwise, in any manner or by any means whatsoever,

of:

a. Tangible personal property; or

b. Digital property transferred electronically;

for a consideration.

(b) "Sale" includes but is not limited to:

1. The producing, fabricating, processing, printing, or imprinting of

tangible personal property or digital property for a consideration for

purchasers who furnish, either directly or indirectly, the materials used

in the producing, fabricating, processing, printing, or imprinting;

2. A transaction whereby the possession of tangible personal property or

digital property is transferred, but the seller retains the title as security

for the payment of the price; and

3. A transfer for a consideration of the title or possession of tangible

personal property or digital property which has been produced,

fabricated, or printed to the special order of the purchaser.

(c) This definition shall apply regardless of the classification of a transaction

under generally accepted accounting principles, the Internal Revenue Code, or

other provisions of federal, state, or local law;

(44) "Seller" includes every person engaged in the business of selling tangible personal

property, digital property, or services of a kind, the gross receipts from the retail

sale of which are required to be included in the measure of the sales tax, and every

person engaged in making sales for resale;

(45) (a) "Storage" includes any keeping or retention in this state for any purpose

except sale in the regular course of business or subsequent use solely outside

this state of tangible personal property, digital property, or prewritten

computer software access services purchased from a retailer.

(b) "Storage" does not include the keeping, retaining, or exercising any right or

power over tangible personal property for the purpose of subsequently

transporting it outside the state for use thereafter solely outside the state, or

for the purpose of being processed, fabricated, or manufactured into, attached

to, or incorporated into, other tangible personal property to be transported

outside the state and thereafter used solely outside the state;

(46) "Tangible personal property" means personal property which may be seen,

weighed, measured, felt, or touched, or which is in any other manner perceptible to

the senses and includes natural, artificial, and mixed gas, electricity, water, steam,

and prewritten computer software;

(47) "Taxpayer" means any person liable for tax under this chapter;

(48) "Telemarketing services" means services provided via telephone, facsimile,

electronic mail, text messages, or other modes of communications to another

person, which are unsolicited by that person, for the purposes of:

(a) 1. Promoting products or services;

2. Taking orders; or

3. Providing information or assistance regarding the products or services;

or

(b) Soliciting contributions;

(49) "Transferred electronically" means accessed or obtained by the purchaser by means

other than tangible storage media; and

(50) (a) "Use" includes the exercise of:

1. Any right or power over tangible personal property or digital property

incident to the ownership of that property, or by any transaction in

which possession is given, or by any transaction involving digital

property or tangible personal property where the right of access is

granted; or

2. Any right or power to benefit from any services subject to tax under

KRS 139.200(2)(p) to (ax).

(b) "Use" does not include the keeping, retaining, or exercising any right or

power over:

1. Tangible personal property or digital property for the purpose of:

a. Selling tangible personal property or digital property in the regular

course of business; or

b. Subsequently transporting tangible personal property outside the

state for use thereafter solely outside the state, or for the purpose

of being processed, fabricated, or manufactured into, attached to,

or incorporated into, other tangible personal property to be

transported outside the state and thereafter used solely outside the

state; or

2. Prewritten computer software access services purchased for use outside

the state and transferred electronically outside the state for use thereafter

solely outside the state.