Kentucky Sales and Use Tax Laws have changed recently as the General Assembly enacted legislation to include Kentucky in the Streamlined Sales Tax Agreement. The Streamlined Sales Tax Agreement is a compact of states joining together to give common definitions and rules for sales and use taxes across the participating states.
The Sales Tax is imposed on the gross receipts derived from both retail sales of tangible personal property and sales of certain services to the final customer in Kentucky.
The Use Tax is imposed on the purchase price of tangible personal property purchased for storage, use or other consumption in Kentucky. The use tax is a "back stop" for sales tax and generally applies to property purchased outside the state for storage, use or consumption within the state.
Sales and Use Taxes are imposed at the rate of 6% of gross receipts or purchase price.
Kentucky Sales and Use Tax Laws are located in Chapter 139 of the Kentucky Revised Statutes.
