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AN ACT relating to the exemption of feminine hygiene products from sales and use 1
taxes. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 139.010 (Effective January 1, 2023) is amended to read as 4
follows: 5
As used in this chapter, unless the context otherwise provides: 6
(1) (a) "Admissions" means the fees paid for: 7
1. The right of entrance to a display, program, sporting event, music 8
concert, performance, play, show, movie, exhibit, fair, or other 9
entertainment or amusement event or venue; and 10
2. The privilege of using facilities or participating in an event or activity, 11
including but not limited to: 12
a. Bowling centers; 13
b. Skating rinks; 14
c. Health spas; 15
d. Swimming pools; 16
e. Tennis courts; 17
f. Weight training facilities; 18
g. Fitness and recreational sports centers; and 19
h. Golf courses, both public and private; 20
regardless of whether the fee paid is per use or in any other form, 21
including but not limited to an initiation fee, monthly fee, membership 22
fee, or combination thereof. 23
(b) "Admissions" does not include: 24
1. Any fee paid to enter or participate in a fishing tournament; or 25
2. Any fee paid for the use of a boat ramp for the purpose of allowing boats 26
to be launched into or hauled out from the water; 27 UNOFFICIAL COPY 23 RS BR 136
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(2) "Advertising and promotional direct mail" means direct mail the primary purpose of 1
which is to attract public attention to a product, person, business, or organization, or 2
to attempt to sell, popularize, or secure financial support for a product, person, 3
business, or organization. As used in this definition, "product" means tangible 4
personal property, an item transferred electronically, or a service; 5
(3) "Business" includes any activity engaged in by any person or caused to be engaged 6
in by that person with the object of gain, benefit, or advantage, either direct or 7
indirect; 8
(4) "Commonwealth" means the Commonwealth of Kentucky; 9
(5) (a) "Cosmetic surgery services" means modifications to all areas of the head, 10
neck, and body to enhance appearance through surgical and medical 11
techniques. 12
(b) "Cosmetic surgery services" does not include reconstruction of facial and 13
body defects due to birth disorders, trauma, burns, or disease; 14
(6) "Department" means the Department of Revenue; 15
(7) (a) "Digital audio-visual works" means a series of related images which, when 16
shown in succession, impart an impression of motion, with accompanying 17
sounds, if any. 18
(b) "Digital audio-visual works" includes movies, motion pictures, musical 19
videos, news and entertainment programs, and live events. 20
(c) "Digital audio-visual works" shall not include video greeting cards, video 21
games, and electronic games; 22
(8) (a) "Digital audio works" means works that result from the fixation of a series of 23
musical, spoken, or other sounds. 24
(b) "Digital audio works" includes ringtones, recorded or live songs, music, 25
readings of books or other written materials, speeches, or other sound 26
recordings. 27 UNOFFICIAL COPY 23 RS BR 136
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(c) "Digital audio works" shall not include audio greeting cards sent by electronic 1
mail; 2
(9) (a) "Digital books" means works that are generally recognized in the ordinary and 3
usual sense as books, including any literary work expressed in words, 4
numbers, or other verbal or numerical symbols or indicia if the literary work is 5
generally recognized in the ordinary or usual sense as a book. 6
(b) "Digital books" shall not include digital audio-visual works, digital audio 7
works, periodicals, magazines, newspapers, or other news or information 8
products, chat rooms, or Web logs; 9
(10) (a) "Digital code" means a code which provides a purchaser with a right to obtain 10
one (1) or more types of digital property. A "digital code" may be obtained by 11
any means, including electronic mail messaging or by tangible means, 12
regardless of the code's designation as a song code, video code, or book code. 13
(b) "Digital code" shall not include a code that represents: 14
1. A stored monetary value that is deducted from a total as it is used by the 15
purchaser; or 16
2. A redeemable card, gift card, or gift certificate that entitles the holder to 17
select specific types of digital property; 18
(11) (a) "Digital property" means any of the following which is transferred 19
electronically: 20
1. Digital audio works; 21
2. Digital books; 22
3. Finished artwork; 23
4. Digital photographs; 24
5. Periodicals; 25
6. Newspapers; 26
7. Magazines; 27 UNOFFICIAL COPY 23 RS BR 136
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8. Video greeting cards; 1
9. Audio greeting cards; 2
10. Video games; 3
11. Electronic games; or 4
12. Any digital code related to this property. 5
(b) "Digital property" shall not include digital audio-visual works or satellite 6
radio programming; 7
(12) (a) "Direct mail" means printed material delivered or distributed by United States 8
mail or other delivery service to a mass audience or to addressees on a mailing 9
list provided by the purchaser or at the direction of the purchaser when the 10
cost of the items are not billed directly to the recipient. 11
(b) "Direct mail" includes tangible personal property supplied directly or 12
indirectly by the purchaser to the direct mail retailer for inclusion in the 13
package containing the printed material. 14
(c) "Direct mail" does not include multiple items of printed material delivered to 15
a single address; 16
(13) "Directly used in the manufacturing or industrial processing process" means the 17
process that commences with the movement of raw materials from storage into a 18
continuous, unbroken, integrated process and ends when the finished product is 19
packaged and ready for sale; 20
(14) (a) "Extended warranty services" means services provided through a service 21
contract agreement between the contract provider and the purchaser where the 22
purchaser agrees to pay compensation for the contract and the provider agrees 23
to repair, replace, support, or maintain tangible personal property, digital 24
property, or real property according to the terms of the contract. 25
(b) "Extended warranty services" does not include the sale of a service contract 26
agreement for tangible personal property to be used by a small telephone 27 UNOFFICIAL COPY 23 RS BR 136
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utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in 1
KRS 65.7621 to deliver communications services as defined in KRS 136.602 2
or broadband; 3
(15) "Feminine hygiene products" means tampons, panty liners, menstrual cups, 4
sanitary napkins, and other similar tangible personal property designed for 5
feminine hygiene in connection with the human menstrual cycle, but does not 6
include grooming and hygiene products as defined in KRS 139.472; 7
(16) (a) "Finished artwork" means final art that is used for actual reproduction by 8
photomechanical or other processes or for display purposes. 9
(b) "Finished artwork" includes: 10
1. Assemblies; 11
2. Charts; 12
3. Designs; 13
4. Drawings; 14
5. Graphs; 15
6. Illustrative materials; 16
7. Lettering; 17
8. Mechanicals; 18
9. Paintings; and 19
10. Paste-ups; 20
(17)[(16)] (a) "Gross receipts" and "sales price" mean the total amount or 21
consideration, including cash, credit, property, and services, for which 22
tangible personal property, digital property, or services are sold, leased, or 23
rented, valued in money, whether received in money or otherwise, without any 24
deduction for any of the following: 25
1. The retailer's cost of the tangible personal property, digital property, or 26
services sold; 27 UNOFFICIAL COPY 23 RS BR 136
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2. The cost of the materials used, labor or service cost, interest, losses, all 1
costs of transportation to the retailer, all taxes imposed on the retailer, or 2
any other expense of the retailer; 3
3. Charges by the retailer for any services necessary to complete the sale; 4
4. Delivery charges, which are defined as charges by the retailer for the 5
preparation and delivery to a location designated by the purchaser 6
including transportation, shipping, postage, handling, crating, and 7
packing; 8
5. Any amount for which credit is given to the purchaser by the retailer, 9
other than credit for tangible personal property or digital property traded 10
when the tangible personal property or digital property traded is of like 11
kind and character to the property purchased and the property traded is 12
held by the retailer for resale; and 13
6. The amount charged for labor or services rendered in installing or 14
applying the tangible personal property, digital property, or service sold. 15
(b) "Gross receipts" and "sales price" shall include consideration received by the 16
retailer from a third party if: 17
1. The retailer actually receives consideration from a third party and the 18
consideration is directly related to a price reduction or discount on the 19
sale to the purchaser; 20
2. The retailer has an obligation to pass the price reduction or discount 21
through to the purchaser; 22
3. The amount of consideration attributable to the sale is fixed and 23
determinable by the retailer at the time of the sale of the item to the 24
purchaser; and 25
4. One (1) of the following criteria is met: 26
a. The purchaser presents a coupon, certificate, or other 27 UNOFFICIAL COPY 23 RS BR 136
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documentation to the retailer to claim a price reduction or discount 1
where the coupon, certificate, or documentation is authorized, 2
distributed, or granted by a third party with the understanding that 3
the third party will reimburse any seller to whom the coupon, 4
certificate, or documentation is presented; 5
b. The price reduction or discount is identified as a third-party price 6
reduction or discount on the invoice received by the purchaser or 7
on a coupon, certificate, or other documentation presented by the 8
purchaser; or 9
c. The purchaser identifies himself or herself to the retailer as a 10
member of a group or organization entitled to a price reduction or 11
discount. A "preferred customer" card that is available to any 12
patron does not constitute membership in such a group. 13
(c) "Gross receipts" and "sales price" shall not include: 14
1. Discounts, including cash, term, or coupons that are not reimbursed by a 15
third party and that are allowed by a retailer and taken by a purchaser on 16
a sale; 17
2. Interest, financing, and carrying charges from credit extended on the sale 18
of tangible personal property, digital property, or services, if the amount 19
is separately stated on the invoice, bill of sale, or similar document given 20
to the purchaser; 21
3. Any taxes legally imposed directly on the purchaser that are separately 22
stated on the invoice, bill of sale, or similar document given to the 23
purchaser; or 24
4. Local alcohol regulatory license fees authorized under KRS 243.075 that 25
are separately stated on the invoice, bill of sale, or similar document 26
given to the purchaser. 27 UNOFFICIAL COPY 23 RS BR 136
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(d) As used in this subsection, "third party" means a person other than the 1
purchaser; 2
(18)[(17)] "In this state" or "in the state" means within the exterior limits of the 3
Commonwealth and includes all territory within these limits owned by or ceded to 4
the United States of America; 5
(19)[(18)] "Industrial processing" includes: 6
(a) Refining; 7
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas; 8
(c) Mining, quarrying, fabricating, and industrial assembling; 9
(d) The processing and packaging of raw materials, in-process materials, and 10
finished products; and 11
(e) The processing and packaging of farm and dairy products for sale; 12
(20)[(19)] (a) "Lease or rental" means any transfer of possession or control of tangible 13
personal property for a fixed or indeterminate term for consideration. A lease 14
or rental shall include future options to: 15
1. Purchase the property; or 16
2. Extend the terms of the agreement and agreements covering trailers 17
where the amount of consideration may be increased or decreased by 18
reference to the amount realized upon sale or disposition of the property 19
as defined in 26 U.S.C. sec. 7701(h)(1). 20
(b) "Lease or rental" shall not include: 21
1. A transfer of possession or control of property under a security 22
agreement or deferred payment plan that requires the transfer of title 23
upon completion of the required payments; 24
2. A transfer of possession or control of property under an agreement that 25
requires the transfer of title upon completion of the required payments 26
and payment of an option price that does not exceed the greater of one 27 UNOFFICIAL COPY 23 RS BR 136
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hundred dollars ($100) or one percent (1%) of the total required 1
payments; or 2
3. Providing tangible personal property and an operator for the tangible 3
personal property for a fixed or indeterminate period of time. To qualify 4
for this exclusion, the operator must be necessary for the equipment to 5
perform as designed, and the operator must do more than maintain, 6
inspect, or setup the tangible personal property. 7
(c) This definition shall apply regardless of the classification of a transaction 8
under generally accepted accounting principles, the Internal Revenue Code, or 9
other provisions of federal, state, or local law; 10
(21)[(20)] (a) "Machinery for new and expanded industry" means machinery: 11
1. Directly used in the manufacturing or industrial processing process of: 12
a. Tangible personal property at a plant facility; 13
b. Distilled spirits or wine at a plant facility or on the premises of a 14
distiller, rectifier, winery, or small farm winery licensed under 15
KRS 243.030 that includes a retail establishment on the premises; 16
or 17
c. Malt beverages at a plant facility or on the premises of a brewer or 18
microbrewery licensed under KRS 243.040 that includes a retail 19
establishment; 20
2. Which is incorporated for the first time into: 21
a. A plant facility established in this state; or 22
b. Licensed premises located in this state; and 23
3. Which does not replace machinery in the plant facility or licensed 24
premises unless that machinery purchased to replace existing machinery: 25
a. Increases the consumption of recycled materials at the plant 26
facility by not less than ten percent (10%); 27 UNOFFICIAL COPY 23 RS BR 136
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b. Performs different functions; 1
c. Is used to manufacture a different product; or 2
d. Has a greater productive capacity, as measured in units of 3
production, than the machinery being replaced. 4
(b) "Machinery for new and expanded industry" does not include repair, 5
replacement, or spare parts of any kind, regardless of whether the purchase of 6
repair, replacement, or spare parts is required by the manufacturer or seller as 7
a condition of sale or as a condition of warranty; 8
(22)[(21)] "Manufacturing" means any process through which material having little or no 9
commercial value for its intended use before processing has appreciable commercial 10
value for its intended use after processing by the machinery; 11
(23)[(22)] "Marketing services" means developing marketing objectives and policies, 12
sales forecasting, new product developing and pricing, licensing, and franchise 13
planning; 14
(24)[(23)] "Marketplace" means any physical or electronic means through which one (1) 15
or more retailers may advertise and sell tangible personal property, digital property, 16
or services, or lease tangible personal property or digital property, such as a catalog, 17
Internet Web site, or television or radio broadcast, regardless of whether the 18
tangible personal property, digital property, or retailer is physically present in this 19
state; 20
(25)[(24)] (a) "Marketplace provider" means a person, including any affiliate of the 21
person, that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this 22
paragraph as follows: 23
1. The person directly or indirectly: 24
a. Lists, makes available, or advertises tangible personal property, 25
digital property, or services for sale by a marketplace retailer in a 26
marketplace owned, operated, or controlled by the person; 27 UNOFFICIAL COPY 23 RS BR 136
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b. Facilitates the sale of a marketplace retailer's product through a 1
marketplace by transmitting or otherwise communicating an offer 2
or acceptance of a retail sale of tangible personal property, digital 3
property, or services between a marketplace retailer and a 4
purchaser in a forum including a shop, store, booth, catalog, 5
Internet site, or similar forum; 6
c. Owns, rents, licenses, makes available, or operates any electronic 7
or physical infrastructure or any property, process, method, 8
copyright, trademark, or patent that connects marketplace retailers 9
to purchasers for the purpose of making retail sales of tangible 10
personal property, digital property, or services; 11
d. Provides a marketplace for making retail sales of tangible personal 12
property, digital property, or services, or otherwise facilitates retail 13
sales of tangible personal property, digital property, or services, 14
regardless of ownership or control of the tangible personal 15
property, digital property, or services, that are the subject of the 16
retail sale; 17
e. Provides software development or research and development 18
activities related to any activity described in this subparagraph, if 19
the software development or research and development activities 20
are directly related to the physical or electronic marketplace 21
provided by a marketplace provider; 22
f. Provides or offers fulfillment or storage services for a marketplace 23
retailer; 24
g. Sets prices for a marketplace retailer's sale of tangible personal 25
property, digital property, or services; 26
h. Provides or offers customer service to a marketplace retailer or a 27 UNOFFICIAL COPY 23 RS BR 136
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marketplace retailer's customers, or accepts or assists with taking 1
orders, returns, or exchanges of tangible personal property, digital 2
property, or services sold by a marketplace retailer; or 3
i. Brands or otherwise identifies sales as those of the marketplace 4
provider; and 5
2. The person directly or indirectly: 6
a. Collects the sales price or purchase price of a retail sale of tangible 7
personal property, digital property, or services; 8
b. Provides payment processing services for a retail sale of tangible 9
personal property, digital property, or services; 10
c. Through terms and conditions, agreements, or arrangements with a 11
third party, collects payment in connection with a retail sale of 12
tangible personal property, digital property, or services from a 13
purchaser and transmits that payment to the marketplace retailer, 14
regardless of whether the person collecting and transmitting the 15
payment receives compensation or other consideration in exchange 16
for the service; or 17
d. Provides a virtual currency that purchasers are allowed or required 18
to use to purchase tangible personal property, digital property, or 19
services. 20
(b) "Marketplace provider" includes but is not limited to a person that satisfies the 21
requirements of this subsection through the ownership, operation, or control 22
of a digital distribution service, digital distribution platform, online portal, or 23
application store; 24
(26)[(25)] "Marketplace retailer" means a seller that makes retail sales through any 25
marketplace owned, operated, or controlled by a marketplace provider; 26
(27)[(26)] (a) "Occasional sale" includes: 27 UNOFFICIAL COPY 23 RS BR 136
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1. A sale of tangible personal property or digital property not held or used 1
by a seller in the course of an activity for which he or she is required to 2
hold a seller's permit, provided such sale is not one (1) of a series of 3
sales sufficient in number, scope, and character to constitute an activity 4
requiring the holding of a seller's permit. In the case of the sale of the 5
entire, or a substantial portion of the nonretail assets of the seller, the 6
number of previous sales of similar assets shall be disregarded in 7
determining whether or not the current sale or sales shall qualify as an 8
occasional sale; or 9
2. Any transfer of all or substantially all the tangible personal property or 10
digital property held or used by a person in the course of such an activity 11
when after such transfer the real or ultimate ownership of such property 12
is substantially similar to that which existed before such transfer. 13
(b) For the purposes of this subsection, stockholders, bondholders, partners, or 14
other persons holding an interest in a corporation or other entity are regarded 15
as having the "real or ultimate ownership" of the tangible personal property or 16
digital property of such corporation or other entity; 17
(28)[(27)] (a) "Other direct mail" means any direct mail that is not advertising and 18
promotional direct mail, regardless of whether advertising and promotional 19
direct mail is included in the same mailing. 20
(b) "Other direct mail" includes but is not limited to: 21
1. Transactional direct mail that contains personal information specific to 22
the addressee, including but not limited to invoices, bills, statements of 23
account, and payroll advices; 24
2. Any legally required mailings, including but not limited to privacy 25
notices, tax reports, and stockholder reports; and 26
3. Other nonpromotional direct mail delivered to existing or former 27 UNOFFICIAL COPY 23 RS BR 136
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shareholders, customers, employees, or agents, including but not limited 1
to newsletters and informational pieces. 2
(c) "Other direct mail" does not include the development of billing information or 3
the provision of any data processing service that is more than incidental to the 4
production of printed material; 5
(29)[(28)] "Person" includes any individual, firm, copartnership, joint venture, 6
association, social club, fraternal organization, corporation, estate, trust, business 7
trust, receiver, trustee, syndicate, cooperative, assignee, governmental unit or 8
agency, or any other group or combination acting as a unit; 9
(30)[(29)] "Permanent," as the term applies to digital property, means perpetual or for an 10
indefinite or unspecified length of time; 11
(31)[(30)] (a) "Photography and photofinishing services" means: 12
1. The taking, developing, or printing of an original photograph; or 13
2. Image editing, including shadow removal, tone adjustments, vertical and 14
horizontal alignment and cropping, composite image creation, 15
formatting, watermarking printing, and delivery of an original 16
photograph in the form of tangible personal property, digital property, or 17
other media. 18
(b) "Photography and photofinishing services" does not include photography 19
services necessary for medical or dental health; 20
(32)[(31)] "Plant facility" means a single location that is exclusively dedicated to 21
manufacturing or industrial processing activities. A location shall be deemed to be 22
exclusively dedicated to manufacturing or industrial processing activities even if 23
retail sales are made there, provided that the retail sales are incidental to the 24
manufacturing or industrial processing activities occurring at the location. The term 25
"plant facility" shall not include any restaurant, grocery store, shopping center, or 26
other retail establishment; 27 UNOFFICIAL COPY 23 RS BR 136
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(33)[(32)] (a) "Prewritten computer software" means: 1
1. Computer software, including prewritten upgrades, that are not designed 2
and developed by the author or other creator to the specifications of a 3
specific purchaser; 4
2. Software designed and developed by the author or other creator to the 5
specifications of a specific purchaser when it is sold to a person other 6
than the original purchaser; or 7
3. Any portion of prewritten computer software that is modified or 8
enhanced in any manner, where the modification or enhancement is 9
designed and developed to the specifications of a specific purchaser, 10
unless there is a reasonable, separately stated charge on an invoice or 11
other statement of the price to the purchaser for the modification or 12
enhancement. 13
(b) When a person modifies or enhances computer software of which the person 14
is not the author or creator, the person shall be deemed to be the author or 15
creator only of the modifications or enhancements the person actually made. 16
(c) The combining of two (2) or more prewritten computer software programs or 17
portions thereof does not cause the combination to be other than prewritten 18
computer software; 19
(34)[(33)] "Prewritten computer software access services" means the right of access to 20
prewritten computer software where the object of the transaction is to use the 21
prewritten computer software while possession of the prewritten computer software 22
is maintained by the seller or a third party, wherever located, regardless of whether 23
the charge for the access or use is on a per use, per user, per license, subscription, or 24
some other basis; 25
(35)[(34)] (a) "Purchase" means any transfer of title or possession, exchange, barter, 26
lease, or rental, conditional or otherwise, in any manner or by any means 27 UNOFFICIAL COPY 23 RS BR 136
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whatsoever, of: 1
1. Tangible personal property; 2
2. An extended warranty service; 3
3. Digital property transferred electronically; or 4
4. Services included in KRS 139.200; 5
for a consideration. 6
(b) "Purchase" includes: 7
1. When performed outside this state or when the customer gives a resale 8
certificate, the producing, fabricating, processing, printing, or imprinting 9
of tangible personal property for a consideration for consumers who 10
furnish either directly or indirectly the materials used in the producing, 11
fabricating, processing, printing, or imprinting; 12
2. A transaction whereby the possession of tangible personal property or 13
digital property is transferred but the seller retains the title as security for 14
the payment of the price; and 15
3. A transfer for a consideration of the title or possession of tangible 16
personal property or digital property which has been produced, 17
fabricated, or printed to the special order of the customer, or of any 18
publication; 19
(36)[(35)] "Recycled materials" means materials which have been recovered or diverted 20
from the solid waste stream and reused or returned to use in the form of raw 21
materials or products; 22
(37)[(36)] "Recycling purposes" means those activities undertaken in which materials 23
that would otherwise become solid waste are collected, separated, or processed in 24
order to be reused or returned to use in the form of raw materials or products; 25
(38)[(37)] "Remote retailer" means a retailer with no physical presence in this state; 26
(39)[(38)] (a) "Repair, replacement, or spare parts" means any tangible personal 27 UNOFFICIAL COPY 23 RS BR 136
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property used to maintain, restore, mend, or repair machinery or equipment. 1
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or 2
industrial tools; 3
(40)[(39)] (a) "Retailer" means: 4
1. Every person engaged in the business of making retail sales of tangible 5
personal property, digital property, or furnishing any services in a retail 6
sale included in KRS 139.200; 7
2. Every person engaged in the business of making sales at auction of 8
tangible personal property or digital property owned by the person or 9
others for storage, use or other consumption, except as provided in 10
paragraph (c) of this subsection; 11
3. Every person making more than two (2) retail sales of tangible personal 12
property, digital property, or services included in KRS 139.200 during 13
any twelve (12) month period, including sales made in the capacity of 14
assignee for the benefit of creditors, or receiver or trustee in bankruptcy; 15
4. Any person conducting a race meeting under the provision of KRS 16
Chapter 230, with respect to horses which are claimed during the 17
meeting. 18
(b) When the department determines that it is necessary for the efficient 19
administration of this chapter to regard any salesmen, representatives, 20
peddlers, or canvassers as the agents of the dealers, distributors, supervisors or 21
employers under whom they operate or from whom they obtain the tangible 22
personal property, digital property, or services sold by them, irrespective of 23
whether they are making sales on their own behalf or on behalf of the dealers, 24
distributors, supervisors or employers, the department may so regard them and 25
may regard the dealers, distributors, supervisors or employers as retailers for 26
purposes of this chapter. 27 UNOFFICIAL COPY 23 RS BR 136
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(c) 1. Any person making sales at a charitable auction for a qualifying entity 1
shall not be a retailer for purposes of the sales made at the charitable 2
auction if: 3
a. The qualifying entity, not the person making sales at the auction, is 4
sponsoring the auction; 5
b. The purchaser of tangible personal property at the auction directly 6
pays the qualifying entity sponsoring the auction for the property 7
and not the person making the sales at the auction; and 8
c. The qualifying entity, not the person making sales at the auction, is 9
responsible for the collection, control, and disbursement of the 10
auction proceeds. 11
2. If the conditions set forth in subparagraph 1. of this paragraph are met, 12
the qualifying entity sponsoring the auction shall be the retailer for 13
purposes of the sales made at the charitable auction. 14
3. For purposes of this paragraph, "qualifying entity" means a resident: 15
a. Church; 16
b. School; 17
c. Civic club; or 18
d. Any other nonprofit charitable, religious, or educational 19
organization; 20
(41)[(40)] "Retail sale" means any sale, lease, or rental for any purpose other than resale, 21
sublease, or subrent; 22
(42)[(41)] (a) "Ringtones" means digitized sound files that are downloaded onto a 23
device and that may be used to alert the customer with respect to a 24
communication. 25
(b) "Ringtones" shall not include ringback tones or other digital files that are not 26
stored on the purchaser's communications device; 27 UNOFFICIAL COPY 23 RS BR 136
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(43)[(42)] (a) "Sale" means: 1
1. The furnishing of any services included in KRS 139.200; 2
2. Any transfer of title or possession, exchange, barter, lease, or rental, 3
conditional or otherwise, in any manner or by any means whatsoever, of: 4
a. Tangible personal property; or 5
b. Digital property transferred electronically; 6
for a consideration. 7
(b) "Sale" includes but is not limited to: 8
1. The producing, fabricating, processing, printing, or imprinting of 9
tangible personal property or digital property for a consideration for 10
purchasers who furnish, either directly or indirectly, the materials used 11
in the producing, fabricating, processing, printing, or imprinting; 12
2. A transaction whereby the possession of tangible personal property or 13
digital property is transferred, but the seller retains the title as security 14
for the payment of the price; and 15
3. A transfer for a consideration of the title or possession of tangible 16
personal property or digital property which has been produced, 17
fabricated, or printed to the special order of the purchaser. 18
(c) This definition shall apply regardless of the classification of a transaction 19
under generally accepted accounting principles, the Internal Revenue Code, or 20
other provisions of federal, state, or local law; 21
(44)[(43)] "Seller" includes every person engaged in the business of selling tangible 22
personal property, digital property, or services of a kind, the gross receipts from the 23
retail sale of which are required to be included in the measure of the sales tax, and 24
every person engaged in making sales for resale; 25
(45)[(44)] (a) "Storage" includes any keeping or retention in this state for any purpose 26
except sale in the regular course of business or subsequent use solely outside 27 UNOFFICIAL COPY 23 RS BR 136
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this state of tangible personal property or digital property purchased from a 1
retailer. 2
(b) "Storage" does not include the keeping, retaining, or exercising any right or 3
power over tangible personal property for the purpose of subsequently 4
transporting it outside the state for use thereafter solely outside the state, or for 5
the purpose of being processed, fabricated, or manufactured into, attached to, 6
or incorporated into, other tangible personal property to be transported outside 7
the state and thereafter used solely outside the state; 8
(46)[(45)] "Tangible personal property" means personal property which may be seen, 9
weighed, measured, felt, or touched, or which is in any other manner perceptible to 10
the senses and includes natural, artificial, and mixed gas, electricity, water, steam, 11
and prewritten computer software; 12
(47)[(46)] "Taxpayer" means any person liable for tax under this chapter; 13
(48)[(47)] "Telemarketing services" means services provided via telephone, facsimile, 14
electronic mail, or other modes of communications to another person, which are 15
unsolicited by that person, for the purposes of: 16
(a) 1. Promoting products or services; 17
2. Taking orders; or 18
3. Providing information or assistance regarding the products or services; 19
or 20
(b) Soliciting contributions; 21
(49)[(48)] "Transferred electronically" means accessed or obtained by the purchaser by 22
means other than tangible storage media; and 23
(50)[(49)] (a) "Use" includes the exercise of: 24
1. Any right or power over tangible personal property or digital property 25
incident to the ownership of that property, or by any transaction in which 26
possession is given, or by any transaction involving digital property or 27 UNOFFICIAL COPY 23 RS BR 136
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tangible personal property where the right of access is granted; or 1
2. Any right or power to benefit any services subject to tax under KRS 2
139.200(2)(p) to (ay). 3
(b) "Use" does not include the keeping, retaining, or exercising any right or power 4
over tangible personal property or digital property for the purpose of: 5
1. Selling tangible personal property or digital property in the regular 6
course of business; or 7
2. Subsequently transporting tangible personal property outside the state 8
for use thereafter solely outside the state, or for the purpose of being 9
processed, fabricated, or manufactured into, attached to, or incorporated 10
into, other tangible personal property to be transported outside the state 11
and thereafter used solely outside the state. 12
Section 2. KRS 139.480 (Effective January 1, 2023) is amended to read as 13
follows: 14
Any other provision of this chapter to the contrary notwithstanding, the terms "sale at 15
retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, shall not 16
include the sale, use, storage, or other consumption of: 17
(1) Locomotives or rolling stock, including materials for the construction, repair, or 18
modification thereof, or fuel or supplies for the direct operation of locomotives and 19
trains, used or to be used in interstate commerce; 20
(2) Coal for the manufacture of electricity; 21
(3) (a) All energy or energy-producing fuels used in the course of manufacturing, 22
processing, mining, or refining and any related distribution, transmission, and 23
transportation services for this energy that are billed to the user, to the extent 24
that the cost of the energy or energy-producing fuels used, and related 25
distribution, transmission, and transportation services for this energy that are 26
billed to the user exceed three percent (3%) of the cost of production. 27 UNOFFICIAL COPY 23 RS BR 136
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(b) Cost of production shall be computed on the basis of a plant facility, which 1
shall include all operations within the continuous, unbroken, integrated 2
manufacturing or industrial processing process that ends with a product 3
packaged and ready for sale. 4
(c) A person who performs a manufacturing or industrial processing activity for a 5
fee and does not take ownership of the tangible personal property that is 6
incorporated into, or becomes the product of, the manufacturing or industrial 7
processing activity is a toller. For periods on or after July 1, 2018, the costs of 8
the tangible personal property shall be excluded from the toller's cost of 9
production at a plant facility with tolling operations in place as of July 1, 10
2018. 11
(d) For plant facilities that begin tolling operations after July 1, 2018, the costs of 12
tangible personal property shall be excluded from the toller's cost of 13
production if the toller: 14
1. Maintains a binding contract for periods after July 1, 2018, that governs 15
the terms, conditions, and responsibilities with a separate legal entity, 16
which holds title to the tangible personal property that is incorporated 17
into, or becomes the product of, the manufacturing or industrial 18
processing activity; 19
2. Maintains accounting records that show the expenses it incurs to fulfill 20
the binding contract that include but are not limited to energy or energy-21
producing fuels, materials, labor, procurement, depreciation, 22
maintenance, taxes, administration, and office expenses; 23
3. Maintains separate payroll, bank accounts, tax returns, and other records 24
that demonstrate its independent operations in the performance of its 25
tolling responsibilities; 26
4. Demonstrates one (1) or more substantial business purposes for the 27 UNOFFICIAL COPY 23 RS BR 136
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tolling operations germane to the overall manufacturing, industrial 1
processing activities, or corporate structure at the plant facility. A 2
business purpose is a purpose other than the reduction of sales tax 3
liability for the purchases of energy and energy-producing fuels; and 4
5. Provides information to the department upon request that documents 5
fulfillment of the requirements in subparagraphs 1. to 4. of this 6
paragraph and gives an overview of its tolling operations with an 7
explanation of how the tolling operations relate and connect with all 8
other manufacturing or industrial processing activities occurring at the 9
plant facility; 10
(4) Livestock of a kind the products of which ordinarily constitute food for human 11
consumption, provided the sales are made for breeding or dairy purposes and by or 12
to a person regularly engaged in the business of farming; 13
(5) Poultry for use in breeding or egg production; 14
(6) Farm work stock for use in farming operations; 15
(7) Seeds, the products of which ordinarily constitute food for human consumption or 16
are to be sold in the regular course of business, and commercial fertilizer to be 17
applied on land, the products from which are to be used for food for human 18
consumption or are to be sold in the regular course of business; provided such sales 19
are made to farmers who are regularly engaged in the occupation of tilling and 20
cultivating the soil for the production of crops as a business, or who are regularly 21
engaged in the occupation of raising and feeding livestock or poultry or producing 22
milk for sale; and provided further that tangible personal property so sold is to be 23
used only by those persons designated above who are so purchasing; 24
(8) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals to be 25
used in the production of crops as a business, or in the raising and feeding of 26
livestock or poultry, the products of which ordinarily constitute food for human 27 UNOFFICIAL COPY 23 RS BR 136
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consumption; 1
(9) Feed, including pre-mixes and feed additives, for livestock or poultry of a kind the 2
products of which ordinarily constitute food for human consumption; 3
(10) Machinery for new and expanded industry; 4
(11) Farm machinery. As used in this section, the term "farm machinery": 5
(a) Means machinery used exclusively and directly in the occupation of: 6
1. Tilling the soil for the production of crops as a business; 7
2. Raising and feeding livestock or poultry for sale; or 8
3. Producing milk for sale; 9
(b) Includes machinery, attachments, and replacements therefor, repair parts, and 10
replacement parts which are used or manufactured for use on, or in the 11
operation of farm machinery and which are necessary to the operation of the 12
machinery, and are customarily so used, including but not limited to combine 13
header wagons, combine header trailers, or any other implements specifically 14
designed and used to move or transport a combine head; and 15
(c) Does not include: 16
1. Automobiles; 17
2. Trucks; 18
3. Trailers, except combine header trailers; or 19
4. Truck-trailer combinations; 20
(12) Tombstones and other memorial grave markers; 21
(13) On-farm facilities used exclusively for grain or soybean storing, drying, processing, 22
or handling. The exemption applies to the equipment, machinery, attachments, 23
repair and replacement parts, and any materials incorporated into the construction, 24
renovation, or repair of the facilities; 25
(14) On-farm facilities used exclusively for raising poultry or livestock. The exemption 26
shall apply to the equipment, machinery, attachments, repair and replacement parts, 27 UNOFFICIAL COPY 23 RS BR 136
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and any materials incorporated into the construction, renovation, or repair of the 1
facilities. The exemption shall apply but not be limited to vent board equipment, 2
waterer and feeding systems, brooding systems, ventilation systems, alarm systems, 3
and curtain systems. In addition, the exemption shall apply whether or not the seller 4
is under contract to deliver, assemble, and incorporate into real estate the 5
equipment, machinery, attachments, repair and replacement parts, and any materials 6
incorporated into the construction, renovation, or repair of the facilities; 7
(15) Gasoline, special fuels, liquefied petroleum gas, and natural gas used exclusively 8
and directly to: 9
(a) Operate farm machinery as defined in subsection (11) of this section; 10
(b) Operate on-farm grain or soybean drying facilities as defined in subsection 11
(13) of this section; 12
(c) Operate on-farm poultry or livestock facilities defined in subsection (14) of 13
this section; 14
(d) Operate on-farm ratite facilities defined in subsection (23) of this section; 15
(e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this 16
section; or 17
(f) Operate on-farm dairy facilities; 18
(16) Textbooks, including related workbooks and other course materials, purchased for 19
use in a course of study conducted by an institution which qualifies as a nonprofit 20
educational institution under KRS 139.495. The term "course materials" means only 21
those items specifically required of all students for a particular course but shall not 22
include notebooks, paper, pencils, calculators, tape recorders, or similar student 23
aids; 24
(17) Any property which has been certified as an alcohol production facility as defined in 25
KRS 247.910; 26
(18) Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the 27 UNOFFICIAL COPY 23 RS BR 136
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direct operation of aircraft in interstate commerce and used exclusively for the 1
conveyance of property or passengers for hire. Nominal intrastate use shall not 2
subject the property to the taxes imposed by this chapter; 3
(19) Any property which has been certified as a fluidized bed energy production facility 4
as defined in KRS 211.390; 5
(20) (a) 1. Any property to be incorporated into the construction, rebuilding, 6
modification, or expansion of a blast furnace or any of its components or 7
appurtenant equipment or structures as part of an approved supplemental 8
project, as defined by KRS 154.26-010; and 9
2. Materials, supplies, and repair or replacement parts purchased for use in 10
the operation and maintenance of a blast furnace and related carbon 11
steel-making operations as part of an approved supplemental project, as 12
defined by KRS 154.26-010. 13
(b) The exemptions provided in this subsection shall be effective for sales made: 14
1. On and after July 1, 2018; and 15
2. During the term of a supplemental project agreement entered into 16
pursuant to KRS 154.26-090; 17
(21) Beginning on October 1, 1986, food or food products purchased for human 18
consumption with food coupons issued by the United States Department of 19
Agriculture pursuant to the Food Stamp Act of 1977, as amended, and required to 20
be exempted by the Food Security Act of 1985 in order for the Commonwealth to 21
continue participation in the federal food stamp program; 22
(22) Machinery or equipment purchased or leased by a business, industry, or 23
organization in order to collect, source separate, compress, bale, shred, or otherwise 24
handle waste materials if the machinery or equipment is primarily used for recycling 25
purposes; 26
(23) Ratite birds and eggs to be used in an agricultural pursuit for the breeding and 27 UNOFFICIAL COPY 23 RS BR 136
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production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by-1
products, and the following items used in this agricultural pursuit: 2
(a) Feed and feed additives; 3
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 4
(c) On-farm facilities, including equipment, machinery, attachments, repair and 5
replacement parts, and any materials incorporated into the construction, 6
renovation, or repair of the facilities. The exemption shall apply to incubation 7
systems, egg processing equipment, waterer and feeding systems, brooding 8
systems, ventilation systems, alarm systems, and curtain systems. In addition, 9
the exemption shall apply whether or not the seller is under contract to deliver, 10
assemble, and incorporate into real estate the equipment, machinery, 11
attachments, repair and replacement parts, and any materials incorporated into 12
the construction, renovation, or repair of the facilities; 13
(24) Embryos and semen that are used in the reproduction of livestock, if the products of 14
these embryos and semen ordinarily constitute food for human consumption, and if 15
the sale is made to a person engaged in the business of farming; 16
(25) Llamas and alpacas to be used as beasts of burden or in an agricultural pursuit for 17
the breeding and production of hides, breeding stock, fiber and wool products, meat, 18
and llama and alpaca by-products, and the following items used in this pursuit: 19
(a) Feed and feed additives; 20
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 21
and 22
(c) On-farm facilities, including equipment, machinery, attachments, repair and 23
replacement parts, and any materials incorporated into the construction, 24
renovation, or repair of the facilities. The exemption shall apply to waterer 25
and feeding systems, ventilation systems, and alarm systems. In addition, the 26
exemption shall apply whether or not the seller is under contract to deliver, 27 UNOFFICIAL COPY 23 RS BR 136
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assemble, and incorporate into real estate the equipment, machinery, 1
attachments, repair and replacement parts, and any materials incorporated into 2
the construction, renovation, or repair of the facilities; 3
(26) Baling twine and baling wire for the baling of hay and straw; 4
(27) Water sold to a person regularly engaged in the business of farming and used in the: 5
(a) Production of crops; 6
(b) Production of milk for sale; or 7
(c) Raising and feeding of: 8
1. Livestock or poultry, the products of which ordinarily constitute food for 9
human consumption; or 10
2. Ratites, llamas, alpacas, buffalo, cervids or aquatic organisms; 11
(28) Buffalos to be used as beasts of burden or in an agricultural pursuit for the 12
production of hides, breeding stock, meat, and buffalo by-products, and the 13
following items used in this pursuit: 14
(a) Feed and feed additives; 15
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 16
(c) On-farm facilities, including equipment, machinery, attachments, repair and 17
replacement parts, and any materials incorporated into the construction, 18
renovation, or repair of the facilities. The exemption shall apply to waterer 19
and feeding systems, ventilation systems, and alarm systems. In addition, the 20
exemption shall apply whether or not the seller is under contract to deliver, 21
assemble, and incorporate into real estate the equipment, machinery, 22
attachments, repair and replacement parts, and any materials incorporated into 23
the construction, renovation, or repair of the facilities; 24
(29) Aquatic organisms sold directly to or raised by a person regularly engaged in the 25
business of producing products of aquaculture, as defined in KRS 260.960, for sale, 26
and the following items used in this pursuit: 27 UNOFFICIAL COPY 23 RS BR 136
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(a) Feed and feed additives; 1
(b) Water; 2
(c) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 3
and 4
(d) On-farm facilities, including equipment, machinery, attachments, repair and 5
replacement parts, and any materials incorporated into the construction, 6
renovation, or repair of the facilities and, any gasoline, special fuels, liquefied 7
petroleum gas, or natural gas used to operate the facilities. The exemption 8
shall apply, but not be limited to: waterer and feeding systems; ventilation, 9
aeration, and heating systems; processing and storage systems; production 10
systems such as ponds, tanks, and raceways; harvest and transport equipment 11
and systems; and alarm systems. In addition, the exemption shall apply 12
whether or not the seller is under contract to deliver, assemble, and 13
incorporate into real estate the equipment, machinery, attachments, repair and 14
replacement parts, and any materials incorporated into the construction, 15
renovation, or repair of the facilities; 16
(30) Members of the genus cervidae permitted by KRS Chapter 150 that are used for the 17
production of hides, breeding stock, meat, and cervid by-products, and the 18
following items used in this pursuit: 19
(a) Feed and feed additives; 20
(b) Insecticides, fungicides, herbicides, rodenticides, and other chemicals; and 21
(c) On-site facilities, including equipment, machinery, attachments, repair and 22
replacement parts, and any materials incorporated into the construction, 23
renovation, or repair of the facilities. In addition, the exemption shall apply 24
whether or not the seller is under contract to deliver, assemble, and 25
incorporate into real estate the equipment, machinery, attachments, repair and 26
replacement parts, and any materials incorporated into the construction, 27 UNOFFICIAL COPY 23 RS BR 136
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renovation, or repair of the facilities; 1
(31) (a) Repair or replacement parts for the direct operation or maintenance of a motor 2
vehicle, including any towed unit, used exclusively in interstate commerce for 3
the conveyance of property or passengers for hire, provided the motor vehicle 4
is licensed for use on the highway and its declared gross vehicle weight with 5
any towed unit is forty-four thousand and one (44,001) pounds or greater. 6
Nominal intrastate use shall not subject the property to the taxes imposed by 7
this chapter; 8
(b) Repair or replacement parts for the direct operation and maintenance of a 9
motor vehicle operating under a charter bus certificate issued by the 10
Transportation Cabinet under KRS Chapter 281, or under similar authority 11
granted by the United States Department of Transportation; and 12
(c) For the purposes of this subsection, "repair or replacement parts" means tires, 13
brakes, engines, transmissions, drive trains, chassis, body parts, and their 14
components. "Repair or replacement parts" shall not include fuel, machine 15
oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential 16
to the operation of the motor vehicle itself, except when sold as part of the 17
assembled unit, such as cigarette lighters, radios, lighting fixtures not 18
otherwise required by the manufacturer for operation of the vehicle, or tool or 19
utility boxes; 20
(32) Food donated by a retail food establishment or any other entity regulated under KRS 21
217.127 to a nonprofit organization for distribution to the needy;[ and] 22
(33) Drugs and over-the counter drugs, as defined in KRS 139.472, that are purchased by 23
a person regularly engaged in the business of farming and used in the treatment of 24
cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, buffalo, aquatic 25
organisms, or cervids; and 26
(34) (a) Feminine hygiene products sold or purchased on or after July 1, 2023, but 27 UNOFFICIAL COPY 23 RS BR 136
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before July 1, 2027. 1
(b) On or before September 1, 2024, and on or before each September 1 2
thereafter as long as the exemption applies, the department shall report to 3
the Interim Joint Committee on Appropriations and Revenue the total 4
amount of the exemption that has been claimed for the immediately 5
preceding fiscal year and the total cumulative amount of the exemption 6
claimed. 7
Section 3. KRS 131.190 is amended to read as follows: 8
(1) No present or former commissioner or employee of the department, present or 9
former member of a county board of assessment appeals, present or former property 10
valuation administrator or employee, present or former secretary or employee of the 11
Finance and Administration Cabinet, former secretary or employee of the Revenue 12
Cabinet, or any other person, shall intentionally and without authorization inspect or 13
divulge any information acquired by him or her of the affairs of any person, or 14
information regarding the tax schedules, returns, or reports required to be filed with 15
the department or other proper officer, or any information produced by a hearing or 16
investigation, insofar as the information may have to do with the affairs of the 17
person's business. 18
(2) The prohibition established by subsection (1) of this section shall not extend to: 19
(a) Information required in prosecutions for making false reports or returns of 20
property for taxation, or any other infraction of the tax laws; 21
(b) Any matter properly entered upon any assessment record, or in any way made 22
a matter of public record; 23
(c) Furnishing any taxpayer or his or her properly authorized agent with 24
information respecting his or her own return; 25
(d) Testimony provided by the commissioner or any employee of the department 26
in any court, or the introduction as evidence of returns or reports filed with the 27 UNOFFICIAL COPY 23 RS BR 136
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department, in an action for violation of state or federal tax laws or in any 1
action challenging state or federal tax laws; 2
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 3
energy resources assessed under KRS 132.820, or owners of surface land 4
under which the unmined minerals lie, factual information about the owner's 5
property derived from third-party returns filed for that owner's property, under 6
the provisions of KRS 132.820, that is used to determine the owner's 7
assessment. This information shall be provided to the owner on a confidential 8
basis, and the owner shall be subject to the penalties provided in KRS 9
131.990(2). The third-party filer shall be given prior notice of any disclosure 10
of information to the owner that was provided by the third-party filer; 11
(f) Providing to a third-party purchaser pursuant to an order entered in a 12
foreclosure action filed in a court of competent jurisdiction, factual 13
information related to the owner or lessee of coal, oil, gas reserves, or any 14
other mineral resources assessed under KRS 132.820. The department may 15
promulgate an administrative regulation establishing a fee schedule for the 16
provision of the information described in this paragraph. Any fee imposed 17
shall not exceed the greater of the actual cost of providing the information or 18
ten dollars ($10); 19
(g) Providing information to a licensing agency, the Transportation Cabinet, or 20
the Kentucky Supreme Court under KRS 131.1817; 21
(h) Statistics of gasoline and special fuels gallonage reported to the department 22
under KRS 138.210 to 138.448; 23
(i) Providing any utility gross receipts license tax return information that is 24
necessary to administer the provisions of KRS 160.613 to 160.617 to 25
applicable school districts on a confidential basis; 26
(j) Providing documents, data, or other information to a third party pursuant to an 27 UNOFFICIAL COPY 23 RS BR 136
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order issued by a court of competent jurisdiction; or 1
(k) Providing information to the Legislative Research Commission under: 2
1. KRS 139.519 for purposes of the sales and use tax refund on building 3
materials used for disaster recovery; 4
2. KRS 141.436 for purposes of the energy efficiency products credits; 5
3. KRS 141.437 for purposes of the ENERGY STAR home and the 6
ENERGY STAR manufactured home credits; 7
4. KRS 141.383 for purposes of the film industry incentives; 8
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 9
tax credits and the job assessment fees; 10
6. KRS 141.068 for purposes of the Kentucky investment fund; 11
7. KRS 141.396 for purposes of the angel investor tax credit; 12
8. KRS 141.389 for purposes of the distilled spirits credit; 13
9. KRS 141.408 for purposes of the inventory credit; 14
10. KRS 141.390 for purposes of the recycling and composting credit; 15
11. KRS 141.3841 for purposes of the selling farmer tax credit; 16
12. KRS 141.4231 for purposes of the renewable chemical production tax 17
credit; 18
13. KRS 141.524 for purposes of the Education Opportunity Account 19
Program tax credit; 20
14. KRS 141.398 for purposes of the development area tax credit; 21
15. KRS 139.516 for the purposes of the sales and use tax exemption on the 22
commercial mining of cryptocurrency; [and] 23
16. KRS 141.419 for purposes of the decontamination tax credit; and 24
17. Section 2 of this Act for purposes of the sales and use tax exemption of 25
feminine hygiene products. 26
(3) The commissioner shall make available any information for official use only and on 27 UNOFFICIAL COPY 23 RS BR 136
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a confidential basis to the proper officer, agency, board or commission of this state, 1
any Kentucky county, any Kentucky city, any other state, or the federal government, 2
under reciprocal agreements whereby the department shall receive similar or useful 3
information in return. 4
(4) Access to and inspection of information received from the Internal Revenue Service 5
is for department use only, and is restricted to tax administration purposes. 6
Information received from the Internal Revenue Service shall not be made available 7
to any other agency of state government, or any county, city, or other state, and shall 8
not be inspected intentionally and without authorization by any present secretary or 9
employee of the Finance and Administration Cabinet, commissioner or employee of 10
the department, or any other person. 11
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 12
requirements of KRS Chapter 137 and statistics of natural gas production as 13
reported to the department under the natural resources severance tax requirements 14
of KRS Chapter 143A may be made public by the department by release to the 15
Energy and Environment Cabinet, Department for Natural Resources. 16
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 17
submissions for the 1989 tax year, the department may make public or divulge only 18
those portions of mine maps submitted by taxpayers to the department pursuant to 19
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-20
out parcel areas. These electronic maps shall not be relied upon to determine actual 21
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 22
required under KRS Chapters 350 and 352 shall not be construed to constitute land 23
surveying or boundary surveys as defined by KRS 322.010 and any administrative 24
regulations promulgated thereto. 25