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