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AN ACT relating to sales and use tax exemptions. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 139.010 is amended to read as follows: 3
As used in this chapter, unless the context otherwise provides: 4
(1) (a) "Admissions" means the fees paid for: 5
1. The right of entrance to a display, program, sporting event, music 6
concert, performance, play, show, movie, exhibit, fair, or other 7
entertainment or amusement event or venue; and 8
2. The privilege of using facilities or participating in an event or activity, 9
including but not limited to: 10
a. Bowling centers; 11
b. Skating rinks; 12
c. Health spas; 13
d. Swimming pools; 14
e. Tennis courts; 15
f. Weight training facilities; 16
g. Fitness and recreational sports centers; and 17
h. Golf courses, both public and private; 18
regardless of whether the fee paid is per use or in any other form, 19
including but not limited to an initiation fee, monthly fee, membership 20
fee, or combination thereof. 21
(b) "Admissions" does not include: 22
1. Any fee paid to enter or participate in a fishing tournament; or 23
2. Any fee paid for the use of a boat ramp for the purpose of allowing 24
boats to be launched into or hauled out from the water; 25
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of 26
which is to attract public attention to a product, person, business, or organization, or 27 UNOFFICIAL COPY 24 RS BR 364
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to attempt to sell, popularize, or secure financial support for a product, person, 1
business, or organization. As used in this definition, "product" means tangible 2
personal property, an item transferred electronically, or a service; 3
(3) (a) "Breast pump" means an electrically or manually controlled pump device 4
designed or marketed to be used to express milk from a human breast 5
during lactation. 6
(b) "Breast pump" includes the electrically or manually controlled pump device 7
and any battery, AC adapter, or other power supply unit packaged and sold 8
with the pump device at the time of sale to power the pump device; 9
(4) (a) "Breast pump collection and storage supplies" means items of tangible 10
personal property designed or marketed to be used in conjunction with a 11
breast pump to collect milk expressed from a human breast and to store 12
collected milk until it is ready for consumption. 13
(b) "Breast pump collection and storage supplies" includes but is not limited 14
to: 15
1. Breast shields and breast shield connectors; 16
2. Breast pump tubes and tubing adapters; 17
3. Breast pump valves and membranes; 18
4. Backflow protectors and backflow protector adaptors; 19
5. Bottles and bottle caps specific to the operation of the breast pump; 20
6. Breast milk storage bags; and 21
7. Other items that may be useful to initiate, support, or sustain 22
breastfeeding using a breast pump during lactation, that may be sold 23
separately, but are generally sold as part of a breast pump kit. 24
(c) "Breast pump collection and storage supplies" does not include, unless sold 25
as part of a breast pump kit prepackaged by the breast pump manufacturer 26
or distributor: 27 UNOFFICIAL COPY 24 RS BR 364
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1. Bottles and bottle caps not specific to the operation of the breast 1
pump; 2
2. Breast pump travel bags and other similar carrying accessories, 3
including ice packs, labels, and other similar products; 4
3. Breast pump cleaning supplies; 5
4. Nursing bras, bra pads, breast shells, and other similar products; and 6
5. Creams, ointments, and other similar products that relieve 7
breastfeeding-related symptoms or conditions of the breasts or nipples; 8
(5) "Breast pump kit" means a kit that contains a breast pump and one (1) or more 9
of the following items: 10
(a) Breast pump collection and storage supplies; and 11
(b) Other taxable items of tangible personal property that may be useful to 12
initiate, support, or sustain breastfeeding using a breast pump during 13
lactation, so long as the other taxable items of tangible personal property 14
sold with the breast pump kit at the time of sale are less than ten percent 15
(10%) of the total sales price of the breast pump kit; 16
(6) "Business" includes any activity engaged in by any person or caused to be engaged 17
in by that person with the object of gain, benefit, or advantage, either direct or 18
indirect; 19
(7) "Children's diapers" are diapers marketed to be worn by children; 20
(8) (a) "Clothing" means all human wearing apparel suitable for general use. 21
(b) "Clothing" does not include children's diapers; 22
(9)[(4)] "Commonwealth" means the Commonwealth of Kentucky; 23
(10)[(5)] (a) "Cosmetic surgery services" means modifications to all areas of the 24
head, neck, and body to enhance appearance through surgical and medical 25
techniques. 26
(b) "Cosmetic surgery services" does not include surgery services that are 27 UNOFFICIAL COPY 24 RS BR 364
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medically necessary to reconstruct or correct dysfunctional areas of the face 1
and body 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 weblogs; 26
(16)[(10)] (a) "Digital code" means a code which provides a purchaser with a right to 27 UNOFFICIAL COPY 24 RS BR 364
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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 24 RS BR 364
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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 9
a continuous, unbroken, integrated process and ends when the finished product is 10
packaged and ready for sale; 11
(20)[(14)] (a) "Executive employee recruitment services" means services provided by 12
a person to locate potential candidates to fill open senior-level management 13
positions. 14
(b) "Executive employee recruitment services" includes but is not limited to 15
making a detailed list of client requirements, researching and identifying 16
potential candidates, performing prescreening interviews, and providing 17
contract and salary negotiations; 18
(21)[(15)] (a) "Extended warranty services" means services provided through a service 19
contract agreement between the contract provider and the purchaser where the 20
purchaser agrees to pay compensation for the contract and the provider agrees 21
to repair, replace, support, or maintain tangible personal property, digital 22
property, real property, or prewritten computer software access services 23
according to the terms of the contract. 24
(b) "Extended warranty services" does not include the sale of a service contract 25
agreement for tangible personal property to be used by a small telephone 26
utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in 27 UNOFFICIAL COPY 24 RS BR 364
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KRS 65.7621 to deliver communications services as defined in KRS 136.602 1
or broadband; 2
(22) "Feminine hygiene products" means tampons, panty liners, menstrual cups, 3
sanitary napkins, and other similar tangible personal property designed for 4
feminine hygiene in connection with the human menstrual cycle, but does not 5
include grooming and hygiene products as defined in KRS 139.472; 6
(23)[(16)] (a) "Finished artwork" means final art that is used for actual reproduction 7
by photomechanical or other processes or for display purposes. 8
(b) "Finished artwork" includes: 9
1. Assemblies; 10
2. Charts; 11
3. Designs; 12
4. Drawings; 13
5. Graphs; 14
6. Illustrative materials; 15
7. Lettering; 16
8. Mechanicals; 17
9. Paintings; and 18
10. Paste-ups; 19
(24)[(17)] (a) "Gross receipts" and "sales price" mean the total amount or 20
consideration, including cash, credit, property, and services, for which 21
tangible personal property, digital property, or services are sold, leased, or 22
rented, valued in money, whether received in money or otherwise, without 23
any deduction for any of the following: 24
1. The retailer's cost of the tangible personal property, digital property, or 25
services sold; 26
2. The cost of the materials used, labor or service cost, interest, losses, all 27 UNOFFICIAL COPY 24 RS BR 364
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costs of transportation to the retailer, all taxes imposed on the retailer, or 1
any other expense of the retailer; 2
3. Charges by the retailer for any services necessary to complete the sale; 3
4. Delivery charges, which are defined as charges by the retailer for the 4
preparation and delivery to a location designated by the purchaser 5
including transportation, shipping, postage, handling, crating, and 6
packing; 7
5. Any amount for which credit is given to the purchaser by the retailer, 8
other than credit for tangible personal property or digital property traded 9
when the tangible personal property or digital property traded is of like 10
kind and character to the property purchased and the property traded is 11
held by the retailer for resale; and 12
6. The amount charged for labor or services rendered in installing or 13
applying the tangible personal property, digital property, or service sold. 14
(b) "Gross receipts" and "sales price" shall include consideration received by the 15
retailer from a third party if: 16
1. The retailer actually receives consideration from a third party and the 17
consideration is directly related to a price reduction or discount on the 18
sale to the purchaser; 19
2. The retailer has an obligation to pass the price reduction or discount 20
through to the purchaser; 21
3. The amount of consideration attributable to the sale is fixed and 22
determinable by the retailer at the time of the sale of the item to the 23
purchaser; and 24
4. One (1) of the following criteria is met: 25
a. The purchaser presents a coupon, certificate, or other 26
documentation to the retailer to claim a price reduction or discount 27 UNOFFICIAL COPY 24 RS BR 364
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where the coupon, certificate, or documentation is authorized, 1
distributed, or granted by a third party with the understanding that 2
the third party will reimburse any seller to whom the coupon, 3
certificate, or documentation is presented; 4
b. The price reduction or discount is identified as a third-party price 5
reduction or discount on the invoice received by the purchaser or 6
on a coupon, certificate, or other documentation presented by the 7
purchaser; or 8
c. The purchaser identifies himself or herself to the retailer as a 9
member of a group or organization entitled to a price reduction or 10
discount. A "preferred customer" card that is available to any 11
patron does not constitute membership in such a group. 12
(c) "Gross receipts" and "sales price" shall not include: 13
1. Discounts, including cash, term, or coupons that are not reimbursed by a 14
third party and that are allowed by a retailer and taken by a purchaser on 15
a sale; 16
2. Interest, financing, and carrying charges from credit extended on the 17
sale of tangible personal property, digital property, or services, if the 18
amount is separately stated on the invoice, bill of sale, or similar 19
document given to the purchaser; 20
3. Any taxes legally imposed directly on the purchaser that are separately 21
stated on the invoice, bill of sale, or similar document given to the 22
purchaser; or 23
4. Local alcohol regulatory license fees authorized under KRS 243.075 that 24
are separately stated on the invoice, bill of sale, or similar document 25
given to the purchaser. 26
(d) As used in this subsection, "third party" means a person other than the 27 UNOFFICIAL COPY 24 RS BR 364
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purchaser; 1
(25)[(18)] "In this state" or "in the state" means within the exterior limits of the 2
Commonwealth and includes all territory within these limits owned by or ceded to 3
the United States of America; 4
(26) "Incontinence product" means one (1) or a combination of the following: 5
(a) Diaper; 6
(b) Pad, liner, and booster pad; and 7
(c) Incontinence underpad; 8
(27) "Incontinence underpad" means an absorbent product, not worn on the body, 9
designed to protect furniture or other tangible personal property from soiling or 10
damage due to human incontinence; 11
(28)[(19)] "Industrial processing" includes: 12
(a) Refining; 13
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas; 14
(c) Mining, quarrying, fabricating, and industrial assembling; 15
(d) The processing and packaging of raw materials, in-process materials, and 16
finished products; and 17
(e) The processing and packaging of farm and dairy products for sale; 18
(29)[(20)] (a) "Lease or rental" means any transfer of possession or control of tangible 19
personal property for a fixed or indeterminate term for consideration. A lease 20
or rental shall include future options to: 21
1. Purchase the property; or 22
2. Extend the terms of the agreement and agreements covering trailers 23
where the amount of consideration may be increased or decreased by 24
reference to the amount realized upon sale or disposition of the property 25
as defined in 26 U.S.C. sec. 7701(h)(1). 26
(b) "Lease or rental" shall not include: 27 UNOFFICIAL COPY 24 RS BR 364
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1. A transfer of possession or control of property under a security 1
agreement or deferred payment plan that requires the transfer of title 2
upon completion of the required payments; 3
2. A transfer of possession or control of property under an agreement that 4
requires the transfer of title upon completion of the required payments 5
and payment of an option price that does not exceed the greater of one 6
hundred dollars ($100) or one percent (1%) of the total required 7
payments; or 8
3. Providing tangible personal property and an operator for the tangible 9
personal property for a fixed or indeterminate period of time. To qualify 10
for this exclusion, the operator must be necessary for the equipment to 11
perform as designed, and the operator must do more than maintain, 12
inspect, or setup the tangible personal property. 13
(c) This definition shall apply regardless of the classification of a transaction 14
under generally accepted accounting principles, the Internal Revenue Code, or 15
other provisions of federal, state, or local law; 16
(30)[(21)] (a) "Lobbying services" means the act of promoting or securing passage of 17
legislation or an attempt to influence or sway a public official or other public 18
servant toward a desired action, including but not limited to the support of or 19
opposition to a project or the passage, amendment, defeat, approval, or veto of 20
any legislation, regulation, rule, or ordinance; 21
(b) "Lobbying services" includes but is not limited to the performance of 22
activities described as executive agency lobbying activities as defined in KRS 23
11A.201, activities described under the definition of lobby in KRS 6.611, and 24
any similar activities performed at the local, state, or federal levels; 25
(31)[(22)] (a) "Machinery for new and expanded industry" means machinery: 26
1. Directly used in the manufacturing or industrial processing process of: 27 UNOFFICIAL COPY 24 RS BR 364
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a. Tangible personal property at a plant facility; 1
b. Distilled spirits or wine at a plant facility or on the premises of a 2
distiller, rectifier, winery, or small farm winery licensed under 3
KRS 243.030 that includes a retail establishment on the premises; 4
or 5
c. Malt beverages at a plant facility or on the premises of a brewer or 6
microbrewery licensed under KRS 243.040 that includes a retail 7
establishment; 8
2. Which is incorporated for the first time into: 9
a. A plant facility established in this state; or 10
b. Licensed premises located in this state; and 11
3. Which does not replace machinery in the plant facility or licensed 12
premises unless that machinery purchased to replace existing machinery: 13
a. Increases the consumption of recycled materials at the plant 14
facility by not less than ten percent (10%); 15
b. Performs different functions; 16
c. Is used to manufacture a different product; or 17
d. Has a greater productive capacity, as measured in units of 18
production, than the machinery being replaced. 19
(b) "Machinery for new and expanded industry" does not include repair, 20
replacement, or spare parts of any kind, regardless of whether the purchase of 21
repair, replacement, or spare parts is required by the manufacturer or seller as 22
a condition of sale or as a condition of warranty; 23
(32)[(23)] "Manufacturing" means any process through which material having little or 24
no commercial value for its intended use before processing has appreciable 25
commercial value for its intended use after processing by the machinery; 26
(33)[(24)] "Marketplace" means any physical or electronic means through which one (1) 27 UNOFFICIAL COPY 24 RS BR 364
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or more retailers may advertise and sell tangible personal property, digital property, 1
or services, or lease tangible personal property or digital property, such as a catalog, 2
Internet website, or television or radio broadcast, regardless of whether the tangible 3
personal property, digital property, or retailer is physically present in this state; 4
(34)[(25)] (a) "Marketplace provider" means a person, including any affiliate of the 5
person, that facilitates a retail sale by satisfying subparagraphs 1. and 2. of 6
this paragraph as follows: 7
1. The person directly or indirectly: 8
a. Lists, makes available, or advertises tangible personal property, 9
digital property, or services for sale by a marketplace retailer in a 10
marketplace owned, operated, or controlled by the person; 11
b. Facilitates the sale of a marketplace retailer's product through a 12
marketplace by transmitting or otherwise communicating an offer 13
or acceptance of a retail sale of tangible personal property, digital 14
property, or services between a marketplace retailer and a 15
purchaser in a forum including a shop, store, booth, catalog, 16
Internet site, or similar forum; 17
c. Owns, rents, licenses, makes available, or operates any electronic 18
or physical infrastructure or any property, process, method, 19
copyright, trademark, or patent that connects marketplace retailers 20
to purchasers for the purpose of making retail sales of tangible 21
personal property, digital property, or services; 22
d. Provides a marketplace for making retail sales of tangible personal 23
property, digital property, or services, or otherwise facilitates retail 24
sales of tangible personal property, digital property, or services, 25
regardless of ownership or control of the tangible personal 26
property, digital property, or services, that are the subject of the 27 UNOFFICIAL COPY 24 RS BR 364
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retail sale; 1
e. Provides software development or research and development 2
activities related to any activity described in this subparagraph, if 3
the software development or research and development activities 4
are directly related to the physical or electronic marketplace 5
provided by a marketplace provider; 6
f. Provides or offers fulfillment or storage services for a marketplace 7
retailer; 8
g. Sets prices for a marketplace retailer's sale of tangible personal 9
property, digital property, or services; 10
h. Provides or offers customer service to a marketplace retailer or a 11
marketplace retailer's customers, or accepts or assists with taking 12
orders, returns, or exchanges of tangible personal property, digital 13
property, or services sold by a marketplace retailer; or 14
i. Brands or otherwise identifies sales as those of the marketplace 15
provider; and 16
2. The person directly or indirectly: 17
a. Collects the sales price or purchase price of a retail sale of tangible 18
personal property, digital property, or services; 19
b. Provides payment processing services for a retail sale of tangible 20
personal property, digital property, or services; 21
c. Through terms and conditions, agreements, or arrangements with a 22
third party, collects payment in connection with a retail sale of 23
tangible personal property, digital property, or services from a 24
purchaser and transmits that payment to the marketplace retailer, 25
regardless of whether the person collecting and transmitting the 26
payment receives compensation or other consideration in exchange 27 UNOFFICIAL COPY 24 RS BR 364
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for the service; or 1
d. Provides a virtual currency that purchasers are allowed or required 2
to use to purchase tangible personal property, digital property, or 3
services. 4
(b) "Marketplace provider" includes but is not limited to a person that satisfies the 5
requirements of this subsection through the ownership, operation, or control 6
of a digital distribution service, digital distribution platform, online portal, or 7
application store; 8
(35)[(26)] "Marketplace retailer" means a seller that makes retail sales through any 9
marketplace owned, operated, or controlled by a marketplace provider; 10
(36)[(27)] (a) "Occasional sale" includes: 11
1. A sale of tangible personal property or digital property not held or used 12
by a seller in the course of an activity for which he or she is required to 13
hold a seller's permit, provided such sale is not one (1) of a series of 14
sales sufficient in number, scope, and character to constitute an activity 15
requiring the holding of a seller's permit. In the case of the sale of the 16
entire, or a substantial portion of the nonretail assets of the seller, the 17
number of previous sales of similar assets shall be disregarded in 18
determining whether or not the current sale or sales shall qualify as an 19
occasional sale; or 20
2. Any transfer of all or substantially all the tangible personal property or 21
digital property held or used by a person in the course of such an activity 22
when after such transfer the real or ultimate ownership of such property 23
is substantially similar to that which existed before such transfer. 24
(b) For the purposes of this subsection, stockholders, bondholders, partners, or 25
other persons holding an interest in a corporation or other entity are regarded 26
as having the "real or ultimate ownership" of the tangible personal property or 27 UNOFFICIAL COPY 24 RS BR 364
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digital property of such corporation or other entity; 1
(37)[(28)] (a) "Other direct mail" means any direct mail that is not advertising and 2
promotional direct mail, regardless of whether advertising and promotional 3
direct mail is included in the same mailing. 4
(b) "Other direct mail" includes but is not limited to: 5
1. Transactional direct mail that contains personal information specific to 6
the addressee, including but not limited to invoices, bills, statements of 7
account, and payroll advices; 8
2. Any legally required mailings, including but not limited to privacy 9
notices, tax reports, and stockholder reports; and 10
3. Other nonpromotional direct mail delivered to existing or former 11
shareholders, customers, employees, or agents, including but not limited 12
to newsletters and informational pieces. 13
(c) "Other direct mail" does not include the development of billing information or 14
the provision of any data processing service that is more than incidental to the 15
production of printed material; 16
(38) "Pad, liner, and booster pad" means an absorbent product used separately or in 17
combination with diapers to manage bladder or bowel incontinence; 18
(39)[(29)] "Person" includes any individual, firm, copartnership, joint venture, 19
association, social club, fraternal organization, corporation, estate, trust, business 20
trust, receiver, trustee, syndicate, cooperative, assignee, governmental unit or 21
agency, or any other group or combination acting as a unit; 22
(40)[(30)] "Permanent," as the term applies to digital property, means perpetual or for an 23
indefinite or unspecified length of time; 24
(41)[(31)] (a) "Photography and photofinishing services" means: 25
1. The taking, developing, or printing of an original photograph; or 26
2. Image editing, including shadow removal, tone adjustments, vertical and 27 UNOFFICIAL COPY 24 RS BR 364
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horizontal alignment and cropping, composite image creation, 1
formatting, watermarking printing, and delivery of an original 2
photograph in the form of tangible personal property, digital property, or 3
other media. 4
(b) "Photography and photofinishing services" does not include photography 5
services necessary for medical or dental health; 6
(42)[(32)] "Plant facility" means a single location that is exclusively dedicated to 7
manufacturing or industrial processing activities. A location shall be deemed to be 8
exclusively dedicated to manufacturing or industrial processing activities even if 9
retail sales are made there, provided that the retail sales are incidental to the 10
manufacturing or industrial processing activities occurring at the location. The term 11
"plant facility" shall not include any restaurant, grocery store, shopping center, or 12
other retail establishment; 13
(43)[(33)] (a) "Prewritten computer software" means: 14
1. Computer software, including prewritten upgrades, that are not designed 15
and developed by the author or other creator to the specifications of a 16
specific purchaser; 17
2. Software designed and developed by the author or other creator to the 18
specifications of a specific purchaser when it is sold to a person other 19
than the original purchaser; or 20
3. Any portion of prewritten computer software that is modified or 21
enhanced in any manner, where the modification or enhancement is 22
designed and developed to the specifications of a specific purchaser, 23
unless there is a reasonable, separately stated charge on an invoice or 24
other statement of the price to the purchaser for the modification or 25
enhancement. 26
(b) When a person modifies or enhances computer software of which the person 27 UNOFFICIAL COPY 24 RS BR 364
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is not the author or creator, the person shall be deemed to be the author or 1
creator only of the modifications or enhancements the person actually made. 2
(c) The combining of two (2) or more prewritten computer software programs or 3
portions thereof does not cause the combination to be other than prewritten 4
computer software; 5
(44)[(34)] "Prewritten computer software access services" means the right of access to 6
prewritten computer software where the object of the transaction is to use the 7
prewritten computer software while possession of the prewritten computer software 8
is maintained by the seller or a third party, wherever located, regardless of whether 9
the charge for the access or use is on a per use, per user, per license, subscription, or 10
some other basis; 11
(45)[(35)] (a) "Purchase" means any transfer of title or possession, exchange, barter, 12
lease, or rental, conditional or otherwise, in any manner or by any means 13
whatsoever, of: 14
1. Tangible personal property; 15
2. An extended warranty service; 16
3. Digital property transferred electronically; or 17
4. Services included in KRS 139.200; 18
for a consideration. 19
(b) "Purchase" includes: 20
1. When performed outside this state or when the customer gives a resale 21
certificate, the producing, fabricating, processing, printing, or imprinting 22
of tangible personal property for a consideration for consumers who 23
furnish either directly or indirectly the materials used in the producing, 24
fabricating, processing, printing, or imprinting; 25
2. A transaction whereby the possession of tangible personal property or 26
digital property is transferred but the seller retains the title as security 27 UNOFFICIAL COPY 24 RS BR 364
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for the payment of the price; and 1
3. A transfer for a consideration of the title or possession of tangible 2
personal property or digital property which has been produced, 3
fabricated, or printed to the special order of the customer, or of any 4
publication; 5
(46)[(36)] "Recycled materials" means materials which have been recovered or diverted 6
from the solid waste stream and reused or returned to use in the form of raw 7
materials or products; 8
(47)[(37)] "Recycling purposes" means those activities undertaken in which materials 9
that would otherwise become solid waste are collected, separated, or processed in 10
order to be reused or returned to use in the form of raw materials or products; 11
(48)[(38)] "Remote retailer" means a retailer with no physical presence in this state; 12
(49)[(39)] (a) "Repair, replacement, or spare parts" means any tangible personal 13
property used to maintain, restore, mend, or repair machinery or equipment. 14
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or 15
industrial tools; 16
(50)[(40)] (a) "Retailer" means: 17
1. Every person engaged in the business of making retail sales of tangible 18
personal property, digital property, or furnishing any services in a retail 19
sale included in KRS 139.200; 20
2. Every person engaged in the business of making sales at auction of 21
tangible personal property or digital property owned by the person or 22
others for storage, use or other consumption, except as provided in 23
paragraph (c) of this subsection; 24
3. Every person making more than two (2) retail sales of tangible personal 25
property, digital property, or services included in KRS 139.200 during 26
any twelve (12) month period, including sales made in the capacity of 27 UNOFFICIAL COPY 24 RS BR 364
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assignee for the benefit of creditors, or receiver or trustee in bankruptcy; 1
4. Any person conducting a race meeting under the provision of KRS 2
Chapter 230, with respect to horses which are claimed during the 3
meeting. 4
(b) When the department determines that it is necessary for the efficient 5
administration of this chapter to regard any salesmen, representatives, 6
peddlers, or canvassers as the agents of the dealers, distributors, supervisors or 7
employers under whom they operate or from whom they obtain the tangible 8
personal property, digital property, or services sold by them, irrespective of 9
whether they are making sales on their own behalf or on behalf of the dealers, 10
distributors, supervisors or employers, the department may so regard them and 11
may regard the dealers, distributors, supervisors or employers as retailers for 12
purposes of this chapter. 13
(c) 1. Any person making sales at a charitable auction for a qualifying entity 14
shall not be a retailer for purposes of the sales made at the charitable 15
auction if: 16
a. The qualifying entity, not the person making sales at the auction, is 17
sponsoring the auction; 18
b. The purchaser of tangible personal property at the auction directly 19
pays the qualifying entity sponsoring the auction for the property 20
and not the person making the sales at the auction; and 21
c. The qualifying entity, not the person making sales at the auction, is 22
responsible for the collection, control, and disbursement of the 23
auction proceeds. 24
2. If the conditions set forth in subparagraph 1. of this paragraph are met, 25
the qualifying entity sponsoring the auction shall be the retailer for 26
purposes of the sales made at the charitable auction. 27 UNOFFICIAL COPY 24 RS BR 364
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3. For purposes of this paragraph, "qualifying entity" means a resident: 1
a. Church; 2
b. School; 3
c. Civic club; or 4
d. Any other nonprofit charitable, religious, or educational 5
organization; 6
(51)[(41)] "Retail sale" means any sale, lease, or rental for any purpose other than resale, 7
sublease, or subrent; 8
(52)[(42)] (a) "Ringtones" means digitized sound files that are downloaded onto a 9
device and that may be used to alert the customer with respect to a 10
communication. 11
(b) "Ringtones" shall not include ringback tones or other digital files that are not 12
stored on the purchaser's communications device; 13
(53)[(43)] (a) "Sale" means: 14
1. The furnishing of any services included in KRS 139.200; 15
2. Any transfer of title or possession, exchange, barter, lease, or rental, 16
conditional or otherwise, in any manner or by any means whatsoever, 17
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 24 RS BR 364
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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
(54)[(44)] "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
(55)[(45)] (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, digital property, or prewritten 15
computer software access services purchased from a 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 19
for the purpose of being processed, fabricated, or manufactured into, attached 20
to, or incorporated into, other tangible personal property to be transported 21
outside the state and thereafter used solely outside the state; 22
(56)[(46)] "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
(57)[(47)] "Taxpayer" means any person liable for tax under this chapter; 27 UNOFFICIAL COPY 24 RS BR 364
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(58)[(48)] "Telemarketing services" means services provided via telephone, facsimile, 1
electronic mail, text messages, or other modes of communications to another 2
person, which are 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
(59)[(49)] "Transferred electronically" means accessed or obtained by the purchaser by 9
means other than tangible storage media; and 10
(60)[(50)] (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 13
which possession is given, or by any transaction involving digital 14
property or tangible personal property where the right of access is 15
granted; or 16
2. Any right or power to benefit from any services subject to tax under 17
KRS 139.200(2)(p) to (ax). 18
(b) "Use" does not include the keeping, retaining, or exercising any right or 19
power over: 20
1. Tangible personal property or digital property for the purpose of: 21
a. Selling tangible personal property or digital property in the regular 22
course of business; or 23
b. Subsequently transporting tangible personal property outside the 24
state for use thereafter solely outside the state, or for the purpose 25
of being processed, fabricated, or manufactured into, attached to, 26
or incorporated into, other tangible personal property to be 27 UNOFFICIAL COPY 24 RS BR 364
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transported outside the state and thereafter used solely outside the 1
state; or 2
2. Prewritten computer software access services purchased for use outside 3
the state and transferred electronically outside the state for use thereafter 4
solely outside the state. 5
Section 2. KRS 139.480 (Effective until January 1, 2025) is amended to read as 6
follows: 7
Any other provision of this chapter to the contrary notwithstanding, the terms "sale at 8
retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, shall not 9
include the sale, use, storage, or other consumption of: 10
(1) Locomotives or rolling stock, including materials for the construction, repair, or 11
modification thereof, or fuel or supplies for the direct operation of locomotives and 12
trains, used or to be used in interstate commerce; 13
(2) Coal for the manufacture of electricity; 14
(3) (a) All energy or energy-producing fuels used in the course of manufacturing, 15
processing, mining, or refining and any related distribution, transmission, and 16
transportation services for this energy that are billed to the user, to the extent 17
that the cost of the energy or energy-producing fuels used, and related 18
distribution, transmission, and transportation services for this energy that are 19
billed to the user exceed three percent (3%) of the cost of production. 20
(b) Cost of production shall be computed on the basis of a plant facility, which 21
shall include all operations within the continuous, unbroken, integrated 22
manufacturing or industrial processing process that ends with a product 23
packaged and ready for sale. 24
(c) A person who performs a manufacturing or industrial processing activity for a 25
fee and does not take ownership of the tangible personal property that is 26
incorporated into, or becomes the product of, the manufacturing or industrial 27 UNOFFICIAL COPY 24 RS BR 364
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processing activity is a toller. For periods on or after July 1, 2018, the costs of 1
the tangible personal property shall be excluded from the toller's cost of 2
production at a plant facility with tolling operations in place as of July 1, 3
2018. 4
(d) For plant facilities that begin tolling operations after July 1, 2018, the costs of 5
tangible personal property shall be excluded from the toller's cost of 6
production if the toller: 7
1. Maintains a binding contract for periods after July 1, 2018, that governs 8
the terms, conditions, and responsibilities with a separate legal entity, 9
which holds title to the tangible personal property that is incorporated 10
into, or becomes the product of, the manufacturing or industrial 11
processing activity; 12
2. Maintains accounting records that show the expenses it incurs to fulfill 13
the binding contract that include but are not limited to energy or energy-14
producing fuels, materials, labor, procurement, depreciation, 15
maintenance, taxes, administration, and office expenses; 16
3. Maintains separate payroll, bank accounts, tax returns, and other records 17
that demonstrate its independent operations in the performance of its 18
tolling responsibilities; 19
4. Demonstrates one (1) or more substantial business purposes for the 20
tolling operations germane to the overall manufacturing, industrial 21
processing activities, or corporate structure at the plant facility. A 22
business purpose is a purpose other than the reduction of sales tax 23
liability for the purchases of energy and energy-producing fuels; and 24
5. Provides information to the department upon request that documents 25
fulfillment of the requirements in subparagraphs 1. to 4. of this 26
paragraph and gives an overview of its tolling operations with an 27 UNOFFICIAL COPY 24 RS BR 364
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explanation of how the tolling operations relate and connect with all 1
other manufacturing or industrial processing activities occurring at the 2
plant facility; 3
(4) Livestock of a kind the products of which ordinarily constitute food for human 4
consumption, provided the sales are made for breeding or dairy purposes and by or 5
to a person regularly engaged in the business of farming; 6
(5) Poultry for use in breeding or egg production; 7
(6) Farm work stock for use in farming operations; 8
(7) Seeds, the products of which ordinarily constitute food for human consumption or 9
are to be sold in the regular course of business, and commercial fertilizer to be 10
applied on land, the products from which are to be used for food for human 11
consumption or are to be sold in the regular course of business; provided such sales 12
are made to farmers who are regularly engaged in the occupation of tilling and 13
cultivating the soil for the production of crops as a business, or who are regularly 14
engaged in the occupation of raising and feeding livestock or poultry or producing 15
milk for sale; and provided further that tangible personal property so sold is to be 16
used only by those persons designated above who are so purchasing; 17
(8) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals to be 18
used in the production of crops as a business, or in the raising and feeding of 19
livestock or poultry, the products of which ordinarily constitute food for human 20
consumption; 21
(9) Feed, including pre-mixes and feed additives, for livestock or poultry of a kind the 22
products of which ordinarily constitute food for human consumption; 23
(10) Machinery for new and expanded industry; 24
(11) Farm machinery. As used in this section, the term "farm machinery": 25
(a) Means machinery used exclusively and directly in the occupation of: 26
1. Tilling the soil for the production of crops as a business; 27 UNOFFICIAL COPY 24 RS BR 364
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2. Raising and feeding livestock or poultry for sale; or 1
3. Producing milk for sale; 2
(b) Includes machinery, attachments, and replacements therefor, repair parts, and 3
replacement parts which are used or manufactured for use on, or in the 4
operation of farm machinery and which are necessary to the operation of the 5
machinery, and are customarily so used, including but not limited to combine 6
header wagons, combine header trailers, or any other implements specifically 7
designed and used to move or transport a combine head; and 8
(c) Does not include: 9
1. Automobiles; 10
2. Trucks; 11
3. Trailers, except combine header trailers; or 12
4. Truck-trailer combinations; 13
(12) Tombstones and other memorial grave markers; 14
(13) On-farm facilities used exclusively for grain or soybean storing, drying, processing, 15
or handling. The exemption applies to the equipment, machinery, attachments, 16
repair and replacement parts, and any materials incorporated into the construction, 17
renovation, or repair of the facilities; 18
(14) On-farm facilities used exclusively for raising poultry or livestock. The exemption 19
shall apply to the equipment, machinery, attachments, repair and replacement parts, 20
and any materials incorporated into the construction, renovation, or repair of the 21
facilities. The exemption shall apply but not be limited to vent board equipment, 22
waterer and feeding systems, brooding systems, ventilation systems, alarm systems, 23
and curtain systems. In addition, the exemption shall apply whether or not the seller 24
is under contract to deliver, assemble, and incorporate into real estate the 25
equipment, machinery, attachments, repair and replacement parts, and any materials 26
incorporated into the construction, renovation, or repair of the facilities; 27 UNOFFICIAL COPY 24 RS BR 364
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(15) Gasoline, special fuels, liquefied petroleum gas, and natural gas used exclusively 1
and directly to: 2
(a) Operate farm machinery as defined in subsection (11) of this section; 3
(b) Operate on-farm grain or soybean drying facilities as defined in subsection 4
(13) of this section; 5
(c) Operate on-farm poultry or livestock facilities defined in subsection (14) of 6
this section; 7
(d) Operate on-farm ratite facilities defined in subsection (23) of this section; 8
(e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this 9
section; or 10
(f) Operate on-farm dairy facilities; 11
(16) Textbooks, including related workbooks and other course materials, purchased for 12
use in a course of study conducted by an institution which qualifies as a nonprofit 13
educational institution under KRS 139.495. The term "course materials" means only 14
those items specifically required of all students for a particular course but shall not 15
include notebooks, paper, pencils, calculators, tape recorders, or similar student 16
aids; 17
(17) Any property which has been certified as an alcohol production facility as defined 18
in KRS 247.910; 19
(18) Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the 20
direct operation of aircraft in interstate commerce and used exclusively for the 21
conveyance of property or passengers for hire. Nominal intrastate use shall not 22
subject the property to the taxes imposed by this chapter; 23
(19) Any property which has been certified as a fluidized bed energy production facility 24
as defined in KRS 211.390; 25
(20) (a) 1. Any property to be incorporated into the construction, rebuilding, 26
modification, or expansion of a blast furnace or any of its components or 27 UNOFFICIAL COPY 24 RS BR 364
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appurtenant equipment or structures as part of an approved supplemental 1
project, as defined by KRS 154.26-010; and 2
2. Materials, supplies, and repair or replacement parts purchased for use in 3
the operation and maintenance of a blast furnace and related carbon 4
steel-making operations as part of an approved supplemental project, as 5
defined by KRS 154.26-010. 6
(b) The exemptions provided in this subsection shall be effective for sales made: 7
1. On and after July 1, 2018; and 8
2. During the term of a supplemental project agreement entered into 9
pursuant to KRS 154.26-090; 10
(21) Beginning on October 1, 1986, food or food products purchased for human 11
consumption with food coupons issued by the United States Department of 12
Agriculture pursuant to the Food Stamp Act of 1977, as amended, and required to 13
be exempted by the Food Security Act of 1985 in order for the Commonwealth to 14
continue participation in the federal food stamp program; 15
(22) Machinery or equipment purchased or leased by a business, industry, or 16
organization in order to collect, source separate, compress, bale, shred, or otherwise 17
handle waste materials if the machinery or equipment is primarily used for 18
recycling purposes; 19
(23) Ratite birds and eggs to be used in an agricultural pursuit for the breeding and 20
production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by-21
products, and the following items used in this agricultural pursuit: 22
(a) Feed and feed additives; 23
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 24
and 25
(c) On-farm facilities, including equipment, machinery, attachments, repair and 26
replacement parts, and any materials incorporated into the construction, 27 UNOFFICIAL COPY 24 RS BR 364
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renovation, or repair of the facilities. The exemption shall apply to incubation 1
systems, egg processing equipment, waterer and feeding systems, brooding 2
systems, ventilation systems, alarm systems, and curtain systems. In addition, 3
the exemption shall apply whether or not the seller is under contract to 4
deliver, assemble, and incorporate into real estate the equipment, machinery, 5
attachments, repair and replacement parts, and any materials incorporated into 6
the construction, renovation, or repair of the facilities; 7
(24) Embryos and semen that are used in the reproduction of livestock, if the products of 8
these embryos and semen ordinarily constitute food for human consumption, and if 9
the sale is made to a person engaged in the business of farming; 10
(25) Llamas and alpacas to be used as beasts of burden or in an agricultural pursuit for 11
the breeding and production of hides, breeding stock, fiber and wool products, 12
meat, and llama and alpaca by-products, and the following items used in this 13
pursuit: 14
(a) Feed and feed additives; 15
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 16
and 17
(c) On-farm facilities, including equipment, machinery, attachments, repair and 18
replacement parts, and any materials incorporated into the construction, 19
renovation, or repair of the facilities. The exemption shall apply to waterer 20
and feeding systems, ventilation systems, and alarm systems. In addition, the 21
exemption shall apply whether or not the seller is under contract to deliver, 22
assemble, and incorporate into real estate the equipment, machinery, 23
attachments, repair and replacement parts, and any materials incorporated into 24
the construction, renovation, or repair of the facilities; 25
(26) Baling twine and baling wire for the baling of hay and straw; 26
(27) Water sold to a person regularly engaged in the business of farming and used in the: 27 UNOFFICIAL COPY 24 RS BR 364
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(a) Production of crops; 1
(b) Production of milk for sale; or 2
(c) Raising and feeding of: 3
1. Livestock or poultry, the products of which ordinarily constitute food 4
for human consumption; or 5
2. Ratites, llamas, alpacas, buffalo, cervids or aquatic organisms; 6
(28) Buffalos to be used as beasts of burden or in an agricultural pursuit for the 7
production of hides, breeding stock, meat, and buffalo by-products, and the 8
following items used in this pursuit: 9
(a) Feed and feed additives; 10
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 11
and 12
(c) On-farm facilities, including equipment, machinery, attachments, repair and 13
replacement parts, and any materials incorporated into the construction, 14
renovation, or repair of the facilities. The exemption shall apply to waterer 15
and feeding systems, ventilation systems, and alarm systems. In addition, the 16
exemption shall apply whether or not the seller is under contract to deliver, 17
assemble, and incorporate into real estate the equipment, machinery, 18
attachments, repair and replacement parts, and any materials incorporated into 19
the construction, renovation, or repair of the facilities; 20
(29) Aquatic organisms sold directly to or raised by a person regularly engaged in the 21
business of producing products of aquaculture, as defined in KRS 260.960, for sale, 22
and the following items used in this pursuit: 23
(a) Feed and feed additives; 24
(b) Water; 25
(c) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 26
and 27 UNOFFICIAL COPY 24 RS BR 364
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(d) On-farm facilities, including equipment, machinery, attachments, repair and 1
replacement parts, and any materials incorporated into the construction, 2
renovation, or repair of the facilities and, any gasoline, special fuels, liquefied 3
petroleum gas, or natural gas used to operate the facilities. The exemption 4
shall apply, but not be limited to: waterer and feeding systems; ventilation, 5
aeration, and heating systems; processing and storage systems; production 6
systems such as ponds, tanks, and raceways; harvest and transport equipment 7
and systems; and alarm systems. In addition, the exemption shall apply 8
whether or not the seller is under contract to deliver, assemble, and 9
incorporate into real estate the equipment, machinery, attachments, repair and 10
replacement parts, and any materials incorporated into the construction, 11
renovation, or repair of the facilities; 12
(30) Members of the genus cervidae permitted by KRS Chapter 150 that are used for the 13
production of hides, breeding stock, meat, and cervid by-products, and the 14
following items used in this pursuit: 15
(a) Feed and feed additives; 16
(b) Insecticides, fungicides, herbicides, rodenticides, and other chemicals; and 17
(c) On-site facilities, including equipment, machinery, attachments, repair and 18
replacement parts, and any materials incorporated into the construction, 19
renovation, or repair of the facilities. In addition, the exemption shall apply 20
whether or not the seller is under contract to deliver, assemble, and 21
incorporate into real estate the equipment, machinery, attachments, repair and 22
replacement parts, and any materials incorporated into the construction, 23
renovation, or repair of the facilities; 24
(31) (a) Repair or replacement parts for the direct operation or maintenance of a motor 25
vehicle, including any towed unit, used exclusively in interstate commerce for 26
the conveyance of property or passengers for hire, provided the motor vehicle 27 UNOFFICIAL COPY 24 RS BR 364
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is licensed for use on the highway and its declared gross vehicle weight with 1
any towed unit is forty-four thousand and one (44,001) pounds or greater. 2
Nominal intrastate use shall not subject the property to the taxes imposed by 3
this chapter; and 4
(b) Repair or replacement parts for the direct operation and maintenance of a 5
motor vehicle operating under a charter bus certificate issued by the 6
Transportation Cabinet under KRS Chapter 281, or under similar authority 7
granted by the United States Department of Transportation. 8
(c) For the purposes of this subsection, "repair or replacement parts" means tires, 9
brakes, engines, transmissions, drive trains, chassis, body parts, and their 10
components. "Repair or replacement parts" shall not include fuel, machine 11
oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential 12
to the operation of the motor vehicle itself, except when sold as part of the 13
assembled unit, such as cigarette lighters, radios, lighting fixtures not 14
otherwise required by the manufacturer for operation of the vehicle, or tool or 15
utility boxes; 16
(32) Food donated by a retail food establishment or any other entity regulated under 17
KRS 217.127 to a nonprofit organization for distribution to the needy; 18
(33) Drugs and over-the counter drugs, as defined in KRS 139.472, that are purchased 19
by a person regularly engaged in the business of farming and used in the treatment 20
of cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, buffalo, aquatic 21
organisms, or cervids; 22
(34) (a) Building materials, fixtures, or supplies purchased by a construction 23
contractor if: 24
1. Fulfilled by a construction contract for a sewer or water project with: 25
a. A municipally owned water utility organized under KRS Chapter 26
96; 27 UNOFFICIAL COPY 24 RS BR 364
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b. A water district or water commission formed or organized under 1
KRS Chapter 74; 2
c. A sanitation district established under KRS Chapter 220 or formed 3
pursuant to KRS Chapter 65; 4
d. A nonprofit corporation created under KRS 58.180 to act on behalf 5
of a governmental agency in the acquisition and financing of 6
public projects; 7
e. Regional wastewater commissions formed under KRS Chapter 8
278; 9
f. A municipally owned joint sewer agency formed under KRS 10
Chapter 76; or 11
g. Any other governmental agency; and 12
2. The building materials, fixtures, or supplies: 13
a. Will be permanently incorporated into a structure or improvement 14
to real property, or will be completely consumed, in fulfilling a 15
construction contract for the purpose of furnishing water or sewer 16
services to the general public; and 17
b. Would be exempt if purchased directly by the entities listed in 18
subparagraph 1. of this paragraph. 19
(b) As used in this subsection, "construction contract" means a: 20
1. Lump sum contract; 21
2. Cost plus contract; 22
3. Materials only contract; 23
4. Labor and materials contract; or 24
5. Any other type of contract. 25
(c) The exemption provided in this subsection shall apply without regard to the 26
payment arrangement between the construction contractor, the retailer, and 27 UNOFFICIAL COPY 24 RS BR 364
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the entities listed in paragraph (a)1. of this subsection or to the place of 1
delivery for the building materials, fixtures, or supplies; 2
(35) (a) On or after February 25, 2022, the rental of space for meetings, conventions, 3
short-term business uses, entertainment events, weddings, banquets, parties, 4
and other short-term social events, as referenced in KRS 139.200, if the tax 5
established in KRS 139.200 is paid by the primary lessee to the lessor. 6
(b) For the purpose of this subsection, "primary lessee" means the person who 7
leases the space and who has a contract with the lessor of the space only if: 8
1. The contract between the lessor and the lessee specifies that the lessee 9
may sublease, subrent, or otherwise sell the space; and 10
2. The space is then sublet, subrented, or otherwise sold to exhibitors, 11
vendors, sponsors, or other entities and persons who will use the space 12
associated with the event to be conducted under the primary lease;[ and] 13
(36) Prewritten computer software access services sold to or purchased by a retailer that 14
develops prewritten computer software for print technology and uses and sells 15
prewritten computer software access services for print technology; and 16
(37) (a) 1. Baby bottles, including both nipples and liners; 17
2. Baby wipes; 18
3. Breast pumps; 19
4. Breast pump collection and storage supplies; 20
5. Breast pump kits; 21
6. Children's diapers, including disposable children's diapers; 22
7. Diapers, including disposable diapers; 23
8. Feminine hygiene products; and 24
9. Incontinence products. 25
(b) The exemptions provided in paragraph (a) of this subsection apply to items 26
sold or purchased on or after August 1, 2024, but before August 1, 2028. 27 UNOFFICIAL COPY 24 RS BR 364
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(c) On or before September 1, 2025, and on or before each September 1 1
thereafter as long as the exemption applies, the department shall report to 2
the Interim Joint Committee on Appropriations and Revenue the total 3
amount of the exemption that has been claimed for the immediately 4
preceding fiscal year and the total cumulative amount of the exemption 5
claimed. 6
Section 3. KRS 139.480 (Effective January 1, 2025) is amended to read as 7
follows: 8
Any other provision of this chapter to the contrary notwithstanding, the terms "sale at 9
retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, shall not 10
include the sale, use, storage, or other consumption of: 11
(1) Locomotives or rolling stock, including materials for the construction, repair, or 12
modification thereof, or fuel or supplies for the direct operation of locomotives and 13
trains, used or to be used in interstate commerce; 14
(2) Coal for the manufacture of electricity; 15
(3) (a) All energy or energy-producing fuels used in the course of manufacturing, 16
processing, mining, or refining and any related distribution, transmission, and 17
transportation services for this energy that are billed to the user, to the extent 18
that the cost of the energy or energy-producing fuels used, and related 19
distribution, transmission, and transportation services for this energy that are 20
billed to the user exceed three percent (3%) of the cost of production. 21
(b) Cost of production shall be computed on the basis of a plant facility, which 22
shall include all operations within the continuous, unbroken, integrated 23
manufacturing or industrial processing process that ends with a product 24
packaged and ready for sale. 25
(c) A person who performs a manufacturing or industrial processing activity for a 26
fee and does not take ownership of the tangible personal property that is 27 UNOFFICIAL COPY 24 RS BR 364
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incorporated into, or becomes the product of, the manufacturing or industrial 1
processing activity is a toller. For periods on or after July 1, 2018, the costs of 2
the tangible personal property shall be excluded from the toller's cost of 3
production at a plant facility with tolling operations in place as of July 1, 4
2018. 5
(d) For plant facilities that begin tolling operations after July 1, 2018, the costs of 6
tangible personal property shall be excluded from the toller's cost of 7
production if the toller: 8
1. Maintains a binding contract for periods after July 1, 2018, that governs 9
the terms, conditions, and responsibilities with a separate legal entity, 10
which holds title to the tangible personal property that is incorporated 11
into, or becomes the product of, the manufacturing or industrial 12
processing activity; 13
2. Maintains accounting records that show the expenses it incurs to fulfill 14
the binding contract that include but are not limited to energy or energy-15
producing fuels, materials, labor, procurement, depreciation, 16
maintenance, taxes, administration, and office expenses; 17
3. Maintains separate payroll, bank accounts, tax returns, and other records 18
that demonstrate its independent operations in the performance of its 19
tolling responsibilities; 20
4. Demonstrates one (1) or more substantial business purposes for the 21
tolling operations germane to the overall manufacturing, industrial 22
processing activities, or corporate structure at the plant facility. A 23
business purpose is a purpose other than the reduction of sales tax 24
liability for the purchases of energy and energy-producing fuels; and 25
5. Provides information to the department upon request that documents 26
fulfillment of the requirements in subparagraphs 1. to 4. of this 27 UNOFFICIAL COPY 24 RS BR 364
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paragraph and gives an overview of its tolling operations with an 1
explanation of how the tolling operations relate and connect with all 2
other manufacturing or industrial processing activities occurring at the 3
plant facility; 4
(4) Livestock of a kind the products of which ordinarily constitute food for human 5
consumption, provided the sales are made for breeding or dairy purposes and by or 6
to a person regularly engaged in the business of farming; 7
(5) Poultry for use in breeding or egg production; 8
(6) Farm work stock for use in farming operations; 9
(7) Seeds, the products of which ordinarily constitute food for human consumption or 10
are to be sold in the regular course of business, and commercial fertilizer to be 11
applied on land, the products from which are to be used for food for human 12
consumption or are to be sold in the regular course of business; provided such sales 13
are made to farmers who are regularly engaged in the occupation of tilling and 14
cultivating the soil for the production of crops as a business, or who are regularly 15
engaged in the occupation of raising and feeding livestock or poultry or producing 16
milk for sale; and provided further that tangible personal property so sold is to be 17
used only by those persons designated above who are so purchasing; 18
(8) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals to be 19
used in the production of crops as a business, or in the raising and feeding of 20
livestock or poultry, the products of which ordinarily constitute food for human 21
consumption; 22
(9) Feed, including pre-mixes and feed additives, for livestock or poultry of a kind the 23
products of which ordinarily constitute food for human consumption; 24
(10) Machinery for new and expanded industry; 25
(11) Farm machinery. As used in this section, the term "farm machinery": 26
(a) Means machinery used exclusively and directly in the occupation of: 27 UNOFFICIAL COPY 24 RS BR 364
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1. Tilling the soil for the production of crops as a business; 1
2. Raising and feeding livestock or poultry for sale; or 2
3. Producing milk for sale; 3
(b) Includes machinery, attachments, and replacements therefor, repair parts, and 4
replacement parts which are used or manufactured for use on, or in the 5
operation of farm machinery and which are necessary to the operation of the 6
machinery, and are customarily so used, including but not limited to combine 7
header wagons, combine header trailers, or any other implements specifically 8
designed and used to move or transport a combine head; and 9
(c) Does not include: 10
1. Automobiles; 11
2. Trucks; 12
3. Trailers, except combine header trailers; or 13
4. Truck-trailer combinations; 14
(12) Tombstones and other memorial grave markers; 15
(13) On-farm facilities used exclusively for grain or soybean storing, drying, processing, 16
or handling. The exemption applies to the equipment, machinery, attachments, 17
repair and replacement parts, and any materials incorporated into the construction, 18
renovation, or repair of the facilities; 19
(14) On-farm facilities used exclusively for raising poultry or livestock. The exemption 20
shall apply to the equipment, machinery, attachments, repair and replacement parts, 21
and any materials incorporated into the construction, renovation, or repair of the 22
facilities. The exemption shall apply but not be limited to vent board equipment, 23
waterer and feeding systems, brooding systems, ventilation systems, alarm systems, 24
and curtain systems. In addition, the exemption shall apply whether or not the seller 25
is under contract to deliver, assemble, and incorporate into real estate the 26
equipment, machinery, attachments, repair and replacement parts, and any materials 27 UNOFFICIAL COPY 24 RS BR 364
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incorporated into the construction, renovation, or repair of the facilities; 1
(15) Gasoline, special fuels, liquefied petroleum gas, and natural gas used exclusively 2
and directly to: 3
(a) Operate farm machinery as defined in subsection (11) of this section; 4
(b) Operate on-farm grain or soybean drying facilities as defined in subsection 5
(13) of this section; 6
(c) Operate on-farm poultry or livestock facilities defined in subsection (14) of 7
this section; 8
(d) Operate on-farm ratite facilities defined in subsection (23) of this section; 9
(e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this 10
section; or 11
(f) Operate on-farm dairy facilities; 12
(16) Textbooks, including related workbooks and other course materials, purchased for 13
use in a course of study conducted by an institution which qualifies as a nonprofit 14
educational institution under KRS 139.495. The term "course materials" means only 15
those items specifically required of all students for a particular course but shall not 16
include notebooks, paper, pencils, calculators, tape recorders, or similar student 17
aids; 18
(17) Any property which has been certified as an alcohol production facility as defined 19
in KRS 247.910; 20
(18) Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the 21
direct operation of aircraft in interstate commerce and used exclusively for the 22
conveyance of property or passengers for hire. Nominal intrastate use shall not 23
subject the property to the taxes imposed by this chapter; 24
(19) Any property which has been certified as a fluidized bed energy production facility 25
as defined in KRS 211.390; 26
(20) (a) 1. Any property to be incorporated into the construction, rebuilding, 27 UNOFFICIAL COPY 24 RS BR 364
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modification, or expansion of a blast furnace or any of its components or 1
appurtenant equipment or structures as part of an approved supplemental 2
project, as defined by KRS 154.26-010; and 3
2. Materials, supplies, and repair or replacement parts purchased for use in 4
the operation and maintenance of a blast furnace and related carbon 5
steel-making operations as part of an approved supplemental project, as 6
defined by KRS 154.26-010. 7
(b) The exemptions provided in this subsection shall be effective for sales made: 8
1. On and after July 1, 2018; and 9
2. During the term of a supplemental project agreement entered into 10
pursuant to KRS 154.26-090; 11
(21) Beginning on October 1, 1986, food or food products purchased for human 12
consumption with food coupons issued by the United States Department of 13
Agriculture pursuant to the Food Stamp Act of 1977, as amended, and required to 14
be exempted by the Food Security Act of 1985 in order for the Commonwealth to 15
continue participation in the federal food stamp program; 16
(22) Machinery or equipment purchased or leased by a business, industry, or 17
organization in order to collect, source separate, compress, bale, shred, or otherwise 18
handle waste materials if the machinery or equipment is primarily used for 19
recycling purposes; 20
(23) Ratite birds and eggs to be used in an agricultural pursuit for the breeding and 21
production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by-22
products, and the following items used in this agricultural pursuit: 23
(a) Feed and feed additives; 24
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 25
and 26
(c) On-farm facilities, including equipment, machinery, attachments, repair and 27 UNOFFICIAL COPY 24 RS BR 364
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replacement parts, and any materials incorporated into the construction, 1
renovation, or repair of the facilities. The exemption shall apply to incubation 2
systems, egg processing equipment, waterer and feeding systems, brooding 3
systems, ventilation systems, alarm systems, and curtain systems. In addition, 4
the exemption shall apply whether or not the seller is under contract to 5
deliver, assemble, and incorporate into real estate the equipment, machinery, 6
attachments, repair and replacement parts, and any materials incorporated into 7
the construction, renovation, or repair of the facilities; 8
(24) Embryos and semen that are used in the reproduction of livestock, if the products of 9
these embryos and semen ordinarily constitute food for human consumption, and if 10
the sale is made to a person engaged in the business of farming; 11
(25) Llamas and alpacas to be used as beasts of burden or in an agricultural pursuit for 12
the breeding and production of hides, breeding stock, fiber and wool products, 13
meat, and llama and alpaca by-products, and the following items used in this 14
pursuit: 15
(a) Feed and feed additives; 16
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 17
and 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 waterer 21
and feeding systems, ventilation systems, and alarm systems. In addition, the 22
exemption shall apply whether or not the seller is under contract to deliver, 23
assemble, and incorporate into real estate the equipment, machinery, 24
attachments, repair and replacement parts, and any materials incorporated into 25
the construction, renovation, or repair of the facilities; 26
(26) Baling twine and baling wire for the baling of hay and straw; 27 UNOFFICIAL COPY 24 RS BR 364
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(27) Water sold to a person regularly engaged in the business of farming and used in the: 1
(a) Production of crops; 2
(b) Production of milk for sale; or 3
(c) Raising and feeding of: 4
1. Livestock or poultry, the products of which ordinarily constitute food 5
for human consumption; or 6
2. Ratites, llamas, alpacas, buffalo, cervids or aquatic organisms; 7
(28) Buffalos to be used as beasts of burden or in an agricultural pursuit for the 8
production of hides, breeding stock, meat, and buffalo by-products, and the 9
following items used in this pursuit: 10
(a) Feed and feed additives; 11
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 12
and 13
(c) On-farm facilities, including equipment, machinery, attachments, repair and 14
replacement parts, and any materials incorporated into the construction, 15
renovation, or repair of the facilities. The exemption shall apply to waterer 16
and feeding systems, ventilation systems, and alarm systems. In addition, the 17
exemption shall apply whether or not the seller is under contract to deliver, 18
assemble, and incorporate into real estate the equipment, machinery, 19
attachments, repair and replacement parts, and any materials incorporated into 20
the construction, renovation, or repair of the facilities; 21
(29) Aquatic organisms sold directly to or raised by a person regularly engaged in the 22
business of producing products of aquaculture, as defined in KRS 260.960, for sale, 23
and the following items used in this pursuit: 24
(a) Feed and feed additives; 25
(b) Water; 26
(c) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 27 UNOFFICIAL COPY 24 RS BR 364
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and 1
(d) On-farm facilities, including equipment, machinery, attachments, repair and 2
replacement parts, and any materials incorporated into the construction, 3
renovation, or repair of the facilities and, any gasoline, special fuels, liquefied 4
petroleum gas, or natural gas used to operate the facilities. The exemption 5
shall apply, but not be limited to: waterer and feeding systems; ventilation, 6
aeration, and heating systems; processing and storage systems; production 7
systems such as ponds, tanks, and raceways; harvest and transport equipment 8
and systems; and alarm systems. In addition, the exemption shall apply 9
whether or not the seller is under contract to deliver, assemble, and 10
incorporate into real estate the equipment, machinery, attachments, repair and 11
replacement parts, and any materials incorporated into the construction, 12
renovation, or repair of the facilities; 13
(30) Members of the genus cervidae permitted by KRS Chapter 150 that are used for the 14
production of hides, breeding stock, meat, and cervid by-products, and the 15
following items used in this pursuit: 16
(a) Feed and feed additives; 17
(b) Insecticides, fungicides, herbicides, rodenticides, and other chemicals; and 18
(c) On-site facilities, including equipment, machinery, attachments, repair and 19
replacement parts, and any materials incorporated into the construction, 20
renovation, or repair of the facilities. In addition, the exemption shall apply 21
whether or not the seller is under contract to deliver, assemble, and 22
incorporate into real estate the equipment, machinery, attachments, repair and 23
replacement parts, and any materials incorporated into the construction, 24
renovation, or repair of the facilities; 25
(31) (a) Repair or replacement parts for the direct operation or maintenance of a motor 26
vehicle, including any towed unit, used exclusively in interstate commerce for 27 UNOFFICIAL COPY 24 RS BR 364
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the conveyance of property or passengers for hire, provided the motor vehicle 1
is licensed for use on the highway and its declared gross vehicle weight with 2
any towed unit is forty-four thousand and one (44,001) pounds or greater. 3
Nominal intrastate use shall not subject the property to the taxes imposed by 4
this chapter; and 5
(b) Repair or replacement parts for the direct operation and maintenance of a 6
motor vehicle operating under a charter bus certificate issued by the 7
Transportation Cabinet under KRS Chapter 281, or under similar authority 8
granted by the United States Department of Transportation. 9
(c) For the purposes of this subsection, "repair or replacement parts" means tires, 10
brakes, engines, transmissions, drive trains, chassis, body parts, and their 11
components. "Repair or replacement parts" shall not include fuel, machine 12
oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential 13
to the operation of the motor vehicle itself, except when sold as part of the 14
assembled unit, such as cigarette lighters, radios, lighting fixtures not 15
otherwise required by the manufacturer for operation of the vehicle, or tool or 16
utility boxes; 17
(32) Food donated by a retail food establishment or any other entity regulated under 18
KRS 217.127 to a nonprofit organization for distribution to the needy; 19
(33) Drugs and over-the counter drugs, as defined in KRS 139.472, that are purchased 20
by a person regularly engaged in the business of farming and used in the treatment 21
of cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, buffalo, aquatic 22
organisms, or cervids; 23
(34) (a) Building materials, fixtures, or supplies purchased by a construction 24
contractor if: 25
1. Fulfilled by a construction contract for a sewer or water project with: 26
a. A municipally owned water utility organized under KRS Chapter 27 UNOFFICIAL COPY 24 RS BR 364
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96; 1
b. A water district or water commission formed or organized under 2
KRS Chapter 74; 3
c. A sanitation district established under KRS Chapter 220 or formed 4
pursuant to KRS Chapter 65; 5
d. A nonprofit corporation created under KRS 58.180 to act on behalf 6
of a governmental agency in the acquisition and financing of 7
public projects; 8
e. Regional wastewater commissions formed under KRS Chapter 9
278; 10
f. A municipally owned joint sewer agency formed under KRS 11
Chapter 76; or 12
g. Any other governmental agency; and 13
2. The building materials, fixtures, or supplies: 14
a. Will be permanently incorporated into a structure or improvement 15
to real property, or will be completely consumed, in fulfilling a 16
construction contract for the purpose of furnishing water or sewer 17
services to the general public; and 18
b. Would be exempt if purchased directly by the entities listed in 19
subparagraph 1. of this paragraph. 20
(b) As used in this subsection, "construction contract" means a: 21
1. Lump sum contract; 22
2. Cost plus contract; 23
3. Materials only contract; 24
4. Labor and materials contract; or 25
5. Any other type of contract. 26
(c) The exemption provided in this subsection shall apply without regard to the 27 UNOFFICIAL COPY 24 RS BR 364
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payment arrangement between the construction contractor, the retailer, and 1
the entities listed in paragraph (a)1. of this subsection or to the place of 2
delivery for the building materials, fixtures, or supplies; 3
(35) (a) On or after February 25, 2022, the rental of space for meetings, conventions, 4
short-term business uses, entertainment events, weddings, banquets, parties, 5
and other short-term social events, as referenced in KRS 139.200, if the tax 6
established in KRS 139.200 is paid by the primary lessee to the lessor. 7
(b) For the purpose of this subsection, "primary lessee" means the person who 8
leases the space and who has a contract with the lessor of the space only if: 9
1. The contract between the lessor and the lessee specifies that the lessee 10
may sublease, subrent, or otherwise sell the space; and 11
2. The space is then sublet, subrented, or otherwise sold to exhibitors, 12
vendors, sponsors, or other entities and persons who will use the space 13
associated with the event to be conducted under the primary lease; 14
(36) Prewritten computer software access services sold to or purchased by a retailer that 15
develops prewritten computer software for print technology and uses and sells 16
prewritten computer software access services for print technology;[ and] 17
(37) (a) 1. Baby bottles, including both nipples and liners; 18
2. Baby wipes; 19
3. Breast pumps; 20
4. Breast pump collection and storage supplies; 21
5. Breast pump kits; 22
6. Children's diapers, including disposable children's diapers; 23
7. Diapers, including disposable diapers; 24
8. Feminine hygiene products; and 25
9. Incontinence products. 26
(b) The exemptions provided in paragraph (a) of this subsection apply to items 27 UNOFFICIAL COPY 24 RS BR 364
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sold or purchased on or after August 1, 2024, but before August 1, 2028. 1
(c) On or before September 1, 2025, 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; and 7
(38) Medicinal cannabis as defined in KRS 218B.010 when sold, used, stored, or 8
consumed in accordance with KRS Chapter 218B. 9
Section 4. KRS 131.190 is amended to read as follows: 10
(1) No present or former commissioner or employee of the department, present or 11
former member of a county board of assessment appeals, present or former property 12
valuation administrator or employee, present or former secretary or employee of the 13
Finance and Administration Cabinet, former secretary or employee of the Revenue 14
Cabinet, or any other person, shall intentionally and without authorization inspect 15
or divulge any information acquired by him or her of the affairs of any person, or 16
information regarding the tax schedules, returns, or reports required to be filed with 17
the department or other proper officer, or any information produced by a hearing or 18
investigation, insofar as the information may have to do with the affairs of the 19
person's business. 20
(2) The prohibition established by subsection (1) of this section shall not extend to: 21
(a) Information required in prosecutions for making false reports or returns of 22
property for taxation, or any other infraction of the tax laws; 23
(b) Any matter properly entered upon any assessment record, or in any way made 24
a matter of public record; 25
(c) Furnishing any taxpayer or his or her properly authorized agent with 26
information respecting his or her own return; 27 UNOFFICIAL COPY 24 RS BR 364
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(d) Testimony provided by the commissioner or any employee of the department 1
in any court, or the introduction as evidence of returns or reports filed with the 2
department, in an action for violation of state or federal tax laws or in any 3
action challenging state or federal tax laws; 4
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 5
energy resources assessed under KRS 132.820, or owners of surface land 6
under which the unmined minerals lie, factual information about the owner's 7
property derived from third-party returns filed for that owner's property, under 8
the provisions of KRS 132.820, that is used to determine the owner's 9
assessment. This information shall be provided to the owner on a confidential 10
basis, and the owner shall be subject to the penalties provided in KRS 11
131.990(2). The third-party filer shall be given prior notice of any disclosure 12
of information to the owner that was provided by the third-party filer; 13
(f) Providing to a third-party purchaser pursuant to an order entered in a 14
foreclosure action filed in a court of competent jurisdiction, factual 15
information related to the owner or lessee of coal, oil, gas reserves, or any 16
other mineral resources assessed under KRS 132.820. The department may 17
promulgate an administrative regulation establishing a fee schedule for the 18
provision of the information described in this paragraph. Any fee imposed 19
shall not exceed the greater of the actual cost of providing the information or 20
ten dollars ($10); 21
(g) Providing information to a licensing agency, the Transportation Cabinet, or 22
the Kentucky Supreme Court under KRS 131.1817; 23
(h) Statistics of gasoline and special fuels gallonage reported to the department 24
under KRS 138.210 to 138.448; 25
(i) Providing any utility gross receipts license tax return information that is 26
necessary to administer the provisions of KRS 160.613 to 160.617 to 27 UNOFFICIAL COPY 24 RS BR 364
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applicable school districts on a confidential basis; 1
(j) Providing documents, data, or other information to a third party pursuant to an 2
order issued by a court of competent jurisdiction; or 3
(k) Providing information to the Legislative Research Commission under: 4
1. KRS 139.519 for purposes of the sales and use tax refund on building 5
materials used for disaster recovery; 6
2. KRS 141.436 for purposes of the energy efficiency products credits; 7
3. KRS 141.437 for purposes of the ENERGY STAR home and the 8
ENERGY STAR manufactured home credits; 9
4. KRS 141.383 for purposes of the film industry incentives; 10
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 11
tax credits and the job assessment fees; 12
6. KRS 141.068 for purposes of the Kentucky investment fund; 13
7. KRS 141.396 for purposes of the angel investor tax credit; 14
8. KRS 141.389 for purposes of the distilled spirits credit; 15
9. KRS 141.408 for purposes of the inventory credit; 16
10. KRS 141.390 for purposes of the recycling and composting credit; 17
11. KRS 141.3841 for purposes of the selling farmer tax credit; 18
12. KRS 141.4231 for purposes of the renewable chemical production tax 19
credit; 20
13. KRS 141.524 for purposes of the Education Opportunity Account 21
Program tax credit; 22
14. KRS 141.398 for purposes of the development area tax credit; 23
15. KRS 139.516 for the purposes of the sales and use tax exemption on the 24
commercial mining of cryptocurrency;[ and] 25
16. KRS 141.419 for purposes of the decontamination tax credit; and 26
17. KRS 139.480(37) for purposes of the sales and use tax exemptions 27 UNOFFICIAL COPY 24 RS BR 364
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listed. 1
(3) The commissioner shall make available any information for official use only and on 2
a confidential basis to the proper officer, agency, board or commission of this state, 3
any Kentucky county, any Kentucky city, any other state, or the federal 4
government, under reciprocal agreements whereby the department shall receive 5
similar or useful information in return. 6
(4) Access to and inspection of information received from the Internal Revenue Service 7
is for department use only, and is restricted to tax administration purposes. 8
Information received from the Internal Revenue Service shall not be made available 9
to any other agency of state government, or any county, city, or other state, and 10
shall not be inspected intentionally and without authorization by any present 11
secretary or employee of the Finance and Administration Cabinet, commissioner or 12
employee of the department, or any other person. 13
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 14
requirements of KRS Chapter 137 and statistics of natural gas production as 15
reported to the department under the natural resources severance tax requirements 16
of KRS Chapter 143A may be made public by the department by release to the 17
Energy and Environment Cabinet, Department for Natural Resources. 18
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 19
submissions for the 1989 tax year, the department may make public or divulge only 20
those portions of mine maps submitted by taxpayers to the department pursuant to 21
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-22
out parcel areas. These electronic maps shall not be relied upon to determine actual 23
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 24
required under KRS Chapters 350 and 352 shall not be construed to constitute land 25
surveying or boundary surveys as defined by KRS 322.010 and any administrative 26
regulations promulgated thereto. 27 UNOFFICIAL COPY 24 RS BR 364
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Section 5. This Act takes effect on August 1, 2024. 1