Kentucky Administrative Regulations
Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE
Chapter 25 - Sales and Use Tax; Registration and Collection
Section 103 KAR 25:050 - Factors and agents
Universal Citation: 103 KY Admin Regs Service 25:050
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 139.010, 139.200, 139.310, 139.340
NECESSITY, FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue to promulgate administrative regulations for the administration and enforcement of Kentucky tax laws. This administrative regulation interprets the sales and use tax law as it applies to transactions involving factors and agents.
Section 1. Definitions.
(1) "Factors"
and "agents" means persons, excluding marketplace providers, to whom products
are consigned, entrusted, or delivered by a principal owner for the purpose of
selling.
(2) "Marketplace
providers" is defined by
KRS
139.010.
(3) "Principal owner" means a person who has
the primary and ultimate ownership of the products for sale.
(4) "Products" means tangible personal
property, digital property, and services subject to sales tax according to the
provisions of
KRS
139.200.
Section 2. Factors and Agents are Retailers.
(1) Factors and agents shall:
(a) Be considered the retailers of products
sold;
(b) Include the
retail-selling price of the products in their gross receipts; and
(c) Be liable for the sales and use tax
thereon unless the principal owner:
1. Holds a
retail permit under KRS Chapter 139;
2. Reports the retail-selling price of the
products in its gross receipts; and
3. Remits the sales and use tax
thereon.
(2)
The delivery in this state of products by a factor or agent of a principal
owner that is a retailer not doing business in this state as provided in
KRS
139.340 shall be considered a retail sale by
the factor or agent. The factor or agent shall include the retail-selling price
of the products in their gross receipts and shall be liable for the sales and
use tax thereon except under the principal owner stipulations provided in
subsection (1) of this section.
STATUTORY AUTHORITY: KRS 131.130
Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
