Kentucky Administrative Regulations
Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE
Chapter 26 - Sales and Use Tax; Service and Professional Occupations
Section 103 KAR 26:050 - Common carriers
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 139.470, 139.480
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 common carriers.
Section 1. Definition. "Rolling stock" means only that equipment designed to move on rails and used for the transportation of goods or passengers for hire.
Section 2. All tangible personal property, digital property, admissions, accommodations, and taxable services sold to or used by common carriers in this state shall be subject to application of the sales or use tax with the exceptions noted in Section 3 of this administrative regulation. Tax shall be applicable to leasing arrangements, or use pursuant to leasing arrangements, whereby items of equipment (including things such as tires or batteries) are acquired by common carriers for utilization over extended periods of time in connection with operations. The purchases, uses, leases, and uses pursuant to leases shall be subject to the exceptions and qualifications in Section 3 of this administrative regulation.
Section 3. The following shall be excepted from application of the sales or use tax:
STATUTORY AUTHORITY: KRS 131.130(1)