Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
139.010,
139.200
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 industrial laundry and linen supply services.
Section 1.
(1) Industrial laundry services are subject
to sales tax pursuant to
KRS
139.200(2)(k).
(2) The list in this subsection shall serve
as general examples of industrial laundry services:
(a) Industrial uniform supply
services;
(b) Protective apparel
supply services;
(c) Industrial mat
and rug supply services; and
(d)
Any other substantially similar industrial services.
Section 2.
(1) Linen supply services are subject to the
sales tax pursuant to
KRS
139.200(2)(m).
(2) The list in this subsection shall serve
as general examples of linen supply services:
(a) Table and bed linen supply
services;
(b) Nonindustrial uniform
supply services; and
(c) Any other
substantially similar nonindustrial linen supply services.
Section 3.
(1) Industrial laundry and linen supply
service providers of aprons, caps, coats, diapers, dresses, linens, mats,
protective apparel, rugs, towels, uniforms, or other articles of a similar
nature under an agreement for periodic cleaning or laundering are consumers of
the supplies and other property used in performing their services and the tax
shall apply at the time these items are purchased.
(2) Industrial laundry and linen supply
service providers shall not claim a sale for resale exemption by issuing the
"Resale Certificate" (Revenue Form 51A105), "Streamlined Sales and Use Tax
Agreement - Certificate of Exemption", (Form 51A206), or "Multistate Tax
Commission's Uniform Sales and Use Tax Exemption/Resale Certificate -
Multijurisdictional" for the purchase of the aprons, caps, coats, diapers,
dresses, linens, mats, protective apparel, rugs, towels, uniforms, or other
articles of a similar nature if retaining title to property they provide under
an agreement for continuous cleaning service.
Section 4. Forms. The form(s) referenced in
this administrative regulation may be inspected, copied, or obtained, subject
to applicable copyright law, at:
(1) The
Kentucky Department of Revenue, 501 High Street, Frankfort, Kentucky
40601;
(2) A Kentucky Taxpayer
Service Center, Monday through Friday, 8:00 a.m. to 4:30 p.m.; or
(3) The Department or Revenue Web site at
http://revenue.ky.gov.
STATUTORY AUTHORITY:
KRS
131.130(1)
