Title 103 | Chapter 031 | Regulation 090
103 KAR 31:090.Tax-paid purchases resold.
Section 1.
Definition. "Tax-paid purchases resold" means a sales and use tax deduction taken by a retailer on the sales tax return in the amount of the purchase price of property where the retailer:(1)
Sells the property before making any use thereof, other than retention, demonstration, or display while holding it for sale in the regular course of business;(2)
Reports the sale and remits applicable sales and use tax on the sales price of the property; and(3)
Has previously paid the Kentucky sales or use tax on the purchase price of the property.Section 2.
The tax-paid purchases resold deduction described in Section 1 of this administrative regulation may be used in any of the following circumstances:(1)
The retailer, when making the purchase, intends to use the property rather than resell it but later resells it before making any use thereof;(2)
The particular property is not of a kind ordinarily sold or stocked by the retailer and not customarily covered by resale certificates given to their vendors;(3)
The particular property is generally for the use of the retailer, but a small portion is incidentally resold; or(4)
Through error, sales or use tax is paid by the retailer with respect to the purchase price of property purchased for resale in the regular course of business.HISTORY: (SU-61; 1 Ky.R. 233; eff. 1-8-1975; TAm eff. 6-9-2009; TAm eff. 6-22-2016; Crt eff. 1-28-2020; 46 Ky.R. 1598; eff. 5-5-2020.)
103 KAR 31:090.Tax-paid purchases resold.
Section 1.
Definition. "Tax-paid purchases resold" means a sales and use tax deduction taken by a retailer on the sales tax return in the amount of the purchase price of property where the retailer:(1)
Sells the property before making any use thereof, other than retention, demonstration, or display while holding it for sale in the regular course of business;(2)
Reports the sale and remits applicable sales and use tax on the sales price of the property; and(3)
Has previously paid the Kentucky sales or use tax on the purchase price of the property.Section 2.
The tax-paid purchases resold deduction described in Section 1 of this administrative regulation may be used in any of the following circumstances:(1)
The retailer, when making the purchase, intends to use the property rather than resell it but later resells it before making any use thereof;(2)
The particular property is not of a kind ordinarily sold or stocked by the retailer and not customarily covered by resale certificates given to their vendors;(3)
The particular property is generally for the use of the retailer, but a small portion is incidentally resold; or(4)
Through error, sales or use tax is paid by the retailer with respect to the purchase price of property purchased for resale in the regular course of business.HISTORY: (SU-61; 1 Ky.R. 233; eff. 1-8-1975; TAm eff. 6-9-2009; TAm eff. 6-22-2016; Crt eff. 1-28-2020; 46 Ky.R. 1598; eff. 5-5-2020.)