Title 103 | Chapter 040 | Regulation 050REG
PROPOSED
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PREVIOUS VERSION
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FINANCE AND ADMINISTRATION CABINET
Department of Revenue
(Amendment)
103 KAR 40:050.Transporter's reports.
Section 1.
Definitions.(1)
"Alcoholic beverage" is defined by KRS 241.010(2)(2)
"Cannabis-infused beverage" is defined by KRS 241.010(13).(3)
"Department" is defined by KRS 131.010(2).Section 2.
Report Required.(1)
All transporters holding a Transporter's license issued under KRS 243.200 shall file reports with the department on or before the 20th of each month covering the preceding month's transactions. One(2)
Reports shall be(3)
When a shipment is handled by two (2) or more licensed transporters, the licensed transporter making final delivery to the consignee or retiring the waybill shallSection 3.Section 2.
Report Not Required.(1)
Transporters shall not be(a)
Shipments of spirits or cannabis-infused beverages consigned by Kentucky wholesalers to Kentucky retailers;(b)
Shipments of spirits or cannabis-infused beverages delivered to a different transporter in Kentucky;(c)
Shipments originating from a Kentucky wholesaler, distiller, or rectifier and delivered to points outside of Kentucky; and(d)
Shipments of spirits or cannabis-infused beverages originating in some other state, transported through Kentucky and delivered elsewhere.(2)
A railroad involved in switch movement only shall not be103 KAR 40.050
THOMAS B. MILLER, Commissioner
APPROVED BY AGENCY: July 8, 2026
FILED WITH LRC: July 9, 2026 at 3:30 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public comment on this administrative regulation shall be held on September 23, 2026, and 10:00 a.m. ET/9:00 a.m. CT in Room 11A, State Office Building, 501 High Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing at least five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through September 30, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Gary Morris, Executive Director, Office of Tax Policy and Regulation, Department of Revenue, 501 High Street, Station 1, Frankfort, Kentucky 40601, (502) 564-0424 (telephone), (502) 564-3875 (fax), DORTAXPOLICY@ky.gov (email).
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Gary Morris Phone: (502) 564-0424 Email: DORTAXPOLICY@ky.gov
Subject Headings:
Finance and Administration; Taxation; Alcoholic beverages
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation provides guidance on reporting requirements for the transportation of alcoholic beverages.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide guidance on reporting requirements for the transportation of alcoholic beverages and cannabis-infused beverages.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 131.130 allows the Department to promulgate administrative regulations for the administration of all Kentucky tax laws.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
See 1(a).
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment will add definitions and includes cannabis-infused beverages in the transportation reporting requirements.
(b) The necessity of the amendment to this administrative regulation:
See 2(a).
(c) How the amendment conforms to the content of the authorizing statutes:
See 1(c).
(d) How the amendment will assist in the effective administration of the statutes:
See 2(a).
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
{If yes, provide the year of the legislation and either the bill number or Ky Acts chapter number being implemented.} Cannabis-infused beverages became taxable during the 2025 Session.
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
All transporters will be required to report on cannabis-infused beverages transported into or between points in Kentucky.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
All transporters will be required to report on cannabis-infused beverages transported into or between points in Kentucky.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
There are no anticipated costs associated with this amendment.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
This amendment provides updated guidance on when reporting is required on the transportation of cannabis-infused beverages.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
(b) On a continuing basis:
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
Any nominal costs would be absorbed in the current budget.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There are no fees associated with this amendment.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees associated with this amendment.
(10) TIERING: Is tiering applied?
{Explain why or why not} Tiering is not applied because reporting requirements are the same for all transporters for alcoholic beverages or cannabis-infused beverages.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 131.130
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 131.130 authorizes the Department to promulgate administrative regulations for the administration of all Kentucky tax laws.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
This amendment does not impact other state agencies.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The amendment to this administrative regulation should not impact local agencies.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Transporters of cannabis-infused beverages
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
There is no fiscal impact anticipated.
(b) Methodology and resources used to reach this conclusion:
This amendment adds a definition and clarifies transportation reporting requirements for cannabis-infused beverages.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
(b) The methodology and resources used to reach this conclusion:
This amendment adds a definition and clarifies transportation reporting requirements for cannabis-infused beverages.
FINANCE AND ADMINISTRATION CABINET
Department of Revenue
(Amendment)
103 KAR 40:050.Transporter's reports.
Section 1.
Definitions.(1)
"Alcoholic beverage" is defined by KRS 241.010(2)(2)
"Cannabis-infused beverage" is defined by KRS 241.010(13).(3)
"Department" is defined by KRS 131.010(2).Section 2.
Report Required.(1)
All transporters holding a Transporter's license issued under KRS 243.200 shall file reports with the department on or before the 20th of each month covering the preceding month's transactions. One(1) report, prepared on forms supplied by the department, shall be submitted to cover each unit shipment of alcoholic beverages or cannabis-infused beverages transported into or between points in Kentucky.(2)
Reports shall be required on all shipments of alcoholic beverages or cannabis-infused beverages delivered to a Kentucky wholesaler, distiller, or rectifier.(3)
When a shipment is handled by two (2) or more licensed transporters, the licensed transporter making final delivery to the consignee or retiring the waybill shall submit the report to the department.Section 3.
Report Not Required.(1)
Transporters shall not be required to submit a report on the following:(a)
Shipments of spirits or cannabis-infused beverages consigned by Kentucky wholesalers to Kentucky retailers;(b)
Shipments of spirits or cannabis-infused beverages delivered to a different transporter in Kentucky;(c)
Shipments originating from a Kentucky wholesaler, distiller, or rectifier and delivered to points outside of Kentucky; and(d)
Shipments of spirits or cannabis-infused beverages originating in some other state, transported through Kentucky and delivered elsewhere.(2)
A railroad involved in switch movement only shall not be considered the delivering transporter.103 KAR 40.050
THOMAS B. MILLER, Commissioner
APPROVED BY AGENCY: July 8, 2026
FILED WITH LRC: July 9, 2026 at 3:30 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public comment on this administrative regulation shall be held on September 23, 2026, and 10:00 a.m. ET/9:00 a.m. CT in Room 11A, State Office Building, 501 High Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing at least five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through September 30, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Gary Morris, Executive Director, Office of Tax Policy and Regulation, Department of Revenue, 501 High Street, Station 1, Frankfort, Kentucky 40601, (502) 564-0424 (telephone), (502) 564-3875 (fax), DORTAXPOLICY@ky.gov (email).
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Gary Morris Phone: (502) 564-0424 Email: DORTAXPOLICY@ky.gov
Subject Headings:
Finance and Administration; Taxation; Alcoholic beverages
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation provides guidance on reporting requirements for the transportation of alcoholic beverages.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide guidance on reporting requirements for the transportation of alcoholic beverages and cannabis-infused beverages.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 131.130 allows the Department to promulgate administrative regulations for the administration of all Kentucky tax laws.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
See 1(a).
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment will add definitions and includes cannabis-infused beverages in the transportation reporting requirements.
(b) The necessity of the amendment to this administrative regulation:
See 2(a).
(c) How the amendment conforms to the content of the authorizing statutes:
See 1(c).
(d) How the amendment will assist in the effective administration of the statutes:
See 2(a).
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
{If yes, provide the year of the legislation and either the bill number or Ky Acts chapter number being implemented.} Cannabis-infused beverages became taxable during the 2025 Session.
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
All transporters will be required to report on cannabis-infused beverages transported into or between points in Kentucky.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
All transporters will be required to report on cannabis-infused beverages transported into or between points in Kentucky.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
There are no anticipated costs associated with this amendment.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
This amendment provides updated guidance on when reporting is required on the transportation of cannabis-infused beverages.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
(b) On a continuing basis:
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
Any nominal costs would be absorbed in the current budget.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There are no fees associated with this amendment.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees associated with this amendment.
(10) TIERING: Is tiering applied?
{Explain why or why not} Tiering is not applied because reporting requirements are the same for all transporters for alcoholic beverages or cannabis-infused beverages.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 131.130
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 131.130 authorizes the Department to promulgate administrative regulations for the administration of all Kentucky tax laws.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
This amendment does not impact other state agencies.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The amendment to this administrative regulation should not impact local agencies.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Transporters of cannabis-infused beverages
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
No additional expenditures are anticipated.
For subsequent years:
No additional expenditures are anticipated.
2. Revenues:
For the first year:
No additional revenues are anticipated.
For subsequent years:
No additional revenues are anticipated.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
There is no fiscal impact anticipated.
(b) Methodology and resources used to reach this conclusion:
This amendment adds a definition and clarifies transportation reporting requirements for cannabis-infused beverages.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
(b) The methodology and resources used to reach this conclusion:
This amendment adds a definition and clarifies transportation reporting requirements for cannabis-infused beverages.