HB 487, effective July 1, 2018, requires remote retailers with 200 or more sales into the state or $100,000 or more in gross receipts from sales into the state to register and collect Kentucky sales and use tax. The transaction and gross receipts thresholds are based on the previous or current calendar year sales. These thresholds are the same as confirmed in the Wayfair US Supreme Court decision. DOR recognizes there may be some planning and preparatory steps remote retailers may need to address before collections begin. However, retailers whose only obligation to collect Kentucky sales and use tax relates to this law change should begin a good faith effort to come into compliance with these new reporting requirements as soon as practicable.
Affected retailers should be registered and collecting Kentucky sales and use tax by October 1, 2018. If there are concerns about complying with this timeframe, please contact DOR directly for further assistance at KRC.WebResponseSalesTax@ky.gov.