Sales and Use Tax
Do You Need to Register?
Effective July 1, 2018, businesses that provide many types of services are required to collect the Kentucky sales tax from their customers for providing these services.
Click here for a listing of new services subject to sales tax for transactions on or after July 1, 2018 to determine if you need to register your business for a Sales and Use Tax account.
View this video tutorial for new Sales and Use Tax information.
Remote Retailer Sales and Use Tax Collections in KY
The United States Supreme Court ruled in
South Dakota v. Wayfair on June 21, 2018, that states can require sellers to collect and remit sales or use tax on sales delivered to locations within their state regardless of physical presence. The nexus standards that Kentucky adopted in HB 487, effective July 1, 2018, are the same thresholds at issue in the Wayfair case. This legislation in conjunction with the Supreme Court decision positions Kentucky to move forward with implementation of these provisions for remote sellers with sales into the state.
Remote Retailers Frequently Asked Questions
Alcoholic Beverage Statutes
Cigarette Tax & Cigarette Floor Stocks Tax
An amendment to the alcoholic beverage statutes requires microbrewers to report and pay state excise taxes directly to the Department of Revenue.
House Bill 487 enacted a 50 cents per pack cigarette tax increase, effective July 1, 2018. In addition, a cigarette inventory floor stocks tax of 50 cents was enacted. All cigarette licensees and retailers of cigarettes must take a physical inventory as of June 30, 2018 at 11:59 p.m.
Pari-mutuel Tax Statutes
Effective July 14, 2018, an amendment to the pari-mutuel tax statutes was enacted to provide a permanent exemption from the tax for the times an international two-day horse racing event is hosted at a racetrack in the Commonwealth.