KRS 139.010 — Definitions for chapter

As used in this chapter, unless the context otherwise provides:
(1) (a) "Admissions" means the fees paid for:
1. The right of entrance to a display, program, sporting event, music
concert, performance, play, show, movie, exhibit, fair, or other
entertainment or amusement event or venue; and
2. The privilege of using facilities or participating in an event or activity,
including but not limited to:
a. Bowling centers;
b. Skating rinks;
c. Health spas;
d. Swimming pools;
e. Tennis courts;
f. Weight training facilities;
g. Fitness and recreational sports centers; and
h. Golf courses, both public and private;
regardless of whether the fee paid is per use or in any other form,
including but not limited to an initiation fee, monthly fee, membersh ip
fee, or combination thereof.
(b) "Admissions" does not include:
1. Any fee paid to enter or participate in a fishing tournament; or
2. Any fee paid for the use of a boat ramp for the purpose of allowing
boats to be launched into or hauled out from the water;
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of
which is to attract public attention to a product, person, business, or organization, or
to attempt to sell, popularize, or secure financial support for a product, person,
business, or organization. As used in this definition, "product" means tangible
personal property, an item transferred electronically, or a service;
(3) "Business" includes any activity engaged in by any person or caused to be engaged
in by that p erson with the object of gain, benefit, or advantage, either direct or
indirect;
(4) "Commonwealth" means the Commonwealth of Kentucky;
(5) (a) "Cosmetic surgery services" means modifications to all areas of the head,
neck, and body to enhance appearance t hrough surgical and medical
techniques.
(b) "Cosmetic surgery services" does not include surgery services that are
medically necessary to reconstruct or correct dysfunctional areas of the face
and body due to birth disorders, trauma, burns, or disease;
(6) "Department" means the Department of Revenue;
(7) (a) "Digital audio -visual works" means a series of related images which, when
shown in succession, impart an impression of motion, with accompanying
sounds, if any.
(b) "Digital audio -visual works" include s movies, motion pictures, musical
videos, news and entertainment programs, and live events.
(c) "Digital audio -visual works" shall not include video greeting cards, video
games, and electronic games;
(8) (a) "Digital audio works" means works that result f rom the fixation of a series of
musical, spoken, or other sounds.
(b) "Digital audio works" includes ringtones, recorded or live songs, music,
readings of books or other written materials, speeches, or other sound
recordings.
(c) "Digital audio works" shall not include audio greeting cards sent by electronic
mail;
(9) (a) "Digital books" means works that are generally recognized in the ordinary and
usual sense as books, including any literary work expressed in words,
numbers, or other verbal or numerical sy mbols or indicia if the literary work
is generally recognized in the ordinary or usual sense as a book.
(b) "Digital books" shall not include digital audio -visual works, digital audio
works, periodicals, magazines, newspapers, or other news or information
products, chat rooms, or weblogs;
(10) (a) "Digital code" means a code which provides a purchaser with a right to obtain
one (1) or more types of digital property. A "digital code" may be obtained by
any means, including electronic mail messaging or by tan gible means,
regardless of the code's designation as a song code, video code, or book code.
(b) "Digital code" shall not include a code that represents:
1. A stored monetary value that is deducted from a total as it is used by the
purchaser; or
2. A redeemable card, gift card, or gift certificate that entitles the holder to
select specific types of digital property;
(11) (a) "Digital property" means any of th e following which is transferred
electronically:
1. Digital audio works;
2. Digital books;
3. Finished artwork;
4. Digital photographs;
5. Periodicals;
6. Newspapers;
7. Magazines;
8. Video greeting cards;
9. Audio greeting cards;
10. Video games;
11. Electronic games; or
12. Any digital code related to this property.
(b) "Digital property" shall not include digital audio -visual works or satellite
radio programming;
(12) (a) "Direct mail" means printed material delivered or distributed by United States
mail or other delivery service to a mass audience or to addressees on a mailing
list provided by the purchaser or at the direction of the purchaser when the
cost of the items are not billed directly to the recipient.
(b) "Direct mail" includes tangible persona l property supplied directly or
indirectly by the purchaser to the direct mail retailer for inclusion in the
package containing the printed material.
(c) "Direct mail" does not include multiple items of printed material delivered to
a single address;
(13) "Directly used in the manufacturing or industrial processing process" means the
process that commences with the movement of raw materials from storage into a
continuous, unbroken, integrated process and ends when the finished product is
packaged and ready for sale;
(14) (a) "Executive employee recruitment services" means services provided by a
person to locate potential candidates to fill open senior -level management
positions.
(b) "Executive employee recruitment services" includes but is not limited to
making a detailed list of client requirements, researching and identifying
potential candidates, performing prescreening interviews, and providing
contract and salary negotiations;
(15) (a) "Extended warranty services" means services provided through a servic e
contract agreement between the contract provider and the purchaser where the
purchaser agrees to pay compensation for the contract and the provider agrees
to repair, replace, support, or maintain tangible personal property, digital
property, real propert y, or prewritten computer software access services
according to the terms of the contract.
(b) "Extended warranty services" does not include the sale of a service contract
agreement for tangible personal property to be used by a small telephone
utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in
KRS 65.7621 to deliver communications services as defined in KRS 136.602
or broadband;
(16) (a) "Finished artwork" means final art that is used for actual reproduction by
photomechanical or other processes or for display purposes.
(b) "Finished artwork" includes:
1. Assemblies;
2. Charts;
3. Designs;
4. Drawings;
5. Graphs;
6. Illustrative materials;
7. Lettering;
8. Mechanicals;
9. Paintings; and
10. Paste-ups;
(17) (a) "Gross receipts" and "sales price" mean the total amount or consideration,
including cash, credit, property, and services, for which tangible personal
property, digital property, or s ervices are sold, leased, or rented, valued in
money, whether received in money or otherwise, without any deduction for
any of the following:
1. The retailer's cost of the tangible personal property, digital property, or
services sold;
2. The cost of the m aterials used, labor or service cost, interest, losses, all
costs of transportation to the retailer, all taxes imposed on the retailer, or
any other expense of the retailer;
3. Charges by the retailer for any services necessary to complete the sale;
4. Delivery charges, which are defined as charges by the retailer for the
preparation and delivery to a location designated by the purchaser
including transportation, shipping, postage, handling, crating, and
packing;
5. Any amount for which credit is given to t he purchaser by the retailer,
other than credit for tangible personal property or digital property traded
when the tangible personal property or digital property traded is of like
kind and character to the property purchased and the property traded is
held by the retailer for resale; and
6. The amount charged for labor or services rendered in installing or
applying the tangible personal property, digital property, or service sold.
(b) "Gross receipts" and "sales price" shall include consideration received b y the
retailer from a third party if:
1. The retailer actually receives consideration from a third party and the
consideration is directly related to a price reduction or discount on the
sale to the purchaser;
2. The retailer has an obligation to pass the price reduction or discount
through to the purchaser;
3. The amount of consideration attributable to the sale is fixed and
determinable by the retailer at the time of the sale of the item to the
purchaser; and
4. One (1) of the following criteria is met:
a. The purchaser presents a coupon, certificate, or other
documentation to the retailer to claim a price reduction or discount
where the coupon, certificate, or documentation is authorized,
distributed, or granted by a third party with the understanding tha t
the third party will reimburse any seller to whom the coupon,
certificate, or documentation is presented;
b. The price reduction or discount is identified as a third -party price
reduction or discount on the invoice received by the purchaser or
on a coupon, certificate, or other documentation presented by the
purchaser; or
c. The purchaser identifies himself or herself to the retailer as a
member of a group or organizatio n entitled to a price reduction or
discount. A "preferred customer" card that is available to any
patron does not constitute membership in such a group.
(c) "Gross receipts" and "sales price" shall not include:
1. Discounts, including cash, term, or coupons that are not reimbursed by a
third party and that are allowed by a retailer and taken by a purchaser on
a sale;
2. Interest, financing, and carrying charges from credit extended on the
sale of tangible personal property, digital property, or services, if the
amount is separately stated on the invoice, bill of sale, or similar
document given to the purchaser;
3. Any taxes legally imposed directly on the purchaser that are separately
stated on the invoice, bill of sale, or similar document given to the
purchaser; or
4. Local alcohol regulatory license fees authorized under KRS 243.075 that
are separately stated on the invoice, bill of sale, or similar document
given to the purchaser.
(d) As used in this subsection, "third party" means a person other than the
purchaser;
(18) "In this state" or "in the state" means within the exterior limits of the
Commonwealth and includes all territory within these limits owned by or ceded to
the United States of America;
(19) "Industrial processing" includes:
(a) Refining;
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas;
(c) Mining, quarrying, fabricating, and industrial assembling;
(d) The processing and packaging of raw materials, in -process materials, and
finished products; and
(e) The processing and packaging of farm and dairy products for sale;
(20) (a) "Lease or rental" means any transfer of possession or control of tangible
personal property for a fixed or indeterminate term for consideration. A lease
or rental shall include future options to:
1. Purchase the property; or
2. Extend the terms of the agreement and agreements covering trailers
where the amount of consideration may be increased or decreased by
reference to the amount realized upon sale or disposition of the property
as defined in 26 U.S.C. sec. 7701(h)(1).
(b) "Lease or rental" shall not include:
1. A transfer of possession or control of property under a security
agreement or deferred payment plan that requires the transfer of title
upon completion of the required payments;
2. A transfer of possession or control of property under an agreement that
requires the transfer of title upon completion of the required payments
and payment of an option price that does not exceed the greater of one
hundred dollars ($100) or one percent (1%) of the total required
payments; or
3. Providing tangible personal property and an operator for the tangible
personal property for a fixed or indeterminate period of time. To qualify
for this exclusion, the operator must be necessary for the equipment to
perform as designed, and the operator must do more than maintain,
inspect, or setup the tangible personal property.
(c) This definition shall apply regardless of the classification of a transaction
under generally accepted accounting principles, the Internal Revenue Code, or
other provisions of federal, state, or local law;
(21) (a) "Lobbying services" means the act of promoting or securing passage of
legislation or an attempt to influence or sway a public official or other public
servant toward a desired ac tion, including but not limited to the support of or
opposition to a project or the passage, amendment, defeat, approval, or veto of
any legislation, regulation, rule, or ordinance;
(b) "Lobbying services" includes but is not limited to the performance of
activities described as executive agency lobbying activities as defined in KRS
11A.201, activities described under the definition of lobby in KRS 6.611, and
any similar activities performed at the local, state, or federal levels;
(22) (a) "Machinery for new and expanded industry" means machinery:
1. Directly used in the manufacturing or industrial processing process of:
a. Tangible personal property at a plant facility;
b. Distilled spirits or wine at a plant facility or on the premises of a
distiller, rectifier, winery, or small farm winery licensed under
KRS 243.030 that includes a retail establishment on the premises;
or
c. Malt beverages at a plant facility or on the premises of a brewer or
microbrewery licensed under KRS 243.040 that in cludes a retail
establishment;
2. Which is incorporated for the first time into:
a. A plant facility established in this state; or
b. Licensed premises located in this state; and
3. Which does not replace machinery in the plant facility or licensed
premises unless that machinery purchased to replace existing machinery:
a. Increases the consumption of recycled materials at the plant
facility by not less than ten percent (10%);
b. Performs different functions;
c. Is used to manufacture a different product; or
d. Has a greater productive capacity, as measured in units of
production, than the machinery being replaced.
(b) "Machinery for new and expanded industry" does not include repair,
replacement, or spare parts of any kind, regardless of whether the purchase of
repair, replacement, or spare parts is required by the manufacturer or seller as
a condition of sale or as a condition of warranty;
(23) "Manufacturing" means any process through which material having little or no
commercial value for its intended use before processing has appreciable
commercial value for its intended use after processing by the machinery;
(24) "Marketplace" means any physical or electronic means through which one (1) or
more retailers may advertise and sell tangible personal property, digital property, or
services, or lease tangible personal property or digital property, such as a catalog,
Internet website, or television or radio broadcast, regardless of whether the tangible
personal property, digital property, or retailer is physically present in this state;
(25) (a) "Marketplace provider" means a person, including any affiliate of the person,
that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this
paragraph as follows:
1. The person directly or indirectly:
a. Lists, makes available, or advertises tangible personal property,
digital property, or services for sale by a marketplace retailer in a
marketplace owned, operated, or controlled by the person;
b. Facilitates the sale of a marketplace retailer's product through a
marketplace by transmitting or otherwise communicating an offer
or acceptance of a retail sale of tangible personal property, digital
property, or services between a marketplace retailer and a
purchaser in a forum including a shop, store, booth, catalog ,
Internet site, or similar forum;
c. Owns, rents, licenses, makes available, or operates any electronic
or physical infrastructure or any property, process, method,
copyright, trademark, or patent that connects marketplace retailers
to purchasers for the purpose of making retail sales of tangible
personal property, digital property, or services;
d. Provides a marketplace for making retail sales of tangible personal
property, digital property, or services, or otherwise facilitates retail
sales of tangible p ersonal property, digital property, or services,
regardless of ownership or control of the tangible personal
property, digital property, or services, that are the subject of the
retail sale;
e. Provides software development or research and development
activities related to any activity described in this subparagraph, if
the software development or research and development activities
are directly related to the physical or electronic marketplace
provided by a marketplace provider;
f. Provides or offers fulfillment or storage services for a marketplace
retailer;
g. Sets prices for a marketplace retailer's sale of tangible personal
property, digital property, or services;
h. Provides or offers customer service to a marketplace retailer or a
marketplace retailer's customers, or accepts or assists with taking
orders, returns, or exchanges of tangible personal property, digital
property, or services sold by a marketplace retailer; or
i. Brands or otherwise identifies sales as those of the marketplace
provider; and
2. The person directly or indirectly:
a. Collects the sales price or purchase price of a retail sale of tangible
personal property, digital property, or services;
b. Provides payment processing services for a retail sale of tangible
personal property, digital property, or services;
c. Through terms and conditions, agreements, or arrangements with a
third party, collects payment in connection with a retail sale of
tangible personal property, digital property, or services from a
purchaser and transmits that payment to the marketplace retailer,
regardless of whether the person collecting and transmitting the
payment receives compensation or other consideration in exchange
for the service; or
d. Provides a virtual currency that purchasers are allowed or required
to use to purchase tangible personal property, digital property, or
services.
(b) "Marketplace provider" includes but is not limited to a person that satisfies the
requirements of this subsection through the ownership, operation, or control
of a digital distribution service, digital distribution platform, online portal, or
application store;
(26) "Marketplace retailer" means a seller that makes retail sales through any
marketplace owned, operated, or controlled by a marketplace provider;
(27) (a) "Occasional sale" includes:
1. A sale of tangible personal property or digital property not held or used
by a seller in the course of an activity for which he or she is required to
hold a seller's permit, provided such sale is not one (1) of a series of
sales sufficient in number, scope, and character to constitute an activity
requiring the holding of a seller's permit. In the case of the sale of the
entire, or a substantial porti on of the nonretail assets of the seller, the
number of previous sales of similar assets shall be disregarded in
determining whether or not the current sale or sales shall qualify as an
occasional sale; or
2. Any transfer of all or substantially all the ta ngible personal property or
digital property held or used by a person in the course of such an activity
when after such transfer the real or ultimate ownership of such property
is substantially similar to that which existed before such transfer.
(b) For th e purposes of this subsection, stockholders, bondholders, partners, or
other persons holding an interest in a corporation or other entity are regarded
as having the "real or ultimate ownership" of the tangible personal property or
digital property of such corporation or other entity;
(28) (a) "Other direct mail" means any direct mail that is not advertising and
promotional direct mail, regardless of whether advertising and promotional
direct mail is included in the same mailing.
(b) "Other direct mail" includes but is not limited to:
1. Transactional direct mail that contains personal information specific to
the addressee, including but not limited to invoices, bills, statements of
account, and payroll advices;
2. Any legally required mailings, including but not limited to privacy
notices, tax reports, and stockholder reports; and
3. Other nonpromotional direct mail delivered to existing or former
shareholders, customers, employees, or agents, including but not limited
to newsletters and informational pieces.
(c) "Other direct mail" does not include the development of billing information or
the provision of any data processing service that is more than incidental to the
production of printed material;
(29) "Person" includes any individual, firm, copartnership, joint venture, association,
social club, fraternal organization, corporation, estate, trust, business trust, receiver,
trustee, syndicate, cooperative, assignee, governmental unit or agency, or any other
group or combination acting as a unit;
(30) "Permanent," as the term applies to digital property, means perpetual or for an
indefinite or unspecified length of time;
(31) (a) "Photography and photofinishing services" means:
1. The taking, developing, or printing of an original photograph; or
2. Image editing, including shadow removal, tone adjustments, vertical and
horizontal alignment and cropping, composite image creation,
formatting, watermarking printing, and delivery of an original
photograph in the form of tangible personal property, digital property, or
other media.
(b) "Photography and photofinishing services" does not include photography
services necessary for medical or dental health;
(32) "Plant facility" means a single location that is exclusively dedicated to
manufacturing or industrial processing activities. A location shall be deemed to be
exclusively dedicated to manufacturing or industrial processing activities even if
retail sales ar e made there, provided that the retail sales are incidental to the
manufacturing or industrial processing activities occurring at the location. The term
"plant facility" shall not include any restaurant, grocery store, shopping center, or
other retail establishment;
(33) (a) "Prewritten computer software" means:
1. Computer software, including prewritten upgrades, that are not designed
and developed by the author or other creator to the specifications of a
specific purchaser;
2. Software designed and develo ped by the author or other creator to the
specifications of a specific purchaser when it is sold to a person other
than the original purchaser; or
3. Any portion of prewritten computer software that is modified or
enhanced in any manner, where the modifica tion or enhancement is
designed and developed to the specifications of a specific purchaser,
unless there is a reasonable, separately stated charge on an invoice or
other statement of the price to the purchaser for the modification or
enhancement.
(b) When a person modifies or enhances computer software of which the person
is not the author or creator, the person shall be deemed to be the author or
creator only of the modifications or enhancements the person actually made.
(c) The combining of two (2) or mo re prewritten computer software programs or
portions thereof does not cause the combination to be other than prewritten
computer software;
(34) "Prewritten computer software access services" means the right of access to
prewritten computer software where t he object of the transaction is to use the
prewritten computer software while possession of the prewritten computer software
is maintained by the seller or a third party, wherever located, regardless of whether
the charge for the access or use is on a per use, per user, per license, subscription, or
some other basis;
(35) (a) "Purchase" means any transfer of title or possession, exchange, barter, lease,
or rental, conditional or otherwise, in any manner or by any means
whatsoever, of:
1. Tangible personal property;
2. An extended warranty service;
3. Digital property transferred electronically; or
4. Services included in KRS 139.200;
for a consideration.
(b) "Purchase" includes:
1. When performed outside this state or when the customer gives a resale
certificate, the producing, fabricating, processing, printing, or imprinting
of tangible personal property for a consideration for consumers who
furnish either directly or indirectly the materials used in the producing,
fabricating, processing, printing, or imprinting;
2. A transaction whereby the possession of tangible personal property or
digital property is transferred but the seller retains the title as security
for the payment of the price; and
3. A transfer for a consideration of the title or possession of tangible
personal property or digital property which has been produced,
fabricated, or printed to the special order of the customer, or of any
publication;
(36) "Recycled materials" means materials which have been recovered or diverted from
the solid waste stream and reused or returned to use in the form of raw materials or
products;
(37) "Recycling purposes" means those activities undertaken in which materials that
would otherwise become solid waste are collected, separated, or processed in order
to be reused or returned to use in the form of raw materials or products;
(38) "Remote retailer" means a retailer with no physical presence in this state;
(39) (a) "Repair, replacement, or spare parts" means any tangible personal property
used to maintain, restore, mend, or repair machinery or equipment.
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or
industrial tools;
(40) (a) "Retailer" means:
1. Every person engaged in the business of making retail sales of tangible
personal property, digital property, or furnishing any services in a retail
sale included in KRS 139.200;
2. Every person engaged in the business of making sales at auction of
tangible personal property or digital property owned by the person or
others for storage, use or other consumption, except as provided in
paragraph (c) of this subsection;
3. Every person making more than two (2) retail sales of tangible personal
property, digital property, or services included in KRS 139.200 during
any twelve (12) month period, including sales made in the capacity of
assignee for the benefit of creditors, or receiver or trustee in bankruptcy;
4. Any person conducting a race meeting under the provision of KRS
Chapter 230, with respect to horses which are claimed during the
meeting.
(b) When the department determines that it is necessary for the efficient
administration of thi s chapter to regard any salesmen, representatives,
peddlers, or canvassers as the agents of the dealers, distributors, supervisors or
employers under whom they operate or from whom they obtain the tangible
personal property, digital property, or services s old by them, irrespective of
whether they are making sales on their own behalf or on behalf of the dealers,
distributors, supervisors or employers, the department may so regard them and
may regard the dealers, distributors, supervisors or employers as reta ilers for
purposes of this chapter.
(c) 1. Any person making sales at a charitable auction for a qualifying entity
shall not be a retailer for purposes of the sales made at the charitable
auction if:
a. The qualifying entity, not the person making sales at the auction, is
sponsoring the auction;
b. The purchaser of tangible personal property at the auction directly
pays the qualifying entity sponsoring the auction for the property
and not the person making the sales at the auction; and
c. The qualifying entity, not the person making sales at the auction, is
responsible for the collection, control, and disbursement of the
auction proceeds.
2. If the conditions set forth in subparagraph 1. of this paragraph are met,
the qualifying entity sponsoring the auction shall be the retailer for
purposes of the sales made at the charitable auction.
3. For purposes of this paragraph, "qualifying entity" means a resident:
a. Church;
b. School;
c. Civic club; or
d. Any other nonprofit charitable, religious, or educational
organization;
(41) "Retail sale" means any sale, lease, or rental for any purpose other than resale,
sublease, or subrent;
(42) (a) "Ringtones" means digitized sound files that are downloaded onto a device
and that may be used to alert the customer with respect to a communication.
(b) "Ringtones" shall not include ringback tones or other digital files that are not
stored on the purchaser's communications device;
(43) (a) "Sale" means:
1. The furnishing of any services included in KRS 139.200;
2. Any transfer of title or possession, exchange, barter, lease, or rental,
conditional or otherwise, in any manner or by any means whatsoever,
of:
a. Tangible personal property; or
b. Digital property transferred electronically;
for a consideration.
(b) "Sale" includes but is not limited to:
1. The producing, fabricating, processing, printing, or imprinting of
tangible personal property or digital property for a consideration for
purchasers who furnish, either directly or indirectly, the materials used
in the producing, fabricating, processing, printing, or imprinting;
2. A transaction whereby the possession of tangible personal property or
digital property is transferred, but the seller retains the title as security
for the payment of the price; and
3. A transfer for a consideration of the title or possession of tangible
personal property or digital property which has been produced,
fabricated, or printed to the special order of the purchaser.
(c) This definition shall apply regardless of the classification of a transaction
under generally accepted accounting principles, the Internal Revenue Code, or
other provisions of federal, state, or local law;
(44) "Seller" includes every person engaged in the business of selling tangible personal
property, digital property, or services of a kind, the gross r eceipts from the retail
sale of which are required to be included in the measure of the sales tax, and every
person engaged in making sales for resale;
(45) (a) "Storage" includes any keeping or retention in this state for any purpose
except sale in the re gular course of business or subsequent use solely outside
this state of tangible personal property, digital property, or prewritten
computer software access services purchased from a retailer.
(b) "Storage" does not include the keeping, retaining, or exerc ising any right or
power over tangible personal property for the purpose of subsequently
transporting it outside the state for use thereafter solely outside the state, or
for the purpose of being processed, fabricated, or manufactured into, attached
to, or incorporated into, other tangible personal property to be transported
outside the state and thereafter used solely outside the state;
(46) "Tangible personal property" means personal property which may be seen,
weighed, measured, felt, or touched, or whic h is in any other manner perceptible to
the senses and includes natural, artificial, and mixed gas, electricity, water, steam,
and prewritten computer software;
(47) "Taxpayer" means any person liable for tax under this chapter;
(48) "Telemarketing service s" means services provided via telephone, facsimile,
electronic mail, text messages, or other modes of communications to another
person, which are unsolicited by that person, for the purposes of:
(a) 1. Promoting products or services;
2. Taking orders; or
3. Providing information or assistance regarding the products or services;
or
(b) Soliciting contributions;
(49) "Transferred electronically" means accessed or obtained by the purchaser by means
other than tangible storage media; and
(50) (a) "Use" includes the exercise of:
1. Any right or power over tangible personal property or digital property
incident to the ownership of that property, or by any transaction in
which possession is given, or by any transaction involving digital
property or tangible person al property where the right of access is
granted; or
2. Any right or power to benefit from any services subject to tax under
KRS 139.200(2)(p) to (ax).
(b) "Use" does not include the keeping, retaining, or exercising any right or
power over:
1. Tangible personal property or digital property for the purpose of:
a. Selling tangible personal property or digital property in the regular
course of business; or
b. Subsequently transporting tangible personal property outside the
state for use thereafter solely outs ide the state, or for the purpose
of being processed, fabricated, or manufactured into, attached to,
or incorporated into, other tangible personal property to be
transported outside the state and thereafter used solely outside the
state; or
2. Prewritten computer software access services purchased for use outside
the state and transferred electronically outside the state for use thereafter
solely outside the state.