KRS 139.290 — Property used by purchaser after giving certificate -- When retailer may deduct purchase price

(1) If a retailer or seller who gives a resale certificate makes any use of the tangible
personal property or digital property other than retention, demons tration or display
while holding it for sale in the regular course of business, the use shall be taxable to
the retailer or seller as of the time the property is first used by the retailer or seller,
and the sales price of the property to the retailer or s eller shall be deemed the
measure of the tax.
(2) If the sole use of the property by the retailer other than retention, demonstration or
display in the regular course of business is the rental of the property while holding it
for sale, the retailer shall i nclude in gross receipts the amount of the rental charged
rather than the sales price of the property.
(3) If a retailer sells tangible personal property or digital property before making any
use thereof, other than retention, demonstration, or display whi le holding it for sale
in the regular course of business, the retailer may take a deduction of the purchase
price of the property if, with respect to its purchase, the retailer has reimbursed the
vendor for the sales tax or has paid the use tax. If a deduc tion is taken by the
retailer, no refund or credit shall be allowed to the vendor with respect to the sale of
that property.