KRS 139.340 — Retailer's duty to collect tax -- Taxes deemed to be held by retailer in trust -- Registration and collection by remote retailer

(1) Except as provided in KRS 139.470 and 139.480, every retailer engaged in business
in this state shall collect th e tax imposed by KRS 139.310 from the purchaser and
give to the purchaser a receipt therefor in the manner and form prescribed by the
department. The taxes collected or required to be collected by the retailer under this
section shall be deemed to be held in trust for and on account of the
Commonwealth.
(2) "Retailer engaged in business in this state" as used in KRS 139.330 and this section
includes any of the following:
(a) Any retailer maintaining, occupying, or using, permanently or temporarily,
directly or indirectly, or through a subsidiary or any other related entity,
representative, or agent, by whatever name called, an office, place of
distribution, sales or sample room or place, warehouse or storage place, or
other place of business. Property owned by a person who has contracted with
a printer for printing, which consists of the final printed product, property
which becomes a part of the final printed product, or copy from which the
printed product is produced, and which is located at the premises of the
printer, shall not be deemed to be an office, place of distribution, sales or
sample room or place, warehouse or storage place, or other place of business
maintained, occupied, or used by the person;
(b) Any retailer having any representative, agent, salesman, canvasser, or solicitor
operating in this state under the authority of the retailer or its subsidiary for
the purpose of selling, delivering, or the taking of orders for any tangible
personal property, digital property, or any services subject to tax under KRS
139.200(2)(p) to (ax). An unrelated printer with which a person has contracted
for printing shall not be deemed to be a representative, agent, salesman,
canvasser, or solicitor for the person;
(c) Any retailer soliciting orders for tangible personal property, digital property,
or any services subject to tax under KRS 139.200(2)(p) to (ax) from residents
of this state on a continuous, regular, or systematic basis in which the
solicitation of the order, placement of the order by the customer or the
payment for the order utilizes the services of any financial institution,
telecommunication system, radio or television station, cable television
service, print media, or other facility or service located in this state;
(d) Any retailer deriving recei pts from the lease or rental of tangible personal
property situated in this state;
(e) Any retailer soliciting orders for tangible personal property, digital property,
or any services subject to tax under KRS 139.200(2)(p) to (ax) from residents
of this st ate on a continuous, regular, systematic basis if the retailer benefits
from an agent or representative operating in this state under the authority of
the retailer to repair or service tangible personal property or digital property
sold by the retailer;
(f) Any retailer located outside Kentucky that uses a representative in Kentucky,
either full-time or part -time, if the representative performs any activities that
help establish or maintain a marketplace for the retailer, including receiving or
exchanging returned merchandise; or
(g) 1. Any remote retailer selling tangible personal property or digital property
delivered or transferred electronically to a purchaser in this state,
including retail sales facilitated by a marketplace provider on behalf of
the remote retailer, if:
a. The remote retailer sold tangible personal property or digital
property that was delivered or transferred electronically to a
purchaser in this state in two hundred (200) or more separate
transactions in the previous calendar year or the current calendar
year; or
b. The remote retailer's gross receipts derived from the sale of
tangible personal property or digital property delivered or
transferred electronically to a purchaser in this state in the previous
calendar year or current calendar year exceeds one hundred
thousand dollars ($100,000).
2. Any remote retailer that meets either threshold provided in subparagraph
1. of this paragraph shall register for a sales and use tax permit and
collect the tax imposed by KRS 139.310 from the purchaser no later
than the first day of the calendar month that is at the most sixty (60)
days after either threshold is reached.