KRS 139.510 — Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications service

(1) The tax levied by KRS 139.310 shall not apply with respect to the storage, use, or
other consumption of tangible personal property, digital property, or extended
warranty services in this state upon which a tax substantially identical to the tax
levied under KRS 139.200 (not including any special excise taxes such as are
imposed on alcoholic beverages, cigarettes, and the like) equal to or greater than the
amount of tax imposed by KRS 139.310 has been legally paid in another state.
Proof of payment of such tax shall be according to rules and regulations of the
department. If the amount of tax paid in another state is not equal to or greater than
the amount of tax imposed by KRS 139.310, then the taxpayer shall pay to the
department an amount sufficient to make the tax paid in the other state and in this
state equal to the amount imposed by KRS 139.310. No credit shall be given under
this section for sales taxes paid in another state if that state does not grant credit for
sales taxes paid in this state.
(2) To prevent actual multistate taxation of a communications service subject to
taxation under this chapter, any provider or purchaser, upon proof that the provider
or purchaser has paid a tax in another state on the same communications services,
shall be allowed a credit against the tax imposed by this chapter to the extent of the
amount of the tax legally paid in the other state.