KRS 139.740 — Requirements in action on debt arising out of sale of tangible personal property

(1) No judgment shall be entered and no garnishment or attachment shall be permitted
by any court in this Commonwealth in an action for the collection of a debt a rising
out of the sale of tangible personal property, digital property, or extended warranty
services unless an affidavit containing a certificate of service is executed by the
plaintiff to the effect that all use taxes due the Commonwealth have been paid.
(2) Prior to the filing of the affidavit, required under subsection (1) of this section, the
plaintiff (including counterclaimants or crossclaimants) shall, by first -class mail,
serve upon the department a copy of the affidavit. Within fifteen (15) days f rom the
date of the filing of the affidavit the department may file a counteraffidavit. In such
event no judgment shall be entered or garnishment or attachment issued until proof
has been taken concerning the matters at issue in the affidavit and counteraffidavit.
(3) In the event the use tax levied by this chapter is found to be due and unpaid the
plaintiff may elect to pay the tax to the department, and the amount of the tax paid
by the plaintiff shall be recovered as a part of any judgment entered. If th e plaintiff
does not elect to pay the use tax found to be due and unpaid, judgment for the
amount of the tax shall be awarded to the Commonwealth.
(4) Any judgment awarded to the Commonwealth under this section shall constitute a
prior claim to any judgment obtained by the plaintiff.
(5) Tax as defined herein includes interest accrued thereon at the tax interest rate as
defined in KRS 131.010(6).
(6) The provisions of this section shall not apply to a plaintiff holding a retail permit
issued pursuant to this chapter.