KRS 139.794 — Conditions for exemption from assessment for uncollected or unpaid sales or use tax

(1) According to the provisions of the SSUTA agreement, a seller who registers under
the terms of the SSUTA agreement to pay or to collect and remit applicable sales
and use tax on sales made in Kentucky shall be exempt from assessment for
uncollected or unpaid sales or use tax together with penalty and interest for sales
made during the period the seller was not registered in Kentucky if:
(a) The seller was not regist ered in Kentucky in the twelve (12) month period
preceding the effective date of Kentucky's participation in the SSUTA
agreement; and
(b) The seller registers in Kentucky within twelve (12) months of the effective
date of Kentucky's participation in the SSUTA agreement.
(2) The exemption is not available to a seller with respect to any matter or matters for
which the seller received notice of the commencement of an audit and which audit
is not yet finally resolved, including any related administrative and j udicial
processes.
(3) The exemption is not available for sales or use taxes already paid or remitted to the
state or to taxes collected by the seller.
(4) The exemption is fully effective, absent the seller's fraud or intentional
misrepresentation of a ma terial fact, if the seller remains registered and continues
payment or collection and remittance of applicable sales or use taxes for a period of
at least thirty -six (36) months. During this thirty -six (36) month period, the statute
of limitations shall be suspended for the seller remaining in compliance with
registration and payment requirements. Failure to meet these terms will result in a
revocation of the exemption.
(5) This exemption shall apply to sales or use taxes due from a seller in its capacity as a
seller and shall not apply to sales and use taxes due from a seller in its capacity as a
buyer.