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45. Sales of water utilities, gas utilities, electricity or sewer services to nonresidential customers are subject to Sales and Use Tax. Communication services are
also subject to Sales and Use Tax.
*While the sale of cable, satellite broadcast and internet protocol television services and video streaming services are not subject to Sales and Use Tax,
cable services, satellite broadcast services, internet protocol television services, video streaming services, and communication services are subject to
Telecommunications Tax (KRS Chapter 136).
Also, cable services, internet protocol television services, video streaming services, communication services and the other utility services listed above are
subject to Utility Gross Receipts License Tax (KRS Chapter 160.613).
Providers of cable services or internet protocol services should check Box F. Providers of video streaming services should check Box G. Providers of satellite
services should check Box H.
Communication services (KRS 136.602 and KRS 160.6131) include, but are not limited to: local and long distance telephone services; telegraph and
teletypewriter services; pre-paid calling services and postpaid calling services; private communications services involving a direct channel specifically dedicated
to a customer’s use between specific points; channel services involving a path of communications between two (2) or more points; data transport services
involving the movement of encoded information between points by means of any electronic, radio, or other medium or method; caller ID services, ring tones,
voice mail, and other electronic messaging services; mobile wireless telecommunications service and fixed wireless service as defined in KRS 139.195; and
voice over internet protocol (VOIP).
Note: For more information about Telecommunications Tax, contact the Division of Sales and Use Tax, Department of Revenue, P.O. Box 181, Station 66,
Frankfort, Kentucky 40602, or call (502) 564-5170 (Option 2). For more information about Utility Gross Receipts License Tax, contact the Financial Tax Section,
Department of Revenue, P. O. Box 181, Station 61, Frankfort, Kentucky 40602, or call (502) 564-4810 (KRS 136.600-136.660 and KRS 160.613).
46. If you make a purchases of any named utility type in question 45 B through G, mark Yes and list the provider’s name and utility type in 46b. Otherwise, check
No.
47. Per KRS 139.330, a 6 percent Use Tax is due if you make out-of-state purchases of tangible property, digital property, or an extended warranty service for
storage, use, or other consumption in Kentucky and did not pay at least 6 percent state Sales Tax to the seller at the time of purchase. For example, if you
order from catalogs, make purchases through the internet, or shop outside Kentucky for items such as construction supplies, construction equipment, office
furniture, computer equipment, medical equipment, software, office supplies, books, or subscribe to magazines or professional journals, you will owe Use
Tax to Kentucky. This list is not all inclusive. It is important to remember that Use Tax applies only to items purchased outside Kentucky, including another
country, which would have been taxed if purchased in Kentucky.
Note: If your business did make or will make a one-time only out-of-state purchase or will not regularly make these types of purchases, check this question
No. Do not complete the section to apply for a Consumer’s Use Tax Account. You will need to complete Form 51A113(O), Consumer’s Use Tax Return, to
report and pay the applicable Use Tax. To obtain Form 51A113(O), call the Division of Sales and Use Tax at (502) 564-5170 or download the form from our
Web site at http://revenue.ky.gov.
All professional service providers must apply for a Consumer’s Use Tax Account.
48. For assistance, contact the Kentucky Secretary of State’s Office at (502) 564-3490 or visit them online at http://www.sos.ky.gov .
49. A commercial domicile is the principal place from which the trade or business of the corporation is managed (103 KAR 16:240).
50. Owning or leasing property in this state means owning or leasing real or tangible property in Kentucky, including: maintaining an office or other place of
business in Kentucky; maintaining in Kentucky an inventory of merchandise or material for sale, distribution or manufacture, or consigned goods, regardless
of whether kept on the taxpayer’s premises, in a public or rented warehouse, or otherwise; or owning computer software used in the business of a third party
within Kentucky (103 KAR 16:240). See definition in instruction 23 for tangible property.
51. Corporations and Limited Liability Entities with individuals performing services in Kentucky are subject to Kentucky Corporation Income Tax and/or Limited
Liability Entity Tax. The business is considered as performing services in Kentucky whether the services are provided directly by the business or indirectly by
directing activity performed by a third party (103 KAR 16:240). Services do not include the mere solicitation of the sale of tangible personal property.
52. A Pass-Through Entity is any partnership, joint venture, S corporation, limited cooperative association, statutory trust, series of a statutory trust, limited
partnership (LP), limited liability partnership (LLP), limited liability limited partnership (LLLP), series of a partnership, limited liability company (LLC), professional
limited liability company (PLLC), series of a limited liability company, or similar entity recognized by the laws of this state that is not taxed at the entity level,
but instead passes to each partner, member, shareholder, or owner their proportionate share of income, deductions, gains, losses, credits, and any other
similar attributes. You are required to register for a Kentucky Corporation Income Tax Account and/or a Limited Liability Entity Tax Account to report the income
generated from a pass-through entity (KRS 141.010) or otherwise derived from or attributable to sources in Kentucky.
53. Directing activities at Kentucky customers for the purpose of selling goods is taxable in Kentucky. This includes selling or soliciting orders for real property,
intangible personal property, tangible property; or delivering merchandise inventory on consignment to its Kentucky distributors or dealers. Directing activities
at Kentucky customers for the purpose of selling services, in addition to unprotected solicitation activities, is taxable in Kentucky (103 KAR 16:240).
54. Intangible property is subject to Kentucky Corporation Income Tax and/or Limited Liability Entity Tax (103 KAR 16:240).
For Corporation Income Tax, nothing in questions 48 through 54 shall be interpreted in a manner that goes beyond the limitations imposed and
protections provided by the United States Constitution or Public Law No. 86-272. Public Law No. 86-272 does not apply to the Limited Liability Entity Tax.
55. See instruction 52 for an explanation of pass-through entities.
56a-56b If your pass-through entity has nonresident individual/corporate partner(s), individual/corporate member(s), or individual shareholder(s) that receive
Kentucky distributive share income from your pass-through entity, check Yes to A and/or B.
Note: For tax years beginning on or after January 1, 2007, every pass-through entity required to file a return under KRS 141.206(2) shall withhold
Kentucky income tax at the maximum rate provided in KRS 141.020 or 141.040 on the distributive share income, whether distributed or undistributed,
of each: (i) nonresident individual (includes a nonresident estate or trust) partner, member or shareholder; and (ii) corporate partner or member that is
doing business in Kentucky only through its ownership interest in a pass-through entity. The withholding shall be filed with the Department of Revenue on
Form 740NP-WH, Kentucky Nonresident Income Tax Withholding on Distributive Share Income Report and Composite Income Tax Return, on or before