139.510 Use tax credit for sales tax paid in another state under reciprocal

262 words·~1 min read·/ky/139-510

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

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.