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

293 words·~1 min read·/ky/139-740

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

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 arising

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 from 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 the 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.