Pursuant to KRS 139.330, a 6 percent use tax is due if you make outûofûstate purchases 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 clothing, shoes, jewelry, cleaning supplies, furniture, computer equipment, software, office supplies, books, souvenirs, exercise equipment or subscribe to magazines, you may owe use tax to Kentucky. 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.
Two options are available to report and pay use tax.
(1) Form 51A113, Kentucky ConsumerÆs Use Tax Return, may be filed during the year each time you make taxable purchases; or
(2) You can report and pay use tax on an annual basis at the same time you fi le your Kentucky individual income tax return.
- You may reduce or eliminate the amount of Kentucky use tax due by the amount of state sales tax paid to the outûofûstate seller. The reduction may not exceed the amount of Kentucky use tax due on the purchase. For example, if Georgia state sales tax of 4 percent is paid, only the additional 2 percent is due to Kentucky, or if Illinois state sales tax of 6.25 percent is paid, no additional Kentucky use tax is due.
- Sales tax paid to a city, county or country cannot be used as a credit against the Kentucky use tax due.