AN ACT relating to sales and use tax exemptions for menstrual discharge collection devices.

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AN ACT relating to sales and use tax exemptions for menstrual discharge collection 1
devices. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 139.010 is amended to read as follows: 4
As used in this chapter, unless the context otherwise provides: 5
(1) (a) "Admissions" means the fees paid for: 6
1. The right of entrance to a display, program, sporting event, music 7
concert, performance, play, show, movie, exhibit, fair, or other 8
entertainment or amusement event or venue; and 9
2. The privilege of using facilities or participating in an event or activity, 10
including but not limited to: 11
a. Bowling centers; 12
b. Skating rinks; 13
c. Health spas; 14
d. Swimming pools; 15
e. Tennis courts; 16
f. Weight training facilities; 17
g. Fitness and recreational sports centers; and 18
h. Golf courses, both public and private; 19
regardless of whether the fee paid is per use or in any other form, 20
including but not limited to an initiation fee, monthly fee, membership 21
fee, or combination thereof. 22
(b) "Admissions" does not include: 23
1. Any fee paid to enter or participate in a fishing tournament; or 24
2. Any fee paid for the use of a boat ramp for the purpose of allowing 25
boats to be launched into or hauled out from the water; 26
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of 27
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which is to attract public attention to a product, person, business, or organization, or 1
to attempt to sell, popularize, or secure financial support for a product, person, 2
business, or organization. As used in this defi nition, "product" means tangible 3
personal property, an item transferred electronically, or a service; 4
(3) "Business" includes any activity engaged in by any person or caused to be engaged 5
in by that person with the object of gain, benefit, or advantage, ei ther direct or 6
indirect; 7
(4) "Commonwealth" means the Commonwealth of Kentucky; 8
(5) (a) "Cosmetic surgery services" means modifications to all areas of the head, 9
neck, and body to enhance appearance through surgical and medical 10
techniques. 11
(b) "Cosmetic su rgery services" does not include surgery services that are 12
medically necessary to reconstruct or correct dysfunctional areas of the face 13
and body due to birth disorders, trauma, burns, or disease; 14
(6) "Department" means the Department of Revenue; 15
(7) (a) "Digital audio -visual works" means a series of related images which, when 16
shown in succession, impart an impression of motion, with accompanying 17
sounds, if any. 18
(b) "Digital audio -visual works" includes movies, motion pictures, musical 19
videos, news and entertainment programs, and live events. 20
(c) "Digital audio -visual works" does[shall] not include video greeting cards, 21
video games, and electronic games; 22
(8) (a) "Digital audio works" means works that result from the fixation of a series of 23
musical, spoken, or other sounds. 24
(b) "Digital audio works" includes ringtones, recorded or live songs, music, 25
readings of books or other written materials, speeches, or other sound 26
recordings. 27
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(c) "Digital audio works" does[shall] not include audio greeting cards sent by 1
electronic mail; 2
(9) (a) "Digital books" means works that are generally recognized in the ordinary and 3
usual sense as books, including any literary work expressed in words, 4
numbers, or other verbal or numerical symbols or indicia if the literary work 5
is generally recognized in the ordinary or usual sense as a book. 6
(b) "Digital books" does[shall] not include digital audio -visual works, digital 7
audio works, periodicals, magazines, newspapers, or other news or 8
information products, chat rooms, or weblogs; 9
(10) (a) "Digital code" means a code which provides a purchaser with a right to obtain 10
one (1) or more types of digital property. A "digital code" may be obtained by 11
any means, including electronic mail messaging or by tangible means, 12
regardless of the code's designation as a song code, video code, or book code. 13
(b) "Digital code" does[shall] not include a code that represents: 14
1. A stored monetary value that is deducted from a total as it is used by the 15
purchaser; or 16
2. A redeemable card, gift card, or gift certificate that entitles the holder to 17
select specific types of digital property; 18
(11) (a) "Digital property" means any of the following which is transferred 19
electronically: 20
1. Digital audio works; 21
2. Digital books; 22
3. Finished artwork; 23
4. Digital photographs; 24
5. Periodicals; 25
6. Newspapers; 26
7. Magazines; 27
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8. Video greeting cards; 1
9. Audio greeting cards; 2
10. Video games; 3
11. Electronic games; or 4
12. Any digital code related to this property. 5
(b) "Digital property" does[shall] not include digital audio -visual works or 6
satellite radio programming; 7
(12) (a) "Direct mail" means printed material delivered or distributed by United States 8
mail or other delivery service to a mass audience or to addressees on a mailing 9
list provided by the purchaser or at the direction of the purchaser when t he 10
cost of the items are not billed directly to the recipient. 11
(b) "Direct mail" includes tangible personal property supplied directly or 12
indirectly by the purchaser to the direct mail retailer for inclusion in the 13
package containing the printed material. 14
(c) "Direct mail" does not include multiple items of printed material delivered to 15
a single address; 16
(13) "Directly used in the manufacturing or industrial processing process" means the 17
process that commences with the movement of raw materials from storage into a 18
continuous, unbroken, integrated process and ends when the finished product is 19
packaged and ready for sale; 20
(14) (a) "Executive employee recruitment services" means services provided by a 21
person to locate potential candidates to fill open senior -level management 22
positions. 23
(b) "Executive employee recruitment services" includes but is not limited to 24
making a detailed list of client requirements, researching and identifying 25
potential candidates, performing prescreening interviews, and providing 26
contract and salary negotiations; 27
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(15) (a) "Extended warranty services" means services provided through a service 1
contract agreement between the contract provider and the purchaser where the 2
purchaser agrees to pay compensation for the contract and the provider agrees 3
to repair, replace, sup port, or maintain tangible personal property, digital 4
property, real property, or prewritten computer software access services 5
according to the terms of the contract. 6
(b) "Extended warranty services" does not include the sale of a service contract 7
agreement for tangible personal property to be used by a small telephone 8
utility as defined in KRS 278.516 or a Tier III CMRS provider as defined in 9
KRS 65.7621 to deliver communications services as defined in KRS 136.602 10
or broadband; 11
(16) (a) "Finished artwork" means final art that is used for actual reproduction by 12
photomechanical or other processes or for display purposes. 13
(b) "Finished artwork" includes: 14
1. Assemblies; 15
2. Charts; 16
3. Designs; 17
4. Drawings; 18
5. Graphs; 19
6. Illustrative materials; 20
7. Lettering; 21
8. Mechanicals; 22
9. Paintings; and 23
10. Paste-ups; 24
(17) (a) "Gross receipts" and "sales price" mean the total amount or consideration, 25
including cash, credit, property, and services, for which tangible personal 26
property, digital property, or services are sold, l eased, or rented, valued in 27
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money, whether received in money or otherwise, without any deduction for 1
any of the following: 2
1. The retailer's cost of the tangible personal property, digital property, or 3
services sold; 4
2. The cost of the materials used, labo r or service cost, interest, losses, all 5
costs of transportation to the retailer, all taxes imposed on the retailer, or 6
any other expense of the retailer; 7
3. Charges by the retailer for any services necessary to complete the sale; 8
4. Delivery charges, whic h are defined as charges by the retailer for the 9
preparation and delivery to a location designated by the purchaser 10
including transportation, shipping, postage, handling, crating, and 11
packing; 12
5. Any amount for which credit is given to the purchaser by the retailer, 13
other than credit for tangible personal property or digital property traded 14
when the tangible personal property or digital property traded is of like 15
kind and character to the property purchased and the property traded is 16
held by the retailer for resale; and 17
6. The amount charged for labor or services rendered in installing or 18
applying the tangible personal property, digital property, or service sold. 19
(b) "Gross receipts" and "sales price" does[shall] include consideration received 20
by the retailer from a third party if: 21
1. The retailer actually receives consideration from a third party and the 22
consideration is directly related to a price reduction or discount on the 23
sale to the purchaser; 24
2. The retailer has an obligation to pass the price reducti on or discount 25
through to the purchaser; 26
3. The amount of consideration attributable to the sale is fixed and 27
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determinable by the retailer at the time of the sale of the item to the 1
purchaser; and 2
4. One (1) of the following criteria is met: 3
a. The purchaser presents a coupon, certificate, or other 4
documentation to the retailer to claim a price reduction or discount 5
where the coupon, certificate, or documentation is authorized, 6
distributed, or granted by a third party with the understanding that 7
the third party will reimburse any seller to whom the coupon, 8
certificate, or documentation is presented; 9
b. The price reduction or discount is identified as a third -party price 10
reduction or discount on the invo ice received by the purchaser or 11
on a coupon, certificate, or other documentation presented by the 12
purchaser; or 13
c. The purchaser identifies himself or herself to the retailer as a 14
member of a group or organization entitled to a price reduction or 15
discount. A "preferred customer" card that is available to any 16
patron does not constitute membership in such a group. 17
(c) "Gross receipts" and "sales price" do[shall] not include: 18
1. Discounts, including cash, term, or coupons that are not reimbursed by a 19
third party and that are allowed by a retailer and taken by a purchaser on 20
a sale; 21
2. Interest, financing, and carrying charges from credit extended on the 22
sale of tangible personal property, digital property, or services, if the 23
amount is separately stated on the invoice, bill of sale, or similar 24
document given to the purchaser; 25
3. Any taxes legally imposed directly on the purchaser that are separately 26
stated on the invoice, bill of sale, or similar document given to the 27
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purchaser; or 1
4. Local alcohol regulatory license fees authorized under KRS 243.075 that 2
are separately stated on the invoice, bill of sale, or similar document 3
given to the purchaser. 4
(d) As used in this subsection, "third party" means a person other than the 5
purchaser; 6
(18) "In this state" or "in the state" means within the exterior limits of the 7
Commonwealth and includes all territory within these limits owned by or ceded to 8
the United States of America; 9
(19) "Industrial processing" includes: 10
(a) Refining; 11
(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas; 12
(c) Mining, quarrying, fabricating, and industrial assembling; 13
(d) The processing and packaging of raw materials, in -process materials, and 14
finished products; and 15
(e) The processing and packaging of farm and dairy products for sale; 16
(20) (a) "Lease or rental" means any transfer of possession or control of tangible 17
personal property for a fixed or indeterminate term for consideration. A lease 18
or rental shall include future options to: 19
1. Purchase the property; or 20
2. Extend the terms of the agreement and agreements covering trailers 21
where the amount of consideration may be increased or decreased by 22
reference to the amount realized upon sale or disposition of the property 23
as defined in 26 U.S.C. sec. 7701(h)(1). 24
(b) "Lease or rental" does[shall] not include: 25
1. A transfer of possession or control of property under a security 26
agreement or deferred payment plan that requires the transfer of title 27
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upon completion of the required payments; 1
2. A transfer of possession or contro l of property under an agreement that 2
requires the transfer of title upon completion of the required payments 3
and payment of an option price that does not exceed the greater of one 4
hundred dollars ($100) or one percent (1%) of the total required 5
payments; or 6
3. Providing tangible personal property and an operator for the tangible 7
personal property for a fixed or indeterminate period of time. To qualify 8
for this exclusion, the operator must be necessary for the equipment to 9
perform as designed, and the opera tor must do more than maintain, 10
inspect, or setup the tangible personal property. 11
(c) This definition shall apply regardless of the classification of a transaction 12
under generally accepted accounting principles, the Internal Revenue Code, or 13
other provisions of federal, state, or local law; 14
(21) (a) "Lobbying services" means the act of promoting or securing passage of 15
legislation or an attempt to influence or sway a public official or other public 16
servant toward a desired action, including but not limited to the support of or 17
opposition to a project or the passage, amendment, defeat, approval, or veto of 18
any legislation, regulation, rule, or ordinance; 19
(b) "Lobbying services" includes but is not limited to the performance of 20
activities described as executive agency lobbying activities as defined in KRS 21
11A.201, activities described under the definition of lobby in KRS 6.611, and 22
any similar activities performed at the local, state, or federal levels; 23
(22) (a) "Machinery for new and expanded industry" means machinery: 24
1. Directly used in the manufacturing or industrial processing process of: 25
a. Tangible personal property at a plant facility; 26
b. Distilled spirits or wine at a plant facility or on the premises of a 27
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distiller, rectifier, winery, or small farm winery licensed under 1
KRS 243.030 that includes a retail establishment on the premises; 2
or 3
c. Malt beverages at a plant facility or on the premises of a brewer or 4
microbrewery licensed under KRS 243.040 that includes a retail 5
establishment; 6
2. Which is incorporated for the first time into: 7
a. A plant facility established in this state; or 8
b. Licensed premises located in this state; and 9
3. Which does not replace machinery in the plant facility or licensed 10
premises unless that machinery purchased to replace existing machinery: 11
a. Increases the consumption o f recycled materials at the plant 12
facility by not less than ten percent (10%); 13
b. Performs different functions; 14
c. Is used to manufacture a different product; or 15
d. Has a greater productive capacity, as measured in units of 16
production, than the machinery being replaced. 17
(b) "Machinery for new and expanded industry" does not include repair, 18
replacement, or spare parts of any kind, regardless of whether the purchase of 19
repair, replacement, or spare parts is required by the manufacturer or seller as 20
a condition of sale or as a condition of warranty; 21
(23) "Manufacturing" means any process through which material having little or no 22
commercial value for its intended use before processing has appreciable 23
commercial value for its intended use after processing by the machinery; 24
(24) "Marketplace" means any physical or electronic means through which one (1) or 25
more retailers may advertise and sell tangible personal property, digital property, or 26
services, or lease tangible personal property or digital property, such as a catalog, 27
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internet website, or television or radio broadcast, regardless of whether the tangible 1
personal property, digital property, or retailer is physically present in this state; 2
(25) (a) "Marketplace provider" means a person, including any affiliate of the person, 3
that facilitates a retail sale by satisfying subparagraphs 1. and 2. of this 4
paragraph as follows: 5
1. The person directly or indirectly: 6
a. Lists, makes available, or advertises tangible personal property, 7
digital property, or services for sale by a marketplace retailer in a 8
marketplace owned, operated, or controlled by the person; 9
b. Facilitates the sale of a marketplace retailer's product through a 10
marketplace by transmitting or otherwise communicating an offer 11
or acceptance of a retail sa le of tangible personal property, digital 12
property, or services between a marketplace retailer and a 13
purchaser in a forum including a shop, store, booth, catalog, 14
internet site, or similar forum; 15
c. Owns, rents, licenses, makes available, or operates any e lectronic 16
or physical infrastructure or any property, process, method, 17
copyright, trademark, or patent that connects marketplace retailers 18
to purchasers for the purpose of making retail sales of tangible 19
personal property, digital property, or services; 20
d. Provides a marketplace for making retail sales of tangible personal 21
property, digital property, or services, or otherwise facilitates retail 22
sales of tangible personal property, digital property, or services, 23
regardless of ownership or control of the tang ible personal 24
property, digital property, or services, that are the subject of the 25
retail sale; 26
e. Provides software development or research and development 27
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activities related to any activity described in this subparagraph, if 1
the software development or r esearch and development activities 2
are directly related to the physical or electronic marketplace 3
provided by a marketplace provider; 4
f. Provides or offers fulfillment or storage services for a marketplace 5
retailer; 6
g. Sets prices for a marketplace retailer's sale of tangible personal 7
property, digital property, or services; 8
h. Provides or offers customer service to a marketplace retailer o r a 9
marketplace retailer's customers, or accepts or assists with taking 10
orders, returns, or exchanges of tangible personal property, digital 11
property, or services sold by a marketplace retailer; or 12
i. Brands or otherwise identifies sales as those of the ma rketplace 13
provider; and 14
2. The person directly or indirectly: 15
a. Collects the sales price or purchase price of a retail sale of tangible 16
personal property, digital property, or services; 17
b. Provides payment processing services for a retail sale of tangible 18
personal property, digital property, or services; 19
c. Through terms and conditions, agreements, or arrangements with a 20
third party, collects payment in connection with a retail sale of 21
tangible personal property, digital property, or services from a 22
purchaser and transmits that payment to the marketplace retailer, 23
regardless of whether the person collecting and transmitting the 24
payment receives compensation or other consideration in exchange 25
for the service; or 26
d. Provides a virtual currency that purchasers are allowed or required 27
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to use to purchase tangible personal property, digital property, or 1
services. 2
(b) "Marketplace provider" includes but is not limited to a person that satisfies the 3
requirements of this subsection through the ownership, operation, o r control 4
of a digital distribution service, digital distribution platform, online portal, or 5
application store; 6
(26) "Marketplace retailer" means a seller that makes retail sales through any 7
marketplace owned, operated, or controlled by a marketplace provider; 8
(27) (a) "Menstrual discharge collection devices" means tampons, panty liners, 9
menstrual cups, pads, period underwear, other items of clothing that are 10
marketed specifically for use as menstrual discharge collection devices for 11
the human menstrual cy cle, such as period swimwear, period running 12
shorts, or period sleep shorts, and other similar tangible personal property 13
designed for use in connection with the human menstrual cycle. 14
(b) "Menstrual discharge collection devices" does not include grooming and 15
hygiene products as defined in KRS 139.472; 16
(28) (a) "Occasional sale" includes: 17
1. A sale of tangible personal property or digital property not held or used 18
by a seller in the course of an activity for which he or she is required to 19
hold a seller's pe rmit, provided such sale is not one (1) of a series of 20
sales sufficient in number, scope, and character to constitute an activity 21
requiring the holding of a seller's permit. In the case of the sale of the 22
entire, or a substantial portion of the nonretail a ssets of the seller, the 23
number of previous sales of similar assets shall be disregarded in 24
determining whether or not the current sale or sales shall qualify as an 25
occasional sale; or 26
2. Any transfer of all or substantially all the tangible personal prope rty or 27
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digital property held or used by a person in the course of such an activity 1
when after such transfer the real or ultimate ownership of such property 2
is substantially similar to that which existed before such transfer. 3
(b) For the purposes of this su bsection, stockholders, bondholders, partners, or 4
other persons holding an interest in a corporation or other entity are regarded 5
as having the "real or ultimate ownership" of the tangible personal property or 6
digital property of such corporation or other entity; 7
(29)[(28)] (a) "Other direct mail" means any direct mail that is not advertising and 8
promotional direct mail, regardless of whether advertising and promotional 9
direct mail is included in the same mailing. 10
(b) "Other direct mail" includes but is not limited to: 11
1. Transactional direct mail that contains personal information specific to 12
the addressee, including but not limited to invoices, bills, statements of 13
account, and payroll advices; 14
2. Any legally required mailings, including but not limited to privacy 15
notices, tax reports, and stockholder reports; and 16
3. Other nonpromotional direct mail delivered to existing or former 17
shareholders, customers, employees, or agents, including but not limited 18
to newsletters and informational pieces. 19
(c) "Other direct mail" does not include the development of billing information or 20
the provision of any data processing service that is more than incidental to the 21
production of printed material; 22
(30)[(29)] "Person" includes any individual, firm, copartnership, joint ve nture, 23
association, social club, fraternal organization, corporation, estate, trust, business 24
trust, receiver, trustee, syndicate, cooperative, assignee, governmental unit or 25
agency, or any other group or combination acting as a unit; 26
(31)[(30)] "Permanent," as the term applies to digital property, means perpetual or for an 27
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indefinite or unspecified length of time; 1
(32)[(31)] (a) "Photography and photofinishing services" means: 2
1. The taking, developing, or printing of an original photograph; or 3
2. Image editing, including shadow removal, tone adjustments, vertical and 4
horizontal alignment and cropping, composite image creation, 5
formatting, watermarking printing, and delivery of an original 6
photograph in the form of tangible personal property, digital property, or 7
other media. 8
(b) "Photography and photofinishing services" does not include photography 9
services necessary for medical or dental health; 10
(33)[(32)] "Plant facility" means a single location that is exclusively dedicated to 11
manufacturing or industrial processing activities. A location shall be deemed to be 12
exclusively dedicated to manufacturing or industrial processing activities even if 13
retail sales are made there, provided t hat the retail sales are incidental to the 14
manufacturing or industrial processing activities occurring at the location. The term 15
"plant facility" shall not include any restaurant, grocery store, shopping center, or 16
other retail establishment; 17
(34)[(33)] (a) "Prewritten computer software" means: 18
1. Computer software, including prewritten upgrades, that are not designed 19
and developed by the author or other creator to the specifications of a 20
specific purchaser; 21
2. Software designed and developed by the author or other creator to the 22
specifications of a specific purchaser when it is sold to a person other 23
than the original purchaser; or 24
3. Any portion of prewritten computer software that is modified or 25
enhanced in any manner, where the modification or enhancemen t is 26
designed and developed to the specifications of a specific purchaser, 27
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unless there is a reasonable, separately stated charge on an invoice or 1
other statement of the price to the purchaser for the modification or 2
enhancement. 3
(b) When a person modifies or enhances computer software of which the person 4
is not the author or creator, the person shall be deemed to be the author or 5
creator only of the modifications or enhancements the person actually made. 6
(c) The combining of two (2) or more prewritten comp uter software programs or 7
portions thereof does not cause the combination to be other than prewritten 8
computer software; 9
(35)[(34)] "Prewritten computer software access services" means the right of access to 10
prewritten computer software where the object of the transaction is to use the 11
prewritten computer software while possession of the prewritten computer software 12
is maintained by the seller or a third party, wherever located, regardless of whether 13
the charge for the access or use is on a per use, per user, per license, subscription, or 14
some other basis; 15
(36)[(35)] (a) "Purchase" means any transfer of title or possession, exchange, barter, 16
lease, or rental, conditional or otherwise, in any manner or by any means 17
whatsoever, of: 18
1. Tangible personal property; 19
2. An extended warranty service; 20
3. Digital property transferred electronically; or 21
4. Services included in KRS 139.200; 22
for a consideration. 23
(b) "Purchase" includes: 24
1. When performed outside this state or when the customer gives a resale 25
certificate, the producing, fabricating, processing, printing, or imprinting 26
of tangible personal property for a consideration for consumers who 27
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furnish either directly or indirectly the materials used in the producing, 1
fabricating, processing, printing, or imprinting; 2
2. A transaction whereby the possession of tangible personal property or 3
digital property is transferred but the seller retains the title as security 4
for the payment of the price; and 5
3. A transfer for a consideration of the title or possession of tangib le 6
personal property or digital property which has been produced, 7
fabricated, or printed to the special order of the customer, or of any 8
publication; 9
(37)[(36)] "Recycled materials" means materials which have been recovered or diverted 10
from the solid waste stream and reused or returned to use in the form of raw 11
materials or products; 12
(38)[(37)] "Recycling purposes" means those activities undertaken in which materials 13
that would otherwise become solid waste are collected, separated, or processed in 14
order to be reused or returned to use in the form of raw materials or products; 15
(39)[(38)] "Remote retailer" means a retailer with no physical presence in this state; 16
(40)[(39)] (a) "Repair, replacement, or spare parts" means any tangible personal 17
property used to maintain, restore, mend, or repair machinery or equipment. 18
(b) "Repair, replacement, or spare parts" does not include machine oils, grease, or 19
industrial tools; 20
(41)[(40)] (a) "Retailer" means: 21
1. Every person engaged in the business of making retail sales of tangible 22
personal property, digital property, or furnishing any services in a retail 23
sale included in KRS 139.200; 24
2. Every person engaged in the business of making sales at auction of 25
tangible personal property or digital property owned by the person or 26
others for storage, use or other consumption, except as prov ided in 27
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paragraph (c) of this subsection; 1
3. Every person making more than two (2) retail sales of tangible personal 2
property, digital property, or services included in KRS 139.200 during 3
any twelve (12) month period, including sales made in the capacity o f 4
assignee for the benefit of creditors, or receiver or trustee in bankruptcy; 5
4. Any person conducting a race meeting under the provision of KRS 6
Chapter 230, with respect to horses which are claimed during the 7
meeting. 8
(b) When the department determines t hat it is necessary for the efficient 9
administration of this chapter to regard any salesmen, representatives, 10
peddlers, or canvassers as the agents of the dealers, distributors, supervisors or 11
employers under whom they operate or from whom they obtain the tangible 12
personal property, digital property, or services sold by them, irrespective of 13
whether they are making sales on their own behalf or on behalf of the dealers, 14
distributors, supervisors or employers, the department may so regard them and 15
may regard the dealers, distributors, supervisors or employers as retailers for 16
purposes of this chapter. 17
(c) 1. Any person making sales at a charitable auction for a qualifying entity 18
shall not be a retailer for purposes of the sales made at the charitable 19
auction if: 20
a. The qualifying entity, not the person making sales at the auction, is 21
sponsoring the auction; 22
b. The purchaser of tangible personal property at the auction directly 23
pays the qualifying entity sponsoring the auction for the property 24
and not the person making the sales at the auction; and 25
c. The qualifying entity, not the person making sales at the auction, is 26
responsible for the collection, control, and disbursement of the 27
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auction proceeds. 1
2. If the conditions set forth in subparagraph 1. of this para graph are met, 2
the qualifying entity sponsoring the auction shall be the retailer for 3
purposes of the sales made at the charitable auction. 4
3. For purposes of this paragraph, "qualifying entity" means a resident: 5
a. Church; 6
b. School; 7
c. Civic club; or 8
d. Any other nonprofit charitable, religious, or educational 9
organization; 10
(42)[(41)] "Retail sale" means any sale, lease, or rental for any purpose other than resale, 11
sublease, or subrent; 12
(43)[(42)] (a) "Ringtones" means digitized sound files that are downl oaded onto a 13
device and that may be used to alert the customer with respect to a 14
communication. 15
(b) "Ringtones" does[shall] not include ringback tones or other digital files that 16
are not stored on the purchaser's communications device; 17
(44)[(43)] (a) "Sale" means: 18
1. The furnishing of any services included in KRS 139.200; or 19
2. Any transfer of title or possession, exchange, barter, lease, or rental, 20
conditional or otherwise, in any manner or by any means whatsoever, 21
of: 22
a. Tangible personal property; or 23
b. Digital property transferred electronically; 24
for a consideration. 25
(b) "Sale" includes but is not limited to: 26
1. The producing, fabricating, processing, printing, or imprinting of 27
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tangible personal property or digital property for a consideration for 1
purchasers who furnish, either directly or indirectly, the materials used 2
in the producing, fabricating, processing, printing, or imprinting; 3
2. A transaction whereby the possession of tangible personal property or 4
digital property is transferred, but the se ller retains the title as security 5
for the payment of the price; and 6
3. A transfer for a consideration of the title or possession of tangible 7
personal property or digital property which has been produced, 8
fabricated, or printed to the special order of the purchaser. 9
(c) This definition shall apply regardless of the classification of a transaction 10
under generally accepted accounting principles, the Internal Revenue Code, or 11
other provisions of federal, state, or local law; 12
(45)[(44)] "Seller" includes every person engaged in the business of selling tangible 13
personal property, digital property, or services of a kind, the gross receipts from the 14
retail sale of which are required to be included in the measure of the sales tax, and 15
every person engaged in making sales for resale; 16
(46)[(45)] (a) "Storage" includes any keeping or retention in this state for any purpose 17
except sale in the regular course of business or subsequent use solely outside 18
this state of tangible personal property, digital property, or prewrit ten 19
computer software access services purchased from a retailer. 20
(b) "Storage" does not include the keeping, retaining, or exercising any right or 21
power over tangible personal property for the purpose of subsequently 22
transporting it outside the state for u se thereafter solely outside the state, or 23
for the purpose of being processed, fabricated, or manufactured into, attached 24
to, or incorporated into, other tangible personal property to be transported 25
outside the state and thereafter used solely outside the state; 26
(47)[(46)] "Tangible personal property" means personal property which may be seen, 27
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weighed, measured, felt, or touched, or which is in any other manner perceptible to 1
the senses and includes natural, artificial, and mixed gas, electricity, water, st eam, 2
and prewritten computer software; 3
(48)[(47)] "Taxpayer" means any person liable for tax under this chapter; 4
(49)[(48)] "Telemarketing services" means services provided via telephone, facsimile, 5
electronic mail, text messages, or other modes of communi cations to another 6
person, which are unsolicited by that person, for the purposes of: 7
(a) 1. Promoting products or services; 8
2. Taking orders; or 9
3. Providing information or assistance regarding the products or services; 10
or 11
(b) Soliciting contributions; 12
(50)[(49)] "Transferred electronically" means accessed or obtained by the purchaser by 13
means other than tangible storage media; and 14
(51)[(50)] (a) "Use" includes the exercise of: 15
1. Any right or power over tangible personal property or digital property 16
incident to the ownership of that property, or by any transaction in 17
which possession is given, or by any transaction involving digital 18
property or tangible personal property where the right of access is 19
granted; or 20
2. Any right or power to benefit from any ser vices subject to tax under 21
KRS 139.200(2)(p) to (ax). 22
(b) "Use" does not include the keeping, retaining, or exercising any right or 23
power over: 24
1. Tangible personal property or digital property for the purpose of: 25
a. Selling tangible personal property or digital property in the regular 26
course of business; or 27
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b. Subsequently transporting tangible personal property outside the 1
state for use thereafter solely outside the state, or for the purpose 2
of being processed, fabricated, or manufactured into, attached t o, 3
or incorporated into, other tangible personal property to be 4
transported outside the state and thereafter used solely outside the 5
state; or 6
2. Prewritten computer software access services purchased for use outside 7
the state and transferred electronically outside the state for use thereafter 8
solely outside the state. 9
Section 2. KRS 139.480 is amended to read as follows: 10
Any other provision of this chapter to the contrary notwithstanding, the terms "sale at 11
retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, shall not 12
include the sale, use, storage, or other consumption of: 13
(1) Locomotives or rolling stock, including materials for the construction, repair, or 14
modification thereof, or fuel or supplies for the direct operation of locomotives and 15
trains, used or to be used in interstate commerce; 16
(2) Coal for the manufacture of electricity; 17
(3) (a) All energy or energy -producing fuels used in the course of manufacturing, 18
processing, mining, or refining and any related distribution, transmission, and 19
transportation services for this energy that are billed to the user, to the extent 20
that the cost of the energy or energy -producing fuels used, and related 21
distribution, transmission, and transportation services for this energy that are 22
billed to the user exceed three percent (3%) of the cost of production. 23
(b) Cost of production shall be com puted on the basis of a plant facility, which 24
shall include all operations within the continuous, unbroken, integrated 25
manufacturing or industrial processing process that ends with a product 26
packaged and ready for sale. 27
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(c) A person who performs a manufacturing or industrial processing activity for a 1
fee and does not take ownership of the tangible personal property that is 2
incorporated into, or becomes the product of, the manufacturing or industrial 3
processing activity is a toller. For periods on or after J uly 1, 2018, the costs of 4
the tangible personal property shall be excluded from the toller's cost of 5
production at a plant facility with tolling operations in place as of July 1, 6
2018. 7
(d) For plant facilities that begin tolling operations after July 1, 20 18, the costs of 8
tangible personal property shall be excluded from the toller's cost of 9
production if the toller: 10
1. Maintains a binding contract for periods after July 1, 2018, that governs 11
the terms, conditions, and responsibilities with a separate legal entity, 12
which holds title to the tangible personal property that is incorporated 13
into, or becomes the product of, the manufacturing or industrial 14
processing activity; 15
2. Maintains accounting records that show the expenses it incurs to fulfill 16
the binding contract that include but are not limited to energy or energy -17
producing fuels, materials, labor, procurement, depreciation, 18
maintenance, taxes, administration, and office expenses; 19
3. Maintains separate payroll, bank accounts, tax returns, and other record s 20
that demonstrate its independent operations in the performance of its 21
tolling responsibilities; 22
4. Demonstrates one (1) or more substantial business purposes for the 23
tolling operations germane to the overall manufacturing, industrial 24
processing activitie s, or corporate structure at the plant facility. A 25
business purpose is a purpose other than the reduction of sales tax 26
liability for the purchases of energy and energy-producing fuels; and 27
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5. Provides information to the department upon request that documen ts 1
fulfillment of the requirements in subparagraphs 1. to 4. of this 2
paragraph and gives an overview of its tolling operations with an 3
explanation of how the tolling operations relate and connect with all 4
other manufacturing or industrial processing activi ties occurring at the 5
plant facility; 6
(4) Livestock of a kind the products of which ordinarily constitute food for human 7
consumption, provided the sales are made for breeding or dairy purposes and by or 8
to a person regularly engaged in the business of farming; 9
(5) Poultry for use in breeding or egg production; 10
(6) Farm work stock for use in farming operations; 11
(7) Seeds, the products of which ordinarily constitute food for human consumption or 12
are to be sold in the regular course of business, and commercial fertilizer to be 13
applied on land, the products from which are to be used for food for human 14
consumption or are to be sold in the regular course of business; provided the sales 15
are made to farmers who are regularly engaged in the occupation of tilling and 16
cultivating the soil for the production of crops as a business, or who are regularly 17
engaged in the occupation of raising and feeding livestock or poultry or producing 18
milk for sale; and provided further that tangible personal property so sold is to be 19
used only by those persons designated above who are so purchasing; 20
(8) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals to be 21
used in the production of crops as a business, or in the raising and feeding of 22
livestock or poultry, the products of which ordinarily constitute food for human 23
consumption; 24
(9) Feed, including pre-mixes and feed additives, for livestock or poultry of a kind the 25
products of which ordinarily constitute food for human consumption; 26
(10) Machinery for new and expanded industry; 27
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(11) Farm machinery. As used in this section, the term "farm machinery": 1
(a) Means machinery used exclusively and directly in the occupation of: 2
1. Tilling the soil for the production of crops as a business; 3
2. Raising and feeding livestock or poultry for sale; or 4
3. Producing milk for sale; 5
(b) Includes machinery, attachments, and replacements therefor, repair parts, and 6
replacement parts which are used or manufactured for use on, or in the 7
operation of farm mac hinery and which are necessary to the operation of the 8
machinery, and are customarily so used, including but not limited to combine 9
header wagons, combine header trailers, or any other implements specifically 10
designed and used to move or transport a combine head; and 11
(c) Does not include: 12
1. Automobiles; 13
2. Trucks; 14
3. Trailers, except combine header trailers; or 15
4. Truck-trailer combinations; 16
(12) Tombstones and other memorial grave markers; 17
(13) On-farm facilities used exclusively for grain or soybean stor ing, drying, processing, 18
or handling. The exemption applies to the equipment, machinery, attachments, 19
repair and replacement parts, and any materials incorporated into the construction, 20
renovation, or repair of the facilities; 21
(14) On-farm facilities used exclusively for raising poultry or livestock. The exemption 22
shall apply to the equipment, machinery, attachments, repair and replacement parts, 23
and any materials incorporated into the construction, renovation, or repair of the 24
facilities. The exemption sha ll apply but not be limited to vent board equipment, 25
waterer and feeding systems, brooding systems, ventilation systems, alarm systems, 26
and curtain systems. In addition, the exemption shall apply whether or not the seller 27
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is under contract to deliver, asse mble, and incorporate into real estate the 1
equipment, machinery, attachments, repair and replacement parts, and any materials 2
incorporated into the construction, renovation, or repair of the facilities; 3
(15) Gasoline, special fuels, liquefied petroleum gas , and natural gas used exclusively 4
and directly to: 5
(a) Operate farm machinery as defined in subsection (11) of this section; 6
(b) Operate on -farm grain or soybean drying facilities as defined in subsection 7
(13) of this section; 8
(c) Operate on -farm poultry or livestock facilities defined in subsection (14) of 9
this section; 10
(d) Operate on-farm ratite facilities defined in subsection (23) of this section; 11
(e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this 12
section; or 13
(f) Operate on-farm dairy facilities; 14
(16) Textbooks, including related workbooks and other course materials, purchased for 15
use in a course of study conducted by an institution which qualifies as a nonprofit 16
educational institution under KRS 139.495. The term "course materials" means only 17
those items specifically required of all students for a particular course but shall not 18
include notebooks, paper, pencils, calculators, tape recorders, or similar student 19
aids; 20
(17) Any property which has been certified as an alcoh ol production facility as defined 21
in KRS 247.910; 22
(18) Aircraft, repair and replacement parts therefor, and supplies, except fuel, for the 23
direct operation of aircraft in interstate commerce and used exclusively for the 24
conveyance of property or passengers for hire. Nominal intrastate use shall not 25
subject the property to the taxes imposed by this chapter; 26
(19) Any property which has been certified as a fluidized bed energy production facility 27
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as defined in KRS 211.390; 1
(20) (a) 1. Any property to be incorp orated into the construction, rebuilding, 2
modification, or expansion of a blast furnace or any of its components or 3
appurtenant equipment or structures as part of an approved supplemental 4
project, as defined by KRS 154.26-010; and 5
2. Materials, supplies, and repair or replacement parts purchased for use in 6
the operation and maintenance of a blast furnace and related carbon 7
steel-making operations as part of an approved supplemental project, as 8
defined by KRS 154.26-010. 9
(b) The exemptions provided in this subsection shall be effective for sales made: 10
1. On and after July 1, 2018; and 11
2. During the term of a supplemental project agreement entered into 12
pursuant to KRS 154.26-090; 13
(21) Beginning on October 1, 1986, food or food products purchased for human 14
consumption with food coupons issued by the United States Department of 15
Agriculture pursuant to the Food Stamp Act of 1977, as amended, and required to 16
be exempted by the Food Security Act of 1985 in order for the Commonwealth to 17
continue participation in the federal food stamp program; 18
(22) Machinery or equipment purchased or leased by a b usiness, industry, or 19
organization in order to collect, source separate, compress, bale, shred, or otherwise 20
handle waste materials if the machinery or equipment is primarily used for 21
recycling purposes; 22
(23) Ratite birds and eggs to be used in an agricult ural pursuit for the breeding and 23
production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by -24
products, and the following items used in this agricultural pursuit: 25
(a) Feed and feed additives; 26
(b) Insecticides, fungicides, herbici des, rodenticides, and other farm chemicals; 27
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and 1
(c) On-farm facilities, including equipment, machinery, attachments, repair and 2
replacement parts, and any materials incorporated into the construction, 3
renovation, or repair of the facilities. The exemption shall apply to incubation 4
systems, egg processing equipment, waterer and feeding systems, brooding 5
systems, ventilation systems, alarm systems, and curtain systems. In addition, 6
the exemption shall apply whether or not the seller is under contract to 7
deliver, assemble, and incorporate into real estate the equipment, machinery, 8
attachments, repair and replacement parts, and any materials incorporated into 9
the construction, renovation, or repair of the facilities; 10
(24) Embryos and semen that are used in the reproduction of livestock, if the products of 11
these embryos and semen ordinarily constitute food for human consumption, and if 12
the sale is made to a person engaged in the business of farming; 13
(25) Llamas and alpacas to be used as beasts of burden or in an agricultural pursuit for 14
the breeding and production of hides, breeding stock, fiber and wool products, 15
meat, and llama and alpaca by -products, and the following items used in this 16
pursuit: 17
(a) Feed and feed additives; 18
(b) Insecticides, fungicides, herbici des, rodenticides, and other farm chemicals; 19
and 20
(c) On-farm facilities, including equipment, machinery, attachments, repair and 21
replacement parts, and any materials incorporated into the construction, 22
renovation, or repair of the facilities. The exemption shall apply to waterer 23
and feeding systems, ventilation systems, and alarm systems. In addition, the 24
exemption shall apply whether or not the seller is under contract to deliver, 25
assemble, and incorporate into real estate the equipment, machinery, 26
attachments, repair and replacement parts, and any materials incorporated into 27
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the construction, renovation, or repair of the facilities; 1
(26) Baling twine and baling wire for the baling of hay and straw; 2
(27) Water sold to a person regularly engaged in the business of farming and used in the: 3
(a) Production of crops; 4
(b) Production of milk for sale; or 5
(c) Raising and feeding of: 6
1. Livestock or poultry, the products of which ordinarily constitute food 7
for human consumption; or 8
2. Ratites, llamas, alpacas, buffaloes[buffalo], cervids or aquatic 9
organisms; 10
(28) Buffaloes[Buffalos] to be used as beasts of burden or in an agricultural pursuit for 11
the production of hides, breeding stock, meat, and buffalo by -products, and the 12
following items used in this pursuit: 13
(a) Feed and feed additives; 14
(b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals; 15
and 16
(c) On-farm facilities, including equipment, machinery, attachments, repair and 17
replacement parts, and any materials incorporated into the constr uction, 18
renovation, or repair of the facilities. The exemption shall apply to waterer 19
and feeding systems, ventilation systems, and alarm systems. In addition, the 20
exemption shall apply whether or not the seller is under contract to deliver, 21
assemble, and incorporate into real estate the equipment, machinery, 22
attachments, repair and replacement parts, and any materials incorporated into 23
the construction, renovation, or repair of the facilities; 24
(29) Aquatic organisms sold directly to or raised by a person r egularly engaged in the 25
business of producing products of aquaculture, as defined in KRS 260.960, for sale, 26
and the following items used in this pursuit: 27
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(a) Feed and feed additives; 1
(b) Water; 2
(c) Insecticides, fungicides, herbicides, rodenticides, and ot her farm chemicals; 3
and 4
(d) On-farm facilities, including equipment, machinery, attachments, repair and 5
replacement parts, and any materials incorporated into the construction, 6
renovation, or repair of the facilities and, any gasoline, special fuels, liquefied 7
petroleum gas, or natur al gas used to operate the facilities. The exemption 8
shall apply, but not be limited to: waterer and feeding systems; ventilation, 9
aeration, and heating systems; processing and storage systems; production 10
systems such as ponds, tanks, and raceways; harvest and transport equipment 11
and systems; and alarm systems. In addition, the exemption shall apply 12
whether or not the seller is under contract to deliver, assemble, and 13
incorporate into real estate the equipment, machinery, attachments, repair and 14
replacement parts, and any materials incorporated into the construction, 15
renovation, or repair of the facilities; 16
(30) Members of the genus cervidae permitted by KRS Chapter 150 that are used for the 17
production of hides, breeding stock, meat, and cervid by -products, and the 18
following items used in this pursuit: 19
(a) Feed and feed additives; 20
(b) Insecticides, fungicides, herbicides, rodenticides, and other chemicals; and 21
(c) On-site facilities, including equipment, machinery, attachments, repair and 22
replacement parts, a nd any materials incorporated into the construction, 23
renovation, or repair of the facilities. In addition, the exemption shall apply 24
whether or not the seller is under contract to deliver, assemble, and 25
incorporate into real estate the equipment, machinery , attachments, repair and 26
replacement parts, and any materials incorporated into the construction, 27
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renovation, or repair of the facilities; 1
(31) (a) Repair or replacement parts for the direct operation or maintenance of a motor 2
vehicle, including any towed unit, used exclusively in interstate commerce for 3
the conveyance of property or passengers for hire, provided the motor vehicle 4
is licensed for use on the highway and its declared gross vehicle weight with 5
any towed unit is forty -four thousand and one (44 ,001) pounds or greater. 6
Nominal intrastate use shall not subject the property to the taxes imposed by 7
this chapter; and 8
(b) Repair or replacement parts for the direct operation and maintenance of a 9
motor vehicle operating under a charter bus certificate i ssued by the 10
Transportation Cabinet under KRS Chapter 281, or under similar authority 11
granted by the United States Department of Transportation. 12
(c) For the purposes of this subsection, "repair or replacement parts" means tires, 13
brakes, engines, transmissi ons, drive trains, chassis, body parts, and their 14
components. "Repair or replacement parts" shall not include fuel, machine 15
oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential 16
to the operation of the motor vehicle itself, exc ept when sold as part of the 17
assembled unit, such as cigarette lighters, radios, lighting fixtures not 18
otherwise required by the manufacturer for operation of the vehicle, or tool or 19
utility boxes; 20
(32) Food donated by a retail food establishment or any ot her entity regulated under 21
KRS 217.127 to a nonprofit organization for distribution to the needy; 22
(33) Drugs and over -the-counter drugs, as defined in KRS 139.472, that are purchased 23
by a person regularly engaged in the business of farming and used in the treatment 24
of cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, 25
buffaloes[buffalo], aquatic organisms, or cervids; 26
(34) (a) Building materials, fixtures, or supplies purchased by a construction 27
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contractor if: 1
1. Fulfilled by a construction contract for a sewer or water project with: 2
a. A municipally owned water utility organized under KRS Chapter 3
96; 4
b. A water district or water commission formed or organized under 5
KRS Chapter 74; 6
c. A sanitation district established under KRS Chapter 220 or formed 7
pursuant to KRS Chapter 65; 8
d. A nonprofit corporation created under KRS 58.180 to act on behalf 9
of a governmental agency in the acquisition and financing of 10
public projects; 11
e. Regional wastewater commissions formed under KRS Chapter 12
278; 13
f. A municipally owned joint sewer agency formed under KRS 14
Chapter 76; or 15
g. Any other governmental agency; and 16
2. The building materials, fixtures, or supplies: 17
a. Will be permanently incorporated into a structure or improvement 18
to real property, or will be co mpletely consumed, in fulfilling a 19
construction contract for the purpose of furnishing water or sewer 20
services to the general public; and 21
b. Would be exempt if purchased directly by the entities listed in 22
subparagraph 1. of this paragraph. 23
(b) As used in this subsection, "construction contract" means a: 24
1. Lump sum contract; 25
2. Cost plus contract; 26
3. Materials only contract; 27
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4. Labor and materials contract; or 1
5. Any other type of contract. 2
(c) The exemption provided in this subsection shall apply without regard to the 3
payment arrangement between the construction contractor, the retailer, and 4
the entities listed in paragraph (a)1. of this subsection or to the place of 5
delivery for the building materials, fixtures, or supplies; 6
(35) (a) On or after February 25, 2022, the rental of space for meetings, conventions, 7
short-term business uses, entertainment events, weddings, banquets, parties, 8
and other short -term social events, as referenced in KRS 139 .200, if the tax 9
established in KRS 139.200 is paid by the primary lessee to the lessor. 10
(b) For the purpose of this subsection, "primary lessee" means the person who 11
leases the space and who has a contract with the lessor of the space only if: 12
1. The contract between the lessor and the lessee specifies that the lessee 13
may sublease, subrent, or otherwise sell the space; and 14
2. The space is then sublet, subrented, or otherwise sold to exhibitors, 15
vendors, sponsors, or other entities and persons who will use the space 16
associated with the event to be conducted under the primary lease; 17
(36) Prewritten computer software access services sold to or purchased by a retailer that 18
develops prewritten computer software for print technology and uses and sells 19
prewritten computer software access services for print technology; 20
(37) (a) Currency or bullion. 21
(b) As used in this subsection: 22
1. "Bullion": 23
a. Means bars, ingots, or coins, which are: 24
i. Made of gold, silver, platinum, palladium, or a combination 25
of these metals; 26
ii. Valued based on the content of the metal and not its form; 27
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and 1
iii. Used, or have been used, as a medium of exchange, security, 2
or commodity by any state, the United States government, or 3
a foreign nation; and 4
b. Does not include medallions or coins th at are incorporated into a 5
pendant or other jewelry; and 6
2. "Currency": 7
a. Means a coin or currency made of gold, silver, platinum, 8
palladium, or other metal or paper money that is or has been used 9
as legal tender and is sold based on its value as a colle ctible item 10
rather than the value as a medium of exchange; and 11
b. Does not include a coin or currency that has been incorporated into 12
jewelry;[ and] 13
(38) Medicinal cannabis as defined in KRS 218B.010 when sold, used, stored, or 14
consumed in accordance with KRS Chapter 218B; and 15
(39) (a) Menstrual discharge collection devices sold or purchased on or after August 16
1, 2026, but before August 1, 2030. 17
(b) On or before September 1, 2027, and on or before each September 1 18
thereafter as long as the exemption under this subsection applies, the 19
department shall report to the Interim Joint Committee on Appropriations 20
and Revenue the total amount of the exemption that has been claimed for 21
the immediately preceding fiscal year and the total cumulative amount of 22
the exemption claimed. 23
Section 3. KRS 131.190 is amended to read as follows: 24
(1) No present or former commissioner or employee of the department, present or 25
former member of a county board of assessment appeals, present or former property 26
valuation administrator or employee, present or former secretary or employee of the 27
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Finance and Administration Cabinet, former secretary or employee of the Revenue 1
Cabinet, or any other person, shall intentionally and without authorization inspect 2
or divulge any information acquired by him or her of the affairs of any person, or 3
information regarding the tax schedules, returns, or reports required to be filed with 4
the department or other proper officer, or any information produced by a hearing or 5
investigation, insofar as the information may have to do with the affairs of the 6
person's business. 7
(2) The prohibition established by subsection (1) of this section shall not extend to: 8
(a) Information required in prosecutions for making false reports or returns of 9
property for taxation, or any other infraction of the tax laws; 10
(b) Any matter properly entered upon any assessment record, or in any way made 11
a matter of public record; 12
(c) Furnishing any taxpayer or his or her properly authorized agent with 13
information respecting his or her own return; 14
(d) Testimony provided by the commissioner or any employee of th e department 15
in any court, or the introduction as evidence of returns or reports filed with the 16
department, in an action for violation of state or federal tax laws or in any 17
action challenging state or federal tax laws; 18
(e) Providing an owner of unmined co al, oil or gas reserves, and other mineral or 19
energy resources assessed under KRS 132.820, or owners of surface land 20
under which the unmined minerals lie, factual information about the owner's 21
property derived from third-party returns filed for that owner's property, under 22
the provisions of KRS 132.820, that is used to determine the owner's 23
assessment. This information shall be provided to the owner on a confidential 24
basis, and the owner shall be subject to the penalties provided in KRS 25
131.990(2). The thir d-party filer shall be given prior notice of any disclosure 26
of information to the owner that was provided by the third-party filer; 27
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(f) Providing to a third -party purchaser pursuant to an order entered in a 1
foreclosure action filed in a court of competent jurisdiction, factual 2
information related to the owner or lessee of coal, oil, gas reserves, or any 3
other mineral resources assessed under KRS 132.820. The department may 4
promulgate an administrative regulation establishing a fee schedule for the 5
provision of the information described in this paragraph. Any fee imposed 6
shall not exceed the greater of the actual cost of providing the information or 7
ten dollars ($10); 8
(g) Providing information to a licensing agency, the Transportation Cabinet, or 9
the Kentucky Supreme Court under KRS 131.1817; 10
(h) Statistics of gasoline and special fuels gallonage reported to the department 11
under KRS 138.210 to 138.448; 12
(i) Providing any utility gross receipts license tax return information that is 13
necessary to administer the p rovisions of KRS 160.613 to 160.617 to 14
applicable school districts on a confidential basis; 15
(j) Providing documents, data, or other information to a third party pursuant to an 16
order issued by a court of competent jurisdiction; 17
(k) Publishing administrative writings on its official website in accordance with 18
KRS 131.020(1)(b); or 19
(l) Providing information to the Legislative Research Commission under: 20
1. KRS 139.519 for purposes of the sales and use tax refund on building 21
materials used for disaster recovery; 22
2. KRS 141.436 for purposes of the energy efficiency products credits; 23
3. KRS 141.437 for purposes of the ENERGY STAR home and the 24
ENERGY STAR manufactured home credits; 25
4. KRS 141.383 for purposes of the film industry incentives; 26
5. KRS 154.26-095 for pu rposes of the Kentucky industrial revitalization 27
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credit and the job assessment fees; 1
6. KRS 141.068 for purposes of the Kentucky investment fund; 2
7. KRS 141.396 for purposes of the angel investor credit; 3
8. KRS 141.389 for purposes of the distilled spirits credit; 4
9. KRS 141.408 for purposes of the inventory credit; 5
10. KRS 141.390 for purposes of the recycling and composting credits; 6
11. KRS 141.3841 for purposes of the selling farmer credit; 7
12. KRS 141.4231 for purposes of the renewable chemical producti on 8
credit; 9
13. KRS 141.524 for purposes of the Education Opportunity Account 10
Program credit; 11
14. KRS 141.398 for purposes of the development area credit; 12
15. KRS 139.516 for purposes of the sales and use tax exemptions for the 13
commercial mining of cryptocurrency; 14
16. KRS 141.419 for purposes of the decontamination credit; 15
17. KRS 141.391 for purposes of the qualified broadband investment credit; 16
18. KRS 139.499 for purposes of the sales and use tax exemptions for a 17
qualified data center project;[ and] 18
19. KRS 139.5325 for purposes of the sales and use tax incentive for a 19
qualifying attraction; and 20
20. Subsection (39) of Section 2 of this Act for purposes of the sales and 21
tax use exemptions for menstrual discharge collection devices. 22
(3) The commissioner shall make available any information for official use only and on 23
a confidential basis to the proper officer, agency, board or commission of this state, 24
any Kentu cky county, any Kentucky city, any other state, or the federal 25
government, under reciprocal agreements whereby the department shall receive 26
similar or useful information in return. 27
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(4) Access to and inspection of information received from the Internal Revenue Service 1
is for department use only, and is restricted to tax administration purposes. 2
Information received from the Internal Revenue Service shall not be made available 3
to any other agency of state government, or any county, city, or other state, and 4
shall not be inspected intentionally and without authorization by any present 5
secretary or employee of the Finance and Administration Cabinet, commissioner or 6
employee of the department, or any other person. 7
(5) Statistics of crude oil as reported to the de partment under the crude oil excise tax 8
requirements of KRS Chapter 137 and statistics of natural gas production as 9
reported to the department under the natural resources severance tax requirements 10
of KRS Chapter 143A may be made public by the department b y release to the 11
Energy and Environment Cabinet, Department for Natural Resources. 12
(6) Notwithstanding any provision of law to the contrary, beginning with mine -map 13
submissions for the 1989 tax year, the department may make public or divulge only 14
those portions of mine maps submitted by taxpayers to the department pursuant to 15
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined -16
out parcel areas. These electronic maps shall not be relied upon to determine actual 17
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 18
required under KRS Chapters 350 and 352 shall not be construed to constitute land 19
surveying or boundary surveys as defined by KRS 322.010 and any administrative 20
regulations promulgated thereto. 21