RELATES TO:
KRS
139.010
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations for the
assessment, collection, refunding, administration, and enforcement of Kentucky
tax laws. This administrative regulation interprets the sales and use tax law
as it applies to sales of newspapers, magazines and periodicals.
Section 1. Newspapers.
(1) Sales of newspapers by the publisher are
sales of tangible personal property or digital property. The tax applies to the
gross receipts of the publisher from such sales in all cases, unless the sale
is for delivery or access outside of this state.
(2) Newstands, drug stores, street vendors,
and other businesses selling to consumers are the retailers of newspapers sold
by them. Proceeds from the sale thereof shall be included in the gross receipts
of the retailer subject to the tax.
Section 2. Magazines and Periodicals.
(1) Sales of magazines, periodicals and all
publications other than newspapers, whether made "over the counter," or by
subscription, are subject to the sales or use tax. Subscription includes both
hard copies and digital editions.
(2) Receipts from subscriptions for
magazines, periodicals, and trade journals, taken within the state of Kentucky,
sent to a publication house outside of the state of Kentucky, and thereafter
mailed directly or transferred electronically to the subscriber within the
state of Kentucky, are subject to the sales tax. Where such publications are
printed within the state of Kentucky and sold subject to delivery, or
transferred electronically for access outside the state of Kentucky, such sales
would not be subject to the sales tax.
(3) Persons who distribute trade
publications, journals and the like free of charge to the reader thereof are
regarded as consumers of publications which they distribute.