RELATES TO:
KRS 45A.067,
139.200,
139.310,
139.540,
139.550
NECESSITY, FUNCTION, AND CONFORMITY: KRS 45A. 067(2) requires a
person contracting with the Commonwealth to register with the Department of
Revenue to collect and remit the sales and use tax imposed by KRS Chapter 139,
and
KRS 45A.067(5) requires the
secretary of the Finance and Administration Cabinet to promulgate an
administrative regulation to establish the procedure for ensuring compliance
with this requirement. This administrative regulation establishes the
registration procedure for ensuring compliance.
Section 1.
(1) Any person awarded a contract with the
Commonwealth to provide goods or services subject to sales and use tax pursuant
to
KRS 139.200 and
139.310
shall submit to the contracting agency, prior to execution of a contract:
(a) A copy of the appropriate sales and use
tax permit or permit update form, using Form 51A101(a), (b), (c), or (d), which
are incorporated by reference in 103 KAR
3:020, for the person and each of its
affiliates if they are registered with the Department of Revenue to collect and
remit the sales and use tax imposed by KRS Chapter 139; or
(b) Form 10A100, Kentucky Tax Registration
application, which is incorporated by reference in 103 KAR
3:010, for the
person and each of its affiliates, if not registered.
(2) If a person or an affiliate is not
registered but an application for registration is made, any contract awarded to
the person shall be conditional upon the registration process being
completed.
(3) The person and each
of its affiliates shall remain registered for the duration of any contract
awarded.
Section 2.
Failure to submit the required documentation or to remain registered and in
compliance with the sales and use tax filing and remittance requirements of
KRS 139.540
and
139.550
throughout the duration of the contract shall constitute a material breach of
the contract and the contract may be terminated, unless the secretary of the
Finance and Administration Cabinet, or his designee, makes a written
determination that continuation of the procurement is necessary to protect
substantial interests of the Commonwealth.
