A bill containing marketplace economic nexus provisions and other sales tax provisions has passed the Kentucky House.
Marketplace Economic Nexus
Under current law, a remote retailer must register and collect Kentucky use tax if in the previous or current calendar year:
– they make at least 200 Kentucky sales transactions; or
– their gross receipts from Kentucky sales exceeds $100,000.
As passed by the House, the bill would:
– expand “retailer engaged in business in this state” to include remote retailers who meet either threshold and sell through marketplaces, and
– require registration and collection by marketplace providers who meet either threshold from their own sales or from sales in their marketplaces.
As currently drafted, the bill would also:
– replace the definition of “marketplace facilitator” with “marketplace provider” and amend it,
– expand “marketplace seller” to include sellers who would not be required to collect Kentucky use tax outside the marketplace, and
– remove the definition of “referrer.”
Other Sales Tax Provisions
The bill as passed by the House would:
– amend the partial exemption for energy or energy-producing fuels used in the course of manufacturing, processing, mining, or refining;
– exclude from “extended warranty services” services to certain utility property used to provide telecommunications or broadband; and
– exclude certain fishing event charges, boat ramps fees, and nonprofit admissions from taxable “admissions.”
H.B. 354, as passed by the Kentucky House of Representatives on February 21, 2019