Marketplace Economic Nexus Bill Passes Kentucky House

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

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All stories by: CCHTaxGroup