FINANCE AND ADMINISTRATION CABINET
Department of Revenue
(As Amended at ARRS, December 12, 2017)
RELATES TO: KRS 139.010, 139.240, 139.260, 139.470, 139.485, 139.720
AUTHORITY: KRS 131.130(1)[
KRS Chapter 13A]
FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of
Revenue to promulgate administrative regulations to administer and enforce
Kentucky's tax laws. This administrative regulation establishes the
requirements when interpreting[
To interpret] the sales and use tax
law as it applies to sales of tangible personal property through vending
Section 1. Persons
who own vending machines which dispense tangible personal property, or
operators of the[
such] machines under lease or
rental agreements, shall complete a “Kentucky Tax Registration
Application”, Revenue form 10A100, to obtain a Kentucky Retail Sales and Use
Tax[ must obtain a] permit to engage in the business of
selling tangible personal property and shall[ must]
report and pay to the department the tax upon the gross receipts from sales
made through the[ such] machines by
utilizing Revenue Form 51A102, “Sales and Use Tax Return”. One (1)
permit shall be[ is] sufficient for all machines of
one (1) owner or operator.
Section 2. The
owners or operators of vending machines shall be responsible for reporting and
paying the tax on the total gross receipts even though the owner or operator of
the place in which the machines are located receives a share of the[
gross receipts under a commission or concession contract. In reporting and
paying the[ such] tax, the owner or operator shall
be deemed the agent of the operator or owner of the[ such]
place of business in which the machine is located to the extent of commissions
due the latter. Gross receipts from sales of tangible personal property made in
portions of fifty (50)[ twenty-five (25)] cents or less through
coin operated bulk vending machines where unsorted merchandise is dispensed in
approximately equal portions are exempt from the sales and use tax (KRS
Section 3. A statement in the following form must be affixed upon each vending machine in a conspicuous place: "This vending machine is owned (operated) by _______ Owner (Operator), __________ Place of Business of Owner (Operator), who holds Permit No._____, issued pursuant to the Sales and Use Tax Law."
Section 4. If the owner or operator of vending machines also places upon each machine a statement that the sales tax is included in the price of the property dispensed, he may compute his liability for the tax in the same manner as all other retailers who separately state the tax.
Section 5. Adequate and complete records must be kept by the owner or operator showing the location of each vending machine owned or operated by him, the serial number thereof, purchases and inventories of merchandise bought for sale through such machine, and the gross receipts derived from each location during each tax period.
Section 6. Forms. The forms listed within this administrative regulation may be inspected, copied, or obtained:
(1) At the Kentucky Department of Revenue, 501 High Street, Frankfort, Kentucky 40620;
(2) At a Kentucky Taxpayer Service Center; or
(3) On the department Web site at http://revenue.ky.gov.
DANIEL P. BORK, Commissioner
APPROVED BY AGENCY: October 6, 2017
FILED WITH LRC: October 12, 2017 at 4 p.m.
CONTACT PERSON: Lisa Swiger, Tax Policy Research Consultant, Department of Revenue, 501 High Street, Station 1, Frankfort, Kentucky 40601, phone (502) 564-9526, fax (502) 564-3875, email Lisa.Swiger@ky.gov.