Statutes > Kentucky Statutes > CHAPTER 139 SALES AND USE TAXES > 139.510 Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications service.

139.510 Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications service.

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139.510 Use tax credit for sales tax paid in another state under reciprocal arrangement -- Tax credit for taxes paid in another state on communications <br>service. (1) The tax levied by KRS 139.310 shall not apply with respect to the storage, use, or other consumption of tangible personal property or digital property in this state <br>upon which a tax substantially identical to the tax levied under KRS 139.200 (not <br>including any special excise taxes such as are imposed on alcoholic beverages, <br>cigarettes, and the like) equal to or greater than the amount of tax imposed by KRS <br>139.310 has been legally paid in another state. Proof of payment of such tax shall be <br>according to rules and regulations of the department. If the amount of tax paid in <br>another state is not equal to or greater than the amount of tax imposed by KRS <br>139.310, then the taxpayer shall pay to the department an amount sufficient to make <br>the tax paid in the other state and in this state equal to the amount imposed by KRS <br>139.310. No credit shall be given under this section for sales taxes paid in another <br>state if that state does not grant credit for sales taxes paid in this state. (2) To prevent actual multistate taxation of a communications service subject to taxation under this chapter, any provider or purchaser, upon proof that the provider <br>or purchaser has paid a tax in another state on the same communications services, <br>shall be allowed a credit against the tax imposed by this chapter to the extent of the <br>amount of the tax legally paid in the other state. Effective: July 1, 2009 <br>History: Amended 2009 Ky. Acts ch. 73, sec. 19, effective July 1, 2009. -- Amended 2005 Ky. Acts ch. 85, sec. 422, effective June 20, 2005. -- Amended 2000 Ky. Acts <br>ch. 547, sec. 9, effective January 1, 2001. -- Created 1960 Ky. Acts ch. 5, Art. I, <br>sec. 72, effective February 5, 1960.