Tax Will Be Paid On Out-Of-State Purchases

FRANKFORT, Ky. (AP) - A procedural change will soon take effect when taxpayers title or register certain tangible personal property purchased outside Kentucky.

Taxpayers should be prepared to pay the six percent use tax starting July 23rd on items purchased at retail from out-of-state vendors such as boats, trailers, ATVs and manufactured homes. They'll pay the tax when seeking titling or first-time registration.

The use tax is complementary to the sales tax imposed on in-state purchases to ensure equal tax treatment of retail transactions regardless of where the items are purchased.

If proper documentation is provided, the clerk will allow credit for the out-of-state sales tax previously paid on the property or accept any applicable sales and use tax exemptions that may apply to the specific property being presented for processing by the clerk.

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