103 KAR 25:050.
Factors and agents.
RELATES TO: KRS 139.010
STATUTORY AUTHORITY:
KRS Chapter 13A
NECESSITY, FUNCTION,
AND CONFORMITY: This administrative regulation interprets the sales and use tax
law as it applies to transactions involving factors and agents.
Section 1. A factor,
or agent of an owner, or former owner or factor, to whom property is consigned,
entrusted, or otherwise delivered for the purpose of selling shall be
considered the retailer of such property when sold. Said factor, or agent,
shall include the retail selling price of said property in his gross receipts
and be liable for the sales tax thereon; provided, however, that said factor or
agent need not include the retail selling price of the subject property in his
gross receipts in those instances where the principal involved is a retail
permit holder under the Kentucky Sales and Use Tax Act, and said principal
includes the retail selling price of the subject property in his gross
receipts.
Section 2. The
delivery in this state by a factor, or agent of an owner, or former owner or
factor, to a consumer or person for redelivery to a consumer pursuant to a
retail sale made by a retailer not engaged in business in this state shall be
considered a retail sale. Said factor, or agent, shall include the retail
selling price of said property in his gross receipts and be liable for the
sales tax thereon; provided, however, that said factor or agent need not
include the retail selling price of the subject property in his gross receipts
in those instances where the principal involved is a retail permit holder under
the Kentucky Sales and Use Tax Act, and said principal includes the retail
selling price of the subject property in his gross receipts. (SU-36; 1 Ky.R.
144; eff. 12-11-74; Tam eff. 5-20-09.)