103 KAR 26:060.

Painters and finishers.

 

      RELATES TO: KRS 139.010

      STATUTORY AUTHORITY:

KRS Chapter 13A

      NECESSITY, FUNCTION,

AND CONFORMITY: To interpret the sales and use tax law as it applies to

painting or finishing real and tangible personal property.

 

      Section 1. Persons

engaged in the business of painting or finishing tangible personal property are

the sellers of tangible personal property. As a seller, a painter or finisher

must obtain a retail sales and use tax permit and remit the tax measured by the

gross receipts from charges for painting or finishing finished products for

consumers.

 

      Section 2. Tax does

not apply to charges for repainting or refinishing used articles. Tax applies

in such case to the sale to the finisher of the paint and other materials used

in the process, as he is regarded as the consumer of such property. If the

refinisher uses paint or other materials purchased under a resale certificate,

or without payment of use tax, he must report and pay tax measured by the cost

of the materials to him.

 

      Section 3. House

painters are consumers and tax does not apply to charges for painting real

estate. Tax applies in such case to the sale of paint to the house painter.

(SU-51; 1 Ky.R. 229; eff. 1-8-75; Tam eff. 5-20-09.)