103 KAR 26:060.
Painters and finishers.
RELATES TO: KRS 139.010
KRS Chapter 13A
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
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.)