103 Kar 26:050. Common Carriers

Link to law: http://www.lrc.ky.gov/kar/103/026/050.htm
Published: 2015

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      103 KAR 26:050.

Common carriers.


      RELATES TO: KRS 139.470,



KRS Chapter 13A


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

transactions involving common carriers.


      Section 1. All

tangible personal property sold to or used by common carriers in this state

shall be subject to application of the sales or use tax with the exceptions

noted in Section 2 of this administrative regulation. Tax will be applicable to

leasing arrangements, or use pursuant to leasing arrangements, whereby items of

equipment (including, for example, but not limited to, such things as tires or

batteries) are acquired by common carriers for utilization over extended

periods of time in connection with operations. Such purchases, uses, leases,

and uses pursuant to leases are subject to the exceptions and qualifications

hereinafter noted.


      Section 2. Excepted

from application of the sales or use tax are the following:

      (1) Over the road

equipment or floating equipment which enters this state in actual use in

interstate commerce at the time of entering, and is used exclusively in

interstate commerce thereafter (nominal use in intrastate commerce will not

affect this exception from application of tax).

      (2) Locomotives or

rolling stock, including materials for the construction, repair, or

modification thereof, or fuel or supplies for the direct operation of

locomotives or trains, used or to be used in interstate commerce. The term

"rolling stock" shall mean only that equipment designed to move on

rails and used for the transportation of goods or passengers for hire.

      (3) Aircraft, repair

and replacement parts therefor, and supplies, except fuel, for the direct

operation of aircraft in interstate commerce and used exclusively for the

conveyance of property or passengers for hire (nominal use in intrastate

commerce will not affect this exception from application of tax). (SU-43-1; 1

Ky.R. 229; eff. 1-8-75; Am. 9 Ky.R. 1152; eff. 5-4-83; 13 Ky.R. 1084; eff.

1-13-87; Tam eff. 5-20-09.)