103 KAR 28:060.

Replacement parts.

 

      RELATES TO: KRS

139.050, 139.100, 139.130

      STATUTORY

AUTHORITY: KRS Chapter 13A

      NECESSITY,

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

to the furnishing of parts or materials under the provisions of a guarantee.

 

      Section 1. The

sale of tangible personal property by a retailer includes the furnishing,

pursuant to the guaranty provisions of the contract of sale, of replacement

parts or materials. Sales of such property to a retailer are therefore sales

for resale with respect to which tax does not apply.

 

      Section 2. Any

charge made by the retailer for replacement parts or material shall be included

in "gross receipts" or "sales price," as the case may be.

(SU-46; 1 Ky.R. 231; eff. 1-8-75.)