103 KAR 31:090. Tax-paid purchases resold

Section 1. Definition. "Tax-paid purchases resold" means a sales and use tax deduction taken by a retailer on the sales tax return in the amount of the purchase price of property where the retailer: (1) Sells the property before making any use thereof, other than retention, demonstration, or display while holding it for sale in the regular course of business; (2) Reports the sale and remits applicable sales and use tax on the sales price of the property; and (3) Has previously paid the Kentucky sales or use tax on the purchase price of the property. Section 2. The tax-paid purchases resold deduction described in Section 1 of this administrative regulation may be used in any of the following circumstances: (1) The retailer, when making the purchase, intends to use the property rather than resell it but later resells it before making any use thereof; (2) The particular property is not of a kind ordinarily sold or stocked by the retailer and not customarily covered by resale certificates given to their vendors; (3) The particular property is generally for the use of the retailer, but a small portion is incidentally resold; or (4) Through error, sales or use tax is paid by the retailer with respect to the purchase price of property purchased for resale in the regular course of business.