KRS 139.290: Property used by purchaser after giving certificate -- When retailer may

deduct purchase price.

(1) If a retailer or seller who gives a resale certificate makes any use of the tangible

personal property or digital property other than retention, demons tration or display

while holding it for sale in the regular course of business, the use shall be taxable to

the retailer or seller as of the time the property is first used by the retailer or seller,

and the sales price of the property to the retailer or s eller shall be deemed the

measure of the tax.

(2) If the sole use of the property by the retailer other than retention, demonstration or

display in the regular course of business is the rental of the property while holding it

for sale, the retailer shall i nclude in gross receipts the amount of the rental charged

rather than the sales price of the property.

(3) If a retailer sells tangible personal property or digital property before making any

use thereof, other than retention, demonstration, or display whi le holding it for sale

in the regular course of business, the retailer may take a deduction of the purchase

price of the property if, with respect to its purchase, the retailer has reimbursed the

vendor for the sales tax or has paid the use tax. If a deduc tion is taken by the

retailer, no refund or credit shall be allowed to the vendor with respect to the sale of

that property.