KRS 45A.067: Requirement for registration with Department of Revenue to collect and

remit sales and use tax -- Exemption -- Applicability to foreign persons --

Administrative regulation.

(1) As used in this section:

(a) "Affiliate" means a person who direct ly or indirectly owns or controls, is

owned or controlled by, or is under common ownership or control with

another person or group of persons; and

(b) "Person" includes any individual, firm, copartnership, pass -through entity as

defined in KRS 141.010, joi nt venture, association, social club, fraternal

organization, corporation, estate, trust, business trust, receiver, trustee,

syndicate, cooperative, assignee, governmental unit or agency, or any other

group or combination acting as a unit.

(2) The Commonwe alth shall not contract to acquire goods or services, and a person

shall not contract to supply goods or services to the Commonwealth, unless, prior to

or contemporaneous with entering into the contract, the person contracting to supply

goods or services a nd its affiliates register with the Department of Revenue to

collect and remit the sales and use tax imposed by KRS Chapter 139.

(3) Nothing in this section shall require a person or affiliate to register if the person or

affiliate does not make sales to customers in the Commonwealth.

(4) The provisions of subsection (2) of this section are specifically applicable to foreign

persons, notwithstanding the fact that the foreign person or the affiliate may not

otherwise be legally obligated to collect and remit the sales and use tax.

(5) The secretary of the Finance and Administration Cabinet shall promulgate an

administrative regulation to establish the procedure ensuring compliance with the

provisions of this section.