{"data":{"id":"us-ky/krs-139.010","jurisdiction":"us-ky","citation":"KRS 139.010","heading":"Definitions for chapter.","body":"As used in this chapter, unless the context otherwise provides:\n(1) (a) \"Admissions\" means the fees paid for:\n1. The right of entrance to a display, program, sporting event, music\nconcert, performance, play, show, movie, exhibit, fair, or other\nentertainment or amusement event or venue; and\n2. The privilege of using facilities or participating in an event or activity,\nincluding but not limited to:\na. Bowling centers;\nb. Skating rinks;\nc. Health spas;\nd. Swimming pools;\ne. Tennis courts;\nf. Weight training facilities;\ng. Fitness and recreational sports centers; and\nh. Golf courses, both public and private;\nregardless of whether the fee paid is per use or in any other form,\nincluding but not limited to an initiation fee, monthly fee, membersh ip\nfee, or combination thereof.\n(b) \"Admissions\" does not include:\n1. Any fee paid to enter or participate in a fishing tournament; or\n2. Any fee paid for the use of a boat ramp for the purpose of allowing\nboats to be launched into or hauled out from the water;\n(2) \"Advertising and promotional direct mail\" means direct mail the primary purpose of\nwhich is to attract public attention to a product, person, business, or organization, or\nto attempt to sell, popularize, or secure financial support for a product,  person,\nbusiness, or organization. As used in this definition, \"product\" means tangible\npersonal property, an item transferred electronically, or a service;\n(3) \"Business\" includes any activity engaged in by any person or caused to be engaged\nin by that p erson with the object of gain, benefit, or advantage, either direct or\nindirect;\n(4) \"Commonwealth\" means the Commonwealth of Kentucky;\n(5) (a) \"Cosmetic surgery services\" means modifications to all areas of the head,\nneck, and body to enhance appearance t hrough surgical and medical\ntechniques.\n(b) \"Cosmetic surgery services\" does not include surgery services that are\nmedically necessary to reconstruct or correct dysfunctional areas of the face\nand body due to birth disorders, trauma, burns, or disease;\n(6) \"Data brokering services\" means the act of collecting, aggregating, and analyzing\npersonal data for sale to a third party while possession of the personal data is\nmaintained by the person providing the data brokering services or by the third party,\nwherever located, regardless of whether the charge for the services provided is on a\nper use, per user, per license, subscription, or some other basis;\n(7) \"Department\" means the Department of Revenue;\n(8) (a) \"Digital audio -visual works\" means a series of relat ed images which, when\nshown in succession, impart an impression of motion, with accompanying\nsounds, if any.\n(b) \"Digital audio -visual works\" includes movies, motion pictures, musical\nvideos, news and entertainment programs, and live events.\n(c) \"Digital a udio-visual works\" does not include video greeting cards, video\ngames, and electronic games;\n(9) (a) \"Digital audio works\" means works that result from the fixation of a series of\nmusical, spoken, or other sounds.\n(b) \"Digital audio works\" includes rington es, recorded or live songs, music,\nreadings of books or other written materials, speeches, or other sound\nrecordings.\n(c) \"Digital audio works\" does not include audio greeting cards sent by electronic\nmail;\n(10) (a) \"Digital books\" means works that are generally recognized in the ordinary and\nusual sense as books, including any literary work expressed in words,\nnumbers, or other verbal or numerical symbols or indicia if the literary work\nis generally recognized in the ordinary or usual sense as a book.\n(b) \"Digital books\" does not include digital audio -visual works, digital audio\nworks, periodicals, magazines, newspapers, or other news or information\nproducts, chat rooms, or weblogs;\n(11) (a) \"Digital code\" means a code which provides a purchaser with a righ t to obtain\none (1) or more types of digital property. A \"digital code\" may be obtained by\nany means, including electronic mail messaging or by tangible means,\nregardless of the code's designation as a song code, video code, or book code.\n(b) \"Digital code\" does not include a code that represents:\n1. A stored monetary value that is deducted from a total as it is used by the\npurchaser; or\n2. A redeemable card, gift card, or gift certificate that entitles the holder to\nselect specific types of digital property;\n(12) (a) \"Digital property\" means any of the following which is transferred\nelectronically:\n1. Digital audio works;\n2. Digital books;\n3. Finished artwork;\n4. Digital photographs;\n5. Periodicals;\n6. Newspapers;\n7. Magazines;\n8. Video greeting cards;\n9. Audio greeting cards;\n10. Video games;\n11. Electronic games; or\n12. Any digital code related to this property.\n(b) \"Digital property\" does not include digital audio -visual works or satellite\nradio programming;\n(13) (a) \"Direct mail\" means printed material delivered or distributed by United States\nmail or other delivery service to a mass audience or to addressees on a mailing\nlist provided by the purchaser or at the direction of the purchaser when the\ncost of the items are not billed directly to the recipient.\n(b) \"Direct mail\" includes tangible personal property supplied directly or\nindirectly by the purchaser to the direct mail retailer for inclusion in the\npackage containing the printed material.\n(c) \"Direct mail\" does not include multiple item s of printed material delivered to\na single address;\n(14) \"Directly used in the manufacturing or industrial processing process\" means the\nprocess that commences with the movement of raw materials from storage into a\ncontinuous, unbroken, integrated process  and ends when the finished product is\npackaged and ready for sale;\n(15) (a) \"Executive employee recruitment services\" means services provided by a\nperson to locate potential candidates to fill open senior -level management\npositions.\n(b) \"Executive employe e recruitment services\" includes but is not limited to\nmaking a detailed list of client requirements, researching and identifying\npotential candidates, performing prescreening interviews, and providing\ncontract and salary negotiations;\n(16) (a) \"Extended w arranty services\" means services provided through a service\ncontract agreement between the contract provider and the purchaser where the\npurchaser agrees to pay compensation for the contract and the provider agrees\nto repair, replace, support, or maintain tangible personal property, digital\nproperty, real property, or prewritten computer software access services\naccording to the terms of the contract.\n(b) \"Extended w arranty services\" does not include the sale of a service contract\nagreement for tangible personal property to be used by a small telephone\nutility as defined in KRS 278.516 or a Tier III CMRS provider as defined in\nKRS 65.7621 to deliver communications ser vices as defined in KRS 136.602\nor broadband;\n(17) (a) \"Finished artwork\" means final art that is used for actual reproduction by\nphotomechanical or other processes or for display purposes.\n(b) \"Finished artwork\" includes:\n1. Assemblies;\n2. Charts;\n3. Designs;\n4. Drawings;\n5. Graphs;\n6. Illustrative materials;\n7. Lettering;\n8. Mechanicals;\n9. Paintings; and\n10. Paste-ups;\n(18) (a) \"Gross receipts\" and \"sales price\" mean the total amount or consideration,\nincluding cash, credit, property, and services, for w hich tangible personal\nproperty, digital property, or services are sold, leased, or rented, valued in\nmoney, whether received in money or otherwise, without any deduction for\nany of the following:\n1. The retailer's cost of the tangible personal property, d igital property, or\nservices sold;\n2. The cost of the materials used, labor or service cost, interest, losses, all\ncosts of transportation to the retailer, all taxes imposed on the retailer, or\nany other expense of the retailer;\n3. Charges by the retailer for any services necessary to complete the sale;\n4. Delivery charges, which are defined as charges by the retailer for the\npreparation and delivery to a location designated by the purchaser\nincluding transportation, shipping, postage, handling, crating, an d\npacking;\n5. Any amount for which credit is given to the purchaser by the retailer,\nother than credit for tangible personal property or digital property traded\nwhen the tangible personal property or digital property traded is of like\nkind and character to  the property purchased and the property traded is\nheld by the retailer for resale; and\n6. The amount charged for labor or services rendered in installing or\napplying the tangible personal property, digital property, or service sold.\n(b) \"Gross receipts\" a nd \"sales price\" include consideration received by the\nretailer from a third party if:\n1. The retailer actually receives consideration from a third party and the\nconsideration is directly related to a price reduction or discount on the\nsale to the purchaser;\n2. The retailer has an obligation to pass the price reduction or discount\nthrough to the purchaser;\n3. The amount of consideration attributable to the sale is fixed and\ndeterminable by the retailer at the time of the sale of the item to the\npurchaser; and\n4. One (1) of the following criteria is met:\na. The purchaser presents a coupon, certificate, or other\ndocumentation to the retailer to claim a price reduction or discount\nwhere the coupon, certificate, or documentation is authorized,\ndistributed, or gr anted by a third party with the understanding that\nthe third party will reimburse any seller to whom the coupon,\ncertificate, or documentation is presented;\nb. The price reduction or discount is identified as a third -party price\nreduction or discount on the invoice received by the purchaser or\non a coupon, certificate, or other documentation presented by the\npurchaser; or\nc. The purchaser identifies himself or he rself to the retailer as a\nmember of a group or organization entitled to a price reduction or\ndiscount. A \"preferred customer\" card that is available to any\npatron does not constitute membership in such a group.\n(c) \"Gross receipts\" and \"sales price\" do not include:\n1. Discounts, including cash, term, or coupons that are not reimbursed by a\nthird party and that are allowed by a retailer and taken by a purchaser on\na sale;\n2. Interest, financing, and carrying charges from credit extended on the\nsale of tangi ble personal property, digital property, or services, if the\namount is separately stated on the invoice, bill of sale, or similar\ndocument given to the purchaser;\n3. Any taxes legally imposed directly on the purchaser that are separately\nstated on the invo ice, bill of sale, or similar document given to the\npurchaser; or\n4. Local alcohol regulatory license fees authorized under KRS 243.075 that\nare separately stated on the invoice, bill of sale, or similar document\ngiven to the purchaser.\n(d) As used in this  subsection, \"third party\" means a person other than the\npurchaser;\n(19) \"In this state\" or \"in the state\" means within the exterior limits of the\nCommonwealth and includes all territory within these limits owned by or ceded to\nthe United States of America;\n(20) \"Industrial processing\" includes:\n(a) Refining;\n(b) Extraction of minerals, ores, coal, clay, stone, petroleum, or natural gas;\n(c) Mining, quarrying, fabricating, and industrial assembling;\n(d) The processing and packaging of raw materials, in -process materials, and\nfinished products; and\n(e) The processing and packaging of farm and dairy products for sale;\n(21) (a) \"Lease or rental\" means any transfer of possession or control of tangible\npersonal property for a fixed or indeterminate term for consi deration. A lease\nor rental includes future options to:\n1. Purchase the property; or\n2. Extend the terms of the agreement and agreements covering trailers\nwhere the amount of consideration may be increased or decreased by\nreference to the amount realized u pon sale or disposition of the property\nas defined in 26 U.S.C. sec. 7701(h)(1).\n(b) \"Lease or rental\" does not include:\n1. A transfer of possession or control of property under a security\nagreement or deferred payment plan that requires the transfer of ti tle\nupon completion of the required payments;\n2. A transfer of possession or control of property under an agreement that\nrequires the transfer of title upon completion of the required payments\nand payment of an option price that does not exceed the greater  of one\nhundred dollars ($100) or one percent (1%) of the total required\npayments; or\n3. Providing tangible personal property and an operator for the tangible\npersonal property for a fixed or indeterminate period of time. To qualify\nfor this exclusion, the  operator must be necessary for the equipment to\nperform as designed, and the operator must do more than maintain,\ninspect, or setup the tangible personal property.\n(c) This definition shall apply regardless of the classification of a transaction\nunder generally accepted accounting principles, the Internal Revenue Code, or\nother provisions of federal, state, or local law;\n(22) (a) \"Lobbying services\" means the act of promoting or securing passage of\nlegislation or an attempt to influence or sway a public of ficial or other public\nservant toward a desired action, including but not limited to the support of or\nopposition to a project or the passage, amendment, defeat, approval, or veto of\nany legislation, regulation, rule, or ordinance.\n(b) \"Lobbying services\" includes but is not limited to the performance of\nactivities described as executive agency lobbying activities as defined in KRS\n11A.201, activities described under the definition of lobby in KRS 6.611, and\nany similar activities performed at the local, state, or federal levels;\n(23) (a) \"Machinery for new and expanded industry\" means machinery:\n1. Directly used in the manufacturing or industrial processing process of:\na. Tangible personal property at a plant facility;\nb. Distilled spirits or wine at a plant facility or on the premises of a\ndistiller, rectifier, winery, or small farm winery licensed under\nKRS 243.030 that includes a retail establishment on the premises;\nor\nc. Malt beverages at a plant facility or on the premises of a brewer or\nmicrobrewery licensed under KRS 243.040 that includes a retail\nestablishment;\n2. Which is incorporated for the first time into:\na. A plant facility established in this state; or\nb. Licensed premises located in this state; and\n3. Which does not replace machinery in the plant facility or licensed\npremises unless that machinery purchased to replace existing machinery:\na. Increases the consumption of recycled materials at the plant\nfacility by not less than ten percent (10%);\nb. Performs different functions;\nc. Is used to manufacture a different product; or\nd. Has a greater productive capacity, as measured in units of\nproduction, than the machinery being replaced.\n(b) \"Machinery for new and expanded industry\" does not include repair,\nreplacement, or spare parts of any kind, regardless of whether the purchase of\nrepair, replacement, or spare parts is required by the manufacturer or seller as\na condition of sale or as a condition of warranty;\n(24) \"Manufacturing\" means any process through which material having little or no\ncommercial value for its intended use before processing has appreciable\ncommercial value for its intended use after processing by the machinery;\n(25) \"Marketplace\" means any p hysical or electronic means through which one (1) or\nmore retailers may advertise and sell tangible personal property, digital property, or\nservices, or lease tangible personal property or digital property, such as a catalog,\ninternet website, or television or radio broadcast, regardless of whether the tangible\npersonal property, digital property, or retailer is physically present in this state;\n(26) (a) \"Marketplace provider\" means a person, including any affiliate of the person,\nthat facilitates a retail sale by satisfying subparagraphs 1. and 2. of this\nparagraph as follows:\n1. The person directly or indirectly:\na. Lists, makes available, or advertises tangible personal property,\ndigital property, or services for sale by a marketplace retailer in a\nmarketplace owned, operated, or controlled by the person;\nb. Facilitates the sale of a marketplace retailer's product through a\nmarketplace by transmitting or otherwise communicating an offer\nor acceptance of a retail sale of tangible personal property, digital\nproperty, or services between a marketplace retailer and a\npurchaser in a forum including a shop, store, booth, catalog,\ninternet site, or similar forum;\nc. Owns, rents, licenses, makes available, or operates any electronic\nor physical infrastructure or an y property, process, method,\ncopyright, trademark, or patent that connects marketplace retailers\nto purchasers for the purpose of making retail sales of tangible\npersonal property, digital property, or services;\nd. Provides a marketplace for making retail sales of tangible personal\nproperty, digital property, or services, or otherwise facilitates retail\nsales of tangible personal property, digital property, or services,\nregardless of ownership or control of the tangible personal\nproperty, digital property, or services, that are the subject of the\nretail sale;\ne. Provides software development or research and development\nactivities related to any activity described in this subparagraph, if\nthe software development or research and development activities\nare dir ectly related to the physical or electronic marketplace\nprovided by a marketplace provider;\nf. Provides or offers fulfillment or storage services for a marketplace\nretailer;\ng. Sets prices for a marketplace retailer's sale of tangible personal\nproperty, digital property, or services;\nh. Provides or offers customer service to a marketplace retailer or a\nmarketplace retailer's customers, or accepts or assists with taking\norders, returns, or exchanges of tangible personal property, digital\nproperty, or services sold by a marketplace retailer; or\ni. Brands or otherwise identifies sales as those of the marketplace\nprovider; and\n2. The person directly or indirectly:\na. Collects the sales price or purchase price of a retail sale of tangible\npersonal property, digital property, or services;\nb. Provides payment processing services for a retail sale of tangible\npersonal property, digital property, or services;\nc. Through terms and conditions, agreements, or arrangements with a\nthird party, collects payment in connection with a retail sale of\ntangible personal property, digital property, or services from a\npurchaser and transmits that payment to the marketplace retailer,\nregardless of whether the person collecting and transmitting the\npayment receives compensation or other consideration in exchange\nfor the service; or\nd. Provides a virtual currency that purchasers are allowed or required\nto use to purchase tangible personal property, digital property, or\nservices.\n(b) \"Marketplace provider\" includes but is not limited to a person that satisfies the\nrequirements of this subsection through the ownership, operation, or control\nof a digital distribution service, digital distribution platform, online portal, or\napplication store;\n(27) \"Marketplace retailer\" means a seller that makes retail sales through any\nmarketplace owned, operated, or controlled by a marketplace provider;\n(28) (a) \"Occasional sale\" includes:\n1. A sale of tangible personal property or digital property not held or used\nby a seller in the course of an activity for which he or she is required to\nhold a seller's permit, provided such sale is not one (1) of a series of\nsales sufficient in number, scope, and character to constitute an activity\nrequiring the holding of a seller's permit. In the case of the sale of the\nentire, or a substantial porti on of the nonretail assets of the seller, the\nnumber of previous sales of similar assets shall be disregarded in\ndetermining whether or not the current sale or sales shall qualify as an\noccasional sale; or\n2. Any transfer of all or substantially all the ta ngible personal property or\ndigital property held or used by a person in the course of such an activity\nwhen after such transfer the real or ultimate ownership of such property\nis substantially similar to that which existed before such transfer.\n(b) For th e purposes of this subsection, stockholders, bondholders, partners, or\nother persons holding an interest in a corporation or other entity are regarded\nas having the \"real or ultimate ownership\" of the tangible personal property or\ndigital property of such corporation or other entity;\n(29) (a) \"Other direct mail\" means any direct mail that is not advertising and\npromotional direct mail, regardless of whether advertising and promotional\ndirect mail is included in the same mailing.\n(b) \"Other direct mail\" includes but is not limited to:\n1. Transactional direct mail that contains personal information specific to\nthe addressee, including but not limited to invoices, bills, statements of\naccount, and payroll advices;\n2. Any legally required mailings, including but  not limited to privacy\nnotices, tax reports, and stockholder reports; and\n3. Other nonpromotional direct mail delivered to existing or former\nshareholders, customers, employees, or agents, including but not limited\nto newsletters and informational pieces.\n(c) \"Other direct mail\" does not include the development of billing information or\nthe provision of any data processing service that is more than incidental to the\nproduction of printed material;\n(30) \"Person\" includes any individual, firm, copartnership,  joint venture, association,\nsocial club, fraternal organization, corporation, estate, trust, business trust, receiver,\ntrustee, syndicate, cooperative, assignee, governmental unit or agency, or any other\ngroup or combination acting as a unit;\n(31) \"Permanent,\" as the term applies to digital property, means perpetual or for an\nindefinite or unspecified length of time;\n(32) (a) \"Photography and photofinishing services\" means:\n1. The taking, developing, or printing of an original photograph; or\n2. Image editing, including shadow removal, tone adjustments, vertical and\nhorizontal alignment and cropping, composite image creation,\nformatting, watermarking printing, and delivery of an original\nphotograph in the form of tangible personal property, digital property,  or\nother media.\n(b) \"Photography and photofinishing services\" does not include photography\nservices necessary for medical or dental health;\n(33) \"Plant facility\" means a single location that is exclusively dedicated to\nmanufacturing or industrial processing activities. A location shall be deemed to be\nexclusively dedicated to manufacturing or industrial processing activities even if\nretail sales ar e made there, provided that the retail sales are incidental to the\nmanufacturing or industrial processing activities occurring at the location. The term\n\"plant facility\" does not include any restaurant, grocery store, shopping center, or\nother retail establishment;\n(34) (a) \"Prewritten computer software\" means:\n1. Computer software, including prewritten upgrades, that are not designed\nand developed by the author or other creator to the specifications of a\nspecific purchaser;\n2. Software designed and develop ed by the author or other creator to the\nspecifications of a specific purchaser when it is sold to a person other\nthan the original purchaser; or\n3. Any portion of prewritten computer software that is modified or\nenhanced in any manner, where the modificat ion or enhancement is\ndesigned and developed to the specifications of a specific purchaser,\nunless there is a reasonable, separately stated charge on an invoice or\nother statement of the price to the purchaser for the modification or\nenhancement.\n(b) When a person modifies or enhances computer software of which the person\nis not the author or creator, the person shall be deemed to be the author or\ncreator only of the modifications or enhancements the person actually made.\n(c) The combining of two (2) or mor e prewritten computer software programs or\nportions thereof does not cause the combination to be other than prewritten\ncomputer software;\n(35) \"Prewritten computer software access services\" means the right of access to\nprewritten computer software where th e object of the transaction is to use the\nprewritten computer software while possession of the prewritten computer software\nis maintained by the seller or a third party, wherever located, regardless of whether\nthe charge for the access or use is on a per u se, per user, per license, subscription, or\nsome other basis;\n(36) (a) \"Purchase\" means any transfer of title or possession, exchange, barter, lease,\nor rental, conditional or otherwise, in any manner or by any means\nwhatsoever, of:\n1. Tangible personal property;\n2. An extended warranty service;\n3. Digital property transferred electronically; or\n4. Services included in KRS 139.200;\nfor a consideration.\n(b) \"Purchase\" includes:\n1. When performed outside this state or when the customer gives a resale\ncertificate, the producing, fabricating, processing, printing, or imprinting\nof tangible personal property for a consideration for consumers who\nfurnish either directly or indirectly the materials used in the producing,\nfabricating, processing, printing, or imprinting;\n2. A transaction whereby the possession of tangible personal property or\ndigital property is transferred but the seller retains the title as security\nfor the payment of the price; and\n3. A transfer for a consideration of the title or possession of t angible\npersonal property or digital property which has been produced,\nfabricated, or printed to the special order of the customer, or of any\npublication;\n(37) \"Recycled materials\" means materials which have been recovered or diverted from\nthe solid waste stream and reused or returned to use in the form of raw materials or\nproducts;\n(38) \"Recycling purposes\" means those activities undertaken in which materials that\nwould otherwise become solid waste are collected, separated, or processed in order\nto be reused or returned to use in the form of raw materials or products;\n(39) \"Remote retailer\" means a retailer with no physical presence in this state;\n(40) (a) \"Repair, replacement, or spare parts\" means any tangible personal property\nused to maintain, restore, mend, or repair machinery or equipment.\n(b) \"Repair, replacement, or spare parts\" does not include machine oils, grease, or\nindustrial tools;\n(41) (a) \"Retailer\" means:\n1. Every person engaged in the business of making retail sales of tangible\npersonal property, digital property, or furnishing any services in a retail\nsale included in KRS 139.200;\n2. Every person engaged in the business of making sales at auction of\ntangible personal property or digital property owned by the person or\nothers for storage, use or other consumption, except as provided in\nparagraph (c) of this subsection;\n3. Every person m aking more than two (2) retail sales of tangible personal\nproperty, digital property, or services included in KRS 139.200 during\nany twelve (12) month period, including sales made in the capacity of\nassignee for the benefit of creditors, or receiver or trustee in bankruptcy;\n4. Any person conducting a race meeting under the provision of KRS\nChapter 230, with respect to horses which are claimed during the\nmeeting.\n(b) When the department determines that it is necessary for the efficient\nadministration of thi s chapter to regard any salesmen, representatives,\npeddlers, or canvassers as the agents of the dealers, distributors, supervisors or\nemployers under whom they operate or from whom they obtain the tangible\npersonal property, digital property, or services s old by them, irrespective of\nwhether they are making sales on their own behalf or on behalf of the dealers,\ndistributors, supervisors or employers, the department may so regard them and\nmay regard the dealers, distributors, supervisors or employers as reta ilers for\npurposes of this chapter.\n(c) 1. Any person making sales at a charitable auction for a qualifying entity\nshall not be a retailer for purposes of the sales made at the charitable\nauction if:\na. The qualifying entity, not the person making sales at the auction, is\nsponsoring the auction;\nb. The purchaser of tangible personal property at the auction directly\npays the qualifying entity sponsoring the auction for the property\nand not the person making the sales at the auction; and\nc. The qualifying entity, not the person making sales at the auction, is\nresponsible for the collection, control, and disbursement of the\nauction proceeds.\n2. If the conditions set forth in subparagraph 1. of this paragraph are met,\nthe qualifying entity sponsoring the auction  shall be the retailer for\npurposes of the sales made at the charitable auction.\n3. For purposes of this paragraph, \"qualifying entity\" means a resident:\na. Church;\nb. School;\nc. Civic club; or\nd. Any other nonprofit charitable, religious, or educational\norganization;\n(42) \"Retail sale\" means any sale, lease, or rental for any purpose other than resale,\nsublease, or subrent;\n(43) (a) \"Ringtones\" means digitized sound files that are downloaded onto a device\nand that may be used to alert the customer with respect to a communication.\n(b) \"Ringtones\" does not include ringback tones or other digital files that are not\nstored on the purchaser's communications device;\n(44) (a) \"Sale\" means:\n1. The furnishing of any services included in KRS 139.200; or\n2. Any transf er of title or possession, exchange, barter, lease, or rental,\nconditional or otherwise, in any manner or by any means whatsoever,\nof:\na. Tangible personal property; or\nb. Digital property transferred electronically;\nfor a consideration.\n(b) \"Sale\" includes but is not limited to:\n1. The producing, fa bricating, processing, printing, or imprinting of\ntangible personal property or digital property for a consideration for\npurchasers who furnish, either directly or indirectly, the materials used\nin the producing, fabricating, processing, printing, or imprinting;\n2. A transaction whereby the possession of tangible personal property or\ndigital property is transferred, but the seller retains the title as security\nfor the payment of the price; and\n3. A transfer for a consideration of the title or possession of tangible\npersonal property or digital property which has been produced,\nfabricated, or printed to the special order of the purchaser.\n(c) This definition shall apply regardless of the classification of a transaction\nunder generally accepted accounting principles, the Internal Revenue Code, or\nother provisions of federal, state, or local law;\n(45) \"Seller\" includes every person engaged in the business of selling tangible personal\nproperty, digital property, or services of a kind, the gross receipts from the retail\nsale of which are required to be included in the measure of the sales tax, and every\nperson engaged in making sales for resale;\n(46) (a) \"Storage\" includes any keeping or retention in this state for any purpose\nexcept sale in the regular course of b usiness or subsequent use solely outside\nthis state of tangible personal property, digital property, or prewritten\ncomputer software access services purchased from a retailer.\n(b) \"Storage\" does not include the keeping, retaining, or exercising any right o r\npower over tangible personal property for the purpose of subsequently\ntransporting it outside the state for use thereafter solely outside the state, or\nfor the purpose of being processed, fabricated, or manufactured into, attached\nto, or incorporated int o, other tangible personal property to be transported\noutside the state and thereafter used solely outside the state;\n(47) \"Tangible personal property\" means personal property which may be seen,\nweighed, measured, felt, or touched, or which is in any other  manner perceptible to\nthe senses and includes natural, artificial, and mixed gas, electricity, water, steam,\nand prewritten computer software;\n(48) \"Taxpayer\" means any person liable for tax under this chapter;\n(49) \"Telemarketing services\" means services  provided via telephone, facsimile,\nelectronic mail, text messages, or other modes of communications to another\nperson, which are unsolicited by that person, for the purposes of:\n(a) 1. Promoting products or services;\n2. Taking orders; or\n3. Providing info rmation or assistance regarding the products or services;\nor\n(b) Soliciting contributions;\n(50) \"Transferred electronically\" means accessed or obtained by the purchaser by means\nother than tangible storage media; and\n(51) (a) \"Use\" includes the exercise of:\n1. Any right or power over tangible personal property or digital property\nincident to the ownership of that property, or by any transaction in\nwhich possession is given, or by any transaction involving digital\nproperty or tangible personal property where  the right of access is\ngranted; or\n2. Any right or power to benefit from any services subject to tax under\nKRS 139.200(2)(p) to (ay).\n(b) \"Use\" does not include the keeping, retaining, or exercising any right or\npower over:\n1. Tangible personal property or digital property for the purpose of:\na. Selling tangible personal property or digital property in the regular\ncourse of business; or\nb. Subsequently transporting tangible personal property outside the\nstate for use thereafter solely outside the state, or  for the purpose\nof being processed, fabricated, or manufactured into, attached to,\nor incorporated into, other tangible personal property to be\ntransported outside the state and thereafter used solely outside the\nstate; or\n2. Prewritten computer software access services and data brokering\nservices purchased for use outside the state and transferred\nelectronically outside the state for use thereafter solely outside the state.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58185","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:31Z","sha256":"3ff10761dfafa6ddf40b6b5fddb88c602bd5d62b92e62c4d109a8ab2fc1bb19c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.992","next":"us-ky/krs-139.020"},"notice":"GroundRules: Original legal text. Not legal advice."}