{"data":{"id":"us-ky/krs-139.777","jurisdiction":"us-ky","citation":"KRS 139.777","heading":"Direct mail sourcing.","body":"(1) (a) This section applies for purposes of uniformly sourcing:\n1. Advertising and promotional direct mail transactions;\n2. Other direct mail transactions; and\n3. Bundled transactions that include advertising and promotional direct\nmail if the primary purpose of the transaction is the sale of advertising\nand promotional direct mail.\n(b) This section does not:\n1. Impose requirements regarding the taxation of advertising and\npromotional direct mail or other direct mail or the application of sales\nfor resale or other exemptions; or\n2. Apply to any transaction that includes the development of billing\ninformation or the provision of any data processing services that is more\nthan incidental, regardless of whether advertising and promotion direct\nmail is included in the same mailing.\n(c) For a transaction characterized as a sale of services, this section applies only if\nthe service is an integral part of the production and distribution of printed\nmaterial that meets the definition of advertising and promotional direct mail or\nother direct mail.\n(2) (a) A purchaser of advertising and promotional direct mail may provide the\nretailer with:\n1. A direct pay permit;\n2. A fully completed Streamlined Sales and Use Tax Agreement Certificate\nof Exemption or other written statement ap proved, authorized, or\naccepted by the department; or\n3. Information to show the jurisdictions to which the advertising and\npromotional direct mail is to be delivered to recipients.\n(b) If the purchaser provides the retailer with a direct pay permit, a fully\ncompleted Streamlined Sales and Use Tax Agreement Certificate of\nExemption, or other written statement approved, authorized, or accepted\nby the department:\n1. The retailer, in the abs ence of bad faith, shall be relieved of all\nobligations to collect, pay, or remit the applicable tax involving\nother direct mail to which the direct pay permit, Streamlined Sales\nand Use Tax Agreement Certificate of Exemption, or written\nstatement apply; and\n2. The purchaser shall source the sale to the jurisdictions to which the\nadvertising and promotional direct mail is to be delivered to the\nrecipients and shall pay or remit the applicable tax on a direct -pay\nbasis.\n(c) If the purchaser provides the reta iler information showing the jurisdictions to\nwhich the advertising and promotional direct mail is delivered to recipients,\nthe retailer shall source the sale and collect the tax according to the delivery\ninformation provided by the purchaser. In the absence of bad faith, the retailer\nis relieved of any further obligation to collect the tax on any transaction where\nthe retailer has collected the tax pursuant to the delivery information provided\nby the purchaser.\n(d) If the purchaser of advertising and promo tional direct mail does not provide\nthe retailer with a direct pay permit, a fully completed Streamlined Sales and\nUse Tax Agreement Certificate of Exemption, or other written statement\napproved, authorized, or accepted by the department or delivery inform ation,\nas provided by subsection (2)(a)of this section, the retailer shall source the\nsale to the address from where the advertising and promotional direct mail\nwas shipped.\n(e) Nothing in this subsection shall prohibit the department from disallowing\ncredit for tax paid in another jurisdiction on sales sourced according to this\nsubsection if the advertising and promotional direct mail is delivered to\nrecipients in this state.\n(3) (a) The purchaser of other direct mail may provide the retailer with:\n1. A direct pay permit; or\n2. A fully completed Streamlined Sales and Use Tax Agreement Certificate\nof Exemption or other written statement approved, authorized, or\naccepted by the department.\n(b) If the purchaser provides the retailer a direct pay permit, a full y completed\nStreamlined Sales and Use Tax Agreement Certificate of Exemption, or other\nwritten statement approved, authorized, or accepted by the department:\n1. The retailer, in the absence of bad faith, shall be relieved of all\nobligations to collect, pay , or remit the applicable tax involving other\ndirect mail to which the direct pay permit, Streamlined Sales and Use\nTax Agreement Certificate of Exemption, or written statement apply;\nand\n2. The purchaser shall source the sale to the jurisdictions to which the other\ndirect mail is to be delivered to the recipients and shall report and remit\nthe applicable tax on a direct-pay basis.\n(c) If the purchaser of other direct mail does not provide the retailer with a direct\npay permit, a fully completed Streamlined  Sales and Use Tax Agreement\nCertificate of Exemption, or other written statement approved, authorized, or\naccepted by the department as provided in paragraph (a) of this subsection, the\nretailer shall source the sale to the location indicated by an addres s for the\npurchaser that is available from the retailer's business records that are\nmaintained in the ordinary course of the retailer's business when use of this\naddress does not constitute bad faith.\n(4) If both advertising and promotional direct mail and  other direct mail are combined\nin a single mailing, the sale shall be sourced as other direct mail as provided in\nsubsection (3) of this section.\n(5) Nothing in this section shall limit a purchaser's:\n(a) Obligation for sales or use tax to any state to wh ich the advertising and\npromotional direct mail or other direct mail is delivered;\n(b) Right under local, state, federal, or constitutional law to a credit for sales or\nuse taxes legally due and paid to other jurisdictions; or\n(c) Right to a refund of sales or use taxes overpaid to any jurisdiction.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39935","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:32Z","sha256":"bf8a13bd7b58b0f60eb6a692a02cdb979235c0b928344b7cafbf7fb9c337cbab","source_id":"us-ky","stale":false,"prev":"us-ky/krs-139.776","next":"us-ky/krs-139.778"},"notice":"GroundRules: Original legal text. Not legal advice."}