{"data":{"id":"us-ky/krs-243.884","jurisdiction":"us-ky","citation":"KRS 243.884","heading":"Wholesale sales tax imposed -- Rates -- Report and payment --","body":"Exemptions.\n(1) (a) For the privilege of making \"wholesale sales\" or \"sales at wholesale\" of malt\nbeverages, wine, distilled spirits, or cannabis -infused beverages, a tax is\nhereby imposed upon all wholesalers of wine and distilled spirits, all\ndistributors of malt beverages or cannabis -infused beverages, all direct\nshipper licensees shipping alcoholic beverages or cannabis -infused beverages\nto a consumer at a Kentucky address , all distillers making sales pursuant to\nKRS 243.0305(3), (4)(a)1. and 2. and (c), (7), (9), (10), (12), and (13), all\nmicrobreweries selling malt beverages under KRS 243.157, all small farm\nwineries selling wine under KRS 243.155, and all manufacturers o f cannabis-\ninfused beverages permitted by the Department for Public Health.\n(b) Prior to July 1, 2015, the tax shall be imposed at the rate of eleven percent\n(11%) of the gross receipts of any wholesaler or distributor derived from\n\"sales at wholesale\" or \"wholesale sales\" made within the Commonwealth,\nexcept as provided in subsection (3) of this section. For the purposes of this\nsection, the gross receipts of a microbrewery making \"wholesale sales\" shall\nbe calculated by determining the dollar value amount  that the microbrewer\nwould have collected had it conveyed to a distributor the same volume sold to\na consumer as allowed under KRS 243.157(3)(b) and (c).\n(c) The following rates shall apply to wholesale sales or sales at wholesale:\n1. For distilled spirit s and cannabis -infused beverages, eleven percent\n(11%); and\n2. For wine and malt beverages, ten percent (10%).\n(d) The following rates shall apply for direct shipper sales:\n1. For distilled spirits and cannabis -infused beverages shipments, eleven\npercent (11%) for wholesale sales or sales at wholesale; and\n2. For wine and malt beverage shipments, ten percent (10%) for wholesale\nsales or sales at wholesale.\n(e) For direct shipper sales or sales made pursuant to KRS 243.0305, if a\nwholesale price is not readily available, the direct shipper licensee or distillery\nshall calculate the wholesale price to be seventy percent (70%) of the retail\nprice of the alcoholic beverages.\n(2) Wholesalers of distilled spirits and wine, distributors of malt beverages or cannabis-\ninfused beverages, microbreweries, distillers, manufacturers of cannabis -infused\nbeverages permitted by the Department for Public Health, and direct shipper\nlicensees shall pay and report the tax levied by this section on or before the\ntwentieth day of the calendar month next succeeding the month in which possession\nor title of the distilled spirits, wine, malt beverages, or cannabis -infused beverages\nis transferred from the wholesaler or distributor to retailers, or by microbreweries,\ndistillers, manufacturers of cannabis -infused beverages permitted by the\nDepartment for Public Health, or direct shipper licensees to consumers in this state,\nin accordance with administrative regulations promulgated under KRS Chapter 13A\ndesigned reasonably to protect the revenues of the Commonwealth.\n(3) Gross receipts from sales at wholesale or wholesale sales shall not include the\nfollowing sales:\n(a) Sales made between whole salers, between distributors, or between\nmanufacturers of cannabis-infused beverages permitted by the Department for\nPublic Health;\n(b) Sales from the first fifty thousand (50,000) gallons of wine produced by a\nsmall farm winery in a calendar year made by:\n1. The small farm winery; or\n2. A wholesaler of that wine produced by the small farm winery; and\n(c) Sales made between a direct shipper licensee and a consumer located outside\nof Kentucky.","path":["KRS Chapter 243"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56611","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:54Z","sha256":"fe7a9850fc5cfc95b51dd9b212a0df139a18514a1546b3c4e804529f9ae07765","source_id":"us-ky","stale":false,"prev":"us-ky/krs-243.882","next":"us-ky/krs-243.886"},"notice":"GroundRules: Original legal text. Not legal advice."}