Consumer Use Tax

A 6 percent use tax may be due if you make out-of-state purchases for storage, use or other consumption in Kentucky and did not pay at least 6 percent state sales tax to the seller at the time of purchase. For example, if you order from catalogs, make purchases through the Internet, or shop outside Kentucky for items such as clothing, shoes, jewelry, cleaning supplies, furniture, computer equipment, software, office supplies, books, souvenirs, exercise equipment or subscribe to magazines, you may owe use tax to Kentucky. It is important to remember that use tax applies only to items purchased outside Kentucky, including another country, which would have been taxed if purchased in Kentucky.

In addition to the use tax line on the sales and use tax returns (Forms 51A102 and 51A103, line 23a) and the consumer's use tax return (Form 51A113) for businesses, other options exist for individuals to report their use tax, such as: 

1. Consumer Use Tax Return - Form 51A113(O) (9K), may be filed during the year each time you make taxable purchases; or
2. You can report and pay use tax on an annual basis at the same time you file your Kentucky individual income tax return.
3. Collection of use tax is required by county clerks on tangible personal property purchased out-of-state and offered for titling or first-time registration in Kentucky.

Credit Against the Kentucky Use Tax Due - You may reduce or eliminate the amount of Kentucky use tax due by the amount of a different state sales tax paid on the same property to the out-of-state seller. The reduction may not exceed the amount of Kentucky use tax due on the purchase. For example, if Georgia state sales tax of 4 percent is paid, only the additional 2 percent is due to Kentucky, or if Illinois state sales tax of 6.25 percent is paid, no additional Kentucky use tax is due. - Sales tax paid to a city, county or country cannot be used as a credit against the Kentucky use tax due.

 Consumer Use Tax Form 

SEATA Exchange of Information  (31K)

E-Mail DOR Taxing Areas

Questions can be directed to the Kentucky Department of Revenue, Division of Sales and Use Tax, PO Box 181, Station 67, Frankfort,  KY 40602 (502) 564-5170.