The Kentucky Department of Revenue collects and monitors a variety of state taxes for the Commonwealth of Kentucky. Listed below is a summary of the state taxes that they oversee. This information should not be considered a substitute for the advice of an experienced accountant or tax professional.
For many businesses in Kentucky, the state tax process begins by completing a
Kentucky Tax Registration Application. This multi-use document, also know as
Form 10A100, allows a business owner to apply for or update the following state tax accounts:
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Employer’s Withholding Tax
– applies to businesses with employees.
-
Sales & Use Tax
– applies to businesses operating as a
retailer or seller
in Kentucky.
-
Consumer Use Tax
– applies to businesses that make out-of-state purchases of tangible personal property for storage, use or consumption in Kentucky when at least 6% state sales tax was not paid to the seller at the time of purchase.
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Corporation Income Tax
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Limited Liability Pass-Through Entity Tax – applies to a pass-through entity (such as C-corporation, S-corporation, limited liability company, limited partnership, limited liability partnership) that affords any of its partners, members, shareholders, or owners, through function of the laws of Kentucky or laws recognized by Kentucky, protection from general liability for actions of the entity.
-
Transient Room Tax – applies to any business regularly engaged in the rental of suites, rooms, or cabins such as motor courts, motels, hotels, inns, tourist camps or similar accommodations businesses (excludes campgrounds as well as businesses that regularly rent rooms with kitchens in apartment buildings that are typically rented for periods greater than 30 days.)
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Motor Vehicle Tire Fee
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Coal Severance and Processing Tax
Some sole proprietorships that don't have any employees and that are involved in certain service type businesses (where sales and use taxes or other special taxes don't apply) are still subject to business income taxes, but may not be required to complete a Kentucky Tax Registration Application.
Contact the Kentucky Department of Revenue
for additional information on state tax obligations and registration requirements.
Listed below are other state taxes that may apply to your business. Most of these require that you file a special application/registration with the Department of Revenue.
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Tobacco Tax – applies to wholesalers, subjobbers, transporters, and other acquirers of tobacco products.
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Motor Fuels Tax – applies to businesses regularly engaged in the business of refining, producing, distilling, manufacturing, blending, compounding, bulk distribution, importing, exporting, and accepting gasoline, liquefied petroleum gas, or special fuels (all other combustible gases and liquids capable of being used in motor vehicles.)
-
Telecommunications Tax
– applies to cable service and communication service businesses, as defined by
KRS 136.602.
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Bank Franchise Tax
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Insurance Premiums Tax
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Utility Gross Receipts License Tax – applies to utility service providers, including broadcast satellite and wireless cable.
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Property Tax
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Motor Vehicle Usage Tax
Note to out-of-state companies: out-of-state corporations, s-corporations, limited partnerships, limited liability partnerships,
limited liability companies, associations, real estate investment trusts, regulated investment companies, real estate mortgage
investment conduits, or similar entities created with limited liability for the partners, members or shareholders can submit
form 12A513 “Corporation Nexus Questionnaire” to the Department of Revenue for a determination on nexus/applicability of
Commonwealth of Kentucky Corporation Income and/or Limited Liability Entity taxes.
Additional Resources
Kentucky Department of Revenue business taxes web page
http://revenue.ky.gov/business/
Major Business Taxes in Kentucky
http://www.thinkkentucky.com/kyedc/pdfs/mbtxinky.pdf