(Title XI, Chapter 139)
Adminstrative Regulations
(Chapter 25-31)
Kentucky - Sales and Use Tax Exemptions and Exemption Certificates

Kentucky sales tax is imposed on the gross receipts derived from retail sales of tangible personal property and sales of certain services.

KENTUCKY EXEMPTIONS: Vessels and maritime supplies (KRS 139.483); food or food products purchased for human consumption (KRS 139.485); sale of industrial machinery delivered to a manufacturer or processor for use out of state (KRS 139.486); sales by elementary or secondary schools or nonprofit elementary or secondary school-sponsored clubs and organizations or any nonprofit, elementary, or secondary school-affiliated groups (KRS 139.497); prescription drugs, prosthetic device, mobility enhancing quipment, durable medical equipment (KRS 139.472).

For more information on exempt transactions refer K.R.S 139.470 and on exempt property refer K.R.S 139.480.

(K.R.S. §§ 139.470 & 139.537, 103 KAR 30:091 to 103 KAR 30:290)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

KENTUCKY EXEMPTION CERTIFICATES: All tangible personal property and digital property sold in this state are subject to the tax until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless he takes from the purchaser a certificate to the effect that the property is either: (1) Purchased for resale (2) Purchased through a properly executed certificate of exemption (3) Purchased according to regulations of the Department of Revenue governing a direct pay authorization; or (4) Purchased under a direct mail form. (K.R.S. §§ 139.260 & 139.270)

Following are applications and certificates for exemption approved by the Kentucky Department of Revenue.

Kentucky Resale Exemption: (103 KAR 31:111)

Kentucky Exempt Entities

Kentucky Sale to Farmers (103 KAR 30:091)

Kentucky Fluidized Bed Energy Production Facility (KRS 139.480(20)

Kentucky Pollution Control Facility (KRS 139.480(12), 103 KAR 30:260)

Kentucky Machinery for New & Expanded Industry (103 KAR 30:120, 103 KAR 30:270)

Kentucky Energy and energy-producing fuels. (103 KAR 30:140)

Kentucky Out-of-state Sale

  • Form 51A127 Out-of-State Purchase Exemption Certificate
  • Form 51A154 Certificate of Exemption Out-of-State Delivery for Aircraft, All Terrain Vehicle (ATV), Mobile/Manufactured Homes, Campers, Boats, Motors or Trailers

Kentucky Other Exemption Certificates:

  • Form 51A128 Solid Waste Recycling Machinery Exemption Certificate
  • Form 51A143 Purchase Exemption Certificate Watercraft Industry
  • Form 51A150 Aircraft Exemption Certificate
  • Form 51A157 Certificate of Exemption-Water Used In Raising Equine
  • Form 51A222 Certificate of Exemption for Alcohol Production Facilities
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