What is Exempt from Kentucky Sales Tax?

In Kentucky, all sales of tangible personal property and some services are subject to a 6% sales tax. But not all things must be purchased with sales tax. This article will examine Kentucky’s sales tax exemptions as well as how to apply for a tax exempt number in Kentucky.

Kentucky Sales Tax Exemptions

There are a number of things that are exempt from the sales tax in Kentucky. These consist of:

1. Food and Prescription Drugs: Food and prescription medications are exempt from sales tax in Kentucky.

2. Utility Services: Kentucky does not charge sales tax on the sale of natural gas, electricity, or water.

3. Agricultural Supplies: Sales of a certain items used in agriculture, including feed, fertilizer, and seeds, are free from sales tax.

4. Medical Devices: Purchases of prosthetics, hearing aids, and eyeglasses are all free from paying sales tax.

5. Clothing: Sales of apparel exempt from sales tax if each item costs less than $50. How to get a Kentucky tax exemption number If your company or group is exempt from the Kentucky sales tax, you can register with the Kentucky Department of Revenue to get a Kentucky tax exempt number. To get your tax exempt number, you must fill out and submit Form 51A126. Nonprofit Tax Exemptions

Sales tax is not applicable to nonprofit organizations that are exempt from federal income tax under Internal Revenue Code section 501(c)(3). Sales made by the nonprofit organization in support of its philanthropic mission are excluded from this rule. Kentucky sales tax is applicable. The majority of tangible personal property as well as a few services are taxed in Kentucky. This covers things like furniture, gadgets, and automobiles. In addition, a sales tax is charged on a few services like landscaping and janitorial services. In Kentucky, are packaging supplies exempt from taxes?

The sales tax in Kentucky does not apply to packaging materials including boxes, tape, and packing peanuts. When sold in Kentucky, these things are regarded as tangible personal property and are charged sales tax.

In conclusion, the majority of tangible personal property and some services are subject to a 6% sales tax in Kentucky. Food, over-the-counter medicines, and materials for agriculture are among the exceptions. Businesses can receive a Kentucky tax exempt number by registering with the Kentucky Department of Revenue. Nonprofit organizations are likewise excluded from paying sales tax in this state. Clothing products costing less than $50 per item are exempt from sales tax in Kentucky, whereas packaging supplies are not.

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