Kentucky HB 73: AN ACT relating to resale certificates for sales and use tax and declaring an emergency.

Bill Text

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AN ACT relating to resale certificates for sales and use tax and declaring an 1
emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 139.010 is amended to read as follows: 4
As used in this chapter, unless the context otherwise provides: 5
(1) "Admissions" means the fees paid for: 6
(a) The right of entrance to a display, program, sporting event, music concert, 7
performance, play, show, movie, exhibit, fair, or other entertainment or 8
amusement event or venue; and 9
(b) The privilege of using facilities or participating in an event or activity, 10
including but not limited to: 11
1. Bowling centers; 12
2. Skating rinks; 13
3. Health spas; 14
4. Swimming pools; 15
5. Tennis courts; 16
6. Weight training facilities; 17
7. Fitness and recreational sports centers; and 18
8. Golf courses, both public and private; 19
regardless of whether the fee paid is per use or in any other form, including 20
but not limited to an initiation fee, monthly fee, membership fee, or 21
combination thereof; 22
(2) "Advertising and promotional direct mail" means direct mail the primary purpose of 23
which is to attract public attention to a product, person, business, or organization, or 24
to attempt to sell, popularize, or secure financial support for a product, person, 25
business, or organization. As used in this definition, "product" means tangible 26
personal property, an item transferred electronically, or a service; 27

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(3) "Business" includes any activity engaged in by any person or caused to be engaged 1
in by that person with the object of gain, benefit, or advantage, either direct or 2
indirect; 3
(4) "Commonwealth" means the Commonwealth of Kentucky; 4
(5) "Department" means the Department of Revenue; 5
(6) (a) "Digital audio-visual works" means a series of related images which, when 6
shown in succession, impart an impression of motion, with accompanying 7
sounds, if any. 8
(b) "Digital audio-visual works" includes movies, motion pictures, musical 9
videos, news and entertainment programs, and live events. 10
(c) "Digital audio-visual works" shall not include video greeting cards, video 11
games, and electronic games; 12
(7) (a) "Digital audio works" means works that result from the fixation of a series of 13
musical, spoken, or other sounds. 14
(b) "Digital audio works" includes ringtones, recorded or live songs, music, 15
readings of books or other written materials, speeches, or other sound 16
recordings. 17
(c) "Digital audio works" shall not include audio greeting cards sent by electronic 18
mail; 19
(8) (a) "Digital books" means works that are generally recognized in the ordinary and 20
usual sense as books, including any literary work expressed in words, 21
numbers, or other verbal or numerical symbols or indicia if the literary work is 22
generally recognized in the ordinary or usual sense as a book. 23
(b) "Digital books" shall not include digital audio-visual works, digital audio 24
works, periodicals, magazines, newspapers, or other news or information 25
products, chat rooms, or Web logs; 26
(9) (a) "Digital code" means a code which provides a purchaser with a right to obtain 27

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one (1) or more types of digital property. A "digital code" may be obtained by 1
any means, including electronic mail messaging or by tangible means, 2
regardless of the code's designation as a song code, video code, or book code. 3
(b) "Digital code" shall not include a code that represents: 4
1. A stored monetary value that is deducted from a total as it is used by the 5
purchaser; or 6
2. A redeemable card, gift card, or gift certificate that entitles the holder to 7
select specific types of digital property; 8
(10) (a) "Digital property" means any of the following which is transferred 9
electronically: 10
1. Digital audio works; 11
2. Digital books; 12
3. Finished artwork; 13
4. Digital photographs; 14
5. Periodicals; 15
6. Newspapers; 16
7. Magazines; 17
8. Video greeting cards; 18
9. Audio greeting cards; 19
10. Video games; 20
11. Electronic games; or 21
12. Any digital code related to this property. 22
(b) "Digital property" shall not include digital audio-visual works or satellite 23
radio programming; 24
(11) (a) "Direct mail" means printed material delivered or distributed by United States 25
mail or other delivery service to a mass audience or to addressees on a mailing 26
list provided by the purchaser or at the direction of the purchaser when the 27

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cost of the items are not billed directly to the recipient. 1
(b) "Direct mail" includes tangible personal property supplied directly or 2
indirectly by the purchaser to the direct mail retailer for inclusion in the 3
package co