Kentucky Amends Remote Seller and Marketplace Facilitator Registration Requirements

Effective July 1, 2021, remote sellers and marketplace facilitators that exceed either of Kentucky’s economic nexus thresholds ($100,000 or 200 or more separate transactions in the previous or current calendar year) must register for a sales and use tax permit and begin collecting tax no later than the first day of the calendar month that is at the most 60 days after either threshold is met. Previously, registration was required by the first of the month following 30 days after either threshold is met.

An additional change was also enacted for marketplace facilitators, allowing an option in selecting permits for their direct and facilitated sales. Marketplace facilitators may now register for either:

• A single sales and use tax permit number to report and remit all the tax due on the marketplace facilitator’s direct sales and sales facilitated for marketplace sellers; or
• A sales and use tax permit number to report and remit tax due on the marketplace facilitator’s direct sales and a second permit to report and remit tax due on sales facilitated for marketplace facilitators

See in-depth news items on Kentucky economic nexus here and marketplace nexus here. (Ch. 156 (H.B. 249), Laws 2021, effective July 1, 2021)