A Kentucky court found that parts and supplies used in the fulfillment of maintenance contract obligations were subject to sales and use tax as a retail sale. The court stated that since no tangible personal property is transferred at the time of the sale of the maintenance contract, it is not subject to tax. When parts are used in the fulfillment of the maintenance contract obligations and transferred to the purchaser of the contract, the parts are subject to tax. (Department of Revenue v. Duplicator Sales and Service, Inc. Kentucky Court of Appeals, August 17, 2007)