Kentucky – State of Wayfair: Kentucky Easing Its Way Up to Facilitators

Kentucky is ready for round two.

The state recently launched a letter campaign to notify sellers they need to begin collecting and remitting its 6 percent sales tax Oct. 1. Kentucky’s economic nexus law mirrors the South Dakota statute at the center of the recent U.S. Supreme Court ruling in South Dakota v. Wayfair.

The next step involves getting the Kentucky Legislature to consider a bill that would make marketplace facilitators like Inc, eBay Inc., and Etsy Inc. report on remote vendors that need to remit sales taxes to the state, Kentucky Department of Revenue Commissioner Daniel Bork told Bloomberg Tax Aug. 30.

Kentucky also is reworking contracts with the seven “certified service providers” (CSPs) that assist with the Streamlined Sales and Use Tax Agreement (SSUTA), a program under which sellers collect tax voluntarily and remit it to the 24 state participants, which cover filing costs and other fees. Those CSPs earn between 2 percent and 8 percent of the amounts of sales tax they remit for retailers in the multistate agreement.

Bloomberg BNA
Daily Tax Report: State
by Tripp Baltz
August 31, 2018

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Bloomberg BNA