Dossett said he did not know why the original statute did not include military personnel who were Kentucky residents, but was happy that it passed with such strong support. Share with Us. If you are exempt from sales tax, this multistate form can be used when you are purchasing tangible goods for your business. The active duty military pay exemption applies to all Kentucky servicemembers regardless of where the servicemember is stationed. To qualify, you must have a copy of your orders showing: 1. You need to contact the Circuit Clerk’s Office in your home county for information on how to renew by mail. My spouse, a Texas resident servicemember, was stationed in Kentucky the entire tax year. Get the latest Revenue ​Taxpayer Updates directly in your inbox. Military sales tax exemption on car (Ohio resident) I bought a new car last year in Maryland (Ford Explorer), but as a military member had it registered in Ohio. “It certainly will improve our efforts to attract more and more men and women in uniform to live in Kentucky. racist or sexually-oriented language. Please log in, or sign up for a new account to continue reading. Kentucky Sales Tax Exemption Certificate Unlike a Value Added Tax (VAT), the Kentucky sales tax only applies to end consumers of the product. Kentucky Revised Statute 138.470, (16) and (17), effective October 1, 2003. Sorry, there are no recent results for popular commented articles. The subtraction should be labeled "active duty military pay." Thank you for signing in! Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Kentucky Sales Tax Exemption Form to buy these goods tax-free.. Companies or individuals who wish to make a qualifying purchase tax-free must have … Get an email notification whenever someone contributes to the discussion. Hello again, I checked KY, and the following applies; There is no sales tax exemption that applies specifically to military personnel. Find out if you’re eligible and how to claim . We hope that you enjoy our free content. If the military member's only income is active duty military compensation, he or she is not required to file a Kentucky income tax return unless Kentucky income tax was withheld. Sales tax codes or sales tax exemption codes are used in connection with a title only transaction that is exclusively for off-road use. Kentucky income tax is not required to be withheld from active duty military pay. Partly cloudy skies. For full-year residents this income should be subtracted on Kentucky Schedule M and part-year residents should make the subtraction under the Adjustments to Income section on Form 740-NP. House Bill 378 passed 38-0 in the state Senate on Tuesday after riding a 93-0 vote through the state House on Feb. 26. You may use the worksheet in the Schedule P instructions or use the Schedule P calculator to determine your exempt percentage. A state that doesn't tax military pensions may have high property taxes or sales taxes, which could end up costing you more. Rankings by Average State + Local Sales Tax: You're temporarily stationed in Washington and will leave within 90 days of the date of purchase. Keep it Clean. If a military member was a Kentucky resident at the time he or she joined the military but is now stationed outside of Kentucky, he or she is still considered a Kentucky resident for income tax purposes and should file Kentucky Form 740. Kentucky residents who are in the military are often granted extensions for tax filings when serving outside the United States. Steve Beshear is scheduled to sign the bill into law at noon Tuesday, with the law taking effect on June 29, or 90 days after the signing. Interest and penalty charges can be avoided or reduced by sending payment with your extension request by the due date. The state of Kentucky (KY) has a statewide sales tax rate of 6%. State Rep. Myron Dossett (R-Pembroke) was the other local sponsor of the bill, and echoed Tilley’s comments regarding the importance to have a level playing field with other states and to help offset the effects of sequestration. Write "KY Income Tax—2020" and your Social Security number(s) on the face of the check. Be Truthful. We were finally able to get it back on our radar in a nonbudget year, though it does have a fiscal impact.”. The Kentucky Department of Revenue conducts workunder the authority of the Finance and Administration Cabinet. Several exceptions to the state sales tax are goods and machinery which will be sold to farmers, any machinery which is intended for new and expanded industries, any oil and gas extraction machinery. Please use the button below to manage your account. A bill exempting military personnel who are also Kentucky residents from paying vehicle taxes passed unanimously in the state House and Senate and is … or anything. “This was a piece that, for whatever reason, had not been enacted for several years and received increasing attention for the past couple. The following guidelines are provided for the use of the MTC Uniform Sales Tax Certificate in Kentucky: Kentucky does not permit the use of this certificate to claim a resale exclusion for the purchase of a taxable service. Though the sales tax is a moderate 6%, huge income tax benefits and exemptions make it a place to be for retirees. Combat Zone Extension—Members of the Army, Navy, Marines, Air Force, or Public Health Service of the United States government who serve in an area designated as a combat zone by presidential proclamation are not required to file an income tax return and pay the taxes, which would otherwise become due during the period of service, until 12 months after the service is completed. accounts, the history behind an article. ​Military Spouse Exemption Form K-4 - Kentucky Withholding Certificate. Members of the National Guard or any branch of the Reserves called to active duty to serve in a combat zone are granted the same extension. Welcome! Kentucky income tax is not required to be withheld from active duty military pay. Please avoid obscene, vulgar, lewd, Beginning with tax year 2010, Kentucky does not tax active duty military pay. Be Nice. Federal Automatic Extension:  Make a copy of the lower portion of the federal Form 4868 Application for Automatic Extension and send with payment. In Kentucky, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers. The seller is advised to keep this form for record keeping purposes. Massachusetts law provides military service-related exemptions for vehicles owned by disabled veterans, and former prisoners of war. The House approved the bill but it was rejected in a Senate committee. Winds NW at 5 to 10 mph.. Your current subscription does not provide access to this content. Homeowners 65 and older or totally disabled as determined by a government agency in Kentucky may receive a property tax exemption of up to $39,399 on his/her primary residence. However, Kentucky sales tax does not apply to motor vehicles covered under the motor vehicle usage tax exemption for nonresident military personnel under KRS 138.470(4). Kentucky Sales Tax on Car Purchases: Vehicles purchases are some of the largest sales commonly made in Kentucky, which means that they can lead to a hefty sales tax bill. Write "KY Income Tax—2020" and your Social Security number(s) on the face of the check. If you wish to make a payment prior to the due date of your return when using the: Kentucky Extension:  Complete Section II, Kentucky Extension Payment Voucher, of Form 740EXT Application for Extension of Time to File  and send with payment. Please log in, or sign up for a new account and purchase a subscription to continue reading. purchasing a motor vehcile while stationed in kentucky *military personnel are only exempt from road usage tax if they are purchasing a vehicle from a kentucky licensed dealer, and they claim a state other than kentucky as their home of record on their les. “This bill placed Kentucky on an even playing field with Tennessee, which has no income tax,” Tilley said. “In particular, this is huge for our automobile dealers on the (Tennessee) border, and certainly good for our men and women in uniform that live here as well.”. Provided the military member has no income other than military pay, he or she would not be required to file a Kentucky income tax return. Trucks registered with a gross weight of 44,001 pounds and greater are not subject to the Motor Vehicle Use Tax. New Residents of Kentucky. A military spouse who qualifies for military spouse relief should file a new Form K-4 with his or her employer to claim the exemption from withholding of Kentucky income tax. You may be able to exclude more than $31,110. Don't Threaten. All rights reserved. Reach David at 270-887-3295 or dsnow@theeaglepost.us. To play the media you will need to either update your browser to a recent version or update your Flash plugin. Military Sales also offers tax-free and direct-factory pricing. Notifications from this discussion will be disabled. The military tax exemption was part of the governor’s bill to legalize video slot machines at Kentucky horse racetracks. No credit shall be given for taxes paid in another state if that state does not grant similar credit to substantially identical taxes … (KRS 141.019(1)(I)). Learn more about Kentucky Income Tax Exemption for Military Wage s . Enter this subtraction on Schedule M Kentucky Federal Adjusted Gross Income Modifications. Click on the front page to read today's edition of the Kentucky New Era. That was critical for us. 11. The Kentucky tax calculator is designed to provide a simple illlustration of the state income tax due in Kentucky, to view a comprehensive tax illustration which includes federal tax, medicare, state tax, standard/itemised deductions (and more), please use the main 2021/22 tax reform calculator. that is degrading to another person. High 53F. (Signature of Serviceperson Claiming Exemption) (Date) (Applicable to vehicles purchased from Kentucky dealers only.) “I had a parent call me last year, and he told me he thought it was unfair that his son…wasn’t able to get the same benefit as someone who was an out-of-state resident,” Dossett said of the unamended statute. Tilley said this bill also shows the broad community support for the military, which could help reduce the impact that sequestration has on Fort Campbell and Fort Knox. Seven members of the House did not vote on the bill. “I think that’s especially critical, given where we are with sequestration and the potential troop cutbacks at Fort Campbell and Fort Knox in Kentucky. Steve Beshear signed the state's military tax exemption bill Sept. 9, in a ceremony at the 101st Airborne Division Headquarters. If the amount of tax paid by the original due date is less than 75 percent of the tax due, a late payment penalty may be assessed (minimum penalty is $10). 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