Kentucky Statutes 139.740 – Requirements in action on debt arising out of sale of tangible personal property
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(1) No judgment shall be entered and no garnishment or attachment shall be permitted by any court in this Commonwealth in an action for the collection of a debt arising out of the sale of tangible personal property, digital property, or extended warranty services unless an affidavit containing a certificate of service is executed by the plaintiff to the effect that all use taxes due the Commonwealth have been paid.
(2) Prior to the filing of the affidavit, required under subsection (1) of this section, the plaintiff (including counterclaimants or crossclaimants) shall, by first-class mail, serve upon the department a copy of the affidavit. Within fifteen (15) days from the date of the filing of the affidavit the department may file a counteraffidavit. In such event no judgment shall be entered or garnishment or attachment issued until proof has been taken concerning the matters at issue in the affidavit and counteraffidavit.
(3) In the event the use tax levied by this chapter is found to be due and unpaid the plaintiff may elect to pay the tax to the department, and the amount of the tax paid by the plaintiff shall be recovered as a part of any judgment entered. If the plaintiff does not elect to pay the use tax found to be due and unpaid, judgment for the amount of the tax shall be awarded to the Commonwealth.
(4) Any judgment awarded to the Commonwealth under this section shall constitute a prior claim to any judgment obtained by the plaintiff.
(5) Tax as defined herein includes interest accrued thereon at the tax interest rate as defined in KRS § 131.010(6).
(6) The provisions of this section shall not apply to a plaintiff holding a retail permit issued pursuant to this chapter.
Effective: April 27, 2018
History: Amended 2018 Ky. Acts ch. 171, sec. 51, effective April 14, 2018; and ch.
207, sec. 51, effective April 27, 2018. — Amended 2009 Ky. Acts ch. 73, sec. 24, effective July 1, 2009. — Amended 2005 Ky. Acts ch. 85, sec. 445, effective June 20,
2005. — Amended 1982 Ky. Acts ch. 452, sec. 21, effective July 1, 1982. — Amended
1976 Ky. Acts ch. 155, sec. 22. — Created 1960 Ky. Acts ch. 5, Art. I, sec. 71, effective February 5, 1960.
Legislative Research Commission Note (4/27/2018). This statute was amended by 2018
Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch.
207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.
(2) Prior to the filing of the affidavit, required under subsection (1) of this section, the plaintiff (including counterclaimants or crossclaimants) shall, by first-class mail, serve upon the department a copy of the affidavit. Within fifteen (15) days from the date of the filing of the affidavit the department may file a counteraffidavit. In such event no judgment shall be entered or garnishment or attachment issued until proof has been taken concerning the matters at issue in the affidavit and counteraffidavit.
Terms Used In Kentucky Statutes 139.740
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Commonwealth: means the Commonwealth of Kentucky. See Kentucky Statutes 139.010
- Department: means the Department of Revenue. See Kentucky Statutes 139.010
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Personal property: All property that is not real property.
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Sale: includes but is not limited to:
1. See Kentucky Statutes 139.010 - Statute: A law passed by a legislature.
- Use: includes the exercise of:
1. See Kentucky Statutes 139.010
(3) In the event the use tax levied by this chapter is found to be due and unpaid the plaintiff may elect to pay the tax to the department, and the amount of the tax paid by the plaintiff shall be recovered as a part of any judgment entered. If the plaintiff does not elect to pay the use tax found to be due and unpaid, judgment for the amount of the tax shall be awarded to the Commonwealth.
(4) Any judgment awarded to the Commonwealth under this section shall constitute a prior claim to any judgment obtained by the plaintiff.
(5) Tax as defined herein includes interest accrued thereon at the tax interest rate as defined in KRS § 131.010(6).
(6) The provisions of this section shall not apply to a plaintiff holding a retail permit issued pursuant to this chapter.
Effective: April 27, 2018
History: Amended 2018 Ky. Acts ch. 171, sec. 51, effective April 14, 2018; and ch.
207, sec. 51, effective April 27, 2018. — Amended 2009 Ky. Acts ch. 73, sec. 24, effective July 1, 2009. — Amended 2005 Ky. Acts ch. 85, sec. 445, effective June 20,
2005. — Amended 1982 Ky. Acts ch. 452, sec. 21, effective July 1, 1982. — Amended
1976 Ky. Acts ch. 155, sec. 22. — Created 1960 Ky. Acts ch. 5, Art. I, sec. 71, effective February 5, 1960.
Legislative Research Commission Note (4/27/2018). This statute was amended by 2018
Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together.
Legislative Research Commission Note (4/27/2018). Pursuant to 2018 Ky. Acts ch.
207, sec. 152, the amendments made to this statute in that Act apply to transactions occurring on or after July 1, 2018.