103 KAR 28:040. Redemption of premium or trading stamps.


      RELATES TO: KRS 139.010


      NECESSITY, FUNCTION, AND CONFORMITY: To interpret the sales and use tax law as it applies to the redemption of trading or premium stamps for merchandise.


      Section 1. The redemption of trading or premium stamps for merchandise is a sale of tangible personal property and must be included within the "gross receipts" or "sales price" of the redemption center or person.


      Section 2. If the stamps have a cash value for which they are exchangeable, the tax is measured by the cash value of such stamps. If the stamps can only be traded for merchandise and are redeemable for tangible personal property the tax is computed upon the fair cash value of the property for which they are traded. (SU-65; 1 Ky.R. 230; eff. 1-8-1975; TAm eff. 6-22-2016.)