Request By:
Ms. Alison Lobb Milby
Walker and Milby, P.S.C.
Attorneys at Law
224 West Main Street
Richmond, Kentucky 40475
Opinion
Opinion By: Steven L. Beshear, Attorney General; By Alex W. Rose, Assistant Attorney General
You have asked whether sales tax is applicable when a contractor purchases materials for a project which is financed with public funds. The particular situation involves purchases made by a general contractor for a city sewer plant construction project. Specifically you have asked whether the exemption provided for in KRS 139.470(7) applies to the contractor's purchases.
Construction contractors are consumers of tangible personal property in the situation you have described and sales tax applies at the time the purchases are made. Contractors may not use the exemption afforded to federal, state or local governments under KRS 139.470(7).