The usage tax is something that most people either do not know about or choose to ignore. There is a line on the KY income tax return (it's been there for many years) for individuals to report it, but it is mostly ignored by individual taxpayers and tax preparers alike. For individuals, it applies on purchases from out of state retailers and even things like many magazine subscriptions. It can apply to even more things for businesses, doctors, and lawyers. From what I hear they usually ignore it also. Oh by the way, many states have signed agreements with other states where they share or trade information on paticularly large purchases where tax was not charged.
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