Revenue Cabinet v. Lazarus, Inc.

GRAVES, Justice.

This appeal presents two questions concerning Kentucky use tax liability. When material is created, designed and printed outside of Kentucky, is a Kentucky retailer liable for state use tax on: (1) pre-printed newspaper supplements shipped directly from the out-of-state printer to Kentucky, and (2) catalogs mailed directly from the out-of-state printer to potential customers in Kentucky? We hold that both the newspaper inserts and the catalogs are subject to the use tax imposed by KRS 139.310, because they are tangible property stored, used, and consumed in Kentucky in the…