• The Commonwealth of Kentucky requires an out-of-state company to charge sales tax if it has an employee, distributor, salesperson, warehouse, office or delivery vehicles in the state. A company without a physical presence is not required to collect sales tax. If the state requires tax collection, multiply the gross receipt by 6 percent. The state prohibits advertising sales tax refunds and tax absorption claims.
  
  

Alcohol

• According to CBS Business Network, the state's laws that prohibit direct shipments of alcoholic products to consumers "were widely ignored and loosely enforced." In 1997, the legislature modified the law making it a felony. The article claims the law impacts "small companies that depend on mail and Internet orders" the hardest.
  
  The Kentucky Revised Code (KRC) permits shipments of wine from small farms located out of the state in some circumstances. The individual receiving the shipment must purchase it in person. A licensed, common carrier such as United Parcel Service or the U.S. Postal Service must handle delivery. State law limits the shipment to two cases per visit.
  
  Directly shipping alcohol from an out-of-state or out-of-country seller to a Kentucky resident is a Class D felony. Authorities issue a certified letter for first offenses. Subsequent violations include fines up to $20,000 and imprisonment.
  
  

Medical

• The KRC requires a license for an out-of-state pharmacy before filling any prescriptions for individuals who reside in Kentucky. The requirement applies to traditional pharmacies as well as those operating through the Internet, fax, mail or telephone. All pharmacists must report controlled substances rated schedules two through five dispensed for Kentucky residents.
  
  State law prohibits the sale and delivery of contact lenses to residents by an out-of-state business unless it is registered with the Commonwealth's attorney general. The KRC also requires a valid contact lens prescription from the recipient. It must maintain two toll-free telephone numbers: one for patients and the other for medical professionals. The company must maintain records related to Kentucky residents for 10 years.
  
  Kentucky prohibits the sale, delivery and advertisement of self-testing HIV or AIDS kits.
  
  

Other Rules

• In Kentucky, club memberships can be canceled in writing before midnight of the third business day without penalty. A refund of all payments must be sent within 10 days.
  
  Buying club contract claims must be based on price comparisons with retailers doing business in the same area. If the ordered goods fail to arrive within six weeks from the order date, the purchaser may demand a full refund.
  
  The KRC prohibits a loan broker to collect or charge an advance fee to provide his service. It also prohibits unfair, misleading, false or deceptive claims or omissions of facts by the broker.