As a result of legislative changes to Kentucky’s tax code that—among other things—expanded the definition of taxable warranty contracts across many industries, including making contracts relating to real property taxable, dealers will need to begin charging sales tax on sales of ALL extended warranty contracts beginning January 1, 2023. While this is a significant change from prior law (which required Kentucky sales tax to be charged only on extended warranty contracts on vehicles being titled in Kentucky or states with whom Kentucky had reciprocity), it will perhaps make the issue simpler going forward.
Below you'll find the full Alert, the webinar we hosted alongside our legal counsel, and a quick FAQs sheet to answer your questions.
In December 2021, the FTC enacted amendments to the “Safeguards Rule” to the Gramm-Leach-Bliley Act. These amendments, some of which became effective January 10, 2022, greatly expand the information security program requirements for dealers. More importantly, dealers must be in compliance with the majority of the revised Safeguards Rule NOW by June 9, 2023. The FTC announced it is extending the December deadline by six months.
There are still important steps dealers must take in advance of this date to be in compliance by the deadline. This series of materials has been created to help your dealership with the appropriate planning and implementation of the necessary policies and procedures required by the amended Safeguards.
The Amended FTC Safeguards Rule Overview: Everything You Need to Know
FTC Safeguards Rule Overview: Everything You Need to Know