2013 Kentucky Revised Statutes CHAPTER 138 - EXCISE TAXES 138.448 Liability of officers of business organizations for gasoline and special fuels tax -- Exemptions.
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138.448 Liability of officers of business organizations for gasoline and
special fuels tax -- Exemptions.
(1)
(2)
Notwithstanding any other provision of this chapter to the contrary, the
president, vice president, secretary, treasurer, or any other person holding any
equivalent corporate office of any corporation subject to the provisions of KRS
138.210 to 138.446 shall be personally and individually liable, both jointly and
severally, for the tax imposed under KRS 138.210 to 138.446. Corporate
dissolution, withdrawal of the corporation from the state, or the cessation of
holding any corporate office shall not discharge the liability of any person. The
personal and individual liability shall apply to each and every person holding a
corporate office at the time the tax becomes or became due. No person shall
be personally and individually liable under this subsection who had no authority
to collect, truthfully account for, or pay over any tax imposed by KRS 138.210
to 138.446 at the time the tax imposed becomes or became due. "Taxes" as
used in this section shall include interest accrued at the rate provided by KRS
131.183, all applicable penalties imposed under the provisions of this chapter,
and all applicable penalties imposed under the provisions of KRS 131.180,
131.410 to 131.445, and 131.990.
(a) The provisions of this section shall not apply if a corporation on an annual
basis elects to be exempt from the provisions of KRS 138.224 by:
1.
Filing with the department a financial instrument in an amount not to
exceed two (2) months' estimated liability, as calculated by the
department, or five thousand dollars ($5,000), whichever is greater;
2.
Certifying by an electronic method acceptable by both the dealer
and the department no later than the fifteenth day of each month the
amount of gasoline and special fuels tax due the Commonwealth by
the twenty-fifth day of that month; and
3.
Agreeing to initiate an Automated Clearing House credit transaction
to electronically transfer the amount of tax from the dealer's account
to the Kentucky State Treasurer on the twenty-fifth day of that
month.
For the purpose of this paragraph, a "financial instrument" means a bond
issued by a corporation authorized to do business in Kentucky, a line of
credit, or an account with a financial institution maintaining a
compensating balance.
(b) If a dealer fails to certify the amount of tax collected or does not perform
the electronic fund transfer as prescribed by paragraph (a) of this
subsection, the department may immediately make demand of the
financial instrument and revoke the license of the dealer notwithstanding
the provisions of KRS 138.340, and the provisions of this section shall
apply.
Notwithstanding any other provision of this chapter, KRS 275.150,
362.1-306(3) or predecessor law, or 362.2-404(3) to the contrary, the
managers of a limited liability company, the partners of a limited liability
partnership, and the general partners of a limited liability limited partnership or
any other person holding any equivalent office of a limited liability company,
limited liability partnership, or limited liability limited partnership subject to the
provisions of KRS 138.210 to 138.446 shall be personally and individually
liable, both jointly and severally, for the tax imposed under KRS 138.210 to
138.446. Dissolution, withdrawal of the limited liability company, limited liability
partnership, or limited liability limited partnership from the state, or the
cessation of holding any office shall not discharge the liability of any person.
The personal and individual liability shall apply to each and every manager of a
limited liability company, partner of a limited liability partnership and general
partner of a limited liability limited partnership at the time the tax becomes or
became due. No person shall be personally and individually liable under this
subsection who had no authority to collect, truthfully account for, or pay over
any tax imposed by KRS 138.210 to 138.446 at the time the tax becomes or
became due. "Taxes" as used in this section shall include interest accrued at
the rate provided by KRS 131.183, all applicable penalties imposed under the
provisions of this chapter, and all applicable penalties imposed under the
provisions of KRS 131.180, 131.410 to 131.445, and KRS 131.990.
(a) The provisions of this section shall not apply if a limited liability company,
a limited liability partnership, or limited liability limited partnership on an
annual basis elects to be exempt from the provisions of KRS 138.224 by:
1.
Filing with the department a financial instrument in an amount not to
exceed two (2) months' estimated liability, as calculated by the
department, or five thousand dollars ($5,000), whichever is greater;
2.
Certifying by an electronic method acceptable by both the dealer
and the department no later than the fifteenth day of each month the
amount of gasoline and special fuels tax due the Commonwealth by
the twenty-fifth day of that month; and
3.
Agreeing to initiate an Automated Clearing House credit transaction
to electronically transfer the amount of tax from the dealer's account
to the Kentucky State Treasurer on the twenty-fifth day of that
month.
For the purpose of this paragraph, a "financial instrument" means a bond
issued by a corporation authorized to do business in Kentucky, a line of
credit, or an account with a financial institution maintaining a
compensating balance.
(b) If a dealer fails to certify the amount of tax collected or does not perform
the electronic fund transfer prescribed by paragraph (a) of this subsection,
the department may immediately make demand of the financial
instrument and revoke the license of the dealer notwithstanding the
provisions of KRS 138.340, and the provisions of this section shall apply.
Effective:July 12, 2006
History: Amended 2006 Ky. Acts ch. 149, sec. 200, effective July 12, 2006. -Amended 2005 Ky. Acts ch. 85, sec. 384, effective June 20, 2005. -- Created
2002 Ky. Acts ch. 366, sec. 15, effective January 1, 2003.
Legislative Research Commission Note (1/1/2003). The provisions of subsection
(2) of this statute created in 2002 Ky. Acts ch. 366, sec. 15, "apply retroactively
to July 15, 1994." 2002 Ky. Acts ch. 366, sec. 19.
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