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247.920 Alcohol production exemption certificate.
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(5)
Application for an alcohol production exemption certificate shall be filed with
the Department of Revenue in such manner and in such form as may be
prescribed by regulations issued by the Department of Revenue and shall
contain plans and specifications of the structure or structures including all
materials incorporated and to be incorporated therein and a descriptive list of
all equipment acquired or to be acquired by the applicant for the purpose of
producing ethanol for fuel use and any additional information deemed
necessary by the Department of Revenue for the proper administration of KRS
247.910 and this section. The Department for Energy Development and
Independence shall provide technical assistance and factual information as
requested in writing by the Department of Revenue. If the Department of
Revenue finds that the facility qualifies as an alcohol production facility as
defined by KRS 247.910, it shall enter a finding and issue a certificate to that
effect. The effective date of the certificate shall be the date of issuance of the
certificate.
Before issuing an alcohol production tax exemption certificate, the Department
of Revenue shall give notice in writing by mail to the Department for Energy
Development and Independence, and shall afford to the applicant and to the
Department for Energy Development and Independence an opportunity for a
hearing. On like notice and opportunity for a hearing, the Department of
Revenue shall on its own initiative revoke the certificate when any of the
following appears:
(a) The certificate was obtained by fraud or misrepresentation;
(b) The holder of the certificate has failed substantially to proceed with the
construction, reconstruction, installation, or acquisition of the alcohol
production facilities; or
(c) The structure or equipment or both to which the certificate relates has
ceased to be used for the primary purpose of alcohol production for fuel
use and is being used for a different purpose.
If the circumstances so require, the Department of Revenue, in lieu of revoking
the certificate, may modify it.
On mailing of notice of the action of the Department of Revenue revoking or
modifying a certificate as provided in subsection (5) of this section, the
certificate shall cease to be in force or shall remain in force only as modified as
the case may require.
An alcohol production tax exemption certificate, when issued, shall be sent by
certified mail to the applicant and the notice of issuance in the form of certified
copies thereof shall be sent to the Department for Energy Development and
Independence. Notice of an order of the Department of Revenue denying,
revoking, or modifying a certificate in the form of certified copies thereof shall
be sent by certified mail to the applicant or the holder and shall be sent to the
Department for Energy Development and Independence. The applicant or
holder and the Department for Energy Development and Independence shall
be deemed parties for the purpose of the review afforded by subsection (6) of
this section.
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Any party aggrieved by the issuance, refusal to issue, revocation, or
modification of an alcohol production tax exemption certificate may appeal from
the final ruling of the Department of Revenue to the Kentucky Board of Tax
Appeals as provided in KRS 131.340.
In the event of the sale, lease, or other transfer of an alcohol production facility,
not involving a different location or use, the holder of an alcohol production tax
exemption certificate for the facility may transfer the certificate by written
instrument to the person who, except for the transfer of the certificate, would be
obligated to pay taxes on the facility. The transferee shall become the holder of
the certificate and shall have all rights pertaining thereto, effective as of the
date of transfer of the certificate. The transferee shall give written notice of the
effective date of the transfer, together with a copy of the instrument of transfer
to the Department for Energy Development and Independence and the
Department of Revenue.
In the event an alcohol production facility for which an exemption certificate is
held ceases to be used for the primary purpose of alcohol production for fuel
use or is used for a different purpose other than that for which the exemption
certificate was granted, the holder of the certificate shall give written notice by
certified mail of the change to the Department for Energy Development and
Independence and to the Department of Revenue.
The alcohol production facility exemption certificate, upon approval, shall
exempt said facilities from taxes outlined in the provisions of KRS 247.910 and
this section and included in KRS Chapters 132, 136, 138, and 139. Each
exemption certificate shall remain in force for a period of eight (8) years from
the date of issuance and at the end of said period shall lapse. Any alcohol
production facility previously exempted under the terms of KRS 247.910 and
this section shall not be eligible for recertification upon completion of the eight
(8) year certificate period.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 601, effective July 15, 2010. -Amended 2006 Ky. Acts ch. 152, sec. 10, effective July 12, 2006. -- Amended
2005 Ky. Acts ch. 85, sec. 663, effective June 20, 2005. -- Amended 2000 Ky.
Acts ch. 2, sec. 9, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 277,
sec. 9, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 325, sec. 34,
effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 331, sec. 41, effective
July 15, 1986. -- Created 1980 Ky. Acts ch. 210, sec. 3, effective July 15, 1980.
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