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139.515 Sales tax refund program for qualifying signature projects.
(1)
(2)
(3)
As used in this section:
(a) "Agency" has the same meaning as in KRS 154.30-010;
(b) "Signature project" means a project that meets the requirements
established by KRS 154.30-050; and
(c) "Tangible personal property used in the construction of a signature
project" means tangible personal property that:
1.
Consists of:
a.
Permanently incorporated building materials and fixtures that
are an improvement to real property on the signature project;
b.
Building materials temporarily incorporated into the signature
project for infrastructure support during construction; or
c.
Temporarily incorporated specialized forms for concrete that
are for exclusive use on the qualifying signature project; and
2.
Is not machinery or equipment.
(a) Notwithstanding any other provision of KRS Chapter 139 and KRS
134.580, the sales or use tax paid on the purchase of tangible personal
property used in the construction of the portion of a signature project that
does not relate to approved public infrastructure costs or approved
signature project costs, as defined in KRS 154.30-010, may be refunded
to the agency under the conditions established by subsection (3) of this
section.
(b) The authority, as defined in KRS 154.30-010, shall notify the department
upon the approval of a signature project. The notification shall include the
name of the signature project, the name of the agency, the name of the
project developer, the commencement date of the tax incentive
agreement, and the percentage of total anticipated expenditures for
tangible personal property used in the construction of a signature project
that are not included in the project grant agreement as approved public
infrastructure costs or approved signature project costs.
(c) The department shall determine the total amount of eligible refund due
under each application for refund based upon the actual percentage of
total expenditures for tangible personal property used in the construction
of a signature project that are not included in the project grant agreement
as approved public infrastructure costs reported in the refund request
reduced by the amount of vendor compensation taken in accordance with
KRS 139.570.
To qualify for the refund established by subsection (2) of this section, the
agency shall collect from the purchasers of tangible personal property used in
the construction of the signature project all documentation relating to the
payment of sales or use tax, and shall file an application for refund of the sales
or use tax paid by the purchasers as reflected in the documentation collected.
Requests for refund shall be filed annually during the first twelve (12) years the
project grant agreement is in effect, and shall cover purchases made during the
immediately preceding year. Requests for refund shall be filed in the manner
(4)
(5)
(6)
directed by the department.
(a) The agency shall file the first year refund request within sixty (60) days
following the end of the fiscal year in which the project grant agreement is
executed. The agency shall file the final refund request within sixty (60)
days following the end of the eleventh fiscal year following the fiscal year
in which the project grant agreement was executed, or within sixty (60)
days after construction is complete, whichever date is earlier. All other
annual refund requests shall be filed within sixty (60) days after the
completion of each fiscal year.
(b) Failure to file a refund request within the timeframes provided in
paragraph (a) of this subsection shall result in an adjustment to the refund
amount paid as follows:
1.
For late refund requests filed within the first one hundred twenty
(120) days after the request was due, for each month or portion
thereof that the refund request is late, the refund amount shall be
reduced by one twelfth (1/12) of the total amount determined by the
department to be due to the agency.
2.
Any refund request filed more than one hundred twenty (120) days
after the timeframes provided in paragraph (a) of this subsection
shall be rejected and no refunds shall be paid for the time period
covered by the request.
Interest shall not be allowed or paid on any refund made under the provisions
of this section.
The agency shall execute information sharing agreements prescribed by the
department with contractors, vendors, and other related parties to verify
construction material costs.
Effective:June 25, 2009
History: Amended 2009 Ky. Acts ch. 12, sec. 40, effective June 25, 2009. -Amended 2008 Ky. Acts ch. 178, sec. 13, effective July 15, 2008. -- Created
2007 Ky. Acts ch. 95, sec. 28, effective March 23, 2007.
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