2013 Kentucky Revised Statutes CHAPTER 132 - LEVY AND ASSESSMENT OF PROPERTY TAXES 132.195 Assessment of possessory interest in tax-exempt real or personal property -- Lessee's liability.
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132.195 Assessment of possessory interest in tax-exempt real or personal
property -- Lessee's liability.
(1)
(2)
(3)
When any real or personal property which is exempt from taxation is leased or
possession is otherwise transferred to a natural person, association,
partnership, or corporation in connection with a business conducted for profit,
the leasehold or other interest in the property shall be subject to state and local
taxation at the rate applicable to real or personal property levied by each taxing
jurisdiction.
Subsection (1) of this section shall not apply to interests in:
(a) Industrial buildings, as defined under KRS 103.200, owned and financed
by a tax-exempt governmental unit or tax-exempt statutory authority
under the provisions of KRS Chapter 103, the taxation of which is
provided for under the provisions of KRS 132.020 and 132.200;
(b) Federal property for which payments are made in lieu of taxes in amounts
equivalent to taxes which might otherwise be lawfully assessed;
(c) Property of any state-supported educational institution;
(d) Vending stand locations and facilities operated by blind persons under
the auspices of the Office for the Blind, regardless of whether the property
is owned by the federal, state, or a local government;
(e) Property of any free public library; or
(f) Property in Fayette County, Kentucky, administered by the Department of
Military Affairs, Bluegrass Station Division.
Taxes shall be assessed to lessees of exempt real or personal property and
collected in the same manner as taxes assessed to owners of other real or
personal property, except that taxes due under this section shall not become a
lien against the property. When due, such taxes shall constitute a debt due
from the lessee to the state, county, school district, special district, or
urban-county government for which the taxes were assessed and if unpaid
shall be recoverable by the state as provided in KRS Chapter 134.
Effective:March 19, 2013
History: Amended 2013 Ky. Acts ch. 32, sec. 159, effective March 19, 2013. -Amended 2009 Ky. Acts ch. 10, sec. 35, effective January 1, 2010. -- Amended
2006 Ky. Acts ch. 211, sec. 17, effective July 12, 2006. -- Amended 1990 Ky.
Acts ch. 415, sec. 1, effective July 13, 1990; and ch. 476, Pt. V, sec. 322,
effective July 13, 1990. -- Created 1988 Ky. Acts ch. 146, sec. 2, effective July
15, 1988.
Legislative Research Commission Note. (7/13/90) The Act amending this section
prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476,
pursuant to Section 653(1) of Acts Ch. 476.
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