2013 Kentucky Revised Statutes CHAPTER 134 - PAYMENT, COLLECTION, AND REFUND OF TAXES 134.580 Refund of taxes, other than ad valorem and unconstitutional taxes -- Immunity of the Commonwealth from refund suits based on combined or consolidated returns.
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134.580 Refund of taxes, other than ad valorem and unconstitutional taxes -Immunity of the Commonwealth from refund suits based on combined or
consolidated returns.
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As used in this section, unless the context requires otherwise:
(a) "Agency" means the agency of state government which administers the
tax to be refunded or credited.
(b) "Overpayment" or "payment where no tax was due" means the excess of
the tax payments made over the correct tax liability determined under the
terms of the applicable statute without reference to the constitutionality of
the statute.
When money has been paid into the State Treasury in payment of any state
taxes, except ad valorem taxes, whether payment was made voluntarily or
involuntarily, the appropriate agency shall authorize refunds to the person who
paid the tax, or to his heirs, personal representatives or assigns, of any
overpayment of tax and any payment where no tax was due. When a bona fide
controversy exists between the agency and the taxpayer as to the liability of
the taxpayer for the payment of tax claimed to be due by the agency, the
taxpayer may pay the amount claimed by the agency to be due, and if an
appeal is taken by the taxpayer from the ruling of the agency within the time
provided by KRS 131.340 and it is finally adjudged that the taxpayer was not
liable for the payment of the tax or any part thereof, the agency shall authorize
the refund or credit as the Kentucky Board of Tax Appeals or courts may direct.
No refund shall be made unless each taxpayer individually files an application
or claim for the refund within four (4) years from the date payment was made.
Each claim or application for a refund shall be in writing and state the specific
grounds upon which it is based. Denials of refund claims or applications may
be protested and appealed in accordance with KRS 131.110 and 131.340.
Refunds shall be authorized with interest as provided in KRS 131.183. The
refunds authorized by this section shall be made in the same manner as other
claims on the State Treasury are paid. They shall not be charged against any
appropriation, but shall be deducted from tax receipts for the current fiscal
year.
Nothing in this section shall be construed to authorize the agency to make or
cause to be made any refund except within four (4) years of the date
prescribed by law for the filing of a return including any extension of time for
filing the return, or the date the money was paid into the State Treasury,
whichever is the later, except in any case where the assessment period has
been extended by written agreement between the taxpayer and the
department, the limitation contained in this subsection shall be extended
accordingly. Nothing in this section shall be construed as requiring the agency
to authorize any refund to a taxpayer without demand from the taxpayer, if in
the opinion of the agency the cost to the state of authorizing the refund would
be greater than the amount that should be refunded or credited.
This section shall not apply to any case in which the statute may be held
unconstitutional, either in whole or in part.
In cases in which a statute has been held unconstitutional, taxes paid
thereunder may be refunded to the extent provided by KRS 134.590, and by
the statute held unconstitutional.
(8) No person shall secure a refund of motor fuels tax under KRS 134.580 unless
the person holds an unrevoked refund permit issued by the department before
the purchase of gasoline or special fuels and that permit entitles the person to
apply for a refund under KRS 138.344 to 138.355.
(9) Notwithstanding any provision of the Kentucky Revised Statutes to the
contrary:
(a) The Commonwealth hereby revokes and withdraws its consent to suit in
any forum whatsoever on any claim for recovery, refund, or credit of any
tax overpayment for any taxable year ending before December 31, 1995,
made by an amended return or any other method after December 22,
1994, and based on a change from any initially filed separate return or
returns to a combined return under the unitary business concept or to a
consolidated return. No such claim shall be effective or recognized for any
purpose.
(b) Any stated or implied consent for the Commonwealth of Kentucky, or any
agent or officer of the Commonwealth of Kentucky, to be sued by any
person for any legal, equitable, or other relief with respect to any claim for
recovery, refund, or credit of any tax overpayment for any taxable year
ending before December 31, 1995, made by an amended return or any
other method after December 22, 1994, and based on a change from any
initially filed separate return or returns to a combined return under the
unitary business concept or to a consolidated return, is hereby withdrawn.
(c) The provisions of this subsection shall apply retroactively for all taxable
years ending before December 31, 1995, and shall apply to all claims for
such taxable years pending in any judicial or administrative forum.
(10) Notwithstanding any provision of the Kentucky Revised Statutes to the
contrary:
(a) No money shall be drawn from the State Treasury for the payment of any
claim for recovery, refund, or credit of any tax overpayment for any
taxable year ending before December 31, 1995, made by an amended
return or any other method after December 22, 1994, and based on a
change from any initially filed separate return or returns to a combined
return under the unitary business concept or to a consolidated return.
(b) No provision of the Kentucky Revised Statutes shall constitute an
appropriation or mandated appropriation for the payment of any claim for
recovery, refund, or credit of any tax overpayment for any taxable year
ending before December 31, 1995, made by an amended return or any
other method after December 22, 1994, and based on a change from any
initially filed separate return or returns to a combined return under the
unitary business concept or to a consolidated return.
Effective:March 24, 2009
History: Repealed and reenacted 2009 Ky. Acts ch. 86, sec. 10, effective March
24, 2009. -- Amended 2008 Ky. Acts ch. 132, sec. 11, effective April 24, 2008. -Amended 2007 Ky. Acts ch. 22, sec. 1, effective March 19, 2007. -- Amended
2005 Ky. Acts ch. 85, sec. 280, effective June 20, 2005; ch. 112, sec. 1,
effective June 20, 2005; and ch. 134, sec. 1, effective June 20, 2005. -Amended 1996 Ky. Acts ch. 344, sec. 1, effective July 15, 1996. -- Amended
1990 Ky. Acts ch. 177, sec. 1, effective July 13, 1990; and ch. 423, sec. 7,
effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 452, sec. 9, effective July
1, 1982. -- Amended 1976 Ky. Acts ch. 155, sec. 1. -- Amended 1970 Ky. Acts
ch. 216, sec. 2. -- Amended 1966 Ky. Acts ch. 187, Part I, sec. 1. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
sec. 4114h-7.
Legislative Research Commission Note (3/24/2009). 2009 Ky. Acts ch. 86,
sec. 15, provides that "the provisions of Sections 7 to 10 of this Act shall apply
retroactively to all outstanding refund claims for taxable years ending prior to the
effective date of this Act and shall apply to all claims for those taxable years
pending in any judicial or administrative forum."
Legislative Research Commission Note (3/24/2009). 2009 Ky. Acts ch. 86,
sec. 17, provides that "The intent of the General Assembly in repealing and
reenacting KRS 136.392, 138.195, 141.160, 160.6156, 160.6157, 160.6158,
131.183, 141.044, 141.235, 134.580, 393.060, and 157.621 in Sections 1 to 12
of this Act is to affirm the amendments made to these sections in 2008 Ky. Acts
ch. 132. The provisions in Sections 1 to 12 of this Act shall apply retroactively to
April 24, 2008."
Legislative Research Commission Note (3/24/2009). 2009 Ky. Acts ch. 86,
sec. 18, provides "To the extent that any provision included in this Act is
considered new language, the provisions of KRS 446.145 requiring such new
language to be underlined are notwithstood."
Legislative Research Commission Note (4/24/2008). 2008 Ky. Acts ch. 132,
sec. 15 provides that the amendments made to this statute by that Act "shall
apply retroactively to all outstanding refund claims for taxable years ending prior
to the effective date of this Act (April 24, 2008) and shall apply to all claims for
those taxable years pending in any judicial or administrative forum."
Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85,
95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory
references to agencies and officers whose names have been changed in 2005
legislation confirming the reorganization of the executive branch. Such a
correction has been made in this section.
Legislative Research Commission Note (9/6/90). This note replaces an earlier
note dated 7/13/90. This section was amended by two 1990 Acts. Where those
Acts are not in conflict, they have been compiled together. Where a conflict
exists, the Act which was last enacted by the General Assembly prevails,
pursuant to KRS 446.250.
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