2016 Kentucky Revised Statutes
CHAPTER 371 - FORMALITY AND ASSIGNABILITY OF CONTRACTS -- INSTALLMENT SALES CONTRACTS
.170 Contracts for the payment of manufacturers' excise taxes.

Download as PDF 371.170 Contracts for the payment of manufacturers' excise taxes. (1) (2) (3) If a contract requires one (1) party to reimburse another party for taxes levied under Part III of Subchapter A of Chapter 32 of the Internal Revenue Code, the party making the reimbursement, at its option, shall not be required to reimburse the other party more than one (1) business day before the other party is required to remit the taxes to the Internal Revenue Service. If a party chooses to exercise its option under subsection (1) of this section, and provision is not already provided in the contract, the party shall notify the other party in writing of its intention. The option may not be exercised until at least thirty (30) days after the written notification or the beginning of the next federal tax quarter, whichever is later. The party to be reimbursed under subsection (1) of this section may require security from the reimbursing party for the payment of the taxes in proportion to the amount the taxes represent compared to the security required on the contract as a whole. The party to be reimbursed shall not change other payment terms of the contract due to the timing of the tax reimbursement, but may require the taxes to be reimbursed by electronic transfer of funds. Effective: July 13, 2004 History: Created 2004 Ky. Acts ch. 143, sec. 1, effective July 13, 2004. Legislative Research Commission Note (7/13/2004). 2004 Ky. Acts ch. 143, sec. 2, provides that 2004 Ky. Acts ch. 143, which created this statute, "applies to all continuing contracts now in effect that have no expiration date and all contracts entered into or renewed after the effective date of this Act." 2004 Ky. Acts ch. 143 became effective on July 13, 2004.