AN ACT relating to the taxation of currency and bullion currency and declaring an emergency.

Tax refund rights for currency buyers

Kentucky’s law took effect immediately upon becoming law. It bars the state finance secretary and revenue commissioner from issuing notices directing continued sales or use tax collection on currency or bullion currency. Any notice claiming these transactions are taxable on or after August 1, 2024, is void and unenforceable. If you paid tax on currency or bullion currency exempt under Kentucky law, you can sue the state for a refund. These refund and enforcement rights reach back to August 1, 2024. You can sue individually or seek a class action in Circuit Court where you live or where the transaction occurred. Winning plaintiffs are entitled to interest before and after judgment, reasonable legal fees and costs, and temporary or permanent court orders stopping violations. Winning violation claims also carry $1,000 in damages for each day of violation. These damages come from the administrative budget of the Finance and Administration Cabinet, revenue department, or Governor’s Office. Anyone who directs, instructs, or causes a violation is personally liable and can be responsible for the full damages award. The law states its intent to waive sovereign, governmental, and qualified immunity for these claims.