Title XI, Revenue and Taxation

As used in KRS 138.130 to 138.205: (1) "Chewing tobacco": (a) Means any leaf tobacco that is not intended to be smoked; (b) Includes loose leaf chewing tobacco, plug chewing tobacco, and twist chewing tobacco; and (c) Does not include snuff; (2) "Cigarettes" means any roll for sm…

knowing violation of KRS 138.130 to 138.205 -- Seizure -- Sale -- Remission of forfeiture -- Appeal. (1) It is the declared legislative intent of KRS 138.130 to 138.205 that any untax-paid tobacco products or vapor products held, owned, possessed, or in control of any person othe…

kept by licensed distributors, retail distributors, and retailers. (1) (a) Every manufacturer, whether located in this state or outside this state, that ships tobacco products or vapor products to a distributor, retailer, retail distributor, or any other person located in this st…

applicable to reference tobacco products -- Rates -- Liability for and remittance of tax -- Administrative regulations -- General Assembly's recognition of effect of increased tobacco taxes on public health -- Potential reduction of tax on modified risk tobacco product. (1) (a) A…

Required returns -- Installment payments. (1) Every retailer, subjobber, resident wholesaler, nonresident wholesaler, and unclassified acquirer shall: (a) Take a physical inventory of all cigarettes in packages bearing Kentucky tax stamps, and all unaffixed Kentucky cigarette tax…

payment for units of cigarette tax evidence shall be made -- Consequence of failure to make timely payment. (1) The cigarette tax shall be due when any licensed wholesaler or unclassified acquirer takes possession within this state of untax-paid cigarettes. (2) (a) The cigarette …

In lieu of the affixing of cigarette tax evidence to individual packages of cigarettes as the means of denoting payment of the cigarette tax, the department may prescribe, by an administrative regulation sufficient to protect the revenue of this state, a method of reporting, paym…

- Sale -- Remission of forfeiture -- Appeal. (1) It is declared to be the legislative intent of KRS 138.130 to 138.205 that any untax- paid cigarettes held, owned, possessed, or in control of any person other than as provided in KRS 138.130 to 138.205 are contraband and subject t…

No person shall sell or offer to sell to any other person cigarettes made contraband by subsection (1) of KRS 138.165.

(1) Notwithstanding any other provision of this chapter to the contrary, the president, vice president, secretary, treasurer, or any other person holding any equivalent corporate office of any corporation subject to the provisions of KRS 138.130 to 138.205 shall be personally and…

Any person who violates any provision of KRS 138.130 to 138.205 shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax interest rate as defined in KRS 131.010(6) from the date due until the date of payment.

Appeals -- Records -- Reports -- Administrative regulations -- Tax returns -- Grounds for denial of license. (1) (a) A person other than a manufacturer shall not acquire cigarettes in this state on which the Kentucky cigarette tax has not been paid, nor act as a resident wholesal…

The department shall publish and maintain on its Web site an up-to-date list of tobacco products and vapor products distributors licensed under KRS 138.195(7).

(1) Any licensee under KRS 138.195 who violates any provision of KRS 138.130 to 138.205, or any administrative regulation promulgated under them, shall become indebted to the Commonwealth in the sum of five hundred dollars ($500) for each violation. The civil penalty may be colle…

emergency service boards -- Annual assessment -- Reduction -- Distribution -- Administrative regulations. (1) As used in this section: (a) "Bonded warehouse or premises" does not include a revenue bond-financed warehouse as defined in KRS 132.140 for periods prior to the 2043 cal…

As used in KRS 138.210 to 138.448, unless the context requires otherwise: (1) "Accountable loss" means loss or destruction of "received" gasoline or special fuel through wrecking of transportation conveyance, explosion, fire, flood or other casualty loss, or contaminated and retu…

fuel tax -- Imposition -- Determination of average wholesale price -- Additional tax or credit for tax-paid inventory -- Notification of average wholesale price to be given at least 20 days before July 1 of every year. (1) (a) An excise tax at the rate of nine percent (9%) of the…

It shall be presumed that all untaxed motor fuels are subject to the tax levied under KRS 138.220 unless the contrary is established pursuant to KRS 138.210 to 138.448 or administrative regulations promulgated thereunder by the department. The tax shall be paid by the licensed de…

(1) The department shall administer the taxes provided under KRS 138.210 to 138.448 and 138.450 to 138.470, except KRS 138.463 and 138.4631, and may prescribe, adopt, and enforce administrative regulations relating to the administration and enforcement thereof. (2) The department…

other cooperative compacts or agreements. The Transportation Cabinet may enter the International Fuel Tax Agreement or other cooperative compacts or agreements with other states or jurisdictions in order to permit base state or base jurisdiction licensing of persons using motor f…

The department shall calculate the average wholesale price as follows: (1) For fiscal years beginning before July 1, 2015, the average wholesale price shall be calculated each quarter, as provided in this subsection. The average wholesale price shall be the quarterly survey value…

Every dealer receiving gasoline or special fuel in this state shall keep, and preserve for five (5) years, an accurate record of all receipts and of all production, refining, manufacture, compounding, use, sale, distribution and delivery of gasoline and special fuel, together wit…

Electronic reporting requirements. (1) Every gasoline dealer and every special fuel dealer shall, by the twenty-fifth day of each month, transmit to the department reports on the forms the department may prescribe, of the total number of gallons of gasoline and special fuel recei…

and unaccountable losses -- Measurement of terminal storage tanks. (1) Any person who produces, refines, manufactures or compounds gasoline or special fuel in this state shall, by the twenty-fifth day of each month, file a report with the Department of Revenue, on forms prescribe…

Every transportation company and every other person transporting gasoline or special fuel from without this state to points within this state, or between points within this state, shall report to the Department of Revenue on forms prescribed by the department. The reports shall g…

user motor fuel tax -- Monthly reports, when due. (1) (a) From the total number of gallons of gasoline and special fuel received by the dealer within this state during the next preceding calendar month, deductions shall be made for the total number of gallons received by the deal…

(1) For tax periods beginning prior to January 1, 2007, the reports required by KRS 138.240 shall be accompanied by a certified or cashier's check, payable to the State Treasurer, for the amount of tax due for the preceding calendar month, computed as provided in KRS 138.270; exc…

Any person who violates any provision of KRS 138.240 to 138.260 shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax interest rate as defined in KRS 131.010(6) from the date when due shall be paid.

records for tax purposes. No dealer or other person shall fail or refuse to make the returns and pay the tax prescribed by KRS 138.220 to 138.280, or refuse to permit the Department of Revenue or its representatives appointed by the commissioner of the Department of Revenue in wr…

Civil penalties and interest. (1) No person shall refine, produce, distill, manufacture, blend, compound, receive, use, sell, transport, store, or distribute any gasoline or special fuel upon which the tax due has not been paid or assumed or engage in the sale, storage or transpo…

Nonassignability -- Records -- Suspension or revocation. (1) To procure the license required by KRS 138.310, every dealer or transporter so required shall file with the Department of Revenue an application in such form and containing such information as the department may deem ne…

Any gasoline dealer or special fuels dealer having a license revoked for the violation of any of the provisions contained in KRS Chapter 138 may, within the discretion of the department, be denied the issuance of a gasoline dealer or special fuels dealer license, and any such lic…

(1) (a) Every dealer or transporter required to be licensed under KRS 138.310 shall file with the department a financial instrument in an amount not to exceed three (3) months' estimated liability as computed by the department or five thousand dollars ($5,000) whichever is greate…

Appeal -- Cancellation. (1) If any dealer or transporter required to be licensed under KRS 138.310 files a false report of the data or information required by KRS 138.210 to 138.280, or fails, refuses or neglects to file the reports required by those sections, even though no tax …

receive refund. (1) When gasoline or special fuel on which the tax has been paid pursuant to the provisions of KRS 138.210 to 138.340 has been used for the purpose of operating any aircraft engaged in the transportation of persons or property, the purchaser of the liquid fuel so …

fraudulent application. (1) Applications for refund pursuant to KRS 138.341 shall be made to the department on a calendar quarter or calendar year basis on forms and in the manner prescribed by it for the refund of tax paid on aviation motor fuel used during the calendar quarter …

stationary engines -- Credit in lieu of refund. (1) Except as otherwise provided in KRS 138.220 to 138.448, any person who shall purchase gasoline or special fuel, on which the tax as imposed by KRS 138.220 has been paid, for the purpose of operating or propelling stationary engi…

No person shall secure a refund of tax under KRS 138.344 unless the person is the holder of an unrevoked refund permit issued by the Department of Revenue before the purchase of the gasoline or special fuel, which permit shall entitle the person to make application for a refund u…

The department may require the applicant to execute a corporate surety bond to be approved by the department, conditioned upon the payment of all taxes, penalties and fines for which such applicant may become liable under KRS 138.344 to 138.355. Such bond shall be in an amount eq…

(1) Each licensed gasoline and special fuel dealer shall, in accordance with the department's requirements, keep at his principal place of business in this state a complete record of all such gasoline and special fuel sold by him under gasoline refund invoices provided for in KRS…

portable facility -- Records of refund permit holder -- Inspection of premises. (1) The department may require any dealer or any dealer's authorized agent to identify refund gasoline or special fuel sold by him by adding thereto any chemical or substance, which shall be furnished…

No person shall execute a gasoline or special fuel refund invoice, as described in KRS 138.351, who is not a dealer, as defined in KRS 138.210 or a subjobber duly authorized by a licensed dealer, to execute refund invoices as his agent. In no instance shall refund invoices be exe…

to refund not assignable -- Interest on refunds. (1) When gasoline or special fuel is sold to a person who shall claim to be entitled to refund under KRS 138.344, the licensed dealer or his duly authorized agent who sells the gasoline or special fuel shall make out in duplicate a…

If any excise taxes on gasoline or special fuel be erroneously refunded, the department shall issue an assessment for the amount erroneously refunded. The refund error shall be assessed, collected, and paid in the same manner as if it were a deficiency.

(1) No person shall make a false or fraudulent statement in an application for a refund permit or in a gasoline or special fuel refund invoice, or in an application for a refund of any taxes as set out in KRS 138.344 to 138.355; or fraudulently obtain a refund of such taxes; or k…

If the department reasonably believes that any dealer or refund permit holder has been guilty of a violation of KRS 138.344 to 138.355, which would subject the dealer or permit holder to a suspension or revocation of his or her license or permit under KRS 138.354(2), (3), or (4),…

purposes gasoline or special fuels credit to dealers. (1) Any special fuels dealer who delivers special fuels, on which the tax imposed by KRS 138.220 has been paid, into a tank having no dispensing outlet and used exclusively to heat a personal residence, shall be entitled to cl…

refund claims. (1) Except as provided in KRS 138.240(2)(e), any person who buys any liquid fuel for the purpose of dispensing it directly into fuel tanks installed in or attached to watercraft, for the purpose of operating or propelling watercraft, shall be reimbursed for the tax…

Application -- Audit. (1) Bus companies operating under a certificate issued pursuant to KRS Chapter 281 and senior citizen programs which utilize Title III funds of the Older Americans Act in the provision of transportation services shall be entitled to a refund of seven- ninths…

-- Certification of amount of gasoline and special fuels tax due. (1) A dealer may elect to be exempted from the provisions of KRS 138.330, subject to the following provisions: (a) An election for exemption shall be made on an annual basis and shall be for a calendar year; (b) At…