Title XI, Revenue and Taxation

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…

tax -- Exemptions. (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 138.210 to 138.446 shal…

As used in KRS 138.455 to 138.470, unless the context requires otherwise: (1) "Current model year" means a motor vehicle of either the model year corresponding to the current calendar year or of the succeeding calendar year, if the same model and make is being offered for sale by…

The tax imposed by KRS 138.450 to 138.470 shall be construed as a tax on the privilege of using a motor vehicle upon the public highways of this Commonwealth and shall be separate and distinct from all other taxes imposed by this Commonwealth. The provisions of KRS 138.450 to 138…

(1) A tax levied upon its retail price at the rate of six percent (6%) shall be paid on the use in this state of every motor vehicle, except those exempted by KRS 138.470, at the time and in the manner provided in this section. (2) The tax shall be collected by the county clerk o…

September 1, 2009, and before July 1, 2014. (1) (a) Effective for sales on or after September 1, 2009, and before July 1, 2014, of: 1. New motor vehicles; 2. Dealer demonstrator vehicles; 3. Previous model year motor vehicles; and 4. U-Drive-It motor vehicles that have been trans…

2014. (1) (a) Effective for sales on or after July 1, 2014, of: 1. New motor vehicles; 2. Dealer demonstrator vehicles; 3. Previous model year motor vehicles; and 4. U-Drive-It motor vehicles that have been transferred within one hundred eighty (180) days of being registered as a…

(1) A motor vehicle dealer who operates a service or repair component in his dealership may register a motor vehicle to be used exclusively as a loaner or rental motor vehicle to the customers of this service or repair department. The dealer may pay usage tax on the loaner or ren…

As used in KRS 138.463 and 138.4631, unless the context requires otherwise: (1) "Cabinet" means the Transportation Cabinet; (2) "Rent" and "rental" means a contract, other than a peer-to-peer car sharing program agreement as defined in KRS 281.010 or a car sharing program agreeme…

(1) A holder of a certificate as required under KRS 281.630 to operate as a U-Drive-It as defined in KRS 281.010: (a) May pay the motor vehicle usage tax imposed under KRS 138.460 upon the retail price of the motor vehicle; or (b) May pay the motor vehicle usage tax of six percen…

Drive-It permits and against dealers with loaner motor vehicles for failure or refusal to pay tax. (1) If any holder of a permit under KRS 138.463(2) fails or refuses to file a return or furnish any information requested in writing, the cabinet may, from any information in its po…

(1) The county clerk shall report each Monday to the department all moneys collected during the previous week. (2) The clerk shall deposit motor vehicle and manufactured home usage tax and sales and use tax collections in accordance with KRS 131.155. (3) Failure to deposit or, if…

county clerk. (1) Any person other than a dealer, as defined in KRS 186.010(10), who sells or transfers a motor vehicle in this state shall deliver to the county clerk the certificate of title with the assignment form on the reverse side properly executed and shall transfer the v…

There is expressly exempted from the tax imposed by KRS 138.460: (1) (a) Motor vehicles titled or registered to the United States, or to the Commonwealth of Kentucky or any of its political subdivisions; and (b) The gross rental or lease charges for the rental or lease of a motor…

rent. (1) As used in this section: (a) "Bad debt" has the same meaning as in 26 U.S.C. sec. 166, except that the following shall be excluded: 1. Financing charges or interest; 2. Excise or sales and use taxes charged on the purchase price; 3. Uncollectible amounts on property tha…

(1) As used in this section: (a) "Electric motorcycle" means the same as "motorcycle" or "motor scooter" as defined in KRS 186.010, that is powered by a: 1. Battery or equivalent energy storage device that can be charged with an electric plug using an external electricity source;…

Collection -- Penalties -- Administrative regulations. (1) As used in this section: (a) "Department" means the Department of Revenue; (b) "Distribute" means the delivery or transfer of electric power into the battery or other energy storage device of an electric vehicle at a loca…

diesel fuel -- Exceptions -- Civil penalty. (1) A person shall not sell or deliver untaxed diesel fuel or dyed diesel fuel when the person knows or has reason to know that the fuel will be used in a motor vehicle on any public highway. (2) A person shall not introduce untaxed die…

(1) As used in this section: (a) "Adjusted gross fantasy contest receipts" means the total sum of entry fees collected by a fantasy contest service provider from all fantasy contest participants entering a fantasy contest, less winnings paid to fantasy contest participants in the…

2027) (1) As used in this section: (a) "Consumer" means a: 1. Kentucky resident who purchases an event contract through a prediction market; or 2. Person who is not a Kentucky resident who purchases an event contract through a prediction market while in Kentucky; (b) "Department"…

January 1, 2027) (1) (a) A fantasy contest service provider shall be liable for the payment of the tax levied in KRS 138.505. (b) A prediction market operator shall be liable for the payment of the tax levied in KRS 138.506. (2) Notwithstanding anything in this chapter to the con…

intertrack, and interstate wagering -- Exemptions -- Uses of tax revenue -- Order of disbursements -- Two-day international horse racing event -- International harness racing event. (1) (a) Before August 1, 2022, except as provided in paragraph (e) of this subsection and subsecti…

As used in KRS 138.510 to 138.550: (1) "Advanced deposit account wagering" has the same meaning as in KRS 230.210; (2) "Advanced deposit account wagering license" has the same meaning as in KRS 230.210; (3) "Association" has the same meaning as in KRS 230.210; (4) "Corporation" m…

(1) (a) Beginning August 1, 2014, but before August 1, 2022, an excise tax is imposed on all advance deposit account wagering licensees licensed under KRS 230.260 at a rate of one-half of one percent (0.5%) of all amounts wagered through the licensee by Kentucky residents; and (b…

Records -- Distribution of tax revenue generated under KRS 138.513. (1) The department shall enforce the provisions of and collect the tax and penalties imposed and other payments required by KRS 138.510 to 138.550, and in doing so it shall have the general powers and duties gran…

Any person who violates any provision of KRS 138.510 to 138.530 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).

In addition to all other penalties provided in KRS 138.510 to 138.540: (1) When the pari-mutuel system of betting is operated at a track licensed under KRS Chapter 230, the license may be suspended, revoked, or renewal refused by the corporation upon the failure of the operator t…

- Reporting requirements. (1) As used in this section: (a) "Adjusted gross fixed-odds wagering revenue" means the total sum of wagers collected on all fixed-odds wagers on live horse racing and all combination of bets of multiple individual wagers into one (1) bet that includes o…

As used in KRS 138.660 to 138.7291 and 138.990(13) and (14), unless the context requires otherwise: (1) "Cabinet" means the Transportation Cabinet; (2) "Combined licensed weight" shall mean the greater of: (a) The declared combined maximum gross weight of the vehicle and any towe…

(1) Every motor carrier, excluding charter bus operators registered pursuant to KRS Chapter 281, shall pay a tax at the rate levied in KRS 138.220(1) and (2) on the amount of gasoline and special fuels used in operations on the public highways of this state. (2) In addition to th…