Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
65.7045,
139.515,
154.30-010
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations necessary for
the administration and enforcement of all tax laws in Kentucky.
KRS
139.710 authorizes the department to
administer the provisions of KRS Chapter 139, relating to the assessment,
collection, refund, and administration of taxes.
KRS
139.515 requires sales tax refunds for
qualified signature projects. This administrative regulation establishes
requirements for a sales and use tax refund relating to a signature
project.
Section 1. Definitions.
(1) "Agency" is defined in
KRS
65.7045(2).
(2) "Approved public infrastructure costs" is
defined by
KRS
154.30-010(3).
(3) "Approved signature projects costs" is
defined by
KRS
154.30-010(4).
(4) "Commencement date" is defined in
KRS
65.7045(8).
(5) "Fiscal year" means the Commonwealth of
Kentucky's accounting period, which begins every July 1 and ends on June 30 of
the following year.
(6) "Purchaser"
means the contractor, subcontractor, or other entity that purchases tangible
personal property used in the construction of a signature project.
(7) "Signature project" is defined by
KRS
139.515(1)(b) and
154.30-010(27).
(8) "Tangible personal property used in the
construction of a signature project" is defined in
KRS
139.515(1)(c).
(9) "Vendor" means an individual or entity
from whom tangible personal property used in the construction of a signature
project is purchased.
Section
2. Refund Application Requirements.
(1) Requests for refunds shall be filed with
the Department of Revenue annually by the agency within the sixty (60) day
timeframe as provided for in
KRS
139.515 and shall only cover purchases made
after the "commencement date" of the project grant agreement.
(2) Refund requests shall be postmarked,
electronically submitted, or if delivered by messenger, hand-stamped by the
department by the date required and shall include the following:
(a) Application for Kentucky Signature
Project Sales and Use Tax Refund, Form 51A291;
(b) Information Sharing and Assignment
Agreement for Designated Refund Claims, Form 51A290. The agency shall cause to
be executed a separate Information Sharing and Assignment for Designated Refund
Claims for every purchaser and vendor relationship. Each agreement shall be
submitted to the Department of Revenue with the first request for refund that
includes the purchaser vendor relationship filed after the execution of the
agreement. Only one (1) agreement shall be required for each vendor and
purchaser relationship for the life of the signature project;
(c) Expenditure Report for Signature Project
Refunds, Form 51A292, from each purchaser detailing all "tangible personal
property used in the construction of the signature project" and the total
corresponding Kentucky sales and use tax paid;
(d) Sample invoices between each purchaser
and vendor; and
(e) The percentage
of each purchaser's "tangible personal property used in the construction of the
signature project" not included in the project grant agreement as approved
public infrastructure costs or approved signature project costs.
Section 3.
Record-Keeping Requirements. The approved agency shall keep adequate and
complete records supporting its refund request for periods not less than four
(4) years as provided by
KRS
139.720. The department may audit part or all
of the records of all parties involved as necessary to verify the refund
request and to ensure compliance with
KRS
139.515.
Section 4. Forms. The forms listed herein may
be inspected, copied, or obtained, subject to applicable copyright law, at:
(1) The Kentucky Department of Revenue, 501
High Street, Frankfort, Kentucky 40620;
(2) A Kentucky Taxpayer Service Center,
Monday through Friday, 8 a.m. to 4:30 p.m.; or
(3) The department Web site at
http://revenue.ky.gov.
STATUTORY AUTHORITY:
KRS
131.130(1),
139.710
