KRS § 139.519 — KY Code / Title XI / Chapter 139 / Section 139.519
139.519 Sales and use tax refund on building materials used for disaster recovery
Status: in_force

139.519 Sales and use tax refund on building materials used for disaster recovery.

(1) As used in this section:

(a) "Building materials" means all tangible personal property which enters into

and becomes a permanent part of a building;

(b) "Disaster" means damage resulting from a flood, rain storm, ice storm, wind

storm, tornado, hurricane, earthquake, or terrorist attack; and

(c) "Disaster area" means a county that has been declared a disaster by the

President of the United States pursuant to the Robert T. Stafford Disaster

Relief and Emergency Assistance Act, 42 U.S.C. secs. 5121 to 5206.

(2) (a) Notwithstanding KRS 139.770, a legal owner of a building located in a

disaster area and damaged, in whole or in part, as a result of a disaster may

qualify for a refund of the sales and use tax paid on the purchase of building

materials used to:

1. Repair that building; or

2. Construct a new building in a disaster area to replace the building

damaged or destroyed by the disaster.

(b) The refund allowed by paragraph (a) of this subsection shall be limited to the

lesser of:

1. One hundred percent (100%) of the Kentucky sales and use tax actually

paid, reduced by the amount of vendor compensation allowed under

KRS 139.570; or

2. Six thousand dollars ($6,000) for each building in the disaster area

which is damaged or destroyed by the disaster regardless of the number

of legal owners.

(3) Notwithstanding KRS 134.580 and 139.770, to qualify for the refund provided by

subsection (2) of this section:

(a) The building materials for which the sales and use tax refund is sought shall

be purchased:

1. For the purpose of repairing or constructing a building within a disaster

area;

2. a. By the legal owner of the building; or

b. By a contractor who is under contract with the legal owner to

incorporate the building materials into the building; and

3. On or after the date the disaster area is declared a disaster; and

(b) The legal owner of the building for which the sales and use tax refund is

sought shall:

1. Provide documentation that the legal owner is eligible for assistance

from the Federal Emergency Management Agency, United States

Department of Homeland Security; or

2. Provide a copy of the claim filed for insurance purposes for verification

of the building in the disaster area that was damaged by the disaster, in

whole or in part.

(4) The application for the sales and use tax refund provided by subsection (2) of this

section shall be filed with the department:

(a) Within three (3) years from the date the disaster area is declared a disaster;

and

(b) By the legal owner of the building on the form prescribed by the department.

(5) (a) The legal owner of the building shall file an application for refund and submit

sales receipts, invoices, photographs, and any other documents supporting the

legal owner's claim for refund, as requested by the department.

(b) If the legal owner repairs or replaces more than one (1) building destroyed by

the disaster, the legal owner shall file a separate application for refund for

each building.

(c) The legal owner of the building shall execute information-sharing agreements

prescribed by the department with contractors, vendors, and other related

parties so that the department may verify expenditures and the sales and use

tax paid.

(d) The legal owner of the building shall have no obligation to refund or

otherwise return any amount of the sales and use tax refund received to any

person who originally collected the tax and remitted it to the Commonwealth

or to a contractor or subcontractor who paid the tax on the purchase of the

materials to fulfill the terms of a construction contract.

(6) Interest shall not be allowed or paid on any refund made under this section.

(7) (a) The department shall prescribe and make available the forms required under

this section, and may promulgate administrative regulations in accordance

with KRS Chapter 13A that are necessary to implement this section.

(b) By October 1 of each year, the department shall report to the Legislative

Research Commission, for the preceding fiscal year, the number of owners

that have applied for refunds under this section by disaster area and the value

of the refunds issued by disaster area.