KRS § 341.310 — KY Code / Title XXVII / Chapter 341 / Section 341.310
341.310 Lien on employer's property for contributions
Status: in_force

341.310 Lien on employer's property for contributions.

(1) A lien on a parity with state, county, and municipal ad valorem tax liens, and

superior to the lien of any mortgage or other encumbrance heretofore or hereafter

created is hereby created in favor of the cabinet upon all property of any subject

employer from whom contributions, interest or penalties are or may hereafter

become due. The lien shall commence from such time as any assessment becomes

delinquent and it shall continue until the amount of the original assessment and any

subsequent assessments of liability for contributions, interest, penalties or fees are

fully paid. The lien shall attach to all interest in property, either real or personal,

then owned or subsequently acquired by the person against whom the assessment is

made. The cabinet may file notice of the lien with the county clerk of any county or

counties in which the subject employer's business or residence is located, or in any

county in which the subject employer has interest in property and such notice shall

be recorded in the same manner as notices of lis pendens are and the file shall be

designated "miscellaneous state tax liens." Such recordation shall constitute notice

of both the original assessment and all subsequent assessments of liability against

the same subject employer. Upon request, the cabinet shall disclose the specific

amount of liability at a given date to any interested party legally entitled to such

information. The notice, when so filed, shall be conclusive notice to all persons of

the lien on the property having legal situs in that county, except that nothing in this

chapter shall be construed to alter or change in any way the law relative to the rights

and duties of a holder in due course as provided in KRS Chapter 355, Art. 3, or

affect the rights of any person taking the property or a lien thereon for value without

actual or constructive notice. The clerk shall be entitled to a fee pursuant to KRS

64.012 for filing the lien and the subsequent release or partial release, and said fee

shall become a part of the lien as an added cost of the delinquent subject employer

to be paid by him as a part of the amount necessary to release the lien and shall not

be the responsibility of the Commonwealth.

(2) In addition and as an alternative to any other remedy, the secretary may enforce the

lien by petition in the name of this state to the Franklin Circuit Court, if the

ministerial acts necessary to enforce the lien by the sale of the liened property or any

part of it are performed by the appropriate officers of the Circuit Court of the county

in which the property is situated under the direction of and reporting to the Franklin

Circuit Court. The manner of enforcement shall be the same as that provided for the

enforcement of other tax liens.

(3) (a) The secretary may issue a certificate of release of lien upon the furnishing of a

corporate surety bond satisfactory to the secretary by such employing unit in

the amount of one hundred twenty-five percent (125%) of the sum of such

contributions, interest and penalty, for which lien is claimed, conditioned

upon the prompt payment of such contribution, together with interest and

penalty thereon, by such employing unit to the cabinet in accordance with the

provisions set forth in such bond.

(b) The secretary may issue a certificate of partial release of any part of the

property subject to the lien if he finds that the fair market value of that part of

such property remaining subject to the lien is at least equal to the amount of

all other liens upon such property plus double the amount of the liability for

contributions, interest and penalties thereon remaining unsatisfied.

(c) The secretary may issue a certificate of partial release of any part of the

property or individual piece of property subject to the lien if he finds that the

interest of the Commonwealth in the property to be so released has no value.