KRS § 132.140 — KY Code / Title XI / Chapter 132 / Section 132.140
132.140 Assessment of distilled spirits by department -- Maximum tax rate on distilled spirits in revenue bond-financed warehouse and in barrels located in bonded warehouse or premises -- Failure to report
Status: in_force

132.140 Assessment of distilled spirits by department -- Maximum tax rate on

distilled spirits in revenue bond-financed warehouse and in barrels located in

bonded warehouse or premises -- Failure to report.

(1) The department shall fix the value of the distilled spirits for the purpose of taxation,

assess the same at its fair cash value, estimated at the price it would bring at a fair

voluntary sale, calculate the exempt portion of the property taxes, and keep a record

of the valuations and assessments. The department shall immediately notify the

owner or proprietor of the bonded warehouse or premises of the amount fixed,

including the portion of the property tax exemption as calculated in subsection (3)

of this section.

(2) (a) For purposes of this subsection only, "revenue bond-financed warehouse"

means a bonded warehouse or premises containing distilled spirits:

1. Owned by a tax-exempt governmental unit or tax-exempt statutory

authority under KRS Chapter 103;

2. The costs of which are financed by one (1) or more series of industrial

revenue bonds under KRS Chapter 103 issued prior to January 1, 2024;

and

3. Any portion of the costs of which remains financed by those industrial

revenue bonds during any portion of the calendar year.

(b) Notwithstanding subsection (3) of this section, for the taxation of distilled

spirits stored or aging in barrels in a revenue bond-financed warehouse:

1. One hundred percent (100%) of the assessed value of the distilled spirits

shall be subject to the applicable state and local ad valorem taxes; and

2. The state and local tax rate that may be levied on the distilled spirits

shall be the state and local tax rate for tax assessments made on January

1, 2023.

(c) Distilled spirits stored or aging in barrels in a revenue bond-financed

warehouse shall be exempt from state and local ad valorem taxes for tax

assessments made on or after January 1, 2043.

(3) For distilled spirits stored or aging in barrels located in a bonded warehouse or

premises, the portion of the assessed value that is subject to state and local ad

valorem taxes shall be as follows:

(a) Ninety-six percent (96%) of the assessed value for tax assessments made on

January 1, 2026;

(b) Ninety-two percent (92%) of the assessed value for tax assessments made on

January 1, 2027;

(c) Eighty-eight percent (88%) of the assessed value for tax assessments made on

January 1, 2028;

(d) Eighty-four percent (84%) of the assessed value for tax assessments made on

January 1, 2029;

(e) Eighty percent (80%) of the assessed value for tax assessments made on

January 1, 2030;

(f) Seventy-six percent (76%) of the assessed value for tax assessments made on

January 1, 2031;

(g) Seventy-two percent (72%) of the assessed value for tax assessments made on

January 1, 2032;

(h) Sixty-eight percent (68%) of the assessed value for tax assessments made on

January 1, 2033;

(i) Sixty-one percent (61%) of the assessed value for tax assessments made on

January 1, 2034;

(j) Fifty-four percent (54%) of the assessed value for tax assessments made on

January 1, 2035;

(k) Forty-four percent (44%) of the assessed value for tax assessments made on

January 1, 2036;

(l) Thirty-eight percent (38%) of the assessed value for tax assessments made on

January 1, 2037;

(m) Thirty-two percent (32%) of the assessed value for tax assessments made on

January 1, 2038;

(n) Twenty-four percent (24%) of the assessed value for tax assessments made on

January 1, 2039;

(o) Twenty percent (20%) of the assessed value for tax assessments made on

January 1, 2040;

(p) Fifteen percent (15%) of the assessed value for tax assessments made on

January 1, 2041; and

(q) Eight percent (8%) of the assessed value for tax assessments made on January

1, 2042.

(4) Distilled spirits stored or aging in barrels located in a bonded warehouse or

premises shall be exempt from state and local ad valorem taxes for tax assessments

made on or after January 1, 2043.

(5) If any owner, proprietor, or custodian of a bonded warehouse or premises fails to

make the report required by KRS 132.130, the department shall ascertain the

necessary facts required to be reported. For that purpose the department shall have

access to the records of the owner, proprietor, or custodian; and the assessment

shall be made and taxes collected thereon, with interest and penalties, as though

regularly reported.

(6) The assessment made under (1) of this section shall be reviewed according to KRS

131.110.