KRS § 143A.060 — KY Code / Title XI / Chapter 143A / Section 143A.060
143A.060 Collection of tax -- Agreement for processor to pay tax due from severor -- Provisions applicable to natural gas
Status: in_force

143A.060 Collection of tax -- Agreement for processor to pay tax due from severor

-- Provisions applicable to natural gas.

Notwithstanding any other provisions of this chapter to the contrary:

(1) In the case of natural resources other than natural gas, where the department finds

that it would facilitate and expedite the collection of the tax imposed under KRS

143A.020, the department may authorize the taxpayer processing the natural

resource to report and pay the tax which would be due from the taxpayer severing

the natural resource. Authorization from the department shall be in the form of an

agreement executed by the taxpayer processing the natural resource, the taxpayer

severing the natural resource, and the department. The agreement shall be in such

form as the department may prescribe. The agreement must be signed by the owners

if the taxpayers are natural persons; in the case of a partnership or association by a

partner or member; in the case of a corporation, by an executive officer or some

person specifically authorized by the corporation to sign the application. The

executive director of the Office of Legal Services for Revenue shall sign for the

department. The agreement may be terminated by any party to the agreement upon

giving thirty (30) days' written notice to the other parties to the agreement; however,

the department may terminate the agreement immediately upon written notice to the

other parties when either the taxpayer processing the natural resource or the

taxpayer severing the natural resource fails to comply with the terms of the

agreement; and

(2) (a) In the case of natural gas, except for those cases:

1. Where the person severing or severing and processing the natural gas

will sell the gas to the ultimate consumer; or

2. Where the department determines that the collection of the taxes due

under KRS 143A.020 would be accomplished in a more efficient and

effective manner through the severor, or severor and processor, remitting

the taxes,

the first person to purchase the natural gas after it has been severed, or in the

event that the natural gas has been severed and processed before the first sale,

the first person to purchase the natural gas after it has been severed and

processed, shall be liable for the collection of the tax imposed under KRS

143A.020. He shall collect the taxes imposed from the person severing, or

severing and processing, the natural gas, and he shall remit the taxes to the

department. In those cases where the person severing or severing and

processing the natural gas sells the gas to the ultimate consumer, the person so

severing or severing and processing the natural gas shall be liable for the tax

imposed under KRS 143A.020. In those cases where the department

determines that the collection of the taxes due under KRS 143A.020 from the

severance or severance and processing of natural gas would be accomplished

in a more efficient and effective manner through the severor, or severor and

processor, remitting the taxes, the department shall set out its determination in

writing, stating its reasons for so finding, and so advise the severor or severor

and processor at least fifteen (15) days in advance of the first reporting period

for which such action would be effective.

(b) On or before the last day of the month following each calendar month, each

person first purchasing natural gas as described in paragraph (a) of this

subsection, shall report purchases of natural gas during the month, showing

the quantities of gas purchased, the price paid, the date of purchase, and any

other information deemed necessary by the department for the administration

of the tax levied by KRS 143A.020, and shall pay the amount of tax due, on

forms prescribed by the department.

(c) On or before the last day of the month following each calendar month, each

person severing, or severing and processing natural gas, shall report the sales

of natural gas, showing the name and address of the person to whom sold, the

quantity of gas sold, the date of sale, and the sales price on forms prescribed

by the department.