KRS § 134.551 — KY Code / Title XI / Chapter 134 / Section 134.551
134.551 Refund to purchaser of certificate of delinquency that is unenforceable or declared void -- Reassessment of property
Status: in_force

134.551 Refund to purchaser of certificate of delinquency that is unenforceable or

declared void -- Reassessment of property.

(1) If a certificate of delinquency or personal property certificate of delinquency held by

an individual is declared void by a court of competent jurisdiction because of the

irregularity of taxing officers, the amount for which the certificate was issued shall

be refunded by the state, county, and taxing districts on a pro rata basis. If a school

district or county is unable to make the refund currently when requested, it shall be

given preference from the next year's revenue. The application for refund must be

made within one (1) year after the judgment. The property covered by the void

certificate shall be assessed immediately as omitted property and the tax bill shall be

payable as soon as prepared.

(2) (a) If a certificate of delinquency held by a third-party purchaser who paid the

certificate of delinquency to the county clerk:

1. Is unenforceable because:

a. It is a duplicate certificate of delinquency;

b. The tax liability represented by the certificate of delinquency was

satisfied prior to the purchase of the certificate of delinquency;

c. All or a portion of the certificate of delinquency is exonerated; or

d. The property to which the certificate of delinquency applies was

not subject to taxes as a matter of law as certified by the property

valuation administrator; or

2. Should not have been sold because, on the date of the annual sale, the

certificate of delinquency met the requirements for inclusion on the

protected list pursuant to KRS 134.504(10) and it:

a. Was included on the protected list;

b. Was mistakenly left off the protected list; or

c. Became eligible for inclusion on the protected list between the date

the protected list was submitted and the date of sale;

the third-party purchaser may apply to the county clerk for a refund.

(b) The application for refund filed with the county clerk shall include written

proof that one (1) of the situations described in paragraph (a) of this

subsection exists with regard to the certificate of delinquency for which a

refund is sought.

(c) 1. Upon acceptance and approval of the application for refund, the county

clerk shall approve a refund of the amount paid to the county clerk by

the third-party purchaser in satisfaction of the certificate of delinquency.

The refunded amount shall not include any filing fees paid by the third-

party purchaser to the county clerk.

2. Amounts refunded to the third-party purchaser shall be deducted from

amounts in the hands of the county clerk due to the state, county, taxing

districts, sheriff, county attorney, and the county clerk on a pro rata

basis, if the county clerk has sufficient funds in his or her hands to make

the refund.

3. If the county clerk does not have sufficient funds to make the refund at

the time the refund is approved, the county clerk may either:

a. Retain the approved refund claim in his or her office and make the

refund payment as soon as he or she has sufficient funds in his or

her hands to make the refund payment; or

b. Provide a signed letter to the person to whom payment is due,

which includes the amount due from each taxing jurisdiction or fee

office, and which directs each taxing jurisdiction or fee official to

pay to the person the amount due and owing from that taxing

jurisdiction or fee official as reflected in the letter.

4. Upon the making of a refund to a third-party purchaser, the county clerk

shall issue and file a release of the lien on the property assessed for taxes

as provided in this subparagraph without charge to the third-party

purchaser. The release shall be linked to the encumbrance in the county

clerk's indexing system.

a. The department shall prepare a release form to be used by the

county clerk when a refund is paid under this paragraph. The form

shall include, at a minimum, the following:

i. The name and address of the taxpayer;

ii. The name and address of the third-party purchaser;

iii. The book and page number of the third-party purchaser's lis

pendens filing;

iv. The property address;

v. The applicable tax year; and

vi. The map identification number or tax bill number.

b. The release form shall be signed by the government official

responsible for making the correction.

c. In addition to the signed release form, information filed by the

county clerk shall include a copy of the documentation provided by

the government official and a copy of the refund check or letter of

refund authorization issued to the third-party purchaser. The

county clerk shall record and file this information without a fee.

d. The county clerk shall also make any necessary corrections to the

tax records within the office of the county clerk.

e. The county clerk shall return the release document to the taxpayer

and shall provide a copy of the release document to the third-party

purchaser.

(d) If the county clerk denies the application for refund, or the property valuation

administrator fails to certify that property was not subject to taxes as a matter

of law, the third-party purchaser may appeal the decision of the county clerk

or the property valuation administrator to the Board of Tax Appeals pursuant

to KRS 49.220.