KRS § 132.820 — KY Code / Title XI / Chapter 132 / Section 132.820
132.820 Assessment of unmined coal, oil, and gas reserves held separately from surface real property -- Exceptions -- Effect of appeal on payment of taxes
Status: in_force

132.820 Assessment of unmined coal, oil, and gas reserves held separately from

surface real property -- Exceptions -- Effect of appeal on payment of taxes.

(1) The department shall value and assess unmined coal, oil, and gas reserves, and any

other mineral or energy resources which are owned, leased, or otherwise controlled

separately from the surface real property at no more than fair market value in place,

considering all relevant circumstances. Unmined coal, oil, and gas reserves and

other mineral or energy resources shall in all cases be valued and assessed by the

Department of Revenue as a distinct interest in real property, separate and apart

from the surface real estate unless:

(a) The unmined coal, oil, and gas reserves, and other mineral or energy resources

are owned in their entirety by the surface owner;

(b) The surface owner is neither engaged in the severance, extraction, processing,

or leasing of mineral or other energy resources nor is he an affiliate of a

person who engages in those activities; and

(c) The surface is being used by the surface owner primarily for the purpose of

raising for sale agricultural crops, including planted and managed timberland,

or livestock or poultry.

For purposes of this section, "affiliate" means a person who directly or indirectly

owns or controls, is owned or controlled by, or is under common ownership or

control with, another individual, partnership, committee, association, corporation,

or any other organization or group of persons.

(2) Each owner or lessee of property assessed under subsection (1) of this section shall

annually, between January 1 and April 15, file a return with the department in a

form as the department may prescribe. Other individuals or corporations having

knowledge of the property defined in subsection (1) of this section gained through

contracting, extracting, or similar means may also be required by the department to

file a return.

(3) Any property subject to assessment by the department under subsection (1) of this

section which has not been listed for taxation, for any year in which it is taxable, by

April 15 of that year shall be omitted property.

(4) After the valuation of unmined minerals or other energy sources has been finally

fixed by the department, the department shall certify to the county clerk of each

county the amount liable for county, city, or district taxation. The report shall be

filed by the county clerk in his office, and shall be certified by the county clerk to

the proper collecting officer of the county, city, or taxing district for collection.

(5) The notification, protest, and appeal of assessments under subsection (1) of this

section shall be made pursuant to the provisions of KRS Chapter 131.

(6) No appeal shall delay the collection or payment of taxes based upon the assessment

in controversy. The taxpayer shall pay all state, county, and district taxes due on the

valuation which the taxpayer claims as the true value as stated in the protest filed

under KRS 131.110. When the valuation is finally determined upon appeal, the

taxpayer shall be billed for any additional tax and interest at the tax interest rate as

defined in KRS 131.010(6), from the date the tax would have become due if no

appeal had been taken. The provisions of KRS 134.015(6) shall apply to the tax bill.

(7) The collection of tax bills generated from the assessments made under subsection

(1) of this section shall be made pursuant to the provisions of KRS Chapter 134.