KRS § 139.515 — KY Code / Title XI / Chapter 139 / Section 139.515
139.515 Sales tax refund program for qualifying signature projects
Status: in_force

139.515 Sales tax refund program for qualifying signature projects.

(1) As used in this section:

(a) "Agency" has the same meaning as in KRS 154.30-010;

(b) "Signature project" means a project that meets the requirements established by

KRS 154.30-050; and

(c) "Tangible personal property used in the construction of a signature project"

means tangible personal property that:

1. Consists of:

a. Permanently incorporated building materials and fixtures that are

an improvement to real property on the signature project;

b. Building materials temporarily incorporated into the signature

project for infrastructure support during construction; or

c. Temporarily incorporated specialized forms for concrete that are

for exclusive use on the qualifying signature project; and

2. Is not machinery or equipment.

(2) (a) Notwithstanding any other provision of KRS Chapter 139 and KRS 134.580,

the sales or use tax paid on the purchase of tangible personal property used in

the construction of the portion of a signature project that does not relate to

approved public infrastructure costs or approved signature project costs, as

defined in KRS 154.30-010, may be refunded to the agency under the

conditions established by subsection (3) of this section.

(b) The authority, as defined in KRS 154.30-010, shall notify the department

upon the approval of a signature project. The notification shall include the

name of the signature project, the name of the agency, the name of the project

developer, the commencement date of the tax incentive agreement, and the

percentage of total anticipated expenditures for tangible personal property

used in the construction of a signature project that are not included in the

project grant agreement as approved public infrastructure costs or approved

signature project costs.

(c) The department shall determine the total amount of eligible refund due under

each application for refund based upon the actual percentage of total

expenditures for tangible personal property used in the construction of a

signature project that are not included in the project grant agreement as

approved public infrastructure costs reported in the refund request reduced by

the amount of vendor compensation taken in accordance with KRS 139.570.

(3) To qualify for the refund established by subsection (2) of this section, the agency

shall collect from the purchasers of tangible personal property used in the

construction of the signature project all documentation relating to the payment of

sales or use tax, and shall file an application for refund of the sales or use tax paid

by the purchasers as reflected in the documentation collected. Requests for refund

shall be filed annually during the first twelve (12) years the project grant agreement

is in effect, and shall cover purchases made during the immediately preceding year.

Requests for refund shall be filed in the manner directed by the department.

(4) (a) The agency shall file the first year refund request within sixty (60) days

following the end of the fiscal year in which the project grant agreement is

executed. The agency shall file the final refund request within sixty (60) days

following the end of the eleventh fiscal year following the fiscal year in which

the project grant agreement was executed, or within sixty (60) days after

construction is complete, whichever date is earlier. All other annual refund

requests shall be filed within sixty (60) days after the completion of each

fiscal year.

(b) Failure to file a refund request within the timeframes provided in paragraph

(a) of this subsection shall result in an adjustment to the refund amount paid

as follows:

1. For late refund requests filed within the first one hundred twenty (120)

days after the request was due, for each month or portion thereof that the

refund request is late, the refund amount shall be reduced by one twelfth

(1/12) of the total amount determined by the department to be due to the

agency.

2. Any refund request filed more than one hundred twenty (120) days after

the timeframes provided in paragraph (a) of this subsection shall be

rejected and no refunds shall be paid for the time period covered by the

request.

(5) Interest shall not be allowed or paid on any refund made under the provisions of this

section.

(6) The agency shall execute information sharing agreements prescribed by the

department with contractors, vendors, and other related parties to verify

construction material costs.