Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 5 - Ad Valorem Tax; Administration › Section 103 KAR 5:180 - Procedures for sale of certificates of delinquency by county clerks

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				134.127,
				134.128
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				134.128(2) requires the
				Department of Revenue to promulgate administrative regulations to establish a
				process for the purchase and sale of certificates of delinquency to third
				parties. This administrative regulation establishes the process for the
				purchase and sale of certificates of delinquency to third parties.
Section 1. Definitions.
(1) "Clerks fees" means any fee required to
			 be collected by a county clerk for the filing, recording, release, processing,
			 or other handling of a certificate of delinquency or a lien created by a
			 certificate of delinquency.
(2)
			 "Control" means:
(a) Ownership of, or the
			 power to vote, directly or indirectly, twenty-five (25) percent or more of a
			 class of voting securities or voting interests of a registrant or applicant, or
			 a person in control of a registrant or applicant;
(b) The power to elect a majority of
			 executive officers, managers, directors, trustees, or other persons exercising
			 managerial authority of a registrant or applicant;
(c) The power to exercise influence, directly
			 or indirectly, over the management or policies of a registrant or
			 applicant;
(d) Holding the position
			 of an officer, director, general partner, or managing member of the registrant
			 or the applicant or in a position of similar status or performing similar
			 duties and functions of the registrant or the applicant; or
(e) Being entitled to receive twenty-five
			 (25) percent or more of the profits from the registrant or applicant.
(3) "Current certificate of
			 delinquency" means a certificate of delinquency which relates to the most
			 recent tax year and which has not been offered in a prior year's county clerk's
			 sale.
(4) "Department" means the
			 Kentucky Department of Revenue.
(5)
			 "Person" means any individual, corporation, business trust, estate, trust
			 partnership, limited liability company, association, organization, joint
			 venture, government or any subdivision, agency or instrumentality thereof, or
			 any other legal or commercial entity.
(6) "Priority Certificate of Delinquency"
			 means a current certificate of delinquency which relates to a property on which
			 a potential purchaser already owns a prior year certificate of
			 delinquency.
(7) "Protected
			 Certificate of Delinquency" means a certificate of delinquency which is:
(a) Currently involved in
			 litigation;
(b) Part of an ongoing
			 bankruptcy proceeding of which the county clerk has received actual notice;
			 or
(c) The subject of an agreed
			 payment plan in good standing.
(8) "Related entities" or "related interests"
			 means a relationship between two persons in which a person:
(a) Can exercise control or significant
			 influence over another person;
(b)
			 Is related by blood, adoption, or marriage to another person;
(c) Controls or is controlled by another
			 person; or
(d) Is an agent or
			 affiliate of another person.
(9) "Sale" means the annual sale by the
			 county clerk of certificates of delinquency to third party
			 purchasers.