Kentucky Administrative Regulations › Title 601 - TRANSPORTATION CABINET - DEPARTMENT OF VEHICLE REGULATION › Chapter 1 - Motor Carriers › Section 601 KAR 1:200 - Administration of taxes imposed in KRS 138.655 through 138.7291

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS 138.655-138.7291,
				186.650,
				49 C.F.R.
				390.21, 49 U.S.C. 317
NECESSITY, FUNCTION, AND CONFORMITY:
				49
				U.S.C. 31705 and
				KRS
				138.227 authorize the department to enter
				into the provisions of the International Fuel Tax Agreement (IFTA). If a motor
				carrier operates in interstate commerce, the motor fuel taxes imposed by
				Kentucky statutes that are subject to the provisions of IFTA are
				KRS
				138.660(1) and (2). If the
				motor carrier operates exclusively in intrastate commerce, the taxes imposed by
				KRS
				138.660(1) and (2) are not
				subject to the requirements of IFTA. The tax imposed by
				KRS
				138.660(3) is not subject to
				the IFTA federal mandate. All three (3) of these taxes are administered under
				the provisions of
				KRS
				138.655 through
				138.7291.
				This administrative regulation establishes the administrative procedures for
				the implementation of the International Fuel Tax Agreement in Kentucky,
				establishes the differences between the requirements of IFTA and Kentucky state
				law, establishes if the provisions of IFTA preempt state law, and provides for
				uniformity in the interstate and intrastate administration of
				KRS
				138.660(1) and (2) so as not
				to violate the interstate commerce clause of the United States
				Constitution.
Section 1. Definitions.
(1) "Apportioned" means to divide and
			 distribute fees to member International Registration Plan jurisdictions
			 according to mileage operated.
(2)
			 "Amended return" means a corrected tax return.
(3) "Base jurisdiction" or "base state" means
			 the member jurisdiction where qualified motor vehicles are based for vehicle
			 registration purposes and where:
(a) The
			 operational control and operational records of the fuel tax licensee's
			 qualified motor vehicles are maintained or can be made available; and
(b) Some travel is accrued by qualified motor
			 vehicles within the fleet.
(4) "Ceased operation" means that the
			 licensee no longer operates in Kentucky.
(5) "Combined licensed weight" means the
			 greater of the registered weight of the vehicle or the maximum gross weight of
			 the vehicle and load.
(6) "Fuel tax
			 license" means either an IFTA license or a KIT license.
(7) "IFTA" means the International Fuel Tax
			 Agreement.
(8) "IFTA license" means
			 a motor fuel tax license issued in accordance with the IFTA Articles of
			 Agreement and the IFTA Procedures Manual.
(9) "Jurisdiction" means a state of the
			 United States, the District of Columbia, or a province or territory of Canada,
			 or a state of the United Mexican States.
(10) "KIT license" means the Kentucky
			 intrastate tax license issued by the Kentucky Transportation Cabinet to an
			 intrastate motor carrier subject to the taxes imposed by
			 KRS
			 138.660(1) and
			 (2).
(11) "KYU license" means the Kentucky Highway
			 Use License issued by the Kentucky Transportation Cabinet to a motor carrier
			 subject to the tax imposed by
			 KRS
			 138.660(3).
(12) "Motor carrier" is defined by
			 KRS
			 138.655(5).
(13)
(a)
			 "Qualified motor vehicle" means a motor vehicle operated by a motor carrier
			 that is used, designed, or maintained for the transportation of persons or
			 property and that meets at least one (1) of the following criteria:
1. A single vehicle having two (2) axles and
			 a gross vehicle weight or a registered gross vehicle weight exceeding 26,000
			 pounds or 11,797 kilograms;
2. A
			 single vehicle having three (3) or more axles, regardless of weight;
			 or
3. A vehicle used in
			 combination, if the weight of the combination exceeds 26,000 pounds or 11,797
			 kilograms gross vehicle weight or registered gross vehicle weight.
(b) A qualified motor vehicle does
			 not mean:
1. A recreational vehicle;
2. A motor vehicle registered pursuant to
			 KRS
			 186.050(4) or under another
			 jurisdiction's law as a farm vehicle; or
3. A motor vehicle used to transport persons
			 for hire.
(14) "Quarterly reporting period" means a
			 period of time consistent with the calendar quarterly periods of January 1
			 through March 31, April 1 through June 30, July 1 through September 30, and
			 October 1 through December 31.
(15)
			 "Tax-paid fuel" means motor fuel purchased either in bulk or over-the-road by a
			 motor carrier on which the motor fuel taxes imposed by a jurisdiction are paid
			 at purchase.