Kentucky Administrative Regulations › Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE › Chapter 5 - Ad Valorem Tax; Administration › Section 103 KAR 5:190 - State registration requirements and application process for purchasing certificates of delinquency; fees; and definitions for related entities and related interests

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				134.128,
				134.129
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				134.129(2) requires a person
				to hold a certificate of registration from the Department of Revenue prior to
				the payment of any certificate of delinquency that results in the person owning
				more than five (5) certificates of delinquency statewide, more than three (3)
				certificates of delinquency in any county, or investing more than $10,000 in
				the payment of certificates of delinquency statewide in a calendar year.
				KRS
				134.129(3) requires the
				Department of Revenue to promulgate administrative regulations to establish
				registration requirements, an application process, and an administrative fee to
				offset the cost of processing and reviewing the application for a certificate
				of registration.
				KRS
				134.128(2)(d) 3 requires the
				department to define "related entities" and "related interests" for the purpose
				of regulating the sale of certificates of delinquency. This administrative
				regulation establishes the registration requirements and application process
				for persons to hold a certificate of registration prior to the payment of a
				certificate of delinquency.
Section 1.
			 Definitions.
(1) "Affiliate" means any person
			 who directly or indirectly through one (1) or more intermediaries controls, is
			 controlled by, or is under the common control with, another person.
(2) "Agent" means a person authorized by
			 agreement with a registrant to act on behalf of a registrant.
(3) "Applicant" means a person filing a
			 complete application.
(4)
			 "Application" means an Application for Certificate of Registration to Purchase
			 Certificates of Delinquency, Form number 62A370A.
(5) "Commissioner" means the Commissioner of
			 the Department, or his or her designee.
(6) "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 person in
			 control of a registrant or applicant;
(b) The power to elect a majority of
			 executive officers, managers, directors, trustees, or other person 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.
(7) "Department" means the
			 Kentucky Department of Revenue.
(8)
			 "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.
(9) "Registrant" means a person registered to
			 purchase a certificate of delinquency.
(10) "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.