KRS 131.1817: Definitions for section -- Delinquent taxpayer subject to revocation or

denial of professional or occupational license, driver's license, and motor

vehicle registration -- Agencies' duties to assist department -- Notice -- Appeal

-- Written tax clearance before reissuance -- Administrative regulations.

(1) As used in this section:

(a) "Attorney's license" means a license issued pursuant to the rules of the

Supreme Court of Kentucky authorizing the practice of law in the

Commonwealth;

(b) "Delinquent taxpayer" means:

1. A taxpayer with an overdue state tax liability:

a. That is not covered by a current installment payment agreement;

b. For which all protest and appeal rights under the law have expired;

and

c. About which the department has contacted the taxpayer; or

2. A taxpayer who:

a. Has not filed a required tax return within ninety (90) days

following the due date of the return, or if the due date was

extended, within ninety (90) days following the extended due date

of the return; and

b. Was contacted by the department about the delinquent return;

(c) "License" means any occupational or professional certification, license,

registration, or certificate issued by a licensing agency that is required to

engage in an occupation, profession, or trade in the Commonwealth, other

than a license issued to an attorney; and

(d) "Licensing agency" means any instrumentality, agency, board, commission, or

department established by statute that has the power and authority within the

Commonwealth to issue any license, except "licensing agency" does not

include the Supreme Count of Kentucky, relating to licenses issued to

attorneys to practice law in the Commonwealth.

(2) The department may identify licensing agencies from which it wants to obtain

information for the purpose of tax compliance.

(3) Any licensing agency identified by the department shall work with the department

to develop a process to provide the department with information about its licensees.

(4) Any delinquent taxpayer who:

(a) Holds a license;

(b) Is an attorney licensed to practice law in the Commonwealth; or

(c) Owns a motor vehicle registered in the Commonwealth;

may have that license suspended or revoked, and may be denied the ability to

register his or her motor vehicle in the Commonwealth as provided in subsection

(5) of this section.

(5) (a) To begin the process of revocation of a license, or suspension of the ability to

register a motor vehicle, the department shall notify the delinquent taxpayer

by certified mail at least twenty (20) days prior to submission of the name of a

delinquent taxpayer to the relevant agency that his or her name will be

submitted to:

1. The licensing agency, for revocation of a license;

2. The Transportation Cabinet, for denial of the ability to register a motor

vehicle in the Commonwealth; or

3. The Kentucky Supreme Court, for the revocation of a license to practice

law in the Commonwealth.

(b) The notice shall:

1. State the reason for the action;

2. Set forth the amount of any overdue tax liability, including any

applicable penalties and interest;

3. Explain any other area of noncompliance that must be satisfied to

prevent the submission of the taxpayer's name to the licensing agency as

a delinquent taxpayer; and

4. List all licenses or registrations for which revocation will be sought.

(c) After the pas sage of at least twenty (20) days from the date the notice was

sent under paragraph (a) of this subsection, and if the issues identified in the

notice were not resolved to the satisfaction of the department, the department

may:

1. Submit the name of the de linquent taxpayer to the licensing agency or

the Transportation Cabinet; or

2. If the delinquent taxpayer is an attorney licensed to practice law in the

Commonwealth, submit the name of the attorney to the Kentucky

Supreme Court for appropriate action to enforce Supreme Court Rules.

(d) Upon notification by the department that the licensee or motor vehicle owner

is a delinquent taxpayer, the licensing agency shall deny or revoke any license

held or applied for by the licensee, and the Transportation Cabinet shall not

allow the delinquent taxpayer to register a motor vehicle in the

Commonwealth.

(e) Any delinquent taxpayer who has had a license denied or revoked, or who has

been denied the ability to register a motor vehicle shall have the right to

appeal to the licensing agency or the Transportation Cabinet as authorized by

law, provided that appeals shall only be permitted based upon a mistake in

facts relied upon by the department, the licensing agency, or the

Transportation Cabinet that the licensee or mot or vehicle owner is a

delinquent taxpayer.

(f) A license that has been denied or revoked under this section shall not be

reissued or renewed, and a motor vehicle registration that has been denied

under this section shall not be permitted, until a written tax clearance has been

received from the departm ent by the licensing agency or the Transportation

Cabinet, as the case may be.

(g) The department may promulgate administrative regulations in accordance

with KRS Chapter 13A to implement the provisions of this section.