KRS 131.560: Withholding of individual income tax refund to satisfy certain liabilities --

Priority of claims.

Notwithstanding the provisions of KRS 44.030 or 131.190, the Department of Revenue

shall withhold the Kentucky individual income tax refund otherwise due a taxpayer under

KRS Chapter 141 who owes overdue child support or is indebted to any state agency,

officer, board, commission, corporation, institution, cabinet, department or other state

organization, or any county, city, urban -county government, consol idated local

government, or charter county government duly organized in this state, which has

complied with the requirements of KRS 131.565. After satisfaction of any undisputed

delinquent tax liability due the Department of Revenue from such taxpayer, the tax refund

balance so withheld shall, except as provided in KRS 131.565, be transmitted as soon as

practicable to the state agency, or the county, city, urban -county government,

consolidated local government, or charter county government duly organized in this state,

having established a claim therefor. In the case of multiple state agency or any county,

city, urban -county government, consolidated local government, or charter county

government duly organized in this state claims against the same tax refund , the state

agency having the larger pending claim shall have priority after satisfaction of any

undisputed delinquent tax liabilities due the Department of Revenue, followed by other

state agency claims. After all state agency claims have been satisfied, the claims of any

county, city, urban-county government, consolidated local government, or charter county

government duly organized in this state shall be satisfied with the larger pending claims

satisfied first, and other claims satisfied in descending order.