KRS 138.341: Refund of tax on fuel used in aircraft -- Bond -- Assignment of right to

receive refund.

(1) When gasoline or special fuel on which the tax has been paid pursuant to the

provisions of KRS 138.210 to 138.340 has been used for the purpose of operating

any aircraft engaged in the transportation of persons or property, the purchaser of

the liquid fuel so used shall be reimbursed for the tax paid. No tax shall be refunded

except that paid upon the fuel used exclusively in aircraft motors.

(2) No person shall be entitled to a refund hereunder unless he shall have first filed with

the Department of Revenue a bond with approved surety in an amount of not less

than one hundred dollars ($100) nor more than one thousand dollars ($1,000) to be

determined by the Dep artment of Revenue, conditioned upon faithful compliance

with this section and KRS 138.342 and upon the payment to the Commonwealth of

any refunds to which he was not entitled.

(3) The right to receive any refund pursuant to subsection (1) of this section shall be

assignable by the purchaser to the seller of the gasoline or special fuel if the seller

has posted a bond with the department and the aviation gasoline or special fuel

purchased by the assignor is delivered directly into the fuel tank of aircraft owned or

operated by him or his authorized agent. Any assignment shall be evidenced by

noting upon the face and all copies of the retail sale invoice the following: "TAX

REFUND ASSIGNED TO SELLER. Signed: (Purchaser or Agent.)"