KRS 138.445: Refund of tax paid on fuels used in operation of watercraft -- Filing of

refund claims.

(1) Except as provided in KRS 138.240(2)(e), any person who buys any liquid fuel for

the purpose of dispensing it directly into fuel tanks installed in or attached to

watercraft, for the purpose of operating or propelling watercraft, shall be reimbursed

for the tax paid by him pursuant to the provisions of KRS 138.220 to 138.340 upon

presenting to the department an application accompanied by the original invoices

showing the payment of the purchases, including the liquid fuel tax. The application

shall set forth the total amount of the liquid fuel purchased and used by the

applicant in the operation or propulsion of watercraft.

(2) (a) When liquid fuel on which the t ax has been paid pursuant to the provisions of

KRS 138.220 to 138.340 has been used for the purpose of operating any

watercraft and was delivered directly to the fuel tanks installed in or attached

to the watercraft, the purchaser of the liquid fuel so use d shall be reimbursed

for the tax paid. No tax shall be refunded except that paid upon the fuel used

exclusively in watercraft motors; and

(b) No person shall be entitled to a refund hereunder unless he shall have first

filed with the department a bond wit h approved surety in the amount of not

less than one hundred dollars ($100) nor more than one thousand dollars

($1,000) to be determined by the department and upon the payment to the

Commonwealth of any refunds to which he was not entitled.

(3) All refund claims authorized by this section shall be filed with the department on a

calendar quarter or calendar year basis on forms and in the manner prescribed by it

for refund of the tax paid on the fuel. If the application for refund is mailed to the

department, the date of mailing as shown by the postmark shall be taken as the time

and date of filing with the department.

(4) Refunds shall be made only on gasoline and special fuels purchased by locations

designated by the department. The tax shall be refunded wit h interest at the tax

interest rate as defined in KRS 131.010(6).