KRS 138.446: Refund to bus companies and senior citizen programs -- Bond --

Application -- Audit.

(1) Bus companies operating under a certificate issued pursuant to KRS Chapter 281

and senior citizen programs which utilize Title III funds of the Older A mericans

Act in the provision of transportation services shall be entitled to a refund of seven -

ninths (7/9) of the amount of KRS Chapter 138 taxes paid on motor fuels used in

their regularly scheduled operations in Kentucky.

(2) A person shall not be enti tled to a refund pursuant to this section unless he or she

shall have first filed with the department a bond issued by a surety company

authorized to do business in Kentucky in an amount of not less than one thousand

dollars ($1,000) nor more than five tho usand dollars ($5,000) to be determined by

the department, conditioned upon faithful compliance with this section and upon the

payment to the Commonwealth of any refunds to which he was not entitled.

(3) Applications for refund shall be filed with the depa rtment on a calendar quarter or

calendar year basis on forms and in the manner prescribed by it for refund of tax

paid on motor fuel used by buses. Each application for a refund shall show the

number of gallons of motor fuel purchased during the quarter fo r use in buses; the

date and quantity of each purchase; the vendor from whom the fuel was purchased;

the number of gallons on which refund is claimed; and other information the

department may require.

(4) The department may require that the dealer keep a c omplete record of all the

gasoline sold by him or her, which records shall give the date of each sale, the

number of gallons sold, the name of the person to whom sold, and the sale price.

(5) The department shall audit the application and make any other in vestigation it

deems necessary to determine whether it constitutes a proper claim. When the

department is satisfied that a refund is proper, it shall authorize seven -ninths (7/9)

of the amount of the tax paid to be refunded as other refunds are made and th e

amount refunded shall be deducted from current motor fuel tax receipts. The tax

shall be refunded with interest at the tax interest rate as defined in KRS 131.010.

(6) When the department finds that an application for a refund contains a false or

fraudulent statement or that a refund has been fraudulently obtained, the department

shall refuse to grant any refunds to the person making the false or fraudulent

statement or fraudulently obtaining a refund for a period of two (2) years from the

date of the findings.

(7) The department may prescribe, promulgate and enforce administrative regulations

relating to the administration and enforcement of this section.