KRS 138.448: Liability of officers of business organizations for gasoline and special fuels

tax -- Exemptions.

(1) Notwithstanding any other provision of this chapter to the contrary, the president,

vice president, secretary, treasurer, or any other person holding any equivalent

corporate office of any corporation subject to the provisions of KRS 138.210 to

138.446 shall be personally and individually liable, both jointly and severally, for

the tax imposed under KRS 138.210 to 138.446. Corporate dissolution, withdr awal

of the corporation from the state, or the cessation of holding any corporate office

shall not discharge the liability of any person. The personal and individual liability

shall apply to each and every person holding a corporate office at the time the tax

becomes or became due. No person shall be personally and individually liable under

this subsection who had no authority to collect, truthfully account for, or pay over

any tax imposed by KRS 138.210 to 138.446 at the time the tax imposed becomes

or became due. "Taxes" as used in this section shall include interest accrued at the

rate provided by KRS 131.183, all applicable penalties imposed under the

provisions of this chapter, and all applicable penalties imposed under the provisions

of KRS 131.180, 131.410 to 131.445, and 131.990.

(a) The provisions of this section shall not apply if a corporation on an annual

basis elects to be exempt from the provisions of KRS 138.224 by:

1. Filing with the department a financial instrument in an amount not to

exceed two (2) months' estimated liability, as calculated by the

department, or five thousand dollars ($5,000), whichever is greater;

2. Certifying by an electronic method acceptable by both the dealer and the

department no later than the fifteenth day of each m onth the amount of

gasoline and special fuels tax due the Commonwealth by the twenty -

fifth day of that month; and

3. Agreeing to initiate an Automated Clearing House credit transaction to

electronically transfer the amount of tax from the dealer's account to the

Kentucky State Treasurer on the twenty-fifth day of that month.

For the purpose of this paragraph, a "financial instrument" means a bond

issued by a corporation authorized to do business in Kentucky, a line of credit,

or an account with a financial institution maintaining a compensating balance.

(b) If a dealer fails to certify the amount of tax collected or does not perform the

electronic fund transfer as prescribed by paragraph (a) of this subsection, the

department may immediately make demand of the financial instrument and

revoke the license of the dealer notwithstanding the provisions of KRS

138.340, and the provisions of this section shall apply.

(2) Notwithstanding any other provision of this chapter, KRS 275.150, 362.1 -306(3) or

predecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability

company, the partners of a limited liability partnership, and the general partners of a

limited liability limited partnership or any other person holding any equivalent

office of a limited liability company, limited liability partnership, or limited liability

limited partnership subject to the provisions of KRS 138.210 to 138.446 shall be

personally and individually liable, both jointly and severally, for the tax imposed

under KRS 138. 210 to 138.446. Dissolution, withdrawal of the limited liability

company, limited liability partnership, or limited liability limited partnership from

the state, or the cessation of holding any office shall not discharge the liability of

any person. The pe rsonal and individual liability shall apply to each and every

manager of a limited liability company, partner of a limited liability partnership and

general partner of a limited liability limited partnership at the time the tax becomes

or became due. No pe rson shall be personally and individually liable under this

subsection who had no authority to collect, truthfully account for, or pay over any

tax imposed by KRS 138.210 to 138.446 at the time the tax becomes or became

due. "Taxes" as used in this section shall include interest accrued at the rate

provided by KRS 131.183, all applicable penalties imposed under the provisions of

this chapter, and all applicable penalties imposed under the provisions of KRS

131.180, 131.410 to 131.445, and KRS 131.990.

(a) The provisions of this section shall not apply if a limited liability company, a

limited liability partnership, or limited liability limited partnership on an

annual basis elects to be exempt from the provisions of KRS 138.224 by:

1. Filing with the departm ent a financial instrument in an amount not to

exceed two (2) months' estimated liability, as calculated by the

department, or five thousand dollars ($5,000), whichever is greater;

2. Certifying by an electronic method acceptable by both the dealer and the

department no later than the fifteenth day of each month the amount of

gasoline and special fuels tax due the Commonwealth by the twenty -

fifth day of that month; and

3. Agreeing to initiate an Automated Clearing House credit transaction to

electronically transfer the amount of tax from the dealer's account to the

Kentucky State Treasurer on the twenty-fifth day of that month.

For the purpose of this paragraph, a "financial instrument" means a bond

issued by a corporation authorized to do business in Kentucky, a line of credit,

or an account with a financial institution maintaining a compensating balance.

(b) If a dealer fails to certify the amount of tax collected or does not perform the

electronic fund transfer prescribed by paragraph (a) of this subsecti on, the

department may immediately make demand of the financial instrument and

revoke the license of the dealer notwithstanding the provisions of KRS

138.340, and the provisions of this section shall apply.