KRS 139.535: Sales and use tax incentive for approved companies on qualifying

purchases for economic development projects approved under KRS 154.31 -

030.

(1) As used in this section:

(a) "Agreement" has the same meaning as in KRS 154.31-010;

(b) "Approved company" has the same meaning as in KRS 154.31-010;

(c) "Economic development project" has the same meaning as in KRS 154.31 -

010;

(d) "Electronic processing" has the same meaning as in KRS 154.31-010;

(e) "Equipment" has the same meaning as in KRS 154.31-010;

(f) "Project term" has the same meaning as in KRS 154.31-010; and

(g) "Research and development" has the same meaning as in KRS 154.31-010.

(2) Notwithstanding any provision of KRS 139.770 to the contrary, an approved

company may receive a refund of sales and u se tax paid on approved expenses after

execution of the agreement for building and construction materials, and equipment

used in research and development or for electronic processing at an economic

development project as provided in the agreement executed under KRS 154.31-030.

(3) (a) The approved company shall apply for the sales and use tax incentives as

provided in this subsection.

(b) For an economic development project with a project term of three (3) years or

less, the approved company shall submit an application to receive the sales

and use tax incentives to the department within sixty (60) days of the earlier of

the completion of the economic development project or the expiration of the

project term.

(c) 1. For an economic development project with a project term of greater than

three (3) years, the approved company shall, beginning with the third

year of the project term, file with the department annually an

information return, and any supporting documentation required by the

department. The approved company shall not be eligible to receive the

sales and use tax incentives until the project is complete and the

application for incentives is submitted to the department as required by

subparagraph 3. of this paragraph.

2. The information return and documentation shall be filed with the

department within sixty (60) days following the end of the calendar year,

and shall include information relating to prior unreported years.

3. The approved company shall file a final request for sales and use tax

incentives within sixty (60) days of the earlier of the completion of the

economic development project or the expiration of the project term.

(4) The approved company shall have no obligation to refund or otherwise return any

amount o f the sales and use tax refund received to the person who originally

collected the tax and remitted it to the Commonwealth.

(5) An approved company shall execute information -sharing agreements prescribed by

the department with contractors, vendors, and oth er related parties so that the

department may verify expenditures and sales and use tax paid.

(6) Interest shall not be allowed or paid on any incentives paid under this section. The

department may examine any distribution of sales and use tax incentives within four

(4) years from the date the final application for sales and use tax incentives is

received. An overpayment resulting from the examination shall be repaid to the

State Treasury. Any amount required to be repaid is subject to the interest

provisions of KRS 131.183 and to the penalty provisions of KRS 131.180.

(7) The department may promulgate administrative regulations in accordance with KRS

Chapter 13A, and shall require the filing of forms designed by the department to

reflect the intent of this section.