KRS 154.20-206: Authorization of sales and use tax refund for approved company --

Administrative regulations.

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

company under the terms of KRS 154.20 -200 to 154.20 -216 may receive a tax

refund of sales and use tax paid on approved expenses for the cost of building and

construction materials that are permanently incorporated as an improvement to real

property to an economic development project and equipment used in research and

development a t an economic development project. The approved company shall

have no obligation to refund or otherwise return any amount of the sales and use tax

refund to the person who originally collected the tax and remitted it to the state.

(2) An approved company shall only apply for a refund:

(a) Of sales and use tax paid for construction materials and building fixtures and

for equipment used in research and development purchased during the life of

the economic development project not to exceed the amount specified in the

approved company's agreement, as defined in KRS 154.20-200; and

(b) Within sixty (60) days after the completion of the economic development

project or the expiration of the life of the project, whichever occurs first.

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

the Department of Revenue with contractors, vendors, and other related parties to

verify construction material and building fixture costs and equipment used in

research and development, including applica ble taxes, for the economic

development project.

(4) Interest shall not be allowed or paid on any refund made under the provisions of this

section. The Department of Revenue may examine any refund within four (4) years

from the date the refund application 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.

(5) The Department of Revenue may promulgate administrative regulations, pursuant to

the provisions of KRS Chapter 13A, and shall require the filing of forms designed

by the Department of Revenue to reflect the intent of KRS 154.20 -200 to 154.20 -

216.