KRS 224.1-310: Tax exemption certificate application, issuance, revocation, modification

-- Appeal.

(1) Application for a pollution control tax exemption certificate shall be filed with the

Department of Revenue in such manner and in such form as may be p rescribed by

regulations issued by the Department of Revenue and shall contain plans and

specifications of the structure or structures including all materials incorporated and

to be incorporated therein and a descriptive list of all equipment acquired or t o be

acquired by the applicant for the purpose of air, noise, waste or water pollution

control and any additional information deemed necessary by the Department of

Revenue for the proper administration of Acts 1974, Chapter 137. The cabinet shall

provide technical assistance and factual information as requested in writing by the

Department of Revenue. If the Department of Revenue finds that the facility

qualifies as a pollution control facility as defined in KRS 224.1-300(1), it shall enter

a finding and is sue a certificate to that effect. The effective date of said certificate

shall be the date of the making of the application for such certificate.

(2) Before issuing a pollution control tax exemption certificate, the Department of

Revenue shall give notice in writing by mail to the secretary of the cabinet, and

shall afford to the applicant and to the secretary of the cabinet an opportunity for a

hearing. On like notice and opportunity for a hearing, the Department of Revenue

shall on its own initiative revo ke such certificate whenever any of the following

appears:

(a) The certificate was obtained by fraud or misrepresentation;

(b) The holder of the certificate has failed substantially to proceed with the

construction, reconstruction, installation, or acquisi tion of the pollution

control facilities; or

(c) The structure or equipment or both to which the certificate relates has ceased

to be used for the primary purpose of pollution control and is being used for a

different purpose.

(3) Provided, however, that w here the circumstances so require, the Department of

Revenue in lieu of revoking such certificate may modify the same.

(4) On the mailing of notice of the action of the Department of Revenue revoking or

modifying a certificate as provided in subsection (5) of this section, such certificate

shall cease to be in force or shall remain in force only as modified as the case may

require.

(5) A pollution control tax exemption certificate, when issued, shall be sent by certified

mail to the applicant and notice of such issuance in the form of certified copies

thereof shall be sent to the secretary of the cabinet. Notice of an order of the

Department of Revenue denying, revoking, or modifying a certificate in the form of

certified copies thereof shall be sent by cert ified mail to the applicant or the holder

thereof and shall be sent to the secretary of the cabinet. The applicant or holder and

the secretary of the cabinet are deemed parties for the purpose of the review

afforded by subsection (6) of this section.

(6) Any party aggrieved by the issuance, refusal to issue, revocation, or modification of

a pollution control tax exemption certificate may appeal from the final ruling of the

Department of Revenue to the Board of Tax Appeals pursuant to KRS 49.220.

(7) In the event of the sale, lease, or other transfer of a pollution control facility, not

involving a different location or use, the holder of a pollution control tax exemption

certificate for such facility may transfer the certificate by written instrument to the

person who, except for the transfer of the certificate, would be obligated to pay

taxes on such facility. The transferee shall become the holder of the certificate and

shall have all rights pertaining thereto, effective as of the date of transfer of the

facility or the date of transfer of the certificate, whichever is earlier. The transferee

shall give written notice of the effective date of the transfer, together with a copy of

the instrument of transfer to the cabinet and to the Department of Revenue.

(8) In the event a pollution control facility for which an exemption certificate is held

ceases to be used for the primary purpose of pollution control or is used for a

different purpose than that for which the exemption certificate was granted, the

holder of the certificate shall give written notice by certified mail of such change to

the cabinet and to the Department of Revenue.