KRS 247.920: Alcohol production exemption certificate.

(1) Application for an alcohol production exemption certificate shall be filed with the

Department of Revenue in such manner and in such form as may be prescribed 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 to be

acquired by the applicant for the purpose of producing ethanol for fuel use, and any

additional infor mation deemed necessary by the Department of Revenue for the

proper administration of KRS 247.910 and this section. The Office of Energy Policy

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 an alcohol production facility as defined by KRS 247.910, it shall enter

a finding and issue a certificate to that effect. The effective date of the certificate

shall be the date of issuance of the certificate.

(2) Before issuing an alcohol production tax exemption certificate, the Department of

Revenue shall give notice in writing by mail to the Office of Energy Policy, and

shall afford to the applicant and to the Office of Energy Policy an opportunity for a

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

shall on its own initiative revoke the certificate when 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 acquisition of the alcohol

production facilities; or

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

to be used for the primary purpose of alcohol production for fuel use and is

being used for a different purpose.

(3) If the circumstances so require, the Department of Revenue, in lieu of revoking the

certificate, may modify it.

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

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

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

require.

(5) An alcohol product ion tax exemption certificate, when issued, shall be sent by

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

copies thereof shall be sent to the Office of Energy Policy. 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 certified mail to the applicant or the holder

and shall be sent to the Office of Energy Policy. The applicant or holder and the

Office of Energy Policy sha ll be 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

an alcohol production tax exemption certificate may appeal from the fin al 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 an alcohol production facility, not

involving a different location or use, the holder of an alcohol product ion tax

exemption certificate for the 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 the 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 certificate. The transferee shall give written notice of the effective

date of the transfer, together with a copy of the instrument of transfer to the Off ice

of Energy Policy and the Department of Revenue.

(8) In the event an alcohol production facility for which an exemption certificate is held

ceases to be used for the primary purpose of alcohol production for fuel use or is

used for a different purpose o ther than that for which the exemption certificate was

granted, the holder of the certificate shall give written notice by certified mail of the

change to the Office of Energy Policy and to the Department of Revenue.

(9) The alcohol production facility exe mption certificate, upon approval, shall exempt

said facilities from taxes outlined in the provisions of KRS 247.910 and this section

and included in KRS Chapters 132, 136, 138, and 139. Each exemption certificate

shall remain in force for a period of eigh t (8) years from the date of issuance and at

the end of said period shall lapse. Any alcohol production facility previously

exempted under the terms of KRS 247.910 and this section shall not be eligible for

recertification upon completion of the eight (8) year certificate period.