{"data":{"id":"us-ky/krs-132.099","jurisdiction":"us-ky","citation":"KRS 132.099","heading":"Local taxation of personal property held for shipment out of state --","body":"Definitions.\n(1) The tax rate levied by cities, counties, charter counties, urban -counties, and school\ndistricts on personal property placed in a warehouse or distribution center fo r the\npurpose of subsequent shipment to an out-of-state destination shall be as follows:\n(a) Eighty percent (80%) of the tax rate levied on other tangible personal property\nfor tax assessments made on January 1, 2000; and\n(b) Fifty percent (50%) of the tax  rate levied on other tangible personal property\nfor tax assessments made on January 1, 2001.\n(2) Personal property placed in a warehouse or distribution center for the purpose of\nsubsequent shipment to an out -of-state destination shall be exempt from the ad\nvalorem tax levied by cities, counties, charter counties, urban -counties, and school\ndistricts for tax assessments made on or after January 1, 2002.\n(3) Any fire district or other special taxing district may exempt from the ad valorem tax\npersonal prope rty placed in a warehouse or distribution center for the purpose of\nsubsequent shipment to an out-of-state destination.\n(4) (a) As used in this subsection:\n1. \"Affiliate\" means a partnership, limited liability entity, corporation, or\nany other business entity that directly or indirectly owns or controls, or is\nowned or controlled by, or is under common ownership or control with,\nanother partnership, limited liability entity, corporation, or other\nbusiness entity;\n2. \"Drug\" means a compound, substance, or pr eparation and any\ncomponent of a compound, substance, or preparation that is recognized\nin the official United States Pharmacopoeia, official Homeopathic\nPharmacopoeia of the United States, or official National Formulary, or a\nsupplement to any of them, or is:\na. Intended for use in the diagnosis, cure, mitigation, treatment, or\nprevention of disease in humans; or\nb. Intended to affect the structure or any function of the human body;\nand\n3. \"Pharmaceutical manufacturer\" means any entity which is engaged in the\nproduction, preparation, propagation, compounding, conversion, or\nprocessing of drug products, either directly or indirectly by extraction\nfrom substances of natural origin, or independ ently by means of\nchemical synthesis, or by a combination of extraction and chemical\nsynthesis; but does not include a drug wholesaler or a retail pharmacy.\n(b) For assessments made on and after January 1, 2012, the maximum ad valorem\ntax rate that may be levied by any special taxing district on drugs held by a\npharmaceutical manufacturer or by an affiliate of a pharmaceutical\nmanufacturer in a warehouse or distribution center for the purpose of\nsubsequent shipment to an out-of-state destination shall not exceed three cents\n($0.03) upon each one hundred dollars ($100) of value. This subsection shall\nnot apply to any fire district.\n(5) For the purpose of this section, personal property shall be deemed to be held for\nshipment to an out-of-state destination if the owner can reasonably demonstrate that\nthe personal property will be shipped out of state within the next six (6) months.","path":["KRS Chapter 132"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40056","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:23Z","sha256":"d6d4ccaea8ce5ae9485ab78d1383758338e23d1eb5834a4e9ed91dafd88f7ec1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-132.098","next":"us-ky/krs-132.100"},"notice":"GroundRules: Original legal text. Not legal advice."}