{"data":{"id":"us-ky/krs-132.140","jurisdiction":"us-ky","citation":"KRS 132.140","heading":"Assessment of distilled spirits by department -- Maximum tax rate on","body":"distilled spirits in revenue bond -financed warehouse and in barrels located in\nbonded warehouse or premises -- Failure to report.\n(1) The department shall fix the value of the distilled spirits for the purpose of taxation,\nassess the same at its fair cash value, estimated at the price it would bring at a fair\nvoluntary sale, calculate the exempt portion of the property taxes, and keep a record\nof the valuations and assessment s. The department shall immediately notify the\nowner or proprietor of the bonded warehouse or premises of the amount fixed,\nincluding the portion of the property tax exemption as calculated in subsection (3)\nof this section.\n(2) (a) For purposes of this su bsection only, \"revenue bond -financed warehouse\"\nmeans a bonded warehouse or premises containing distilled spirits:\n1. Owned by a tax -exempt governmental unit or tax -exempt statutory\nauthority under KRS Chapter 103;\n2. The costs of which are financed by on e (1) or more series of industrial\nrevenue bonds under KRS Chapter 103 issued prior to January 1, 2024;\nand\n3. Any portion of the costs of which remains financed by those industrial\nrevenue bonds during any portion of the calendar year.\n(b) Notwithstanding subsection (3) of this section, for the taxation of distilled\nspirits stored or aging in barrels in a revenue bond-financed warehouse:\n1. One hundred percent (100%) of the assessed value of the distilled spirits\nshall be subject to the applicable state and local ad valorem taxes; and\n2. The state and local tax rate that may be levied on the distilled spirits\nshall be the state and local tax rate for tax assessments made on January\n1, 2023.\n(c) Distilled spirits stored or aging in barrels in a revenue bond -financed\nwarehouse shall be exemp t from state and local ad valorem taxes for tax\nassessments made on or after January 1, 2043.\n(3) For distilled spirits stored or aging in barrels located in a bonded warehouse or\npremises, the portion of the assessed value that is subject to state and loc al ad\nvalorem taxes shall be as follows:\n(a) Ninety-six percent (96%) of the assessed value for tax assessments made on\nJanuary 1, 2026;\n(b) Ninety-two percent (92%) of the assessed value for tax assessments made on\nJanuary 1, 2027;\n(c) Eighty-eight percent (88%) of the assessed value for tax assessments made on\nJanuary 1, 2028;\n(d) Eighty-four percent (84%) of the assessed value for tax assessments made on\nJanuary 1, 2029;\n(e) Eighty percent (80%) of the assessed value for tax assessments made on\nJanuary 1, 2030;\n(f) Seventy-six percent (76%) of the assessed value for tax assessments made on\nJanuary 1, 2031;\n(g) Seventy-two percent (72%) of the assessed value for tax assessments made on\nJanuary 1, 2032;\n(h) Sixty-eight percent (68%) of the assessed value fo r tax assessments made on\nJanuary 1, 2033;\n(i) Sixty-one percent (61%) of the assessed value for tax assessments made on\nJanuary 1, 2034;\n(j) Fifty-four percent (54%) of the assessed value for tax assessments made on\nJanuary 1, 2035;\n(k) Forty-four percent (44%) of the assessed value for tax assessments made on\nJanuary 1, 2036;\n(l) Thirty-eight percent (38%) of the assessed value for tax assessments made on\nJanuary 1, 2037;\n(m) Thirty-two percent (32%) of the assessed value for tax assessments made on\nJanuary 1, 2038;\n(n) Twenty-four percent (24%) of the assessed value for tax assessments made on\nJanuary 1, 2039;\n(o) Twenty percent (20%) of the assessed value for tax assessments made on\nJanuary 1, 2040;\n(p) Fifteen percent (15%) of the assessed value for tax  assessments made on\nJanuary 1, 2041; and\n(q) Eight percent (8%) of the assessed value for tax assessments made on January\n1, 2042.\n(4) Distilled spirits stored or aging in barrels located in a bonded warehouse or\npremises shall be exempt from state and lo cal ad valorem taxes for tax assessments\nmade on or after January 1, 2043.\n(5) If any owner, proprietor, or custodian of a bonded warehouse or premises fails to\nmake the report required by KRS 132.130, the department shall ascertain the\nnecessary facts required to be reported. For that purpose the department shall have\naccess to the records of the owner, proprietor, or custodian; and the assessment\nshall be made and taxes collected thereon, with interest and penalties, as though\nregularly reported.\n(6) The assessment made under (1) of this section shall be reviewed according to KRS\n131.110.","path":["KRS Chapter 132"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56336","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:23Z","sha256":"731562928ad6ce50008f6ac734c71bc543e60610601e98886b230e5d1ce859a3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-132.130","next":"us-ky/krs-132.150"},"notice":"GroundRules: Original legal text. Not legal advice."}