{"data":{"id":"us-ky/krs-134.580","jurisdiction":"us-ky","citation":"KRS 134.580","heading":"Refund of taxes, other than ad valorem and unconstitutional taxes --","body":"Immunity of the Commonwealth from refund suits based on combined or\nconsolidated returns.\n(1) As used in this section, unless the context requires otherwise:\n(a) \"Agency\" means the agency of state government which administers the tax to\nbe refunded or credited; and\n(b) \"Overpayment\" or \"payment where no tax was due\" means the excess of the\ntax payments made over the correct tax liability determined under the terms of\nthe applicable statute without reference to the constitutionality of the statute.\n(2) When money has been paid into the State Treasury in payment of any state taxes,\nexcept ad valorem taxes, whether payment was made voluntarily or involuntarily,\nthe appropriate agency shall authorize refunds to the person who paid the tax, or to\nhis or her heirs, personal representatives or assigns, of any overpayment of tax and\nany payment where no tax was due. When a bona fide controversy exists between\nthe agency and the taxpayer as to the liability of the taxpayer for the payment of tax\nclaimed to be due by the agency, the taxpayer may pay the amount claimed by the\nagency to be due, and if an appeal is taken by the taxpayer from the ruling of the\nagency within the time provide d by KRS 49.220 and it is finally adjudged that the\ntaxpayer was not liable for the payment of the tax or any part thereof, the agency\nshall authorize the refund or credit as the Board of Tax Appeals or courts may\ndirect.\n(3) No refund shall be made unless  each taxpayer individually files an application or\nclaim for the refund within four (4) years from the date payment was made. Each\nclaim or application for a refund shall be in writing and state the specific grounds\nupon which it is based. Denials of refu nd claims or applications may be protested\nand appealed in accordance with KRS 49.220 and 131.110.\n(4) Notwithstanding any provision of this section, when an assessment of limited\nliability entity tax is made under KRS 141.0401 against a pass -through entit y as\ndefined in KRS 141.206, the corporation or individual partners, members, or\nshareholders of the pass -through entity shall have the greater of the time period\nprovided by this section or one hundred eighty (180) days from the date the\nassessment becomes final to file amended returns requesting any refund of tax for\nthe taxable year of the assessment and to allow for items of income, deduction, and\ncredit to be properly reported on the returns of the partners, members, or\nshareholders of the pass-through entity subject to adjustment.\n(5) Refunds shall be authorized with interest as provided in KRS 131.183. The refunds\nauthorized by this section shall be made in the same manner as other claims on the\nState Treasury are paid. They shall not be charged again st any appropriation, but\nshall be deducted from tax receipts for the current fiscal year.\n(6) Nothing in this section shall be construed to authorize the agency to make or cause\nto be made any refund except within four (4) years of the date prescribed by law for\nthe filing of a return including any extension of time for filing the return, or the date\nthe money was paid into the State Treasury, whichever is the later, except in any\ncase where the assessment period has been extended by written agreement betw een\nthe taxpayer and the department, the limitation contained in this subsection shall be\nextended accordingly. Nothing in this section shall be construed as requiring the\nagency to authorize any refund to a taxpayer without demand from the taxpayer, if\nin the opinion of the agency the cost to the state of authorizing the refund would be\ngreater than the amount that should be refunded or credited.\n(7) This section shall not apply to any case in which the statute may be held\nunconstitutional, either in whole or in part.\n(8) In cases in which a statute has been held unconstitutional, taxes paid thereunder\nmay be refunded to the extent provided by KRS 134.590, and by the statute held\nunconstitutional.\n(9) No person shall secure a refund of motor fuels tax under  KRS 134.580 unless the\nperson holds an unrevoked refund permit issued by the department before the\npurchase of gasoline or special fuels and that permit entitles the person to apply for\na refund under KRS 138.344 to 138.355.\n(10) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary:\n(a) The Commonwealth hereby revokes and withdraws its consent to suit in any\nforum whatsoever on any claim for recovery, refund, or credit of any tax\noverpayment for any taxable year ending before December 31, 1995, made by\nan amended return or any other method after December 22, 1994, and based\non a change from any initially filed separate return or returns to a combined\nreturn under the unitary business concept or to a consolidated return. No such\nclaim shall be effective or recognized for any purpose;\n(b) Any stated or implied consent for the Commonwealth of Kentucky, or any\nagent or officer of the Commonwealth of Kentucky, to be sued by any person\nfor any legal, equitable, or other relief with respec t to any claim for recovery,\nrefund, or credit of any tax overpayment for any taxable year ending before\nDecember 31, 1995, made by an amended return or any other method after\nDecember 22, 1994, and based on a change from any initially filed separate\nreturn or returns to a combined return under the unitary business concept or to\na consolidated return, is hereby withdrawn; and\n(c) The provisions of this subsection shall apply retroactively for all taxable years\nending before December 31, 1995, and shall apply to all claims for such\ntaxable years pending in any judicial or administrative forum.\n(11) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary:\n(a) No money shall be drawn from the State Treasury for the payment of any\nclaim for recovery, refund, or credit of any tax overpayment for any taxable\nyear ending before December 31, 1995, made by an amended r eturn or any\nother method after December 22, 1994, and based on a change from any\ninitially filed separate return or returns to a combined return under the unitary\nbusiness concept or to a consolidated return; and\n(b) No provision of the Kentucky Revised S tatutes shall constitute an\nappropriation or mandated appropriation for the payment of any claim for\nrecovery, refund, or credit of any tax overpayment for any taxable year ending\nbefore December 31, 1995, made by an amended return or any other method\nafter December 22, 1994, and based on a change from any initially filed\nseparate return or returns to a combined return under the unitary business\nconcept or to a consolidated return.","path":["KRS Chapter 134"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51506","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:26Z","sha256":"0bafbecf85465df40371427c9c56e608636f3e1c6b39cf33a8c6bc91508a0120","source_id":"us-ky","stale":false,"prev":"us-ky/krs-134.570","next":"us-ky/krs-134.590"},"notice":"GroundRules: Original legal text. Not legal advice."}