{"data":{"id":"us-ky/krs-138.208","jurisdiction":"us-ky","citation":"KRS 138.208","heading":"Replacement tax -- Total tax for school districts, fire districts, and","body":"emergency service boards -- Annual assessment -- Reduction -- Distribution --\nAdministrative regulations.\n(1) As used in this section:\n(a) \"Bonded warehouse or premises\" d oes not include a revenue bond -financed\nwarehouse as defined in KRS 132.140 for periods prior to the 2043 calendar\nyear;\n(b) \"Local jurisdiction\" means:\n1. A school district;\n2. A fire protection district or subdistrict authorized to levy the ad valorem\ntax permitted by KRS 75.015 and 75.040 and that provides fire or other\nemergency services; and\n3. An area served by an emergency services board that levies the ad\nvalorem tax permitted by KRS 75A.050 and provides fire or other\nemergency services; and\n(c) \"Taxpayer\" means the owner, proprietor, or custodian of one (1) or more\nbonded warehouses or premises.\n(2) Beginning with the 2026 calendar year and for each subsequent calendar year\nthereafter, in addition to any ad valorem taxes collected under KRS 132.150,  there\nis imposed a replacement tax on every taxpayer with a bonded warehouse or\npremises located in a local jurisdiction that collected ad valorem tax during calendar\nyear 2025.\n(3) The total replacement tax for each school district shall be:\n(a) An amount that is not less than zero; and\n(b) The result from the following calculation:\n1. The ad valorem tax under KRS 132.150 on distilled spirits stored or\naging in a bonded warehouse or premises collected by or on behalf of\nthe school district during calendar year 2023;\n2. Minus the amount of the ad valorem tax under KRS 132.150 on distilled\nspirits stored or aging in a bonded warehouse or premises collected by\nor on behalf of the school district for the applicable calendar year; and\n3. Minus the amount by which the Support Education Excellence in\nKentucky program under KRS 157.310 to 157.440 final calculation for\nthe school year ending during the applicable calendar year exceeds the\nSupport Education Excellence in Kentucky program final calculation for\nthe 2022 -2023 school year, as determined by the Department of\nEducation under KRS 157.410(3). For purposes of the Support\nEducation Excellence in Kentucky final calculation under this\nsubparagraph, the average daily attendance and equalization ratio for the\nschool year ending during the applicable calendar year shall not be less\nthan those for the 2022-2023 school year final calculation.\n(4) The total replacement tax for each fire district or emergency services board shall be:\n(a) An amount that is not less than zero; and\n(b) The result from the following calculation:\n1. The ad valorem tax under KRS 132.150 on distilled spirits stored or\naging in a bonded warehouse or premises collected by or on behalf of\nthe fire district or emergency services board during calendar year 2025;\n2. Minus the amount of the ad valorem tax under KRS 132.150 on distilled\nspirits stored or aging in a bonded warehouse or premises collected by\nor on behalf of the district or board for the applicable calendar year.\n(5) (a) Each year the department shall assess taxpayers the replacement tax for the\npreceding calendar year in proportion to the number of barrels of distilled\nspirits stored and aging at their bonded warehouse  or premises in the local\njurisdiction on January 1 of that preceding calendar year.\n(b) If a business-wide reduction or extraordinary event occurs, any taxpayer may\napply to the secretary of the Finance and Administration Cabinet for a\nreduction in the taxpayer's replacement tax assessment.\n(c) For purposes of this subsection:\n1. \"Business-wide reduction\" means that the volume of distilled spirits\ndistilled and barreled by all taxpayers at all business locations in this\nstate during the applicable calendar  year is less than the volume of\ndistilled spirits distilled and barreled at all business locations in this state\nin calendar year 2025; and\n2. \"Extraordinary event\" means a pandemic, epidemic, restrictive\ngovernmental laws or regulations enacted after Mar ch 31, 2023, riots,\ninsurrection, war, acts of a government authority imposed after March\n31, 2023, court orders issued after March 31, 2023, a natural disaster, a\ndecrease in sales in excess of ten percent (10%), or other reason of a like\nnature determined by the secretary not to be the fault of the taxpayer and\nany other items determined by the secretary to be beyond the taxpayer's\nreasonable control, which prevents the taxpayer from distilling or\nbarreling distilled spirits.\n(6) All revenues received by the department from the tax imposed by this section shall\nbe distributed to the local jurisdiction for which the tax was levied within sixty (60)\ndays from the date received.\n(7) The department shall administer the replacement tax levied by this section an d, in\nconjunction or consultation with any agency representing a local jurisdiction, may\npromulgate administrative regulations to implement this section.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56337","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:29Z","sha256":"84a64e50eef4bde742d9133b8dbd11ec44e20582b754712b4fa11d9e5d6d3f57","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.207","next":"us-ky/krs-138.210"},"notice":"GroundRules: Original legal text. Not legal advice."}