{"data":{"id":"us-ky/krs-138.448","jurisdiction":"us-ky","citation":"KRS 138.448","heading":"Liability of officers of business organizations for gasoline and special fuels","body":"tax -- Exemptions.\n(1) Notwithstanding any other provision of this chapter to the contrary, the president,\nvice president, secretary, treasurer, or any other person holding  any equivalent\ncorporate office of any corporation subject to the provisions of KRS 138.210 to\n138.446 shall be personally and individually liable, both jointly and severally, for\nthe tax imposed under KRS 138.210 to 138.446. Corporate dissolution, withdr awal\nof the corporation from the state, or the cessation of holding any corporate office\nshall not discharge the liability of any person. The personal and individual liability\nshall apply to each and every person holding a corporate office at the time the tax\nbecomes or became due. No person shall be personally and individually liable under\nthis subsection who had no authority to collect, truthfully account for, or pay over\nany tax imposed by KRS 138.210 to 138.446 at the time the tax imposed becomes\nor became due. \"Taxes\" as used in this section shall include interest accrued at the\nrate provided by KRS 131.183, all applicable penalties imposed under the\nprovisions of this chapter, and all applicable penalties imposed under the provisions\nof KRS 131.180, 131.410 to 131.445, and 131.990.\n(a) The provisions of this section shall not apply if a corporation on an annual\nbasis elects to be exempt from the provisions of KRS 138.224 by:\n1. Filing with the department a financial instrument in an amount not to\nexceed two (2) months' estimated liability, as calculated by the\ndepartment, or five thousand dollars ($5,000), whichever is greater;\n2. Certifying by an electronic method acceptable by both the dealer and the\ndepartment no later than the fifteenth day of each m onth the amount of\ngasoline and special fuels tax due the Commonwealth by the twenty -\nfifth day of that month; and\n3. Agreeing to initiate an Automated Clearing House credit transaction to\nelectronically transfer the amount of tax from the dealer's account to the\nKentucky State Treasurer on the twenty-fifth day of that month.\nFor the purpose of this paragraph, a \"financial instrument\" means a bond\nissued by a corporation authorized to do business in Kentucky, a line of credit,\nor an account with a financial institution maintaining a compensating balance.\n(b) If a dealer fails to certify the amount of tax collected or does not perform the\nelectronic fund transfer as prescribed by paragraph (a) of this subsection, the\ndepartment may immediately make demand of the financial instrument and\nrevoke the license of the dealer notwithstanding the provisions of KRS\n138.340, and the provisions of this section shall apply.\n(2) Notwithstanding any other provision of this chapter, KRS 275.150, 362.1 -306(3) or\npredecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability\ncompany, the partners of a limited liability partnership, and the general partners of a\nlimited liability limited partnership or any other person holding any equivalent\noffice of a limited liability company, limited liability partnership, or limited liability\nlimited partnership subject to the provisions of KRS 138.210 to 138.446 shall be\npersonally and individually liable, both jointly and severally, for the tax imposed\nunder KRS 138. 210 to 138.446. Dissolution, withdrawal of the limited liability\ncompany, limited liability partnership, or limited liability limited partnership from\nthe state, or the cessation of holding any office shall not discharge the liability of\nany person. The pe rsonal and individual liability shall apply to each and every\nmanager of a limited liability company, partner of a limited liability partnership and\ngeneral partner of a limited liability limited partnership at the time the tax becomes\nor became due. No pe rson shall be personally and individually liable under this\nsubsection who had no authority to collect, truthfully account for, or pay over any\ntax imposed by KRS 138.210 to 138.446 at the time the tax becomes or became\ndue. \"Taxes\" as used in this section  shall include interest accrued at the rate\nprovided by KRS 131.183, all applicable penalties imposed under the provisions of\nthis chapter, and all applicable penalties imposed under the provisions of KRS\n131.180, 131.410 to 131.445, and KRS 131.990.\n(a) The provisions of this section shall not apply if a limited liability company, a\nlimited liability partnership, or limited liability limited partnership on an\nannual basis elects to be exempt from the provisions of KRS 138.224 by:\n1. Filing with the departm ent a financial instrument in an amount not to\nexceed two (2) months' estimated liability, as calculated by the\ndepartment, or five thousand dollars ($5,000), whichever is greater;\n2. Certifying by an electronic method acceptable by both the dealer and the\ndepartment no later than the fifteenth day of each month the amount of\ngasoline and special fuels tax due the Commonwealth by the twenty -\nfifth day of that month; and\n3. Agreeing to initiate an Automated Clearing House credit transaction to\nelectronically transfer the amount of tax from the dealer's account to the\nKentucky State Treasurer on the twenty-fifth day of that month.\nFor the purpose of this paragraph, a \"financial instrument\" means a bond\nissued by a corporation authorized to do business in Kentucky, a line of credit,\nor an account with a financial institution maintaining a compensating balance.\n(b) If a dealer fails to certify the amount of tax collected or does not perform the\nelectronic fund transfer prescribed by paragraph (a) of this subsecti on, the\ndepartment may immediately make demand of the financial instrument and\nrevoke the license of the dealer notwithstanding the provisions of KRS\n138.340, and the provisions of this section shall apply.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28746","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"d96ba821ca9359caffb260519024603f9f7a9b10f4d35108a2aace39b89f8869","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.447","next":"us-ky/krs-138.450"},"notice":"GroundRules: Original legal text. Not legal advice."}