{"data":{"id":"us-ky/krs-138.472","jurisdiction":"us-ky","citation":"KRS 138.472","heading":"Definitions for section -- Taxes on motor vehicles provided for sharing or","body":"rent.\n(1) As used in this section:\n(a) \"Bad debt\" has the same meaning as in 26 U.S.C. sec. 166, except that the\nfollowing shall be excluded:\n1. Financing charges or interest;\n2. Excise or sales and use taxes charged on the purchase price;\n3. Uncollectible amounts on property that remains in the possession of the\nperson until the full purchase price is paid;\n4. Expenses incurred in attempting to collect any debt; or\n5. Repossessed property;\n(b) \"Charged off for income tax purposes\" means:\n1. The charging off of unpaid balances due on accounts determined to be\nuncollectible; or\n2. Declaring as uncollectible the unpaid balance due on accounts if the\nperson is not required to file federal income tax returns;\n(c) \"Department\" means the Kentucky Department of Revenue;\n(d) \"Gross receipts\" means the total consideration received for the:\n1. Rental of a vehicle, including the daily or hourly rental fee, fees charged\nfor using the services, charges for insurance protection plans, fuel\ncharges, pickup and delivery fees, late fees, and any charges for any\nservices necessary to complete the rental transaction made by a:\na. Peer-to-peer car sharing company; or\nb. Motor vehicle rental company; and\n2. Charges made to provide the service to a user, including any charges for\ntime or mileage, fees for using the services, and any charges for any\nservices necessary to complete the transaction made by a:\na. TNC;\nb. Taxicab; or\nc. Limousine service provider;\n(e) The following terms have the same meaning as in KRS 281.010:\n1. \"Human service transportation delivery\";\n2. \"Limousine\";\n3. \"Peer-to-peer car sharing certificate\";\n4. \"Peer-to-peer car sharing company\";\n5. \"Peer-to-peer car sharing driver\";\n6. \"Peer-to-peer car sharing program\";\n7. \"Shared vehicle\";\n8. \"Shared vehicle driver\";\n9. \"Taxicab\";\n10. \"Transportation network company\" or \"TNC\";\n11. \"Transportation network company service\" or \"TNC service\"; and\n12. \"U-Drive-It\";\n(f) \"Motor vehicle rental company\" has the same meaning as in KRS 281.687;\nand\n(g) \"Person\" means the individual or the entity required to be the holder of any of\nthe following certificates in KRS 281.630:\n1. Limousine;\n2. Peer-to-peer car sharing;\n3. Taxicab;\n4. Transportation network; and\n5. U-Drive-It.\n(2) (a) An excise tax is imposed upon every person for the privilege of providing a\nmotor vehicle for sharing or for rent, with or without a driver, within the\nCommonwealth.\n(b) The tax is imposed at the rate of six percent (6%) of the gross receipts derived\nfrom the:\n1. Rental of a shared vehicle by a peer-to-peer car sharing company;\n2. Rental of a vehicle by a motor vehicle renting company;\n3. Sales of TNC services;\n4. Sales of taxicab services; and\n5. Sales of limousine services.\n(c) Excluded from the tax are r eceipts derived from the provision of human\nservice transportation delivery.\n(3) (a) The tax imposed under subsection (2) of this section shall be administered and\ncollected by the department. Revenues generated from the tax shall be\ndeposited into the general fund.\n(b) On or before the twentieth day of the month following each calendar month, a\nreturn for the preceding month shall be filed with the department by every\nperson required to pay the tax in a form prescribed by the department.\n(4) The tax impose d by subsection (2) of this section shall be the direct obligation of\nthe peer-to-peer car sharing company, the motor vehicle renting company, the TNC,\nthe taxicab service provider, and the limousine service provider, but it may be\ncharged to and collected  from the user of the service. The tax shall be remitted to\nthe department each month on forms and pursuant to administrative regulations\npromulgated by the department.\n(5) (a) A person may deduct as a bad debt the amount found to be worthless and\ncharged off for income tax purposes, provided the person is reporting and\nremitting this tax on the accrual basis.\n(b) The person may take the deduction on the return for the period during which\nthe bad debt is written off as uncollectible in the person's books an d records\nand is eligible to be charged off for income tax purposes.\n(c) 1. The person may obtain a refund equal to the amount of bad debt that\nexceeds the amount of tax due for the period during which the bad debt\nis written off.\n2. The refund claim shall  be made within four (4) years from the due date\nof the return on which the bad debt could first be claimed.\n3. Notwithstanding KRS 131.183, no interest shall be paid upon any\ndeduction taken or refund made for bad debts.\n(d) If any bad debt accounts are t hereafter, in whole or in part, collected by the\nperson, the amount collected shall be included in the return filed for the period\nin which the collection is made and the amount of the tax due shall be paid\nwith the return.\n(e) For purposes of computing a bad debt deduction or reporting a payment\nreceived on a previously claimed bad debt, any payments made on a debt or\naccount shall be applied first to the price of the service and the excise tax on\nthe service, proportionally, and then to interest, service charges, and any other\ncharges.\n(6) (a) As soon as practicable after each return is received, the department shall\nexamine and audit the return. If the amount of taxes computed by the\ndepartment is greater than the amount returned by the person, the excess  shall\nbe assessed by the department within four (4) years from the date the return\nwas filed, except as provided in paragraph (c) of this subsection, and except\nthat in the case of a failure to file a return or of a fraudulent return the excess\nmay be ass essed at any time. A notice of such assessment shall be mailed to\nthe person.\n(b) For the purpose of paragraphs (a) and (c) of this subsection, a return filed\nbefore the last day prescribed by law for the filing thereof shall be considered\nas filed on such last day.\n(c) Notwithstanding the four (4) year time limitation of paragraph (a) of this\nsubsection, in the case of a return where the amount of taxes computed by the\ndepartment is greater by twenty -five percent (25%) or more than the amount\nreturned by the person, the excess shall be assessed by the department within\nsix (6) years from the date the return was filed.\n(7) Failure to remit the taxes shall be sufficient cause for the Department of Vehicle\nRegulation to void the certificate issued to a:\n(a) Limousine certificate holder;\n(b) Peer-to-peer car sharing certificate holder;\n(c) Taxicab certificate holder;\n(d) TNC certificate holder; or\n(e) U-Drive-It certificate holder.\n(8) If a person fails or refuses to file a return or furnish any information requested in\nwriting, the department may, from any information in its possession, make an\nestimate of the certificate holder's total trip costs and issue an assessment against\nthe certificate holder based on the estimated trip cost charges and add a penalty of\nten percent (10%) of the amount of the assessment so determined. This penalty shall\nbe in addition to all other applicable penalties provided by law.\n(9) If the tax imposed by subsection (2) of this section is not paid on or before the date\nprescribed for its payment, there shall be collected, as a part of the tax, interest upon\nthe unpaid amount at the tax interest rate as defined in KRS 131.010(6) from the\ndate prescribed for its payment until payment is actually made.\n(10) (a) For purposes of this subsection, \"taxes\" shall include:\n1. Interest accrued at the rate provided by KRS 131.183;\n2. All applicable penalties imposed under this chapter; and\n3. All applicable penalties and fees imposed under KRS 131.180, 131.410\nto 131.445, and 131.990.\n(b) 1. Notwithstanding any other provisions of this chapter to the contrary, the\npresident, vice president, secretary, treasurer, or any other person\nholding any equivalent corporate office of any corporation subject to the\nprovisions of this section shall be personally and individu ally liable,\nboth jointly and severally, for the taxes imposed under this section, and\nneither the corporate dissolution nor withdrawal of the corporation from\nthe state nor the cessation of holding any corporate office shall\ndischarge the foregoing liability of any person.\n2. The personal and individual liability shall apply to each and every\nperson holding the corporate office at the time the taxes become or\nbecame due.\n3. No person will be personally and individually liable pursuant to this\nsection who h ad no authority in the management of the business or\nfinancial affairs of the corporation at the time that the taxes imposed by\nthis section become or became due.\n(c) 1. Notwithstanding any other provisions of this chapter, KRS 275.150,\n362.1-306(3) or pre decessor law, or 362.2 -404(3) to the contrary, the\nmanagers of a limited liability company, the partners of a limited\nliability partnership, and the general partners of a limited liability\nlimited partnership, or any other person holding any equivalent off ice of\na limited liability company, limited liability partnership, or limited\nliability limited partnership subject to the provisions of this section,\nshall be personally and individually liable, both jointly and severally, for\nthe taxes imposed under this section.\n2. Dissolution, withdrawal of the limited liability company, limited\nliability partnership, or limited liability limited partnership from the\nstate, or the cessation of holding any office shall not discharge the\nliability of any person.\n3. The pe rsonal and individual liability shall apply to each and every\nmanager of a limited liability company, partner of a limited liability\npartnership, and general partner of a limited liability limited partnership\nat the time the taxes become or became due.\n4. No person shall be personally and individually liable under this\nsubsection who had no authority to collect, truthfully account for, or pay\nover any tax imposed by this section at the time that the taxes imposed\nby this section become or became due.\n(11) Any person who violates any of the provisions of this section shall be subject to the\nuniform civil penalties imposed pursuant to KRS 131.180.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55623","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:30Z","sha256":"e7a65d31db4bd525cec78423944ea806518a5adc9aa352d0d72a9742cf97b5ba","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.470","next":"us-ky/krs-138.475"},"notice":"GroundRules: Original legal text. Not legal advice."}