{"data":{"id":"us-ky/krs-139.519","jurisdiction":"us-ky","citation":"KRS 139.519","heading":"Sales and use tax refund on building materials used for disaster recovery.","body":"(1) As used in this section:\n(a) \"Building materials\" means all tangible personal property which enters into\nand becomes a permanent part of a building;\n(b) \"Disaster\" means damage resulting from a flood, rain storm, ice storm, wind\nstorm, tornado, hurricane, earthquake, or terrorist attack; and\n(c) \"Disaster area\" means a county that has been declared a disaster by the\nPresident of the United States pursuant to the Robert T. Stafford Disaster\nRelief and Emergency Assistance Act, 42 U.S.C. secs. 5121 to 5206.\n(2) (a) Notwithstanding KRS 139.770, a legal owner of a building located in a\ndisaster area and damaged, in whole or in part, as a result of a disaster may\nqualify for a refund of the sales and use tax paid on the purchase of building\nmaterials used to:\n1. Repair that building; or\n2. Construct a new building in a disaster area to replace the building\ndamaged or destroyed by the disaster.\n(b) The refund allowed by paragraph (a) of this subsection shall be limited to the\nlesser of:\n1. One hundred percent ( 100%) of the Kentucky sales and use tax actually\npaid, reduced by the amount of vendor compensation allowed under\nKRS 139.570; or\n2. Six thousand dollars ($6,000) for each building in the disaster area\nwhich is damaged or destroyed by the disaster regardle ss of the number\nof legal owners.\n(3) Notwithstanding KRS 134.580 and 139.770, to qualify for the refund provided by\nsubsection (2) of this section:\n(a) The building materials for which the sales and use tax refund is sought shall\nbe purchased:\n1. For the purpose of repairing or constructing a building within a disaster\narea;\n2. a. By the legal owner of the building; or\nb. By a contractor who is under contract with the legal owner to\nincorporate the building materials into the building; and\n3. On or after the date the disaster area is declared a disaster; and\n(b) The legal owner of the building for which the sales and use tax refund is\nsought shall:\n1. Provide documentation that the legal owner is eligible for assistance\nfrom the Federal Emergency Ma nagement Agency, United States\nDepartment of Homeland Security; or\n2. Provide a copy of the claim filed for insurance purposes for verification\nof the building in the disaster area that was damaged by the disaster, in\nwhole or in part.\n(4) The application for the sales and use tax refund provided by subsection (2) of this\nsection shall be filed with the department:\n(a) Within three (3) years from the date the disaster area is declared a disaster;\nand\n(b) By the legal owner of the building on the form prescribed by the department.\n(5) (a) The legal owner of the building shall file an application for refund and submit\nsales receipts, invoices, photographs, and any other documents supporting the\nlegal owner's claim for refund, as requested by the department.\n(b) If the legal owner repairs or replaces more than one (1) building destroyed by\nthe disaster, the legal owner shall file a separate application for refund for\neach building.\n(c) The legal owner of the building shall execute information -sharing agreements\nprescribed by the department with contractors, vendors, and other related\nparties so that the department may verify expenditures and the sales and use\ntax paid.\n(d) The legal owner of the building shall have no obligation to refund or\notherwise return any amount of the sales and use tax refund received to any\nperson who originally collected the tax and remitted it to the Commonwealth\nor to a contractor or subcontractor who paid the tax on the purchase of the\nmaterials to fulfill the terms of a construction contract.\n(6) Interest shall not be allowed or paid on any refund made under this section.\n(7) (a) The department shall prescribe and make available the forms required under\nthis section, and may promulgate administrative regulations in accordance\nwith KRS Chapter 13A that are necessary to implement this section.\n(b) By October 1 of each year, the department shall report to the Legislative\nResearch Commission, for the preceding fiscal year, the number of owners\nthat have applied for refunds under this secti on by disaster area and the value\nof the refunds issued by disaster area.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40069","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:32Z","sha256":"5fbad030d85fff43f79782ea9fd37b4478db73ef6a109261cf3d0d2b07a46134","source_id":"us-ky","stale":false,"prev":"us-ky/krs-139.518","next":"us-ky/krs-139.520"},"notice":"GroundRules: Original legal text. Not legal advice."}