{"data":{"id":"us-ky/krs-143a.060","jurisdiction":"us-ky","citation":"KRS 143A.060","heading":"Collection of tax -- Agreement for processor to pay tax due from severor","body":"-- Provisions applicable to natural gas.\nNotwithstanding any other provisions of this chapter to the contrary:\n(1) In the case of natural resources other than natural gas, where  the department finds\nthat it would facilitate and expedite the collection of the tax imposed under KRS\n143A.020, the department may authorize the taxpayer processing the natural\nresource to report and pay the tax which would be due from the taxpayer sever ing\nthe natural resource. Authorization from the department shall be in the form of an\nagreement executed by the taxpayer processing the natural resource, the taxpayer\nsevering the natural resource, and the department. The agreement shall be in such\nform as the department may prescribe. The agreement must be signed by the owners\nif the taxpayers are natural persons; in the case of a partnership or association by a\npartner or member; in the case of a corporation, by an executive officer or some\nperson specif ically authorized by the corporation to sign the application. The\nexecutive director of the Office of Legal Services for Revenue shall sign for the\ndepartment. The agreement may be terminated by any party to the agreement upon\ngiving thirty (30) days' written notice to the other parties to the agreement; however,\nthe department may terminate the agreement immediately upon written notice to the\nother parties when either the taxpayer processing the natural resource or the\ntaxpayer severing the natural resourc e fails to comply with the terms of the\nagreement; and\n(2) (a) In the case of natural gas, except for those cases:\n1. Where the person severing or severing and processing the natural gas\nwill sell the gas to the ultimate consumer; or\n2. Where the departmen t determines that the collection of the taxes due\nunder KRS 143A.020 would be accomplished in a more efficient and\neffective manner through the severor, or severor and processor, remitting\nthe taxes,\nthe first person to purchase the natural gas after it h as been severed, or in the\nevent that the natural gas has been severed and processed before the first sale,\nthe first person to purchase the natural gas after it has been severed and\nprocessed, shall be liable for the collection of the tax imposed under KR S\n143A.020. He shall collect the taxes imposed from the person severing, or\nsevering and processing, the natural gas, and he shall remit the taxes to the\ndepartment. In those cases where the person severing or severing and\nprocessing the natural gas sells the gas to the ultimate consumer, the person so\nsevering or severing and processing the natural gas shall be liable for the tax\nimposed under KRS 143A.020. In those cases where the department\ndetermines that the collection of the taxes due under KRS 143A.0 20 from the\nseverance or severance and processing of natural gas would be accomplished\nin a more efficient and effective manner through the severor, or severor and\nprocessor, remitting the taxes, the department shall set out its determination in\nwriting, stating its reasons for so finding, and so advise the severor or severor\nand processor at least fifteen (15) days in advance of the first reporting period\nfor which such action would be effective.\n(b) On or before the last day of the month following each ca lendar month, each\nperson first purchasing natural gas as described in paragraph (a) of this\nsubsection, shall report purchases of natural gas during the month, showing\nthe quantities of gas purchased, the price paid, the date of purchase, and any\nother information deemed necessary by the department for the administration\nof the tax levied by KRS 143A.020, and shall pay the amount of tax due, on\nforms prescribed by the department.\n(c) On or before the last day of the month following each calendar month, eac h\nperson severing, or severing and processing natural gas, shall report the sales\nof natural gas, showing the name and address of the person to whom sold, the\nquantity of gas sold, the date of sale, and the sales price on forms prescribed\nby the department.","path":["KRS Chapter 143A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29260","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:37Z","sha256":"779696587fc6d46c0c7b943585c884380bc0d072040cad1ae39c57d1f352ad3e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-143a.050","next":"us-ky/krs-143a.070"},"notice":"GroundRules: Original legal text. Not legal advice."}