{"data":{"id":"us-ky/krs-160.613","jurisdiction":"us-ky","citation":"KRS 160.613","heading":"Utility gross receipts license tax for schools -- Exemptions -- User liable if","body":"supplier is exempt -- Direct pay authorization -- Tollers.\n(1) There is hereby authorized a utility gross receipts license tax for schools not to\nexceed three percent (3%) of the gross receipts derived from the furnishing, within\nthe district, of utility services, except that \"gross receipts\" shall not include amounts\nreceived for furnishing:\n(a) Energy or energy -producing fuels to a person engaged in manufacturin g or\nindustrial processing as provided in subsection (3) or (4) of this section, if that\nperson provides the utility services provider with a copy of its utility gross\nreceipts license tax energy direct pay authorization, as provided in subsection\n(3) of t his section, and the utility service provider retains a copy of the\nauthorization in its records;\n(b) Utility services which are to be resold; or\n(c) Notwithstanding subsection (2) of this section, electricity used or consumed at\na colocation facility in commercial mining of cryptocurrency:\n1. If the facility operator provides the utility services provider with a copy\nof its utility gross receipts license tax exemption certificate, as\nauthorized by subsection (6) of this section, and the utility service\nprovider retains a copy of the exemption certificate in its records; or\n2. If the utility service provider is a governmental agency, the facility\noperator shall retain the exemption certificate in its records.\n(2) If any user of utility services purchases th e utility services directly from any\nsupplier who is exempt either by state or federal law from the utility gross receipts\nlicense tax, then the user of the utility services, if the tax has been levied in the\nuser's school district, shall be liable for the  tax and shall register with and pay\ndirectly to the department, in accordance with the provisions of KRS 160.615, a\nutility gross receipts license tax for schools computed by multiplying the gross cost\nof all utility services received by the tax rate levi ed under the provisions of this\nsection.\n(3) A person engaged in manufacturing or industrial processing whose cost of energy\nor energy -producing fuels used in the course of manufacturing or industrial\nprocessing exceeds an amount equal to three percent (3% ) of the cost of production\nmay apply to the department for a utility gross receipts license tax energy direct pay\nauthorization. Cost of production shall be computed on the basis of a plant facility,\nwhich shall include all operations within the continuou s, unbroken, integrated\nmanufacturing or processing production process that ends with a product packaged\nand ready for sale. If the person receives confirmation of eligibility from the\ndepartment, the person shall:\n(a) Provide the utility services provider with a copy of the utility gross receipts\nlicense tax energy direct pay authorization issued by the department for all\npurchases of energy and energy-producing fuels; and\n(b) Report and pay directly to the department, in accordance with the provisions\nof KRS 160.615, the utility gross receipts license tax due.\n(4) A person who performs a manufacturing or industrial processing activity for a fee\nand does not take ownership of the tangible personal property that is incorp orated\ninto, or becomes the product of, the manufacturing or industrial processing activity\nis a toller. For periods on or after July 1, 2018, the costs of the tangible personal\nproperty shall be excluded from the toller's cost of production at a plant fac ility\nwith tolling operations in place as of July 1, 2018.\n(5) For plant facilities that begin tolling operations after July 1, 2018, the costs of\ntangible personal property shall be excluded from the toller's cost of production if\nthe toller:\n(a) Maintains a binding contract for periods after July 1, 2018, that governs the\nterms, conditions, and responsibilities with a separate legal entity, which\nholds title to the tangible personal property that is incorporated into, or\nbecomes the product of, the manufacturing or industrial processing activity;\n(b) Maintains accounting records that show the expenses it incurs to fulfill the\nbinding contract that include but are not limited to energy or energy -\nproducing fuels, materials, labor, procurement, depreciation, maintenance,\ntaxes, administration, and office expenses;\n(c) Maintains separate payroll, bank accounts, tax returns, and other records that\ndemonstrate its independent operations in the performance of its tolling\nresponsibilities;\n(d) Demonstrates one (1) or more substantial business purposes for the tolling\noperations germane to the overall manufacturing, industrial processing\nactivities, or corporate structure at the plant facility. A business purpose is a\npurpose other than the reduction of utility gross  receipts license tax liability\nfor the purchases of energy and energy-producing fuels; and\n(e) Provides information to the department upon request that documents\nfulfillment of the requirements in paragraphs (a) to (d) of this subsection and\ngives an over view of its tolling operations with an explanation of how the\ntolling operations relate and connect with all other manufacturing or industrial\nprocessing activities occurring at the plant facility.\n(6) (a) The operator of a colocation facility primarily en gaged in the commercial\nmining of cryptocurrency may apply to the department for a utility gross\nreceipts license tax exemption certificate. If the operator receives\nconfirmation of eligibility from the department, it:\n1. Shall provide the utility services provider with a copy of the utility gross\nreceipts license tax exemption certificate issued by the department for\nall purchases of electricity; or\n2. Keep the certificate on file if the utility service provider is a\ngovernmental agency.\n(b) The utility gr oss receipts license tax exemption shall be effective from the\ndate of confirmation of eligibility until June 30, 2030.","path":["KRS Chapter 160"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51751","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:09Z","sha256":"79832610e96e565a1e8edd36aef6fac1746cf78976a57291113fb74e1b780a4b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-160.611","next":"us-ky/krs-160.6131"},"notice":"GroundRules: Original legal text. Not legal advice."}