{"data":{"id":"us-ky/krs-371.170","jurisdiction":"us-ky","citation":"KRS 371.170","heading":"Contracts for the payment of manufacturers' excise taxes.","body":"(1) If a contract requires one (1) party to reimburse another party for taxes levied under\nPart III of Subchapter A of Chapter 32 of the Internal Revenue Code, the party\nmaking the reimbursement, at its option, shall not be required to reimburse the other\nparty more than one (1) business day before the other party is required to remit the\ntaxes to the Internal Revenue Service.\n(2) If a party chooses to exercise its option under subsection (1) of this section, and\nprovision is not already provided in the contrac t, the party shall notify the other\nparty in writing of its intention. The option may not be exercised until at least thirty\n(30) days after the written notification or the beginning of the next federal tax\nquarter, whichever is later.\n(3) The party to be reimbursed under subsection (1) of this section may require security\nfrom the reimbursing party for the payment of the taxes in proportion to the amount\nthe taxes represent compared to the security required on the contract as a whole.\nThe party to be reimbursed shall not change other payment terms of the contract due\nto the timing of the tax reimbursement, but may require the taxes to be reimbursed\nby electronic transfer of funds.","path":["KRS Chapter 371"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35237","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:07Z","sha256":"d667ef6b0a41086bb9ac31b5b844e3ce0b7afba84344c03aca75fcc101842919","source_id":"us-ky","stale":false,"prev":"us-ky/krs-371.160","next":"us-ky/krs-371.180"},"notice":"GroundRules: Original legal text. Not legal advice."}