103 KAR 44:100. Procedures for refund

based on vehicle condition.

 

      RELATES TO: KRS 138.450 -138.470

      STATUTORY AUTHORITY: 131.130(1), 138.450,

138.460

      NECESSITY, FUNCTION AND CONFORMITY: KRS

138.460(12)(b) requires the Department of Revenue to promulgate administrative

regulations to develop the forms and the procedures by which the owner of a

motor vehicle may apply for a refund and document the condition of the vehicle

under KRS 138.460(12)(a). KRS 131.130(1) authorizes the Department of Revenue

to promulgate administrative regulations for the administration of all tax

laws. This administrative regulation establishes the procedures required for claiming

and documenting a refund request for motor vehicle usage tax when the tax paid

was based upon fifty (50) percent of trade-in value as provided in KRS

138.450(16)(a) and the actual condition of the vehicle at the time the usage

tax was paid was less than fifty (50) percent of the trade-in value.

 

      Section 1. Definitions. (1) "Adjusted

retail price" means, for a motor vehicle subjected to motor vehicle usage

tax pursuant to the provisions of KRS 138.450(16)(a), the price based upon the

following calculation:

      (a) Trade-in value based on the reference

guide for the motor vehicle listed on the Vehicle Condition Refund Application

(71A010);

      (b) Less the trade-in value based on the

reference guide for any motor vehicle given in trade; and

      (c) Less any repair cost listed in the vehicle

condition verification documents submitted to the department.

      (2) "Reference manual" is

defined by KRS 138.450(23).

      (3) "Repair cost" means costs

or estimates for parts or labor to return the motor vehicle to trade-in value or

drivable condition and does not include upgrading or improving the vehicle

beyond trade-in value condition.

      (4) "Vehicle condition verification

documents" means originals or copies of the following dated items:

      (a) Photographs of the vehicle indicating

the condition of the vehicle supplied by the motor vehicle owner or by Department

of Revenue personnel. The photo shall show the vehicle damage and the VIN plate

attached to the vehicles. Photos shall be taken by the owner or the Department

of Revenue personnel;

      (b) Receipts for parts purchased for

repair. Copies of receipts shall contain the name of the parts purchase, the

price of the parts, the name, address, and telephone number of the business

where purchased, and the date of purchase;

      (c) Repair cost estimates. Copies of

estimates shall contain the VIN of the vehicle being repaired, the date the

estimate was prepared, and the name, address, and telephone number of the estimate

preparer; or

      (d) Repair cost receipts. Copies of

receipts shall contain the VIN of the vehicle being repaired, the date the

repair was rendered, and the name, address, and telephone number of the vehicle

repairer.

      (5) "Vehicle Identification Number"

or "VIN" means the numbers, letters, or combination of numbers and

letters assigned by the manufacturer or a governmental entity and stamped upon

or otherwise affixed to a motor vehicle or motor vehicle part for the purpose

of identification, but does not include the letters, numbers, or combinations

on registration plates issued under KRS Chapter 186.

 

      Section 2. Refund Application Process. (1)

The owner of a motor vehicle who has paid the motor vehicle usage tax according

to the provisions of KRS 138.450(16)(a) and requests a refund of a portion of

the tax paid shall submit to the department a completed Vehicle Condition

Refund Application (Form 71A010) with the following documents attached:

      (a) A copy of the owner’s Kentucky

Registration Receipt (Form TC 96-181) for the vehicle;

      (b) A copy of the owner’s completed

Application for Kentucky Certificate of Title/Registration (Form TC 96-182) for

the vehicle; and

      (c) At least two (2) vehicle condition

verification documents.

      (2) All documents submitted with the

Vehicle Condition Refund Application shall include the VIN to identify the motor

vehicle for which the applicant is requesting the refund.

      (3) The owner of the motor vehicle may utilize

one of the department’s Taxpayer Service Centers to obtain photographs of the

damaged vehicle and for submittal of the Vehicle Condition Refund Application.

 

      Section 3. Refund Calculation Amount. (1)

The department shall consider all refund requests based upon whether the

condition of the motor vehicle at the time the motor vehicle usage tax was paid

as evidenced by documentation provided to the department merits an adjusted

retail price.

      (2) Any approved refund shall be the

actual amount of tax paid less the tax due based on the greater of the adjusted

retail price or the applicant’s purchase price as stated on the Kentucky Certificate

of Title/Registration (Form TC 96-182).

 

      Section 4. Refund Denial. Any incomplete

or erroneous information on the Vehicle Condition Refund Application (Form 71A010)

or the associated vehicle condition verification documents shall result in the

denial of the refund. If the department has denied a refund request, the

applicant may resubmit a refund request if additional information is made

available.

 

      Section 5. Incorporation by Reference. (1)

The following material is incorporated by reference:

      (a) "Application for Kentucky

Certificate of Title/Registration," Form TC 96-182, (January 2000);

      (b) "Kentucky Registration Receipt,"

Form TC 96-181, (August 1996); and

      (c) "Vehicle Condition Refund

Application," Form 71A010, (August 2006).

      (2) This material may be inspected,

copied, or obtained, subject to applicable copyright law, at the Kentucky

Department of Revenue, 501 High Street, Frankfort, Kentucky 40620, or at a

Kentucky Taxpayer Service Center, Monday through Friday, 8 a.m. to 5 p.m. (33

Ky.R. 2826; 3162; eff. 5-4-2007; Tam eff. 5-20-09.)