103 KAR 31:170. Disaster Area
Relief Sales and Use Tax Refunds.
RELATES
TO: KRS 139.519, 139.720, 139.770
STATUTORY
AUTHORITY: KRS 131.130(1), 139.519(7)(a), 139.710
NECESSITY,
FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue
to promulgate administrative regulations necessary for the administration and enforcement
of all tax laws in Kentucky. KRS 139.710 authorizes the department to
administer the provisions of KRS Chapter 139, relating to the assessment,
collection, refund, and administration of sales and use taxes. KRS 139.519
establishes the tax refund provisions for sales and use tax paid on building
materials purchased for the purpose of repairing or replacing a building damaged
or destroyed by a disaster within a disaster area. This administrative
regulation establishes the requirements for disaster area relief sales and use
tax refunds.
Section
1. Definitions. (1) "Building materials" is defined in KRS
139.519(1)(a).
(2)
"Disaster" is defined in KRS 139.519(1)(b).
(3)
"Disaster area" is defined in KRS 139.519(1)(c).
(4)
"Qualifying construction" means:
(a)
Construction that repairs the portion of a building damaged by a disaster in a
disaster area; or
(b)
Construction that replaces a building damaged by a disaster in a disaster area.
Section
2. Refund Application Requirements. (1) A request for a refund shall be filed with
the Department of Revenue after completion of the qualifying construction and within
three (3) years from the date the disaster area is declared.
(2)
A refund request shall be postmarked, electronically submitted, or if delivered
by messenger, hand-stamped by the department by the date required in subsection
(1) of this section to qualify for consideration and shall include the
following completed information:
(a)
Application for Kentucky Disaster Relief Sales and Use Tax Refund, Form 51A600;
(b)
Information Sharing and Assignment Agreement for Disaster Relief Refund Claims,
Form 51A601;
(c)
Expenditure Report for Building Materials Disaster Relief Refunds, Form 51A602;
(d)
Copies of contractor invoices to the legal building owner, if applicable;
(e)
Related sample sales receipts of building materials purchased from each vendor;
(f)
Photographs of disaster damage and related construction;
(g)
Other applicable documents that the applicant believes will support the refund
claim; and
(h)
One of the following types of documentation:
1.
Confirmation letter that the legal building owner is eligible for assistance
from the Federal Emergency Management Agency (FEMA), United States Department
of Homeland Security because of property damage from the disaster; or
2.
A copy of the insurance claim filed for the building damage sustained in the
disaster.
(3)
Any request for a refund filed with the Department after the three (3) year
period established in subsection (1) of this section shall be denied.
Section
3. Record Keeping Requirements. The legal owner of the building and other
applicable parties shall keep adequate and complete records supporting the
refund request for a period not less than four (4) years as provided for in KRS
139.720. The department may audit the records of all parties involved as
necessary to verify the refund request and to ensure compliance.
Section
4. Incorporation by Reference. (1) The following material is incorporated by
reference:
(a)
"Application for Kentucky Disaster Relief Sales and Use Tax Refund",
Form 51A600, August 2012;
(b)
"Information Sharing and Assignment Agreement for Disaster Relief Refund
Claims", Form 51A601, August 2012; and
(c)
"Expenditure Report for Building Materials Disaster Relief Refunds", Form
51A602, April 2012.
(2)
This material may be inspected, copied, or obtained, subject to applicable
copyright law, at the Department of Revenue, 501 High Street, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. until 5 p.m. (38 Ky.R. 2107; 39
Ky.R. 458; eff. 10-5-2012.)
