103 KAR 31:170. Disaster Area Relief Sales and Use Tax Refunds

Link to law: http://www.lrc.ky.gov/kar/103/031/170.htm
Published: 2015

      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.)
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