UNOFFICIAL COPY AS OF 02/03/11 11 REG. SESS. 11 RS BR 886
AN ACT relating to sales and use tax.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
âSECTION 1. A NEW SECTION OF KRS CHAPTER 139 IS CREATED TO READ AS FOLLOWS:
(1) As used in this section:
(a) "Building materials" means all tangible personal property which enters into and becomes a permanent part of a single-family residence or a multifamily residence;
(b) "Condominium" has the same meaning as in KRS 381.9105;
(c) "Disaster" means damage resulting from a flood, rain storm, ice storm, wind storm, tornado, hurricane, earthquake, or terrorist attack;
(d) "Disaster area" means a county that has been declared a disaster on or after the effective date of this Act by the Governor of this state;
(e) "Manufactured home" has the same meaning as in KRS 219.320;
(f) "Mobile home" has the same meaning as in KRS 219.320;
(g) "Multifamily residence" means a duplex, or an apartment complex, including common areas such as on-site laundry facilities, swimming pools, and parking lots; and
(h) "Single-family residence" means a single-family dwelling, single-family rental residence, condominium, manufactured home, or mobile home and includes detached garages, yard fencing, driveways, outbuildings, and septic tank systems.
(2) Notwithstanding any provision of KRS 139.770, an owner of a single-family residence or a multifamily residence damaged or destroyed as a result of a disaster may qualify for a refund of up to one hundred percent (100%) of the Kentucky sales and use tax paid, reduced by the amount of vendor compensation allowed under KRS 139.570, on the purchase of building materials used to:
(a) Repair the single-family residence or multifamily residence located in the disaster area; or
(b) Construct a new single-family residence or multifamily residence in a disaster area to replace a single-family residence or multifamily residence destroyed by the disaster.
(3) Notwithstanding KRS 134.580 and 139.770, in order to qualify for the refund provided in subsection (2) of this section, all the following requirements shall be met:
(a) The repairs or the construction for which the sales and use tax refund is sought shall be completed within twenty-four (24) months from the date the Governor declares the area in which the residence is located to be a disaster area;
(b) The building materials for which the sales or use tax refund is sought shall be purchased on or after the date the Governor declares the area to be a disaster area;
(c) The owner of the single-family residence or the multifamily residence shall file an application for refund on the form prescribed by the department; and
(d) The application for refund shall be postmarked no later than twenty-six (26) months from the date the Governor declares the area in which the residence is located to be a disaster area.
(4) The owner of the single-family residence or the multifamily residence shall have no obligation to refund or otherwise return any amount of the sales and use tax refund received to any person who originally collected the tax and remitted it to the Commonwealth or to a contractor or subcontractor who paid the tax on the purchase of the materials to fulfill the terms of a construction contract.
(5) The owner of the single-family residence or the multifamily residence shall execute information-sharing agreements prescribed by the department with contractors, vendors, and other related parties so that the department may verify expenditures and the sales and use tax paid.
(6) Interest shall not be allowed or paid on any refund made under this section.
(7) By October 1 of each year, the department shall report to the Legislative Research Commission by disaster area for the preceding year:
(a) The number of owners of single-family residences and the number of owners of multifamily residences that have applied for refunds under this section and the number in each category that received refunds under this section; and
(b) The total amount of refunds made to owners of:
1. Single-family residences; and
2. Multifamily residences.
(8) The department shall design and make available the forms required under this section, and may promulgate administrative regulations in accordance with KRS Chapter 13A that are necessary to implement this section.
(9) If the owner repairs or constructs more than one (1) residence destroyed by the disaster, the owner shall file a separate application for refund for each residence.
âSection 2. This Act takes effect July 1, 2011.
Page 1 of 1
BR088600.100 - 886 - 1471 Jacketed