KRS 131.500 — Demand for payment -- Levy upon and sale of property of taxpayer to satisfy demand -- Maintenance of property

(1) (a) In addition to any other remedy provided by the laws of the Commonwealth, if
any person has been assessed for a tax the collection o f which is administered
by the Department of Revenue as provided by the laws of the Commonwealth
and if the person has not sought administrative or judicial review of the
assessment as provided for in KRS 131.110, or if the person has sought but
exhausted all administrative and judicial review so that the assessment is final,
due, and owing, the commissioner of revenue or his delegate may cause a
demand to be made on the person for the payment thereof.
(b) If the tax remains unpaid for thirty (30) days afte r the demand, the
commissioner or his delegate may levy upon and sell all property and rights to
property found within the Commonwealth belonging to the person or on
which there is a lien provided by KRS 131.515 or 134.420, except the
property that is exem pt from an execution on a judgment in favor of the
Commonwealth as provided in KRS Chapter 427, for the payment of the
amount of the tax, penalty, interest, fees, and cost of the levy.
(2) As soon as practicable after seizure of property, notice in writing shall be given by
the commissioner or his delegate to the owner of the property. The notice shall be
given to the owner either in person or by certified mail to his or her last known
address. The notice shall specify the sum demanded and shall contain, in the case of
personal property, an account of the property seized and, in the case of real
property, a description with reasonable certainty of the property seized.
(3) The commissioner or his or her designee shall as soon as practicable after the
seizure of the property cause a notification of the sale of the seized property to be
published in the newspaper with the largest circulation within the county where the
seizure is made. The notice shall be published once each week for three (3)
successive weeks. In addition, the notice shall be posted at the courthouse in the
county where the seizure is made for fifteen (15) days next preceding sale. The
notice shall specify the property to be sold, and the time, place, manner, and
condition of the sale thereof.
(4) If any property liable to levy is not divisible, so as to enable the commissioner or the
commissioner's designee by sale of a part thereof to raise the whole amount of the
tax, penalty, fees, interest, and cost of the levy, the whole of the property sha ll be
sold.
(5) The time of sale shall not be less than thirty (30) nor more than ninety (90) days
from the time the seizure is made. The place of sale shall be within the county in
which the property is seized, except by special order of the commissioner.
(6) The sale shall be conducted by public auction, or by public sale under sealed bids.
In the case of the seizure of several items of property, the commissioner or his or
her delegate may offer the items for sale separately, in groups, or in the aggregat e
and accept whichever method produces the highest aggregate amount.
(7) (a) The commissioner or his or her delegate shall determine whether payment in
full shall be required at the time of acceptance of a bid, or whether a part of
the payment may be deferred for such period, not to exceed one (1) month, as
he or she may determine to be appropriate.
(b) If payment in full is required at the time of acceptance of a bid and is not then
and there paid, the commissioner or his or her delegate shall forthwith proceed
to again sell the property as provided in subsection (6) of this section.
(c) If the conditions of the sale permit part of the payment to be deferred, and if
such part is not paid, within the prescribed period, suit may be instituted in the
Franklin Circuit Court or the Circuit Court of the county where the sale was
conducted against the purchaser for the purchase price or such part thereof as
has not been paid, together with interest at the rate of twelve percent (12%)
per annum from the date of the sale; or, in the discretion of the commissioner,
the sale may be declared to be null and void for failure to make full payment
of the purchase price and the property may again be advertised and sold as
provided in this section.
(d) If readvertisement and s ale occur, any new purchaser shall receive the
property or rights to property, free and clear of any claim or right of the former
defaulting purchaser, of any nature whatsoever, and the amount paid upon the
bid price by the defaulting purchaser shall be forfeited.
(8) If the commissioner or his or her delegate determines that any property seized is
liable to perish or become greatly reduced in price or value by keeping, or that the
property cannot be kept without great expense, he or she shall appraise the value of
the property and, if the owner of the property can be readily found, the
commissioner or his or her delegate shall give him or her notice of the
determination of the appraised value of the property. The property shall be returned
to the owner if, within the time specified in the notice, the owner pays to the
commissioner or his or her delegate an amount equal to the appraised value, or
gives bond in the form, with the sureties, and in the amount as the commissioner or
his or her delegate determines to be appropriate in the circumstances. If the owner
does not pay the amount or furnish the bond in accordance with this subsection, the
commissioner or his or her delegate shall as soon as practicable make public sale of
the property without regard to th e advertisement requirements or the time
limitations contained in subsections (3) and (5) of this section.
(9) No proceedings under this section shall be commenced more than ten (10) years
after the assessment becomes final.
(10) The term "levy" as used in this section shall include the power of distraint and
seizure by any means. Except as otherwise provided in KRS 131.510(2)(a), a levy
shall extend only to property possessed and obligations existing at the time thereof.
In any ca se in which the commissioner or his or her delegate may levy upon
property or rights to property, he or she may seize and sell the property or rights
whether real, personal, tangible or intangible.
(11) Notwithstanding the provisions of KRS Chapters 45, 45 A, and 56, the department
may take all necessary steps to provide for the protection, maintenance, or
transportation of all property seized by the department pursuant to the provisions of
this section, including but not limited to negotiating directly for the procurement of
contractual services, including professionals, supplies, materials, equipment, or the
leasing of real and personal property. Every effort shall be made to effect a
competitively established price for purchases made pursuant to this secti on. The
department shall report any procurements of contractual services, supplies,
materials, equipment, or the leasing of real and personal property, to the secretary of
the Finance and Administration Cabinet within sixty (60) days of the transaction.
Nothing in this section shall preclude the department from complying with the
provisions of KRS Chapters 45 and 56 relating to the requirements to report the
purchase or lease of real property or equipment to the Capital Projects and Bond
Oversight Committee.