KRS 132.140 — Assessment of distilled spirits by department -- Maximum tax rate on distilled spirits in revenue bond-financed warehouse and in barrels located in bonded warehouse or premises -- Failure to report

(1) The department shall fix the value of the distilled spirits for the purpose of taxation,
assess the same at its fair cash value, estimated at the price it would bring at a fair
voluntary sale, calculate the exempt portion of the property taxes, and keep a record
of the valuations and assessment s. The department shall immediately notify the
owner or proprietor of the bonded warehouse or premises of the amount fixed,
including the portion of the property tax exemption as calculated in subsection (3)
of this section.
(2) (a) For purposes of this su bsection only, "revenue bond -financed warehouse"
means a bonded warehouse or premises containing distilled spirits:
1. Owned by a tax -exempt governmental unit or tax -exempt statutory
authority under KRS Chapter 103;
2. The costs of which are financed by on e (1) or more series of industrial
revenue bonds under KRS Chapter 103 issued prior to January 1, 2024;
and
3. Any portion of the costs of which remains financed by those industrial
revenue bonds during any portion of the calendar year.
(b) Notwithstanding subsection (3) of this section, for the taxation of distilled
spirits stored or aging in barrels in a revenue bond-financed warehouse:
1. One hundred percent (100%) of the assessed value of the distilled spirits
shall be subject to the applicable state and local ad valorem taxes; and
2. The state and local tax rate that may be levied on the distilled spirits
shall be the state and local tax rate for tax assessments made on January
1, 2023.
(c) Distilled spirits stored or aging in barrels in a revenue bond -financed
warehouse shall be exemp t from state and local ad valorem taxes for tax
assessments made on or after January 1, 2043.
(3) For distilled spirits stored or aging in barrels located in a bonded warehouse or
premises, the portion of the assessed value that is subject to state and loc al ad
valorem taxes shall be as follows:
(a) Ninety-six percent (96%) of the assessed value for tax assessments made on
January 1, 2026;
(b) Ninety-two percent (92%) of the assessed value for tax assessments made on
January 1, 2027;
(c) Eighty-eight percent (88%) of the assessed value for tax assessments made on
January 1, 2028;
(d) Eighty-four percent (84%) of the assessed value for tax assessments made on
January 1, 2029;
(e) Eighty percent (80%) of the assessed value for tax assessments made on
January 1, 2030;
(f) Seventy-six percent (76%) of the assessed value for tax assessments made on
January 1, 2031;
(g) Seventy-two percent (72%) of the assessed value for tax assessments made on
January 1, 2032;
(h) Sixty-eight percent (68%) of the assessed value fo r tax assessments made on
January 1, 2033;
(i) Sixty-one percent (61%) of the assessed value for tax assessments made on
January 1, 2034;
(j) Fifty-four percent (54%) of the assessed value for tax assessments made on
January 1, 2035;
(k) Forty-four percent (44%) of the assessed value for tax assessments made on
January 1, 2036;
(l) Thirty-eight percent (38%) of the assessed value for tax assessments made on
January 1, 2037;
(m) Thirty-two percent (32%) of the assessed value for tax assessments made on
January 1, 2038;
(n) Twenty-four percent (24%) of the assessed value for tax assessments made on
January 1, 2039;
(o) Twenty percent (20%) of the assessed value for tax assessments made on
January 1, 2040;
(p) Fifteen percent (15%) of the assessed value for tax assessments made on
January 1, 2041; and
(q) Eight percent (8%) of the assessed value for tax assessments made on January
1, 2042.
(4) Distilled spirits stored or aging in barrels located in a bonded warehouse or
premises shall be exempt from state and lo cal ad valorem taxes for tax assessments
made on or after January 1, 2043.
(5) If any owner, proprietor, or custodian of a bonded warehouse or premises fails to
make the report required by KRS 132.130, the department shall ascertain the
necessary facts required to be reported. For that purpose the department shall have
access to the records of the owner, proprietor, or custodian; and the assessment
shall be made and taxes collected thereon, with interest and penalties, as though
regularly reported.
(6) The assessment made under (1) of this section shall be reviewed according to KRS
131.110.