KRS 138.354 — Revocation of permits and privileges for violations

(1) No person shall make a false or fraudulent statement in an application for a refund
permit or in a gasoline or special fuel refund invoice, or in an application for a
refund of any taxes as set out in KRS 138.344 to 138.355; or fraudulently obtain a
refund of such taxes; or knowingly aid or assist in making any such false or
fraudulent statement or claim; or having bought gasoline or special fuel under the
provisions of KRS 138.344 to 138.355, shall use or permit such gasoline or special
fuel or any part th ereof to be used for any purpose other than as provided in KRS
138.344.
(2) The refund permit of any person who shall violate any provision of subsection (1) of
this section may be revoked by the Department of Revenue subject to appeal to the
Board of Tax Appeals pursuant to KRS 49.220, and may not be reissued until two
(2) years have elapsed from the date of such revocation.
(3) The refund permit of any person who shall violate any provision of KRS 138.344 to
138.355, other than those contained in subsecti on (1) of this section, may be
suspended by the Department of Revenue for any period in its discretion not
exceeding six (6) months with the right of appeal to the Board of Tax Appeals
pursuant to KRS 49.220.
(4) If a dealer violates any provision of KRS 138.344 to 138.355, his or her privilege to
sign refund invoices may be suspended by the Department of Revenue for a period
of not more than two (2) years subject to appeal to the Board of Tax Appeals
pursuant to KRS 49.220. No refund shall be made on gasol ine or special fuel
purchased from a dealer while a suspension of his privilege to sign refund invoices
is in effect.