KRS 138.448 — Liability of officers of business organizations for gasoline and special fuels tax -- Exemptions

(1) Notwithstanding any other provision of this chapter to the contrary, the president,
vice president, secretary, treasurer, or any other person holding any equivalent
corporate office of any corporation subject to the provisions of KRS 138.210 to
138.446 shall be personally and individually liable, both jointly and severally, for
the tax imposed under KRS 138.210 to 138.446. Corporate dissolution, withdr awal
of the corporation from the state, or the cessation of holding any corporate office
shall not discharge the liability of any person. The personal and individual liability
shall apply to each and every person holding a corporate office at the time the tax
becomes or became due. No person shall be personally and individually liable under
this subsection who had no authority to collect, truthfully account for, or pay over
any tax imposed by KRS 138.210 to 138.446 at the time the tax imposed becomes
or became due. "Taxes" as used in this section shall include interest accrued at the
rate provided by KRS 131.183, all applicable penalties imposed under the
provisions of this chapter, and all applicable penalties imposed under the provisions
of KRS 131.180, 131.410 to 131.445, and 131.990.
(a) The provisions of this section shall not apply if a corporation on an annual
basis elects to be exempt from the provisions of KRS 138.224 by:
1. Filing with the department a financial instrument in an amount not to
exceed two (2) months' estimated liability, as calculated by the
department, or five thousand dollars ($5,000), whichever is greater;
2. Certifying by an electronic method acceptable by both the dealer and the
department no later than the fifteenth day of each m onth the amount of
gasoline and special fuels tax due the Commonwealth by the twenty -
fifth day of that month; and
3. Agreeing to initiate an Automated Clearing House credit transaction to
electronically transfer the amount of tax from the dealer's account to the
Kentucky State Treasurer on the twenty-fifth day of that month.
For the purpose of this paragraph, a "financial instrument" means a bond
issued by a corporation authorized to do business in Kentucky, a line of credit,
or an account with a financial institution maintaining a compensating balance.
(b) If a dealer fails to certify the amount of tax collected or does not perform the
electronic fund transfer as prescribed by paragraph (a) of this subsection, the
department may immediately make demand of the financial instrument and
revoke the license of the dealer notwithstanding the provisions of KRS
138.340, and the provisions of this section shall apply.
(2) Notwithstanding any other provision of this chapter, KRS 275.150, 362.1 -306(3) or
predecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability
company, the partners of a limited liability partnership, and the general partners of a
limited liability limited partnership or any other person holding any equivalent
office of a limited liability company, limited liability partnership, or limited liability
limited partnership subject to the provisions of KRS 138.210 to 138.446 shall be
personally and individually liable, both jointly and severally, for the tax imposed
under KRS 138. 210 to 138.446. Dissolution, withdrawal of the limited liability
company, limited liability partnership, or limited liability limited partnership from
the state, or the cessation of holding any office shall not discharge the liability of
any person. The pe rsonal and individual liability shall apply to each and every
manager of a limited liability company, partner of a limited liability partnership and
general partner of a limited liability limited partnership at the time the tax becomes
or became due. No pe rson shall be personally and individually liable under this
subsection who had no authority to collect, truthfully account for, or pay over any
tax imposed by KRS 138.210 to 138.446 at the time the tax becomes or became
due. "Taxes" as used in this section shall include interest accrued at the rate
provided by KRS 131.183, all applicable penalties imposed under the provisions of
this chapter, and all applicable penalties imposed under the provisions of KRS
131.180, 131.410 to 131.445, and KRS 131.990.
(a) The provisions of this section shall not apply if a limited liability company, a
limited liability partnership, or limited liability limited partnership on an
annual basis elects to be exempt from the provisions of KRS 138.224 by:
1. Filing with the departm ent a financial instrument in an amount not to
exceed two (2) months' estimated liability, as calculated by the
department, or five thousand dollars ($5,000), whichever is greater;
2. Certifying by an electronic method acceptable by both the dealer and the
department no later than the fifteenth day of each month the amount of
gasoline and special fuels tax due the Commonwealth by the twenty -
fifth day of that month; and
3. Agreeing to initiate an Automated Clearing House credit transaction to
electronically transfer the amount of tax from the dealer's account to the
Kentucky State Treasurer on the twenty-fifth day of that month.
For the purpose of this paragraph, a "financial instrument" means a bond
issued by a corporation authorized to do business in Kentucky, a line of credit,
or an account with a financial institution maintaining a compensating balance.
(b) If a dealer fails to certify the amount of tax collected or does not perform the
electronic fund transfer prescribed by paragraph (a) of this subsecti on, the
department may immediately make demand of the financial instrument and
revoke the license of the dealer notwithstanding the provisions of KRS
138.340, and the provisions of this section shall apply.