KRS 139.515 — Sales tax refund program for qualifying signature projects

(1) As used in this section:
(a) "Agency" has the same meaning as in KRS 154.30-010;
(b) "Signature project" means a project that meets the requirements established by
KRS 154.30-050; and
(c) "Tangible personal property used in the construction of a signature project"
means tangible personal property that:
1. Consists of:
a. Permanently incorporated building materials and fixtures that are
an improvement to real property on the signature project;
b. Building materials temporarily incorporated into the signature
project for infrastructure support during construction; or
c. Temporarily incorporated specialized forms for concrete that are
for exclusive use on the qualifying signature project; and
2. Is not machinery or equipment.
(2) (a) Notwithstanding any other p rovision of KRS Chapter 139 and KRS 134.580,
the sales or use tax paid on the purchase of tangible personal property used in
the construction of the portion of a signature project that does not relate to
approved public infrastructure costs or approved sig nature project costs, as
defined in KRS 154.30 -010, may be refunded to the agency under the
conditions established by subsection (3) of this section.
(b) The authority, as defined in KRS 154.30 -010, shall notify the department
upon the approval of a signature project. The notification shall include the
name of the signature project, the name of the agency, the name of the project
developer, the commencement date of the tax incentive agreement, and the
percentage of total anticipated expenditures for tangible personal property
used in the construction of a signature project that are not included in the
project grant agreement as approved public infrastructure costs or approved
signature project costs.
(c) The department shall determine the total amount of eligible refund due under
each application for refund based upon the actual percentage of total
expenditures for tangible personal property used in the const ruction of a
signature project that are not included in the project grant agreement as
approved public infrastructure costs reported in the refund request reduced by
the amount of vendor compensation taken in accordance with KRS 139.570.
(3) To qualify for the refund established by subsection (2) of this section, the agency
shall collect from the purchasers of tangible personal property used in the
construction of the signature project all documentation relating to the payment of
sales or use tax, and shall file an application for refund of the sales or use tax paid
by the purchasers as reflected in the documentation collected. Requests for refund
shall be filed annually during the first twelve (12) years the project grant agreement
is in effect, and shall c over purchases made during the immediately preceding year.
Requests for refund shall be filed in the manner directed by the department.
(4) (a) The agency shall file the first year refund request within sixty (60) days
following the end of the fiscal year in which the project grant agreement is
executed. The agency shall file the final refund request within sixty (60) days
following the end of the eleventh fiscal year following the fiscal year in which
the project grant agreement was executed, or within six ty (60) days after
construction is complete, whichever date is earlier. All other annual refund
requests shall be filed within sixty (60) days after the completion of each
fiscal year.
(b) Failure to file a refund request within the timeframes provided in paragraph
(a) of this subsection shall result in an adjustment to the refund amount paid
as follows:
1. For late refund requests filed within the first one hundred twenty (120)
days after the request was due, for each month or portion thereof that the
refund request is late, the refund amount shall be reduced by one twelfth
(1/12) of the total amount determined by the department to be due to the
agency.
2. Any refund request filed more than one hundred twenty (120) days after
the timeframes provided in para graph (a) of this subsection shall be
rejected and no refunds shall be paid for the time period covered by the
request.
(5) Interest shall not be allowed or paid on any refund made under the provisions of this
section.
(6) The agency shall execute informat ion sharing agreements prescribed by the
department with contractors, vendors, and other related parties to verify
construction material costs.