HB 8 — AN ACT relating to revenue measures and declaring an emergency.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

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Page 26 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (45)[(41)] "Tangible personal property" means personal property which may be seen, weighed, measured, felt, or touched, or which is in any other manner perceptible to the senses and includes natural, artificial, and mixed gas, electricity, water, steam, and prewritten computer software;

CHAPTER 212 13 (47) "Telemarketing services" means services provided via telephone, facsimile, electronic mail, or other modes of communications to another person, which are unsolicited by that person, for the purposes of:

or Page 27 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 2.

Page 28 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 3.] Admissions taxed under KRS 229.031;

3.[4.]Admissions3.[4.] Admissions that are charged by nonprofit educational, charitable, or religious institutions and for which an exemption is provided under KRS 139.495;

and 4.[5.]AdmissionsLegislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 4.[5.] Admissions that are charged by nonprofit civic, governmental, or other nonprofit organizations and for which an exemption is provided under KRS 139.498;

(i) Small animal veterinary services, excluding veterinary services for equine, cattle, poultry, swine, sheep, goats, llamas, alpacas, ratite birds, buffalo, and Page 29 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO cervids;

CHAPTER 212 15 2.

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(aq) Body modification services, including tattooing, piercing, scarification, branding, tongue splitting, transdermal and subdermal implants, ear Page 31 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO pointing, teeth pointing, and any other modifications that are not necessary for medical or dental health;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) "Historical site," as used in this section, means properties listed by the United States department of interior in the National Register as authorized by title 16, United States Code, section 470(f).

Page 32 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Section 5.

Page 33 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (1) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property, digital property, and services listed under subsection (2)(p) to (ay) of Section 3 of this Act[extended warranty services ] purchased for storage, use, or other consumption in this state at the rate of six percent (6%) of the sales price.

(a) Any retailer maintaining, occupying, or using, permanently or temporarily, directly or indirectly, or through a subsidiary or any other related entity, representative, or agent, by whatever name called, an CHAPTER 212 17 office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business.

Property owned by a person who has contracted with a printer for printing, which consists of the final printed product, property which becomes a part of the final printed product, or copy from which the printed product is produced, and which is located at the premises of the printer, shall Page 34 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO not be deemed to be an office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business maintained, occupied, or used by the person;

(e) Any retailer soliciting orders for tangible personal property, digital property, or any services subject to tax under subsection (2)(p) to (ay) of Section 3 of this Act[an extended warranty service] from residents of this state on a continuous, regular, systematic basis if the retailer benefits from an agent or representative operating in this state under the authority of the retailer to repair or service tangible personal property or digital property sold by the Page 35 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO retailer;

(f) Any retailer located outside Kentucky that uses a representative in Kentucky, either full-time or part-time,part- time, if the representative performs any activities that help establish or maintain a marketplace for the retailer, including receiving or exchanging returned merchandise;

(1) Gross receipts from the sale of, and the storage, use, or other consumption in this Page 36 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO state of, tangible personal property or digital property which this state is prohibited from taxing under the Constitution or laws of the United States, or under the Constitution of this state;

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Returnable containers when sold with the contents in connection with a retail sale of the contents or when resold for refilling;

As used in this subsection, "bulk vending machine" means a vending machine containing unsorted merchandise which, upon insertion of a coin, Page 37 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO dispenses the same in approximately equal portions, at random and without selection by the customer;

Classified as "residential" by a municipally owned electric distributor which Page 38 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO purchases its power at wholesale from the Tennessee Valley Authority;

and] CHAPTER 212 19 (e)[(d)] The exemption shall apply also to residential property which may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by the stock ownership or membership representing the owner's or member's proprietary interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight (98) years if the sewer services, water, and fuel are purchased for and declared by the Kentucky resident as used in his or her place of domicile;

(9) (a) Gross receipts derived from the sale of tangible personal property, as provided in paragraph (b) of this subsection, to a manufacturer or industrial processor if Page 39 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO the property is to be directly used in the manufacturing or industrial processing process of:

"Supplies" does not include repair, replacement, or spare Page 40 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO parts of any kind;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (10) Any water use fee paid or passed through to the Kentucky River Authority by facilities using water from the Kentucky River basin to the Kentucky River Authority in accordance with KRS 151.700 to 151.730 and administrative regulations promulgated by the authority;

Page 41 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (11) Gross receipts from the sale of newspaper inserts or catalogs purchased for storage, use, or other consumption outside this state and delivered by the retailer's own vehicle to a location outside this state, or delivered to the United States Postal Service, a common carrier, or a contract carrier for delivery outside this state, regardless of whether the carrier is selected by the purchaser or retailer or an agent or representative of the purchaser or retailer, or whether the F.O.B.

(a) As used in this subsection, "metal retail fixtures" means check stands and belted and nonbelted checkout counters, whether made in bulk or pursuant to specific purchaser specifications, that are to be used directly by the purchaser Page 42 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO or to be distributed by the purchaser.

(19) Gross receipts from the sale of any motor vehicle as defined in KRS 138.450 which Page 43 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO is:

or CHAPTER 212 21 2.

or (c) Malt beverages at a plant facility or on the premises of a brewer or microbrewery licensed under KRS 243.040243.040; that is not otherwise exempt under subsection (9) of this section or KRS 139.480(10), if the charges for labor or services are separately stated on the invoice, Page 44 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO bill of sale, or similar document given to purchaser;

that is not otherwise exempt under subsection (9) of this section or KRS 139.480(10), if the charges for labor or services are separately stated on the invoice, bill of sale, or similar document given to purchaser;

All gross receipts over six thousand dollars ($6,000) are taxable in that Page 45 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO calendar year;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) The exemption provided in this subsection shall not apply to a person that is also engaged in the business of selling tangible personal property, digital property, or services included in KRS 139.200(2)(a) to (f).

and the supplying of services which includes, augments, or is incidental to theft or reward services, discount services, arrest bond services, lock and key services, trip interruption services, and legal fee reimbursement services in defense of traffic-traffic-related related offenses;

(3) "Automobile utility trailer certificate" means a certificate authorizing a person to Page 46 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO engage in the business of automobile utility trailer lessor;

(15) "Delivery area" means one (1) or more regions established by the cabinet in Page 47 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO administrative regulations promulgated under KRS Chapter 13A for the purpose of providing human service transportation delivery in that region;

(19) "Driveaway" means the transporting and delivering of motor vehicles, except semitrailers and trailers, whether destined to be used in either a private or for-hire capacity, under their own power or by means of a full mount CHAPTER 212 23 method, saddle mount method, the tow bar method, or any combination of them over the highways of this state from any point of origin to any point of destination for hire.

(23) "Highway" means all public roads, highways, streets, and ways in this state, whether Page 48 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO within a municipality or outside of a municipality;

(33) "Motor carrier" means any person in either a private or for-hire capacity who owns, controls, operates, manages, or leases, except persons leasing to authorized motor Page 49 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO carriers, any motor vehicle for the transportation of passengers or property upon any highway, and any person who engages in the business of automobile utility trailer lessor, vehicle towing, driveaway, or U-Drive-It;

(36) "Motor carrier license plate" means a license plate issued by the department to a motor carrier authorized to operate under a certificate other than a household goods, property, TNC, peer-to-peer car sharing, or U-Drive-ItU- Drive-It certificate;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (39) "Peer-to-peer car sharing":

(40) "Peer-to-peer car sharing certificate" means a certificate granting the authority for the operation of a peer-to-peerpeer- to-peer car sharing program;

Page 50 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (a) Means a business platform that connects shared vehicle owners with shared vehicle drivers to enable the sharing of motor vehicles for financial consideration;

Page 51 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (47)[(43)] "Pre-trip acceptance liability policy" means the transportation network company liability insurance coverage for incidents involving the driver for a period of time when a driver is logged into a transportation network company's digital network or mobile application but is not engaged in a prearranged ride;

CHAPTER 212 25 (51)[(47)] "Regular route" means the scheduled transportation of passengers between designated points over designated routes under time schedules that provide a regularity of services;

(a) Means a motor vehicle that is available for car sharing through a peer-to-peer-to-peer Page 52 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO peer car sharing program;

(60)[(53)] "Taxicab" means a motor vehicle operating under a taxicab certificate that is designed or constructed with not more than eight (8) regular seats and may be Page 53 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO equipped with a taximeter;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Private property towing, which is the towing of a motor vehicle, without the owner's consent, from private property:

Delinquency of highway fuel tax, weight distance tax, or any other taxes Page 54 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO and fees administered by the Transportation Cabinet;

(71)[(64)] "Transportation network company vehicle" or "TNC vehicle" means a Page 55 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO privately owned or leased motor vehicle, designed or constructed with not more than eight (8) regular seats, operating under a transportation network company certificate;

and (73)[(66)] "U-Drive-It certificate" means a certificate granting authority for the operation of one (1) or more U-Drive-Its.U- Drive-Its.

CHAPTER 212 27 1.

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6.[5.]For6.[5.] For taxicab, limousine, disabled persons vehicle, TNC, household goods, charter bus, and bus certificates, obtain and retain for a period of at least three (3) years, a nationwide criminal background check, in compliance with KRS 281.6301, of each owner, official, employee, Page 57 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO independent contractor, or agent operating a passenger vehicle or household goods vehicle or entering a private residence or storage facility for the purpose of providing or facilitating the transportation of household goods;

7.[6.]For7.[6.] For household goods certificates, file with the department a current tariff;

and 8.[7.]For8.[7.] For a bus certificate, file with the department authorization from a city as required by KRS 281.635.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) For the renewal of an intrastate certificate, the department shall receive a fee of two hundred fifty dollars ($250), except for an application for renewal of a property certificate, for which the department shall receive a fee of twenty-twenty-five five dollars ($25).

Page 58 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 3.

6.[5.]Every6.[5.] Every three (3) years, for taxicab, limousine, disabled persons vehicle, TNC, household goods, charter bus, and bus certificates, obtain and retain for a period of at least three (3) years, a nationwide criminal background check in compliance with KRS 281.6301, of each owner, official, employee, independent contractor, or agent operating a passenger vehicle or entering a private residence or storage facility for the purpose of providing or facilitating the transportation of household goods.

and 7.[6.]For7.[6.] For household goods certificates, have on file with the department a current tariff.

Page 59 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (5) (a) A motor carrier operating under a household goods certificate shall, at all times the certificate is in effect, maintain on file with the department a current tariff.

(b) Except for a household goods certificate holder that has had only an out-of-out-of-state state address on file with the department prior to January 1, 2015, all certificate holders shall maintain on file with the department an address within the Commonwealth.

(10) If the department, after a hearing held upon its own motion or upon complaint, finds any existing rate unjustly discriminatory, or finds the services rendered or facilities employed by any motor carrier to be unsafe, CHAPTER 212 29 inadequate, inconvenient, or in Page 60 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO violation of law or of the administrative regulations of the department, it may by final order do any or all of the following:

Page 61 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO a.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

The tax is imposed at the rate of six percent (6%) of the gross Page 62 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO receipts derived from the:

(c) Notwithstanding the four (4) year time limitation of paragraph (a) of this Page 63 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO subsection, in the case of a return where the amount of taxes computed by the department is greater by twenty-five percent (25%) or more than the amount returned by the person, the excess shall be assessed by the department within six (6) years from the date the return was filed.

(8) If any person fails to make and file a return required by subsection (4) of this section on or before the due date of the return, or if the taxes, or portion thereof, is not paid on or before the date prescribed for its payment, then, unless it is shown to the satisfaction of the department that the failure is due to a reasonable cause, five percent (5%) of the taxes found to be due shall be added to the tax for each thirty (30) days or fraction thereof elapsing between the due date of the return and the date on which filed, but the total CHAPTER 212 31 penalty shall not exceed twenty-twenty-five five percent (25%) of the tax;

(9) If the tax imposed by subsection (2) of this section is not paid on or before the Page 64 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO date prescribed for its payment, there shall be collected, as a part of the tax, interest upon the unpaid amount at the tax interest rate as defined in KRS 131.010(6) from the date prescribed for its payment until payment is actually made.

Dissolution, withdrawal of the limited liability Page 65 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 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.

Page 66 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO SECTION 13.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY SECTION 14.

Page 67 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Appointments to a commission shall be made by the appropriate chief executive officer or officers in the following manner:

Page 68 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (c) One (1) commissioner shall be appointed from a list of three (3) or more names submitted by the chamber or chambers of commerce existing within those governmental units, which by joint or separate action have established the commission.

or CHAPTER 212 33 2.

(3) The commissioners shall be appointed for terms of three (3) years, provided, that in making the initial appointments, the appropriate chief executive officer or officers shall appoint two (2) commissioners for a term of three (3) years, two (2) commissioners for a term of two (2) years and three (3) commissioners for a term of Page 69 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO one (1) year.

(1) Except in a county containing a consolidated local government, the commission established pursuant to KRS 91A.350(1) shall be composed of nine (9) members to Page 70 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO be appointed by the mayor of the largest city in the county, the county judge/executive and the Governor of the Commonwealth.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (4) Except in a county containing a consolidated local government, the Governor shall appoint three (3) commissioners in the following manner:

Page 71 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO and (c) One (1) commissioner shall be appointed, in those counties not containing a consolidated local government, who is a resident of the county.

(9) The commission shall elect from its membership a chairman and a treasurer, and may employ such personnel and make such contracts as are necessary to effectively Page 72 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO carry out the purposes of KRS 91A.345 to 91A.394[91A.350 to 91A.390].

Page 73 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (d) Four (4) commissioners who shall be residents of the urban-county.

(3) The commissioners shall be appointed for terms of three (3) years, provided, that in making the initial appointments, the chief elective official of the urban-county shall appoint three (3) commissioners for a term CHAPTER 212 35 of three (3) years, three (3) commissioners for a term of two (2) years and three (3) commissioners for a term of one (1) year.

Page 74 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (a) Two (2) commissioners with an accounting, finance, or business background, one (1) of whom is a member of the local chamber of commerce;

Page 75 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (1) (a) The commission shall annually submit to the local governing body or bodies which established it a request for funds for the operation of the commission.

(b) The local governing body or bodies shall include the commission in the annual budget and shall provide funds for the operation of the commission by imposing a transient room tax on the rent for every occupancy of a suite, room,[ or] rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or any other place in which accommodations are regularly furnished to transients for consideration or by Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations[all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses] as follows:

In the case of a consolidated local government, financing the renovation or expansion of a convention center that is government-owned and located in the central business district of the consolidated local government, except that if a consolidated local government imposes the Page 76 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO special transient room tax authorized under this paragraph on or after August 1, 2014, revenue derived from the levy shall not be used to meet the operating expenses of a convention center until any debt issued for financing the renovation or expansion of a government-owned convention center located in the central business district of the consolidated local government is retired.

Proceeds of the tax shall not be used as a Page 77 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO subsidy in any form to any hotel, motel, inn, motor court, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or any other person furnishing accommodations, or restaurant, except as provided in KRS 154.30-050(2)(a)3.c.

This additional tax, if approved by the local governing body, shall be collected and administered in the same manner as the [regular][regular tax]tax authorized by subsection (1)(b) of this section and shall be used for the purpose of funding additional promotion of tourist and convention business.

(5) An urban-county government may impose an additional tax, not to exceed one percent (1%) of the [room][room rents]rents included in this subsection.

This additional tax shall be collected and administered in the same manner as the [regular][regular tax]tax authorized by subsection (1)(b) of this section with the exception that this additional tax shall be used for the purpose of funding the purchase of development rights program provided for under KRS 67A.845.

(6) Local governing bodies which have formed multicounty tourist and convention commissions as provided by KRS 91A.350(3) may impose an additional tax, not to exceed one percent (1%) of the [room][room rents.]rents.

This additional tax, if approved by each governing body, shall be collected and administered in the same manner as the [regular][regular tax]tax authorized by subsection (1)(b) of this section, with the exception that this additional tax CHAPTER 212 37 shall be used for the purpose of funding regional efforts relating to the promotion of tourist and convention business and convention centers.

Page 78 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (7) The commission, with the approval of the tax levying body, may borrow money to pay its obligations that cannot be paid at maturity out of current revenue from the transient room tax, but shall not borrow a sum greater than can be repaid out of the revenue anticipated from the transient room tax during the year the money is borrowed.

Bonds issued for the purposes of KRS 91A.345 to 91A.394[91A.350 to 91A.390], may be used to pay any cost for the acquisition of real estate, the construction of Page 79 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO buildings and appurtenances, the preparation of plans and specifications, and legal and other services incidental to the project or to the issuance of the bonds.

Page 80 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (3) (a) Except as otherwise provided in paragraph (b) of this subsection, all money collected from the tax authorized by this section shall be applied toward the retirement of bonds issued pursuant to KRS 91A.390(8) to finance in part the expansion or construction or operation of a governmental or nonprofit convention center or fine arts center useful to the promotion of tourism located in the central business district of the consolidated local government or the authorized city located in the county.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

(6)[(5)] On or before January 1, 2015, the Department for Local Government shall Page 81 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO create and maintain a registry of cities that, as of August 1, 2014, were classified as cities of the second class.

Page 82 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (a) "Person" has the same meaning as in Section 14 of this Act;

and (b) "Rent" has the same meaning as in Section 14 of this Act;Act.

CHAPTER 212 39 Section 24.

(1) In addition to the four percent (4%) transient room tax authorized by KRS 91A.390(1)(b)2., an urban-county government may levy an additional transient room tax not to exceed two percent (2%) of the rent for every occupancy of a suite, room,[ or] rooms, cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational Page 83 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO vehicle parks, or other place in which accommodations are regularly furnished to transients for a consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations for consideration[all persons, companies, corporations, or other like or similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations' businesses].

(b) In addition to the levy authorized by subsection (1) of this section, an urban-urban-county county government may levy an additional transient room tax not to exceed two and one-half percent (2.5%) to provide funding for a project.

and Page 84 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) "Rent" has the same meaning as in Section 14 of this Act.

(2) A state-widestatewide transient room tax shall be imposed at a rate of one percent (1%) of the rent for every occupancy of any suite, room, rooms, [or] cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle parks, or other place in which accommodations are regularly furnished to transients for a consideration or by any person that facilitates the rental of the accommodations by brokering, coordinating, or in any other way arranging for the rental of the accommodations for consideration[all persons, companies, corporations, groups, or organizations doing business as motor courts, motels, hotels, inns, tourist camps, or like or similar accommodations businesses].

(2)(3) As used in this subsection, rent shall not include any other local or state taxes paid by the person or entity renting the accommodations.

(3)[(2)](4)[(2)] The tax imposed by subsection (1) of this section shall not apply to rooms, lodgings, campsites, or accommodations supplied[to the rental or lease of any room or set of rooms that is equipped with a kitchen, in an apartment building, and that is usually leased as a dwelling] for a continuous period of thirty (30) days or more to a person[by an individual or business that regularly holds itself out as exclusively providing apartments].

KRS Page 85 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 104.450 to 104.680;

KRS 108.010 to 108.070, 108.080 to Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 108.180;

Page 86 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) The duties and responsibilities to be performed by the private partner or partners;

and (i) Other information required by the contracting body or the cabinet to evaluate the proposals submitted by respondents and the overall proposed public-public-private private partnership.

(6) When a request for proposal for a project utilizing a public-private partnership is Page 87 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO issued for a capital project, the contracting body shall transmit a copy of the request for proposal to the Capital Projects and Bond Oversight Committee staff, clearly identifying to the staff that a public-private partnership is being utilized.

(8) (a) Beginning July 1, 2024[2022], in the case of any public-private partnership for a capital project with an aggregate value of twenty-five million dollars ($25,000,000) or more, the project shall be authorized by CHAPTER 212 41 the General Assembly, by inclusion in the branch budget bill or by any other means specified by the General Assembly, explicitly identifying and authorizing the utilization of a public-private partnership delivery method for the applicable capital project.

and (c) Submit public-private partnership agreements issued by it to the General Page 88 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Assembly for authorization as provided in subsection (8) of this section.

and Page 89 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO c.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) The department may promulgate administrative regulations, and direct proceedings and actions, for the administration and enforcement of all tax laws of this state.

(2) The department, by representatives it appoints in writing, may take testimony or depositions, and may examine hard copy or electronic records, any person's documents, files, and equipment if those records, documents, or equipment will furnish knowledge concerning any taxpayer's tax liability, when it deems this Page 90 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO reasonably necessary to the performance of its functions.

If the Attorney General undertakes any of the actions prescribed in this subsection, he or she shall be authorized to exercise all powers and perform all duties in respect to the Page 91 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO criminal actions or proceedings which the prosecuting attorney would otherwise perform or exercise, including but not limited to the authority to sign, file, and present any and all complaints, affidavits, information, presentments, accusations, indictments, subpoenas, and processes of any kind, and to appear before all grand juries, courts, or tribunals.

(10) The department may, when it is in the best interest of the Commonwealth and helpful to the efficient and effective enforcement, administration, or collection of sales and use tax, motor fuels tax, or the petroleum environmental assurance fee, enter into agreements with out-of-state retailers or other persons for the collection and remittance of sales and use tax, the motor fuels tax, or the petroleum Page 92 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO environmental assurance fee.

Under such an agreement, the department shall have all CHAPTER 212 43 the powers, rights, duties, and authority with respect to the collection, refund, and administration of those liquidated debts as provided under:

Page 93 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (1) As used in this section:

(3) (a) On or before December 1, 2022, and on or before each December 1 thereafter, the department shall compare the most current quarterly National Highway Construction Cost Index 2.0 (NHCCI 2.0) value and Page 94 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO determine the percentage change in relation to the NHCCI 2.0 value from the same quarter for the previous year.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

(6) (a) The tax shall be added to the selling price charged by the electric vehicle power dealer at the electric vehicle charging station on electric vehicle Page 95 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO power sold in this state;

(11) Any person who violates any provision of this section shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax Page 96 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO interest rate as defined in KRS 131.183.

CHAPTER 212 45 (13) (a) Notwithstanding any other provisions of this chapter, KRS 275.150, 362.1-362.1-306(3) 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 this chapter shall be personally and individually liable, both jointly and severally, for the taxes imposed under this chapter.

Page 97 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (c) The personal 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 taxes become or became due.

(14) Taxes"Taxes" as used in this section shall include interest accrued at the rate provided by KRS 131.183, all applicable penalties imposed under this chapter, and all applicable penalties and fees imposed under KRS 131.180, 131.410 to 131.445, and 131.990.

Page 98 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (4) "Motor vehicle" means in KRS 186.020 to 186.260, all vehicles, as defined in paragraph (a) of subsection (8) of this section, which are propelled otherwise than by muscular power.

(b) A vehicle is the subject of an agreement for the conditional sale or lease, with the vendee or lessee entitled to possession of the vehicle, upon performance of the contract terms, for a period of three hundred sixty-five (365) days or more and with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY vendee or lessee, or if a mortgagor of a vehicle is entitled to possession, the conditional vendee or lessee or mortgagor shall be deemed the owner.

(c) A licensed motor vehicle dealer who transfers physical possession of a motor Page 99 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO vehicle to a purchaser pursuant to a bona fide sale, and complies with the requirements of KRS 186A.220, shall not be deemed the owner of that motor vehicle solely due to an assignment to his dealership or a certificate of title in the dealership's name.

(11) "Commercial vehicles" means all motor vehicles that are required to be registered Page 100 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO under the terms of KRS 186.050, but not including vehicles primarily designed for carrying passengers and having provisions for not more than nine (9) passengers (including driver), motorcycles, sidecar attachments, pickup trucks and passenger vans which are not being used for commercial or business purposes, and motor vehicles registered under KRS 186.060;

and (d) "Paroled in the Public Interest" means any person lawfully present in the United States who possesses an I-94 card issued by the United States Page 101 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Department of Justice, Immigration and Naturalization Service, on which it states "paroled pursuant to Section 212 of the Immigration & Nationality Act for an indefinite period of time";

CHAPTER 212 47 (16) "Low-speed vehicle" means a motor vehicle that:

(18) "Multiple-vehicle driving range" means an enclosed area that is not part of a highway or otherwise open to the public on which a number of motor vehicles may Page 102 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO be used simultaneously to provide driver training under the supervision of one (1) or more driver training instructors;

Page 103 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (23) "Travel ID," as it refers to an identity document, means a document that complies with Pub.

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (e) Equipped with a step-through frame or a platform for the operator's feet;[ and] (25) "Alternative technology," as used in KRS 186.400 to 186.640, means methods used by the cabinet to facilitate the issuance of operator's licenses and personal identification cards outside of the normal in-person application at a cabinet office, including but not limited to a cabinet mobile unit or online services;

and Page 104 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) Motor carrier vehicles, as defined in KRS 281.010, primarily designed for carrying passengers or passengers for hire and having been designed or constructed to transport not more than fifteen (15) passengers, including the operator.

Declared Gross Weight of Vehicle Registration and Any Towed Unit Fee 10,001-14,000 30.00 14,001-18,000 50.00 18,001-22,000 132.00 22,001-26,000 160.00 26,001-32,000 216.00 32,001-38,000 300.00 38,001-44,000 474.00 Page 105 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 44,001-55,000 669.00 55,001-62,000 1,007.00 62,001-73,280 1,250.00 73,281-80,000 1,410.00 CHAPTER 212 49 (4) (a) 1.

The applicant's signature upon the certificate of registration and ownership shall constitute a certificate that he is a farmer engaged in the production of crops, livestock, or dairy products, that he owns a truck of the gross weight between twenty-six thousand one (26,001) pounds and thirty-eight thousand (38,000) pounds, and that during the next twelve (12) months the truck shall not be used in for-hire transportation and may be used in transporting persons, food, provender, feed, machinery, livestock, material, and supplies necessary for his farming operation and the products grown on Page 106 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO his farm.

(b) Any farmer owning a truck having a declared gross weight in excess of thirty-thirty-eight eight thousand (38,000) pounds shall not be required to pay the fee set out in subsection (3) of this section and, in lieu thereof, shall pay forty percent (40%) of the fee set out in subsection (3) of this section and shall be exempt from any fee charged under the provisions of KRS 281.752.

(5) Any person owning a truck or bus used solely in transporting school children and school employees may have the truck or bus registered as a school bus and obtain a license for eleven dollars fifty cents ($11.50) by filing with the county clerk, in addition to other information required, an affidavit stating that the truck or bus is used solely in the transportation of school children and persons employed in the schools of the district, that he has caused to be printed on each side of the truck or bus and on the rear door the words "School Bus" in letters at least six (6) inches Page 107 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO high, and of a conspicuous color, and the truck or bus will be used during the next twelve (12) months only for the purpose stated.

The gross Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY weight of a vehicle used in wrecker service shall not include the weight of the vehicle being towed by the wrecker.

(8) Motor vehicles having a declared gross weight in excess of eighteen thousand (18,000) pounds, which when operated in this state are used exclusively for the transportation of property within the limits of the city named in the affidavit hereinafter required to be filed, or within ten (10) miles of the city limits of the city Page 108 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO if it is a city with a population equal to or greater than three thousand (3,000) based upon the most recent federal decennial census, or within five (5) miles of its limits if it is a city with a population of less than three thousand (3,000) based upon the most recent federal decennial census, or anywhere within a county containing an urban-county government, shall not be required to pay the fee as set out in subsection (3) of this section, and in lieu thereof shall pay seventy-five percent (75%) of the fee set forth in subsection (3) of this section and shall be exempt from any fee charged under the provisions of KRS 281.752.

(9) Motor vehicles having a declared gross weight in excess of eighteen thousand (18,000) pounds, which are used exclusively for the transportation of primary forest products from the harvest area to a mill or other processing facility, where such mill or processing facility is located at a point not more than fifty (50) air miles from the harvest area or which are used exclusively for the transportation of concrete blocks or ready-mixed concrete from the point at which such concrete blocks or ready-ready-mixed mixed concrete is produced to a construction site where such concrete blocks or ready-mixed concrete is to be used, where such construction site is located at a point not more than thirty (30) air miles from the point at which such concrete blocks or Page 109 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO ready-mixed concrete is produced shall not be required to pay the fee as set out in subsection (3) of this section, and in lieu thereof, shall pay seventy-five percent (75%) of the fee set out in subsection (3) of this section and shall be exempt from any fee charged under the provisions of KRS 281.752.

(13) (a) The Department of Vehicle Regulation is authorized to negotiate and execute Page 110 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO an agreement or agreements for the purpose of developing and instituting proportional registration of motor vehicles engaged in interstate commerce, or in a combination of interstate and intrastate commerce, and operating into, through, or within the Commonwealth of Kentucky.

Any proportional registration fee required to be collected under any CHAPTER 212 51 proportional registration agreement or agreements shall be in accordance with the taxes established in this section.

(c) Any commercial vehicle that is properly titled in a foreign jurisdiction, which vehicle is subject to apportioned registration, as provided in paragraph (a) of this subsection, may be registered in Kentucky, and, upon proof of proper title and payment of the required fees, the department may issue an apportioned Page 111 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO registration plate to the commercial vehicle.

(16) In addition to the fees outlined in this section, the county clerk shall collect from the registrants of electric vehicles, electric motorcycles, and hybrid vehicles the Page 112 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO electric vehicle ownership fees imposed in Section 32 of this Act.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) The electric vehicle ownership fees shall be:

(4) The Department of Revenue shall adjust the fees established in subsection (3) of this section, on the same schedule and in the same manner as the adjustments to Page 113 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO the electric vehicle power taxes under Section 29 of this Act, except that:

(c) "Due and owing" means an assessment which has become final and is owed to the Commonwealth due to either the expiration of the taxpayer's appeal rights pursuant to KRS 131.110 or, if an assessment has been appealed, the issuance of a final order by the board or by any court of this Page 114 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Commonwealth.

(3)[(4)(3)[(4)(a) (a) Notwithstanding the provisions of any other law to the contrary, a tax Page 115 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO amnesty program shall be conducted by the department during the fiscal year ending June 30, 2003, for a period of not less than sixty (60) days nor more than one hundred and twenty (120) days and shall apply to all taxpayers owing taxes, penalties, fees, or interest subject to the administrative jurisdiction of the department, with the exceptions of ad CHAPTER 212 53 valorem taxes levied on real property pursuant to KRS Chapter 132, ad valorem taxes on motor vehicles and motorboats collected by the county clerks, and ad valorem taxes on personal property levied pursuant to KRS Chapter 132 that are payable to local officials.

(4) If the department is unable to secure a successful bid for the procurement of Page 116 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO services under Section 37 of this Act, the department shall implement a tax amnesty program during a sixty (60) day period similar to the period established in subsection (3) of this section, except that the sixty (60) day period shall be held during the calendar year 2023.

(2) This section shall not apply to any taxpayer who is on notice, written or otherwise, of a criminal investigation being conducted by an agency of the state or any political Page 117 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO subdivision thereof or the United States, nor shall this section apply to any taxpayer who is the subject of any criminal litigation which is pending on the date of the taxpayer's application in any court of this state or the United States for nonpayment, delinquency, evasion or fraud in relation to any federal taxes or to any of the taxes to which this amnesty program is applicable.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) The provisions of KRS 131.400 to 131.445 shall apply to any eligible taxpayer who files an application for amnesty within the time prescribed under subsection (3) of Section 33 of this Act[by the department] and does the following:

(c) Pays in full within the amnesty period all taxes previously assessed by the department that are due and owing at the time the application or amnesty tax returns are filed;[ and] Page 118 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (d) Pays in full within the amnesty period all taxes, penalties, fees, and interest assessed by the federal government and referred to the department for collection purposes;

(d) All required payments under an installment payment agreement under the Page 119 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO program described in KRS 131.400(3)[(4)(b)] shall be made on or before May 31, 2023[2013].

CHAPTER 212 55 Section 36.

and Page 120 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) ] filed under the program described in KRS 131.400(3)(a)[(4)(b)] shall bear interest at one-half (1/2) the tax interest rate established by KRS 131.183(1) or other applicable statutes.

Provide advertising services prior to the start of the program described in subsection (3) of Section 33 of this Act and a toll-toll-free free telephone number for taxpayers to call for assistance;

Contact every amnesty-eligible taxpayer, including by written correspondence and other forms of electronic and nonelectronic Page 121 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO communication delivery channels, using contact and account receivable data supplied by the department related to tax amnesty and the tax amnesty period;

The past record and experience of the firm in performing tax amnesty services or other tax-relatedtax- related services;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 4.

Performance data related to past tax amnesty services or other tax-tax-related related services performed by the firm;

Certification that the firm will meet the time requirements for the tax amnesty program and will conclude all services in a timely manner as Page 122 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO required by the department or pay to the department a fee for failure to meet the timeframe;

Amnesty applications received from businesses or individuals and whether the taxpayer was in-state or out-out-of-state; of-state;

The total amount collected by county, including the Page 123 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO number of applications received by a business, individual, or office or member and the total amount paid for each category;

CHAPTER 212 57 2.

The bid of the firm to provide amnesty services, weighted no more Page 124 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO than fifteen percent (15%) of the evaluation score;

For any taxpayer who failed to file a return for any previous tax period Page 125 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO for which amnesty is available and fails to file the return during the amnesty period, the cost-of-collection fee shall be fifty percent (50%) of any tax deficiency assessed after the amnesty period.

(a)[1.](a)[1.]In In addition to all other penalties provided under KRS 131.180, 131.410 to 131.445, 131.990 and any other law, there are hereby imposed after the expiration of the tax amnesty period the following cost-of-collectioncost-of- collection fees:

1.[a.]A1.[a.] A cost-of-collection fee of twenty-five percent (25%) on all taxes which are or become due and owing to the department for any reporting period, regardless of when due.

2.[b.]Taxes2.[b.] Taxes which are assessed and collected after the amnesty period for taxable periods ending or transactions occurring prior to December 1, 2021[October 1, 2011], shall be charged a cost-of-collectioncost-of- collection fee of twenty-five percent (25%) at the time of assessment;

and 3.[c.]For3.[c.] For any taxpayer who failed to file a return for any previous tax period for which amnesty is available and fails to file the return during the amnesty period, the cost-of-collection fee shall be fifty percent (50%) of any tax deficiency assessed after the amnesty period.

(b)[2.](b)[2.]After After expiration of the tax amnesty period, an amnesty-eligible tax liability that remains unpaid and that is not covered by an installment agreement as provided in KRS 131.420 shall accrue interest at a rate that is two percent (2%) above the interest rate established by KRS 131.183 or other applicable provisions of the Kentucky Revised Statutes, beginning on the day after the tax amnesty period ends.

(2) The commissioner shall have the right to waive any penalties or collection fees when it is demonstrated that any deficiency of the taxpayer was due to reasonable Page 126 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO cause as defined in KRS 131.010(9).

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (4) The fee levied under subsection (1) of this section shall not apply to taxes paid pursuant to the terms of the amnesty program nor shall the judgment penalty of twenty percent (20%) levied under KRS 135.060(3) apply in any case in which the fee levied under this section is applicable.

or Page 127 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 2.

Page 128 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 1.

Does not include rental or lease agreements entered into with persons operating under a U-Drive-ItU- Drive-It certificate as defined in Section 9 of this Act;

and CHAPTER 212 59 (c) Gross rental charge means "gross rental charge" as defined in KRS 138.462].

(2) A county containing a designated city, consolidated local government, or urban-urban-county county government may levy a license fee on a:

(3) The license fee shallshall[the [the rental of motor vehicles which shall] not exceed three percent (3%) of the gross rental charges from:

(4) The license fee shall not apply to a U-Drive-It[retailers] who receives less[receive Page 129 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO more] than seventy-five percent (75%) of its[their] gross revenues generated in the county from gross rental charges.

or Page 130 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) An industrial development authority established by the county pursuant to KRS 154.50-316;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY The Department for Local Government shall make the information included on the registry available to the public by publishing it on its Web site.

(3) The refund process allowed under subsection (1) of this section is available beginning on or after August 1, 2020, but before July 1, 2024[2022], and limited during any calendar year to the export of a combined total of ten million (10,000,000) tons of coal subject to the tax imposed under KRS 143.020 and exported through United States coal export terminals to markets outside of North Page 131 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO America.

Page 132 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO and b.

CHAPTER 212 61 (a) The Governor has declared a state of emergency pursuant to KRS 39A.100;

(9) "Disaster or emergency-related work" means repairing, renovating, installing, building, or rendering services that are essential to the restoration of critical Page 133 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO infrastructure that has been damaged, impaired, or destroyed by a declared state disaster or emergency;

(f) Deriving income from or attributable to sources within this state, including deriving income directly or indirectly from a trust doing business in this state, or deriving income directly or indirectly from a single-member limited Page 134 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO liability company that is doing business in this state and is disregarded as an entity separate from its single member for federal income tax purposes;

611 to 631, in effect on December 31, 1997, exclusive of any amendments made subsequent to that date, or any corporation organized Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY after December 31, 1997, that meets the requirements of 12 U.S.C.

3101, in effect on December 31, 1997, exclusive of any amendments made Page 135 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO subsequent to that date, or any agency or branch of a foreign depository established after December 31, 1997, that meets the requirements of 12 U.S.C.

3101 in effect on December 31, 1997;

115-97115- apply to the same taxable year as the provisions apply for federal purposes, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2017, that would otherwise terminate;

(22) "Limited liability pass-through entity" means any pass-through entity that affords any of its partners, members, shareholders, or owners, through function of the laws of this state or laws recognized by this state, protection from general liability for Page 136 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO actions of the entity;

(28) "Pass-through entity" means any partnership, S corporation, limited liability company, limited liability partnership, limited partnership, or similar entity recognized by the laws of this state that is not taxed for CHAPTER 212 63 federal purposes at the entity level, but instead passes to each partner, member, shareholder, or owner their Page 137 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO proportionate share of income, deductions, gains, losses, credits, and any other similar attributes;

Notwithstanding the provisions of subsection (21) of this section, the Internal Revenue Code sections referred to in this paragraph Page 138 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO shall be those code sections in effect for the applicable tax year;

(1) In the administration of the sales and use tax, the department may require the filing of reports by any person or class of persons with[having in his or theirtheir] ]possessionpossession or custody of information relating to sales of tangible personal property, digital property, or an extended warranty service, the storage, use, or other consumption of which is subject to the tax.

Page 139 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (1) Any company whose tax, as provided in KRS 136.320, 136.330, 136.340, 136.350, 136.370, 342.445, or 304.3-270 was five thousand dollars ($5,000) or more in the previous year shall file a declaration of estimated tax.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) (a) Any adjustments may be made on or before October 1.

Page 140 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 1.

(a) "Drug" means a compound, substance, or preparation and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages as defined in KRS 139.485, that is recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or a Page 141 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO supplement to any of them, or is:

CHAPTER 212 65 (c) 1.

Page 142 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO b.

Any other provision of this chapter to the contrary notwithstanding, the terms "sale at Page 143 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO retail," "retail sale," "use," "storage," and "consumption," as used in this chapter, shall not include the sale, use, storage, or other consumption of:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) (a) All energy or energy-producing fuels used in the course of manufacturing, processing, mining, or refining and any related distribution, transmission, and transportation services for this energy that are billed to the user, to the extent that the cost of the energy or energy-producing fuels used, and related distribution, transmission, and transportation services for this energy that are billed to the user exceed three percent (3%) of the cost of production.

Maintains a binding contract for periods after July 1, 2018, that governs Page 144 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO the terms, conditions, and responsibilities with a separate legal entity, which holds title to the tangible personal property that is incorporated into, or becomes the product of, the manufacturing or industrial processing activity;

Maintains accounting records that show the expenses it incurs to fulfill the binding contract that include but are not limited to energy or energy-energy-producing producing fuels, materials, labor, procurement, depreciation, maintenance, taxes, administration, and office expenses;

of this paragraph and gives an overview of its tolling operations with an explanation of how the tolling operations relate and connect with all other manufacturing or industrial processing activities occurring at the plant facility.facility;

Page 145 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (7) Seeds, the products of which ordinarily constitute food for human consumption or are to be sold in the regular course of business, and commercial fertilizer to be applied on land, the products from which are to be used for food for human consumption or are to be sold in the regular course of business;

CHAPTER 212 67 (a) Means machinery used exclusively and directly in the occupation of:

and Page 146 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (c) Does not include:

Page 147 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (e) Operate on-farm llama or alpaca facilities as defined in subsection (25) of this section;

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

and Page 148 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 2.

(23) Ratite birds and eggs to be used in an agricultural pursuit for the breeding and production of ratite birds, feathers, hides, breeding stock, eggs, meat, and ratite by-by-products, products, and the following items used in this agricultural pursuit:

(24) Embryos and semen that are used in the reproduction of livestock, if the products of these embryos and semen ordinarily constitute food for human consumption, and if Page 149 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO the sale is made to a person engaged in the business of farming;

CHAPTER 212 69 (a) Feed and feed additives;

Page 150 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) Insecticides, fungicides, herbicides, rodenticides, and other farm chemicals;

In addition, the exemption shall apply whether or not the seller is under contract to deliver, assemble, and incorporate into real estate the equipment, machinery, attachments, repair and replacement parts, and any materials incorporated into the construction, Page 151 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO renovation, or repair of the facilities;

"Repair or replacement parts" shall not include fuel, machine Page 152 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO oils, hydraulic fluid, brake fluid, grease, supplies, or accessories not essential to the operation of the motor vehicle itself, except when sold as part of the assembled unit, such as cigarette lighters, radios, lighting fixtures not otherwise required by the manufacturer for operation of the vehicle, or tool or utility boxes;[ and] (32) Food donated by a retail food establishment or any other entity regulated under KRS 217.127 to a nonprofit organization for distribution to the needy;

and (33) (a) Drugs and over-the counter drugs, as defined in Section 45 of this Act, that are purchased by a person regularly engaged in the business of farming and used in the treatment of cattle, sheep, goats, swine, poultry, ratite birds, llamas, alpacas, buffalo, aquatic organisms, or cervids.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Section 47.

(6) "Compensating tax rate" means that rate which, rounded to the next higher one-one-tenth tenth of one cent ($0.001) per one hundred dollars ($100) of assessed value and applied to the current year's assessment of the property subject to taxation by a taxing district, excluding new property and personal property, produces an amount Page 153 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO of revenue approximately equal to that produced in the preceding year from real property.

(a) The total valuation of property subject to taxation by the county, city, school district, or special district in the preceding year, less the total valuation exempted from taxation by the homestead exemption provision of the Constitution in the current year over that exempted in the preceding year, and (b) The total valuation of property subject to taxation by the county, city, school district, or special district for the current year;

and (b) The total valuation of property subject to taxation by the county, city, school district, or special district for the current year;

Page 154 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (e) The value of improvements to existing residential property when the improvement increases the assessed value of the property by fifty percent (50%) or more;

CHAPTER 212 71 "Real property deletions" shall be limited to the value of real property removed from, or reduced over the preceding year on, the property tax roll for the current year;

or (c) Any tract of land devoted to and meeting the requirements and qualifications Page 155 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO for payments pursuant to agriculture programs under an agreement with the state or federal government;

Page 156 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (14) "Residential unit" means all or that part of real property occupied as the permanent residence of the owner;

(17) "Mobile home" means a structure manufactured on or before June 15, 1976, that was not required to be constructed in accordance with the National Manufactured Housing Construction and Safety Standards Act, transportable in one (1) or more sections, which when erected on site measures eight (8) body feet or more in width and thirty-two (32) body feet or more in length, and which is built on a permanent chassis and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY designed to be used as a dwelling, with or without a permanent foundation, when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.

Page 157 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (18) "Modular home" means a structure which is certified by its manufacturer as being constructed in accordance with all applicable provisions of the Kentucky Building Code and standards adopted by the local authority which has jurisdiction, transportable in one (1) or more sections, and designed to be used as a dwelling on a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein;

(c) "Truck camper" means a portable unit constructed to provide temporary living quarters for recreational, travel, or camping use, consisting of a roof, floor, Page 158 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO and sides, designed to be loaded onto and unloaded from the bed of a pick-up truck;

(22)[(19)] "Pollutant or contaminant" shall have the meaning provided in KRS 224.1-224.1-400; 400;

and Page 159 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (f) The property owner is not affiliated with any person who is potentially liable for the release of hazardous substances, pollutants, contaminants, petroleum, or petroleum products on the property pursuant to KRS 224.1-400, 224.1-405, or 224.60-135, through:

CHAPTER 212 73 2.

(26)[(23)] (a) "County" means any county, consolidated local government, urban-urban-county county government, unified local government, or charter county government;

(28)[(25)] "Special purpose governmental entity" shall have the same meaning as in KRS 65A.010, and as used in this chapter shall include only those special purpose governmental entities with the authority to levy ad valorem taxes, and that are not Page 160 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO specifically exempt from the provisions of this chapter by another provision of the Kentucky Revised Statutes;

(a) Primarily used and designed for construction, mining, forestry, or industrial purposes, including but not limited to cranes, earthmoving equipment, well-well-drilling drilling machinery and equipment, lifts, material handling equipment, pumps, generators, and pollution-reducing equipment;

Page 161 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 1.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY All property subject to taxation for state purposes shall also be subject to taxation in the county, city, school, or other taxing district in which it has a taxable situs, except the class of property described in KRS 132.030 and the following classes of property, which shall be subject to taxation for state purposes only:

They shall be exempt from taxation for state Page 162 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO purposes to the extent of the value, or amount, of any unpaid nonrecourse loans thereon granted by the United States government or any agency thereof, and except that cities and counties may each impose an ad valorem tax of not exceeding one and one-half cents ($0.015) on each one hundred dollars ($100) of the fair cash value of all unmanufactured tobacco and not exceeding four and one-half cents ($0.045) on each one hundred dollars ($100) of the fair cash value of all other unmanufactured agricultural products, subject to taxation within their limits that are not actually on hand at the plants of manufacturing concerns for the purpose of manufacture, nor in the hands of the producer or any agent of the producer to whom the products have been conveyed or assigned for the purpose of sale;

(8) Tangible personal property which has been certified as a pollution control facility as defined in KRS 224.1-300.224.1- 300.

(11) Tangible personal property located in a foreign trade zone established pursuant to Page 163 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 19 U.S.C.

CHAPTER 212 75 (b) That are in the possession of a licensed motor vehicle dealer, including licensed motor vehicle auction dealers, for sale, although ownership has not been transferred to the dealer;

(18) Aircraft not used in the business of transporting persons or property for Page 164 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO compensation or hire if an exemption is approved by the county, city, school, or other taxing district in which the aircraft has its taxable situs;

(21) Qualifying voluntary environmental remediation property for a period of three (3) years following the Energy and Environment Cabinet's issuance of a No Further Action Letter or its equivalent, pursuant to the correction of the effect of all known releases of hazardous substances, pollutants, contaminants, petroleum, or petroleum products located on the property consistent with a corrective action plan approved by the Energy and Environment Cabinet pursuant to KRS 224.1-400, 224.1-405, or 224.60-135, and provided the cleanup was not financed through a public grant Page 165 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO program of the petroleum storage tank environmental assurance fund;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) (a) For all applications for a preliminary approval received prior to April 30, 2010, there shall be allowed as a credit against the taxes imposed by KRS 141.020, 141.040, 141.0401, or 136.505, an amount equal to:

Twenty percent (20%) of the qualified rehabilitation expenses, in the Page 166 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO case of all other property.

The council shall determine the final amount of credit approved for each Page 167 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO taxpayer based upon the actual expenditures, preliminary determination of maximum credit, and a determination that the expenditures are qualified rehabilitation expenses.

(4) In the case of a husband and wife filing separate returns or filing separately on a Page 168 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO joint return, the credit may be taken by either or divided equally, but the combined credit shall not exceed one hundred twenty[sixty] thousand dollars ($120,000)[($60,000)] if subject to the limitation in subsection (3)(a) of this section, or ten CHAPTER 212 77 million[four hundred thousand] dollars ($10,000,000)[($400,000)] if subject to the limitation in subsection (3)(b) of this section, subject to the provisions of subsection (5) of this section.

(b) For all applications received on or after April 30, 2010, if the credit amount that may be claimed in any tax year as determined under subsections (3) to (5) of this section exceeds the taxpayer's total tax liabilities under KRS 136.505, 141.020, or 141.040 and 141.0401, the taxpayer may receive a refund, if the taxpayer elected to take the credit as required by subsection (2)(b) of this Page 169 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO section.

Page 170 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO The provisions of this subsection shall apply to any credits that pass through to a successor or beneficiary of a taxpayer.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (12) The council may impose fees for processing applications for tax credits, not to exceed the actual cost associated with processing the applications.

Page 171 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (1) (a) The department[ of Revenue] shall mail to the taxpayer a notice of any tax assessed by it.

(b)[(4)] The taxpayer may request in writing a final ruling at any time after filing Page 172 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO a timely protest and supporting statement.

CHAPTER 212 79 (b) 1.

b.[(c)] The commissioner of revenue shall adjust the tax interest rate Page 173 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO not later than November 15 of each year if the adjusted prime rate charged by banks during September of that year, rounded to the nearest full percent, is at least one (1) percentage point more or less than the tax interest rate which is then in effect.

Interest shall be allowed and paid upon any overpayment as defined in KRS 134.580 in respect of any of the taxes provided for in Chapters Page 174 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 131, 132, 134, 136, 137, 138, 139, 140, 141, 142, 143, 143A, and 243 of the Kentucky Revised Statutes and KRS 160.613 and 160.614 at the rate provided in subsection (1) of this section until May 1, 2008.

(5) For purposes of this section, any addition to tax provided in KRS 141.044 and Page 175 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 141.305 shall be considered a penalty.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) "Assignee" means the taxpayer to whom the credit allowed under this section is transferred;

(2) For taxable years beginning on or after January 1, 2022, but before January 1, 2032, a taxpayer making a qualifying expenditure at a qualifying decontamination property shall be allowed a refundable credit against the taxes imposed by KRS 141.020 or 141.040 and 141.0401, with the ordering of credits as Page 176 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO provided in Section 54 of this Act.

The cumulative number of projects by county, as identified by the Page 177 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO county in which the qualifying decontamination project is located, for each taxable year;

CHAPTER 212 81 (b) The report required by paragraph (a) of this subsection shall be submitted to the Interim Joint Committee on Appropriations and Revenue no later than November 1, 2024, and annually thereafter as long as the decontamination tax credit is claimed on any tax return filed.

(c) "Qualifying expenditures" means up to one hundred percent (100%) of the costs of materials, supplies, equipment, labor, professional engineering, Page 178 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO consulting and architectural fees, permitting fees and expenses, demolition, asbestos abatement, and direct utility charges for voluntarily performing activities to decontaminate or remediate any preexisting hazardous substance, pollutant or contaminant, or petroleum and petroleum products as defined in KRS 224.60-115, including but not limited to the costs of performing operation and maintenance of the remediation systems and equipment at the qualifying decontamination property beyond the year in which the systems and equipment are built and installed and the costs of performing the remediation activities following the taxpayer's tax year in which the systems and equipment were first put into use at the qualifying decontamination property;

Page 179 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (d) The amount of credit to be taken in a taxable year shall not exceed twentytwenty-five five percent (25%) of the total amount of approved credit.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (6) The amount of reasonably anticipated total qualifying expenditures associated with the qualifying decontamination property shall equal or exceed ten million dollars ($10,000,000).

Page 180 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (b) The amount of reasonably anticipated capital investment in the qualifying decontamination property shall exceed thirty million dollars ($30,000,000).

(1) The nonrefundable business incentive credits against the tax imposed by KRS Page 181 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 141.020 shall be taken in the following order:

(b) The economic development credits computed under KRS 141.347, 141.381, 141.384, 141.3841, 141.400, 141.401, 141.403, 141.407, 141.415, 154.12-154.12-207, 207, and 154.12-2088;

CHAPTER 212 83 (m) The biodiesel and renewable diesel credit permitted by KRS 141.423;

Page 182 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (v) The angel investor credit permitted by KRS 141.396;

(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the Page 183 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO tax imposed by KRS 141.040.

(a) The economic development credits computed under KRS 141.347, 141.381, 141.384, 141.3841, 141.400, 141.401, 141.403, 141.407, 141.415, 154.12-154.12-207, 207, and 154.12-2088;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (e) The unemployment credit permitted by KRS 141.065;

Page 184 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (r) The ENERGY STAR home or ENERGY STAR manufactured home credit permitted by KRS 141.437;

(1) No present or former commissioner or employee of the department, present or former member of a county board of assessment appeals, present or former property valuation administrator or employee, present or former secretary or employee of the Finance and Administration Cabinet, former secretary or employee of the Revenue Page 185 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO Cabinet, or any other person, shall intentionally and without authorization inspect or divulge any information acquired by him or her of the affairs of any person, or information regarding the tax schedules, returns, or reports required to be filed with the department or other proper officer, or any information produced by a hearing or investigation, insofar as the information may have to do with the affairs of the person's business.

CHAPTER 212 85 (a) Information required in prosecutions for making false reports or returns of property for taxation, or any other infraction of the tax laws;

(f) Providing to a third-party purchaser pursuant to an order entered in a Page 186 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO foreclosure action filed in a court of competent jurisdiction, factual information related to the owner or lessee of coal, oil, gas reserves, or any other mineral resources assessed under KRS 132.820.

Page 187 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 8.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 14.

(5) Statistics of crude oil as reported to the department under the crude oil excise tax requirements of KRS Chapter 137 and statistics of natural gas production as reported to the department under the natural resources severance tax requirements Page 188 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO of KRS Chapter 143A may be made public by the department by release to the Energy and Environment Cabinet, Department for Natural Resources.

All proceeds resulting from the disposal of real or personal property purchased from a canteen account shall be Page 189 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO reported to the Interim Joint Committee on Appropriations and Revenue by December 1 of each fiscal year.

CHAPTER 212 87 Section 60.

The Secretary of the Finance and Administration Cabinet shall collect Page 190 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO the assessment.

Notwithstanding KRS 304.17B-304.17B-021(4)(d), 021(4)(d), premium taxes collected under KRS Chapter 136 from any insurer and retaliatory taxes collected under KRS 304.3-270 from any insurer shall be credited to the General Fund.

(1) [The following notices shall be sent by a third-party purchaser to the delinquent Page 191 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO taxpayer by first-class mail with proof of mailing, and shall include the information required by subsection (3)(d) of this section:] (a) Within fifty (50) days after the delivery of a certificate of delinquency by the clerk to a third-party purchaser, the third-party purchaser shall send a notice to the delinquent taxpayer informing the delinquent taxpayer that the certificate of delinquency has been purchased by the third-party purchaser.[;

and] (b) At least annually thereafter, until the notice required by subsection (2) of this section is sent, the third-partythird- party purchaser shall send a notice to the delinquent taxpayer.

Page 192 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO The notice[, and] shall be in addition to any notice sent under subsection (1) of this section.

For certificates of delinquency for all property except property described in paragraph (b) of this subsection, third-party purchasers or their designees shall obtain from the office of the property Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY valuation administrator of the county in which the real property is located the most recent address for the property owner.

of this paragraph apply, the third-party purchaser shall not be required to send a notice to any party other than the owner of record as provided by the property valuation administrator at the time the notice is sent and the mortgagee Page 193 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO as required by subsections (1) and (2) of this section.

If, due to insufficient staffing, the property valuation administrator is unable to provide the requested information to the third-party purchaser within ten (10) days of submission, the property valuation administrator shall immediately notify the third-party purchaser, and the third-partythird- party purchaser may send the notices required by subsections (1) and (2) of this section to the address reflected in the public records of the property valuation administrator.

For certificates of delinquency relating to unmined coal, oil or gas Page 194 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO reserves, or any other mineral or energy resources assessed separately from the surface real property pursuant to KRS 132.820, third-party purchasers or their designees shall obtain from the department the most recent address for the property owner.

The third-party purchaser shall send the notices required by subsections (1) and (2) of this section relating to unmined coal, oil or gas reserves, or any other mineral or energy resources CHAPTER 212 89 assessed separately from the surface real property pursuant to KRS 132.820 to the address provided by the department.

Page 195 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO b.

A statement that if the certificate is not paid, it will be subject to collection as provided by law, and that collection actions may include Page 196 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO foreclosure.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

The third-party purchaser shall also update Page 197 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO contact information included in the records of the county clerk within ten (10) days of the change becoming effective.

and Page 198 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO 2.

The department shall offer the collection duties related to certificates of delinquency and personal property certificates of CHAPTER 212 91 delinquency to the county attorney in each county, unless the department determines that a county attorney has previously failed to perform collection duties in a reasonable and acceptable manner.

Page 199 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO (2) Any county attorney desiring to perform the collection duties shall enter into a contract with the department on an annual basis.

(a) Within thirty (30) days after the establishment of a certificate of delinquency, the county attorney or the department shall mail a notice by regular mail to the owner of record on the assessment date at the address on the records of the property valuation administrator, or to the in-care-of address if an in-care-ofin-care- of address is provided as required by subsection (5) of this section.

Include in bold print in at least twelve (12) point font, a statement Page 200 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO advising the taxpayer[advise] that anytime after ninety (90) days from the creation of the certificate of delinquency, the certificate of delinquency may be paid by a third-party purchaser and, that if so paid, the certificate of delinquency will be subject to collection by the third-third-party party purchaser as provided by law.

The property valuation administrator shall return the notices with the Page 201 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO corrected information to the county attorney or the department within twenty (20) days of receipt.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) 1.

This statement shall not be included in notices sent to Page 202 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO owners of property subject to a personal property certificate of delinquency;

At least forty-five (45) days before instituting a legal action, the county attorney or department shall Page 203 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO send, by regular mail, a notice of intent to initiate legal action to enforce the lien.

(7) (a) As compensation for the collection duties performed pursuant to a contract with the department, a county attorney shall be paid twenty percent (20%) of the amount due each taxing unit during the contract period, whether the amount is paid voluntarily, through sale, or under court order, and whether CHAPTER 212 93 the amount is paid to the county clerk or the county attorney.

(b) If payment in full is voluntarily made by the taxpayer to the county attorney or county clerk within five (5) days of the filing of the tax claim with the county Page 204 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO clerk, the county attorney fee shall be waived.

(10) (a) The county attorney shall notify the county clerk and the department of the Page 205 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO filing of a suit at the time the suit is filed and of payment agreements at the time such agreements are entered into.

The county attorney seeking assistance shall enter into any agreements required by the department to Page 206 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO protect taxpayer confidentiality, to ensure database integrity, or to address the concerns of the department.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) If the department assumes or retains responsibility for the collection of certificates of delinquency and personal property certificates of delinquency, the twenty percent (20%) fee that would have been paid to the county attorney under subsection (7) of this section, and any other fees or costs established by this section for the county attorney shall be paid to the department for deposit in the delinquent tax fund provided for under KRS 134.552.

Whereas the Department of Revenue and the Finance and Administration Cabinet are required to procure services necessary to implement the tax Page 207 of 208 HB000890.100 - 1625 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 8/VO amnesty program, which begins on October 1, 2022, an emergency is declared to exist, and Sections 32 to 38 of this Act take effect upon its passage and approval by the Governor or upon its otherwise becoming a law.

HB000890.100Veto -Overridden 1625and -Signed XXXXby PageSecretary 208 of 208State VetoedApril and14, Overriden2022.