143A.060 Collection of tax -- Agreement for processor to pay tax due from severor
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/ky/143a-060A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
-- Provisions applicable to natural gas. Notwithstanding any other provisions of this chapter to the contrary:
(1)In the case of natural resources other than natural gas, where the department finds
that it would facilitate and expedite the collection of the tax imposed under KRS
143A.020, the department may authorize the taxpayer processing the natural
resource to report and pay the tax which would be due from the taxpayer severing
the natural resource. Authorization from the department shall be in the form of an
agreement executed by the taxpayer processing the natural resource, the taxpayer
severing the natural resource, and the department. The agreement shall be in such
form as the department may prescribe. The agreement must be signed by the owners
if the taxpayers are natural persons; in the case of a partnership or association by a
partner or member; in the case of a corporation, by an executive officer or some
person specifically authorized by the corporation to sign the application. The
executive director of the Office of Legal Services for Revenue shall sign for the
department. The agreement may be terminated by any party to the agreement upon
giving thirty
(30)days' written notice to the other parties to the agreement; however,
the department may terminate the agreement immediately upon written notice to the
other parties when either the taxpayer processing the natural resource or the
taxpayer severing the natural resource fails to comply with the terms of the
agreement; and
(a)In the case of natural gas, except for those cases:
1. Where the person severing or severing and processing the natural gas
will sell the gas to the ultimate consumer; or
2. Where the department determines that the collection of the taxes due
under KRS 143A.020 would be accomplished in a more efficient and
effective manner through the severor, or severor and processor, remitting
the taxes,
the first person to purchase the natural gas after it has been severed, or in the
event that the natural gas has been severed and processed before the first sale,
the first person to purchase the natural gas after it has been severed and
processed, shall be liable for the collection of the tax imposed under KRS
143A.020. He shall collect the taxes imposed from the person severing, or
severing and processing, the natural gas, and he shall remit the taxes to the
department. In those cases where the person severing or severing and
processing the natural gas sells the gas to the ultimate consumer, the person so
severing or severing and processing the natural gas shall be liable for the tax
imposed under KRS 143A.020. In those cases where the department
determines that the collection of the taxes due under KRS 143A.020 from the
severance or severance and processing of natural gas would be accomplished
in a more efficient and effective manner through the severor, or severor and
processor, remitting the taxes, the department shall set out its determination in
writing, stating its reasons for so finding, and so advise the severor or severor
and processor at least fifteen
(15)days in advance of the first reporting period
for which such action would be effective.
(b)On or before the last day of the month following each calendar month, each
person first purchasing natural gas as described in paragraph
(a)of this
subsection, shall report purchases of natural gas during the month, showing
the quantities of gas purchased, the price paid, the date of purchase, and any
other information deemed necessary by the department for the administration
of the tax levied by KRS 143A.020, and shall pay the amount of tax due, on
forms prescribed by the department.
(c)On or before the last day of the month following each calendar month, each
person severing, or severing and processing natural gas, shall report the sales
of natural gas, showing the name and address of the person to whom sold, the
quantity of gas sold, the date of sale, and the sales price on forms prescribed
by the department.