144.132 Sales and use tax credit for aircraft fuel -- Reporting and payment
538 words·~2 min read·
/ky/144-132A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
requirements.
(1)As used in this section:
(a)"Certificated air carrier" means an air carrier that is listed on the United
States Department of Transportation certificated air carrier list or a foreign
indirect air carrier registered with the United States Department of
Transportation;
(b)"Department" means the Department of Revenue; and
(c)"Person" has the same meaning as in KRS 139.010.
(a)Any certificated air carrier which is engaged in the air transportation of
persons or property for hire shall be entitled to a credit against the
Kentucky sales and use tax paid on aircraft fuel, including jet fuel, as
determined by this section.
(b)Certificated air carriers shall pay the first one million dollars ($1,000,000)
in Kentucky sales and use tax due on the purchase of aircraft fuel,
including jet fuel. The one million dollars ($1,000,000) shall be increased
to reflect the sales and use tax on aviation fuel attributable to operations
of any other company when such company is purchased, merged,
acquired, or otherwise combined with the certificated air carrier after the
base period. The increase shall be based on the tax applicable to aircraft
fuel purchased during the twelve
(12)month period immediately
preceding the purchase, merger, or other acquisition by or in combination
with the certificated air carrier. The sales and use tax credit shall be an
amount equal to the Kentucky sales and use tax otherwise applicable to
the purchase of aircraft fuel, including jet fuel, purchased by the
certificated air carrier during each fiscal year, in excess of one million
dollars ($1,000,000).
(3)On and after June 29, 2017, any person that:
(a)Contracts with one
(1)or more certificated air carriers for the
transportation by air of persons, property, or mail; and
(b)Is responsible for the purchase and payment of aircraft fuel, including jet
fuel to transport the persons, property, or mail;
shall be entitled to a credit against the Kentucky sales and use tax paid on
aircraft fuel, including jet fuel, during the fiscal year in excess of one million
dollars ($1,000,000).
(4)Each certificated air carrier that qualifies for the credit authorized in subsection
(2)of this section and every person that qualifies for the credit authorized in
subsection
(3)of this section purchasing aircraft fuel, including jet fuel, on
which Kentucky sales and use tax for the fiscal year is reasonably expected to
exceed one million dollars ($1,000,000) shall report and pay directly to the
department the tax applicable to the purchase of aircraft fuel, including jet fuel,
purchased for storage use or other consumption during the fiscal year.
(5)Each certificated air carrier that qualifies for the credit authorized in subsection
(2)of this section and every person that qualifies for the credit authorized in
subsection
(3)of this section that claims the sales and use tax credit shall file
an annual sales and use tax reconciliation report with the department on or before October 15 of the fiscal year following the fiscal year for which the credit is claimed. The report shall be in a form and contain information and documentation as the department may reasonably require to verify the computation of the tax credit against the tax imposed under KRS 139.200 and 139.310.