160.637 Administrative costs -- Department of Revenue collection procedure.
782 words·~4 min read·
/ky/chapter-160/160-637A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)"Requesting school districts" shall mean those school districts for which the
Department of Revenue is requested to act as tax collector under the authority of
KRS 160.627(2).
(2)Reasonable expenses not to exceed the actual costs of collection incurred by any tax
collector, except the Department of Revenue, for the administration or collection of
the school taxes authorized by KRS 160.605 to 160.611, 160.613 to 160.617, and
160.621 to 160.633 shall be reimbursed by the school district boards of education
on a monthly basis or on the basis agreed upon by the boards of education and the
tax collector. The expenses shall be borne by the school districts on a basis
proportionate to the revenue received by the districts.
(3)The following shall apply only when the Department of Revenue is acting as tax
collector under the authority of KRS 160.627(2):
(a)When the department is initially requested to be the tax collector under KRS
160.627(2), the department shall estimate the costs of implementing the
administration of the tax so requested, and shall inform the requesting school
district of this estimated cost. The requesting school district shall pay to the
department ten percent (10%) of this estimated cost referred to as "start-up
costs" within thirty
(30)days of notification by the department. Subsequent
requesting school districts shall pay their pro rata share, or ten percent (10%),
whichever is less, of the unpaid balance of the initial "start-up costs" until the
department has fully recovered the costs. The payment shall be made within
thirty
(30)days of notification by the department.
(b)The Department of Revenue shall also be reimbursed by each school district
for its proportionate share of the actual operational expenses incurred by the
department in collecting the excise tax. The expenses, which shall be deducted
by the Department of Revenue from payments to school districts made under
the provisions of KRS 160.627(2), shall be allocated by the department to
school districts on a basis proportionate to the number of returns processed by
the Department of Revenue for each district compared to the total processed
by the Department of Revenue for all districts.
(c)All funds received by the department under the authority of paragraphs
(a)and
(b)of this subsection shall be deposited into an account entitled the "school
tax fund account," an account created within the restricted fund group set forth
in KRS 45.305. The use of these funds shall be restricted to paying the
department for the costs described in paragraphs
(a)and
(b)of this subsection.
This account shall not lapse.
(d)The department may retain a portion of the school tax revenues collected in a
special account entitled the "school tax refund account" which is an account
created within the restricted fund group set forth in KRS 45.305. The sole
purpose of this account shall be to authorize the Department of Revenue to
refund school taxes. This account shall not lapse. Refunds shall be made in
accordance with the provisions in KRS 134.580(6), and when the taxpayer has
made an overpayment or a payment where no tax was due as defined in KRS
134.580(7), within four
(4)years of payment.
(e)KRS 160.621 notwithstanding, when the department is acting as tax collector
under the authority of KRS 160.627(2), the requesting school district may
enact the tax enumerated in KRS 160.621 only at the following rates: five
percent (5%), ten percent (10%), fifteen percent (15%), and twenty percent
(20%) on a school district resident's state individual income tax liability as
computed under KRS Chapter 141.
(f)Beginning August 1, 1982, any school district which requests the department
to collect taxes under the authority of KRS 160.627(2) shall inform the
department of this request not less than one hundred fifty
(150)days prior to
January 1.
(g)The department shall not be required to collect taxes authorized in KRS
160.621 of an individual when the department is not pursuing collection of
that individual's state income taxes. The department shall not be required to
collect or defend the tax set forth in KRS 160.621 in any board or court of this
state.
(h)Any overpayments of the tax set forth in KRS 141.020 or payments made
when no tax was due may be applied to any tax liability arising under KRS
160.621 before a refund is authorized to the taxpayer. No individual's tax
payment shall be credited to the tax set forth in KRS 160.621 until all
outstanding state income tax liabilities of that individual have been paid.
(i)KRS 160.510 notwithstanding, the State Auditor shall be the only party
authorized to audit the Department of Revenue with respect to the
performance of its duties under KRS 160.621.