247.920 Alcohol production exemption certificate.
810 words·~4 min read·
/ky/chapter-247/247-920A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Application for an alcohol production exemption certificate shall be filed with the
Department of Revenue in such manner and in such form as may be prescribed by
regulations issued by the Department of Revenue and shall contain plans and
specifications of the structure or structures, including all materials incorporated and
to be incorporated therein and a descriptive list of all equipment acquired or to be
acquired by the applicant for the purpose of producing ethanol for fuel use, and any
additional information deemed necessary by the Department of Revenue for the
proper administration of KRS 247.910 and this section. The Office of Energy Policy
shall provide technical assistance and factual information as requested in writing by
the Department of Revenue. If the Department of Revenue finds that the facility
qualifies as an alcohol production facility as defined by KRS 247.910, it shall enter
a finding and issue a certificate to that effect. The effective date of the certificate
shall be the date of issuance of the certificate.
(2)Before issuing an alcohol production tax exemption certificate, the Department of
Revenue shall give notice in writing by mail to the Office of Energy Policy, and
shall afford to the applicant and to the Office of Energy Policy an opportunity for a
hearing. On like notice and opportunity for a hearing, the Department of Revenue
shall on its own initiative revoke the certificate when any of the following appears:
(a)The certificate was obtained by fraud or misrepresentation;
(b)The holder of the certificate has failed substantially to proceed with the
construction, reconstruction, installation, or acquisition of the alcohol
production facilities; or
(c)The structure or equipment or both to which the certificate relates has ceased
to be used for the primary purpose of alcohol production for fuel use and is
being used for a different purpose.
(3)If the circumstances so require, the Department of Revenue, in lieu of revoking the
certificate, may modify it.
(4)On mailing of notice of the action of the Department of Revenue revoking or
modifying a certificate as provided in subsection
(5)of this section, the certificate
shall cease to be in force or shall remain in force only as modified as the case may
require.
(5)An alcohol production tax exemption certificate, when issued, shall be sent by
certified mail to the applicant and the notice of issuance in the form of certified
copies thereof shall be sent to the Office of Energy Policy. Notice of an order of the
Department of Revenue denying, revoking, or modifying a certificate in the form of
certified copies thereof shall be sent by certified mail to the applicant or the holder
and shall be sent to the Office of Energy Policy. The applicant or holder and the
Office of Energy Policy shall be deemed parties for the purpose of the review
afforded by subsection
(6)of this section.
(6)Any party aggrieved by the issuance, refusal to issue, revocation, or modification of
an alcohol production tax exemption certificate may appeal from the final ruling of
the Department of Revenue to the Board of Tax Appeals pursuant to KRS 49.220.
(7)In the event of the sale, lease, or other transfer of an alcohol production facility, not
involving a different location or use, the holder of an alcohol production tax
exemption certificate for the facility may transfer the certificate by written
instrument to the person who, except for the transfer of the certificate, would be
obligated to pay taxes on the facility. The transferee shall become the holder of the
certificate and shall have all rights pertaining thereto, effective as of the date of
transfer of the certificate. The transferee shall give written notice of the effective
date of the transfer, together with a copy of the instrument of transfer to the Office
of Energy Policy and the Department of Revenue.
(8)In the event an alcohol production facility for which an exemption certificate is held
ceases to be used for the primary purpose of alcohol production for fuel use or is
used for a different purpose other than that for which the exemption certificate was
granted, the holder of the certificate shall give written notice by certified mail of the
change to the Office of Energy Policy and to the Department of Revenue.
(9)The alcohol production facility exemption certificate, upon approval, shall exempt
said facilities from taxes outlined in the provisions of KRS 247.910 and this section
and included in KRS Chapters 132, 136, 138, and 139. Each exemption certificate
shall remain in force for a period of eight
(8)years from the date of issuance and at
the end of said period shall lapse. Any alcohol production facility previously
exempted under the terms of KRS 247.910 and this section shall not be eligible for
recertification upon completion of the eight
(8)year certificate period.