Regulation for Signature Project Refunds on Construction Costs Made Permanent
Kentucky Revised Statute (“KRS”) 139.515 provides for refunds of sales tax for qualified signature projects. 103 KAR 31:180, which was originally an emergency regulation and was made permanent on July 7, 2008, establishes requirements for a sales and use tax refund relating to such signature projects.
The Regulation requires that a refund request be filed with the Department of Revenue each year within KRS 139.515’s 60-day time frame and only covers a purchase made subsequent to the project grant agreement’s commencement date.
The Regulation was amended to require that a separate Information Sharing and Assignment Agreement for Designated Refund Claims be executed for every purchaser and vendor relationship. Such agreement must be submitted with the first refund request filed after the execution of the agreement.
The Regulation, as amended, also refers to the statute’s defining approved public infrastructure costs, approved signature project’s costs, purchaser, signature project, and vendor.