PENALTIES—LATE FILING, OMITTED FILING AND
NONCOMPLIANCE (KRS 136.183, KRS 136.990, KRS
132.290(4), KRS 134.015, KRS 134.390)
Any taxpayer failing to timely complete, file and deliver the
required tax return and accompanying schedules on or before
May 15 of each year, shall pay a minimum penalty of 10 percent
of the total taxes due. If any taxpayer fails to report as required,
the Office of Property Valuation shall ascertain the required facts
and determine the assessment values in such a manner and by
such means as it deems proper. The penalty for such failure to
file is 20 percent of the total taxes due.
Furthermore, any taxpayer, or officer thereof, that willfully fails
or refuses to make, file and deliver reports as required by KRS
136.1801 to 136.1806 shall be fined $1,000, and $50 for each
day the reports are not made after May 15 of each tax year. In
addition, civil action may be brought to compel the company or
officer thereof to make the required reports.
NOTIFICATION OF THE ASSESSMENT (KRS 136.1804)
Each year the Department of Revenue, Office of Property
Valuation, shall determine the assessed value of the commercial
watercraft and notify the owner by mail of the assessment
amount. The assessment notice shall be accompanied by the
notice of tax due. The notice of tax due shall include all state,
county, school, city and other special taxes. The notice of
assessment and the notice of tax due shall be final, due and
payable 60 days from the notice date.
Effective July 15, 1998, no appeal shall delay the collection or
payment of taxes based upon the assessment in controversy. The
taxpayer shall pay all state, county and other local jurisdictional
taxes due on the valuation which the taxpayer claims as the true
value as stated in the protest filed under KRS 131.110. Once the
appeal is finalized and the valuation finally determined, the
taxpayer shall be billed for any additional tax and interest (at the
rate as defined in KRS 131.010(6)) from the date the tax would
have become due if no appeal had been taken. The provisions
of KRS 134.015 shall apply to the tax bill.
Any nonprotested portion (your claimed value) of the assess-
ment becomes final at the end of the 60-day protest period. If
you protest your assessment, payment of your state and local tax
on the claimed value is due with your protest letter. Your pro-
test letter must clearly and logically identify how your claimed
valuation was determined and must specify the value which you
claim to be the true value of property. The Kentucky claimed
value must be (1) classified into the various state property tax
classifications and (2) the state tax must be calculated on the
classified claimed value.
After a timely protest has been filed, the taxpayer may request
a conference with the Office of Processing & Enforcement,
Division of Protest Resolution.
The Division of Protest Resolution is responsible for resolving
tax controversies (protests) on a fair and equitable basis.
Finance and Administration Cabinet
Department of Revenue
Office of the Commissioner
Division of Protest Resolution
Station 7, 10
th
Floor
P O Box 3
Frankfort KY 40602-0003
The taxpayer may appear in person or by representative. All
taxpayers represented by attorney or tax agent must file a power
of attorney with the Division of Protest Resolution. Further
conferences may be held by mutual agreement. Consideration
is given to additional information presented by the taxpayer at
the conference.
If the taxpayer’s protest of an assessment or refund denial can-
not be resolved through correspondence and/or conferences, the
Division of Protest Resolution shall issue a written final ruling
on any matter still in controversy to be mailed to the taxpayer.
The ruling shall state that it is a final ruling of the department,
the issues of controversy, the taxpayer’s position, the depart-
ment’s position and the procedure for prosecuting an appeal to
the Kentucky Claims Commission (KCC).
The taxpayer may request a final ruling from the Division of
Protest Resolution at any time after filing a timely protest. When
it is requested, the department shall issue such ruling within 30
days from the date the request is received.
After the final ruling has been issued, the taxpayer may appeal
to the KCC.
WHERE TO SEND YOUR PROTEST
All protests must be mailed to the following address:
Finance and Administration Cabinet
Department of Revenue
Office of Property Valuation
Public Service Branch, Station 32, 4
th
Floor
501 High Street
Frankfort KY 40601-2103
PROTESTING YOUR ASSESSMENT
(KRS 131.110, KRS 136.180(2), KRS 134.590 and
103 KAR 1:010)
The Department of Revenue is required to mail to the taxpayer a
notice of any property assessed. The assessment shall be final if
not protested in writing to the Department of Revenue, within 45
days from the date of the notice of assessment or the assessment
will become final and the state taxes will be due. Such protest
shall be accompanied by a supporting written statement setting
forth the grounds upon which the protest is made. The support-
ing statement must set forth whether the protest is based on a
factual disagreement and/or disagreement in the interpretation
of the applicable statutes. If there are disputed factual issues,
the taxpayer must provide financial statements, records, assess-
ments or other documents which will allow the Department of
Revenue some basis for reconsideration. Further, the statement
must clearly identify the specific portion(s) of the assessment to
which the protest relates.
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