FINANCE AND ADMINISTRATION CABINET
Department of Revenue
Office of Property Valuation
(As Amended at ARRS, December 6, 2011)
103 KAR 8:010. [Nonresident]
Watercraft Allocation
RELATES TO: KRS 136.1801, 136.1802[KRS
136.181, 136.182]
STATUTORY AUTHORITY: [KRS Chapter
13A][;] KRS 131.130(1)
NECESSITY, FUNCTION, AND CONFORMITY: KRS
131.130(1) authorizes the Department of Revenue to promulgate administrative
regulations necessary for the administration and enforcement of all tax laws in
Kentucky. This administrative regulation establishes requirements for[addresses
issues relating to] apportioning the value of a taxpayer’s
watercraft to Kentucky.[requires information concerning mileage operated
by nonresident watercraft for allocating mileage operated in Kentucky to total
mileage.]
Section 1. Definitions. (1) "Corporation" is defined by KRS 136.1801(1).
(2) “Department” is defined by KRS 136.1801(3).
(3) “Watercraft” is defined by KRS
136.1801(2)[has
the same meaning as in KRS136.1801(1).
(2) "Watercraft" has
the same meaning as in KRS 136.1801(2).
(3) "Department" shall
mean Department of Revenue.]
Section 2.[1.] Apportionment.
If the apportionment factor set forth in KRS 136.1802(4) does not fairly
represent the extent of the corporation’s watercraft activity in Kentucky, the
corporation may petition for, or the Department may require, any other method
to fairly represent an equitable apportionment of the corporation’s watercraft
to Kentucky. [Any nonresident owner or operator of watercaft, whose route
or system is partly within this state and partly within another state or
states, shall report to the Revenue Cabinet by March 1 of each year mileage
operated in Kentucky and mileage operated out-of-state of each boat, tug,
barge, and other watercraft for the immediate preceding calendar year. For
purposes of reporting mileage operated, total mileage on the Ohio River and
one-half (1/2) the mileage on the Mississippi River shall be considered as
mileage within the state.]
Section 3. This administrative regulation was found deficient by the Administrative Regulation Review Subcommittee on December 6, 2011.
THOMAS B. MILLER, Commissioner
APPROVED BY AGENCY: May 10, 2011
FILED WITH LRC: May 18, 2011 at 3 p.m.
CONTACT PERSON: DeVon Hankins, Policy Advisor, Office of General Counsel, Finance and Administration Cabinet, 392 Capitol Annex, Frankfort, Kentucky 40601, phone (502) 564-6660, fax (502) 564-9875.