This program is administered pursuant to KRS 44.030 to satisfy the outstanding tax liability of a taxpayer who is employed or contracts with an agency of the Commonwealth of Kentucky. Administration of this program operates very much like that of a wage levy with the exception that no exemptions may be claimed. The entire amount of payment to the taxpayer is diverted to pay the outstanding tax liability.
Taxpayers who qualify for State Claim action include the following:
- Employees of the Commonwealth of Kentucky
- Taxpayers due a Kentucky highway use tax refund from the Transportation Cabinet
- Taxpayers due a vehicle registration refund from the Transportation Cabinet
- Taxpayers due a payment on a business contract with the Commonwealth of Kentucky
- Some medical professionals (doctors, pharmacists, medical centers, etc.), if receiving Medicare/Medicaid claims payments through the Health and Family Services Cabinet.
- Kentucky National Guard employees
- University and community college employees
- Fayette County, Kenton County, Campbell County, and Jefferson County sheriffs and county attorneys.