FRANKFORT, Ky. (Updated June 10, 2021)— Property owners in certain Kentucky counties devastated by recent floods may qualify for a sales tax refund on building materials purchased to repair or replace flood-damaged structures.
On April 23, 2021, President Joe Biden granted Governor Andy Beshear's request for a federal disaster declaration for individual assistance to residents in nine Kentucky counties impacted by the widespread flooding in late February and March of this year.
Governor Andy Beshear announced May 28, 2021 that the Federal Emergency Management Agency has approved his request for individual assistance for twenty-two more Kentucky counties.
This federal disaster declaration activates the provisions of KRS 139.519, which provides for a refund of Kentucky sales and use tax paid for building materials permanently installed in the repair or replacement of structures damaged in counties covered under a federal disaster relief declaration.
This state assistance was initially available to property owners in Breathitt, Clay, Estill, Floyd, Johnson, Lee, Magoffin, Martin, and Powell counties.
The additional counties now eligible for individual assistance are Anderson, Boyd, Clark, Fayette, Franklin, Greenup, Jackson, Jessamine, Knott, Laurel, Lawrence, Leslie, Letcher, Lincoln, Madison, Morgan, Owsley, Perry, Pulaski, Rockcastle, Warren, and Woodford.
Refunds apply to purchases made on or after the date of the disaster declaration for individual relief. Applicants have three years from the date the area is declared a federal disaster to submit their refund claims to the Kentucky Department of Revenue. Click here for answers to frequently asked questions.
Kentucky Administrative Regulation 103 KAR 31:170 provides guidelines on how to submit a refund request with the required proper documentation.
The applicable forms for property owners who have completed repairs or reconstruction of buildings damaged or destroyed in the disaster areas are available here.
Individuals in need of more personalized assistance may call 502-564-5170 and select Option 1.