Kentucky Energy Sales Tax Exemption Annual Return

Energy Sales Tax Exemption Annual Return
Form 51A129
51A129 (7-13)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

KENTUCKY SALES AND USE TAX
ENERGY EXEMPTION ANNUAL RETURN

FOR OFFICIAL USE ONLY

(This return is only applicable to an

			
authorized energy direct pay entity.)
Period Beginning			 Period Ending
Return Due Date	
Name & Mailing Address	

Name & Location Address

Name of Preparer		 Sales Tax Permit Account Number
	

Please Print

Telephone Number (   )

	 I.	 Computation to Determine Eligibility for Energy Exemption
		  (1)	 Total cost of all energy purchased (attach schedule listing
			
suppliers and amount purchased per instructions).........................................	$
		  (2)	 Less cost of energy or energy-producing fuel not used in the
	 	 	
course of manufacturing, processing, mining or refining..............................	$
		  (3)	 Balance (Line 1 minus Line 2)............................................................................................................	$
	 	   (4)	 Actual cost of production for calendar or fiscal year (see instructions)........	$
		  (5)	 Enter 3% of Line 4...............................................................................................................................	$
	 II.	 Reconciliation of Estimated Tax and Actual Tax
	  (1)	 Actual cost of production (enter from Line 4, Part I).......................................................................... 	$
	  (2)	 Production energy subject to tax (3% of Line 1).................................................................................
	  (3)	 Energy purchased without application of tax and not used in the course of manufacturing,
	
	
processing, mining or refining.............................................................................................................
	  (4)	 Total amount subject to tax (Line 2 plus Line 3).................................................................................
	  (5)	 Tax on energy or energy-producing fuel (6% of Line 4).....................................................................
	
  (6)	 Estimated tax paid on monthly returns filed (6% of total estimated energy reported for
		
year) (see instructions) attach schedule ............................................................................................
	  (7)	 Additional tax due (Line 5 minus Line 6) .......................................................................................... 	$
	
(7a)	 Less compensation ($50 cap); see instructions..........................................................................
	  (8)	 Payment due (make check payable to Kentucky State Treasurer).......................................................	$
	  (9)	 Overpayment of tax (Line 6 minus Line 5) (to be refunded)..............................................................	$
	III.	 Estimated Amount of Fuel Subject to Tax for	   Through
	  (1)	 Actual cost of production in prior year (enter amount from Line 4, Part I)........................................ 	$
	  (2)	 Production energy subject to tax (3% of Line 1).................................................................................
	  (3)	 Estimated energy purchased without application of tax and not used in the course of
	
	
manufacturing, processing, mining or refining....................................................................................
	  (4)	 Estimated amount subject to tax for the current year (Line 2 plus Line 3).........................................
	
  (5)	 Enter total amount of energy reported for taxation on monthly returns filed for the current year......
	  (6)	 Balance to be reported (Line 4 minus Line 5).....................................................................................	$
	  (7)	 Amount to be reported monthly (Line 6 divided by number of months in current year
	
	
for which monthly returns have not yet been filed) (subject to 6% use tax).......................................	$
The amount on Part III, Line 7 is to be reported on Line 23b of each of the monthly sales and use tax
returns filed during the remainder of the current calendar or fiscal year.
I declare under the penalties of perjury that this return (including accompanying schedules and statements) has been examined by me
and to the best of my knowledge and belief is a true, correct and complete return.

	

Signature of Preparer	

Date Signed	

Signature of Taxpayer

51A129 (7-13)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

INSTRUCTIONS FOR FILING
ENERGY EXEMPTION ANNUAL RETURN

GENERAL INFORMATION
The Kentucky sales and use tax law exempts from tax the sale, use,
storage or other consumption of all energy or energy-producing
fuels used in the course of manufacturing, processing, mining
or refining, to the extent that the cost of the energy or energyproducing fuel exceeds 3 percent of the cost of production (KRS
139.480(3)). The cost of production must be computed on the
basis of plant facilities. The term “plant facilities” means all
permanent structures affixed to real property at one location.
Regulation 103 KAR 30:140 provides that taxpayers entitled to
this exemption are to obtain an energy direct pay authorization
from the Department of Revenue.
All energy direct pay authorization holders must file an energy
exemption annual return within four months following the end
of their calendar or fiscal year.
PA R T I — C O M P U T AT I O N T O D E T E R M I N E
ELIGIBILITY FOR ENERGY EXEMPTION
Attach a schedule listing each supplier of energy or
energy-producing fuel and the total cost of such energy from
each supplier.
Enter on Line 4 the actual cost of production. Attach a schedule
showing the account classification and amount of all costs
included in computing cost of production. Do not include the
cost of energy or energy-producing fuels used in production.
Include all other costs of production. Such costs consist of
direct materials, direct labor and all overhead expenses which
relate to production. (Refer to Regulation 103 KAR 30:140 for
additional information regarding the computation of the cost of
production.)
If the amount on Line 3 exceeds 3 percent of the actual cost
of production as computed on Line 5, complete the remaining
portions of the return.
If the amount on Line 3 is less than the amount on Line 5, you are
not eligible for an energy exemption; the total amount of energy
purchased during the year is subject to tax. It is therefore not
necessary to compute Parts II and III of the return. Prepare and

attach a separate schedule showing the tax due based on the total
amount of energy purchased, without application of tax.
Failure to prove eligibility under Part I automatically withdraws
the privilege extended in the letter of energy direct pay
authorization issued by the department. Return the energy direct
pay authorization with the energy exemption annual return and
the required schedules.
PART II—RECONCILIATION OF ESTIMATED TAX AND
ACTUAL TAX
Line 6—Enter the amount of estimated tax paid on the monthly
sales and use tax returns. Attach a schedule showing a breakdown
of the amount of energy reported for taxation on Line 23b of each
monthly sales and use tax return filed for this period. (If tax on
energy or energy-producing fuel used in production was paid
to your supplier prior to the issuance of the energy direct pay
authorization and was not refunded to you by the supplier, such
tax should also be included on Line 6. Attach a schedule showing
the name of each supplier and the amount of tax paid and include
copies of the invoices showing tax paid to the supplier.)
Line 7(a)—Compensation is computed at the rate of 1 3/4 percent
of the first $1,000 of tax shown on Part II, Line 7, and 1.5 percent
of the tax in excess of $1,000. Deduct only if return and payment
are timely. (Compensation shall not exceed $50.)
PART III—COMPUTATION OF ESTIMATED AMOUNT
OF ENERGY OR ENERGY-PRODUCING FUEL SUBJECT
TO TAX
The estimated tax to be paid during the current year will be based
on the cost of production for the immediately preceding year.
(If the operations for the current year are materially changed,
an estimated tax based on an estimated cost of production may
be approved. If the prior year’s cost of production is not used in
determining the estimated tax, submit schedule and explanation
of the estimated cost of production.)
Enter taxable amounts reported for the months of the current year
prior to the completion of this return on Line 5 and deduct from
the estimated amount subject to tax for the current year. Divide
remaining balance by the number of months for which monthly
returns have not yet been filed in order to determine the amount
to be reported for each subsequent month in the current year.

Mail your return to: Department of Revenue, Division of Sales and Use Tax, P. O. Box 181, Frankfort, Kentucky 40602-0181

51A129 (7-13)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

ESTIMATED TAX
PAID ON MONTHLY RETURNS
SCHEDULE OF ENERGY REPORTED ON
MONTHLY SALES AND USE TAX RETURNS

			
TOTAL AMOUNT ON		
MONTH		 LINE 23 OF MONTHLY RETURN	

AMOUNT OF ENERGY
INCLUDED IN LINE 23

_________		
_________		
_________		
_________		
_________		
_________		
_________		
_________		
_________		
_________		
_________		
_________		

$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________
$ _________________

$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		
$ ___________________		

1. Total amount subject to tax.	
2. Tax on energy or energy producing fuels (6% of Line 1).	

$ _________________
$ _________________*

*Report this amount plus sales tax paid on energy invoices on Part II, Line 6 of Form 51A129