COLLECTION OF PUBLIC CLAIMS BY ACTION

KRS tit. XI, ch. 135

in effect

KRS 135.010 Attachment by sheriff to collect taxes or public dues -- Notice -- Parties

135.010. Attachment by sheriff to collect taxes or public dues -- Notice -- Parties (1) If the sheriff or other person having any taxes or public dues in his hands for collection believes another person to be indebted in money, property or other thing of value to the person owing the taxes or public dues, and believes he cannot otherwise collect the taxes or public dues, he shall sign and deliver or cause to be delivered to the person owing the taxes or public dues and to the person owing him, anywhere he may be found, written notice in substance as follows: "Mr.A B: The taxes due by C D amount to the sum of $..... To that extent you are notified not to pay or deliver to him any money, property or other thing of value that you now owe or may hereafter be indebted to him, and to appear before the Circuit Court of .... County, on the .... day of ...., 19...., to show cause why you should not be adjudged to pay said taxes. This .... day of ...., nineteen .........." (2) All persons indebted to the person owing the taxes may be included in the same notice, though residing out of the county of the sheriff or collector. If necessary to the interest of the state, the court may cause other persons to be made parties to the proceedings. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 152, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4184, 4185, 4187, 4188.

KRS 135.020 Effect of notice of attachment -- Hearing -- Defense by taxpayer -- Judgment -- Delivery of debt to sheriff -- Release of taxpayer

135.020. Effect of notice of attachment -- Hearing -- Defense by taxpayer -- Judgment -- Delivery of debt to sheriff -- Release of taxpayer (1) The notice referred to in KRS 135.010 shall operate to enjoin the person named in it from paying money, property, or any other thing of value owing at the time of the service of the notice or accruing thereafter, in the amount mentioned in the notice, until the matter is heard by the Circuit Court. The proceedings shall be docketed in the name of the state. On the hearing by the court, the court may hear evidence, and the person named in the notice shall be compelled to disclose in open court all matters of account and indebtedness, whether of money, property, or labor, owing at the date of the notice or incurred thereafter. (2) The taxpayer may defend by showing that the property on which the tax claim is based has never been assessed, or that the property is not subject to taxation, or that the taxes have been paid, but it shall not be sufficient to show a defective assessment merely. (3) The judgment shall provide for the payment of the taxes due, and shall direct the person named in the notice to pay or deliver to the sheriff or collector any money, property, or other thing of value due the taxpayer at that time or at the time the notice was served, to the extent of the taxes and costs, or to the extent of his liability, including such liability as accrued after notice though paid or discharged. If it is property, the sheriff or collector shall sell it, after advertising by handbill posted at the courthouse door for ten (10) days. If the person named in the notice fails to attend or to make disclosure, the court shall render judgment against him for the full amount due from the taxpayer. (4) The person owing taxes shall not be discharged from liability for them until they are fully paid, or the amount thereof is realized under the attachment proceedings. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 153, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4185, 4186, 4188, 4189. Legislative Research Commission Note (12/31/97). The phrase "of the notice" has been restored after the word "service" in subsection (1) of this statute. Although inadvertently omitted from the text of this subsection in 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 153, the phrase was not deleted because it was not bracketed. See KRS 446.145.

KRS 135.030 Issue of process and executions on judgments in favor of the state

135.030. Issue of process and executions on judgments in favor of the state (1) Each Circuit Court clerk shall, after the expiration of ten (10) days from the rendition of judgment in favor of the state, unless otherwise ordered by the court, issue proper process and place it in the hands of the sheriff on all such judgments that have not been paid or replevied in the office or remitted or respited by the Governor, and each such clerk shall, within ten (10) days after the maturity of each replevied bond on any such judgment entered in the court of which he is clerk, issue executions and place them in the hands of the sheriff. Upon an execution so issued upon any replevied bond being returned by the sheriff without making the money, the officer who issued it shall reissue executions and place them in the hands of the sheriff from time to time at least once every ten (10) months for a period of five (5) years, and as often thereafter as demanded by the Commonwealth's attorney, county attorney, sheriff or Circuit Court clerk. Upon all such judgments, executions or capias pro fine that are stayed or respited by the Governor, the clerk of the court in which the judgment has been entered shall issue proper process and place it in the hands of the sheriff within ten (10) days after the expiration of the stay or respite. A receipt shall be taken from the sheriff for all process placed in his hands pursuant to this section. (2) Upon the failure of any Circuit Court clerk to discharge his duties as required in this section, he shall be held responsible on his official bond for the amount of the judgment, interest and costs to which such failure is applicable. (3) Nothing in this section shall authorize the Governor to remit any judgment unless it is a fine imposed as a punishment. Effective: January 2, 1978 History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 154, effective January 2, 1978. -- Amended 1976 Ky. Acts ch. 28, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4245.

KRS 135.040 Equitable action by Department of Revenue on unsatisfied execution or uncollectible tax bill -- County attorney to assist -- Limitation -- Penalty

135.040. Equitable action by Department of Revenue on unsatisfied execution or uncollectible tax bill -- County attorney to assist -- Limitation -- Penalty (1) On the return of "no property found" on an execution issued upon a judgment in favor of the state, the Department of Revenue may institute equitable proceedings in the Franklin Circuit Court or any other court of competent jurisdiction, in the name of the state and on the relation of the commissioner of revenue. The choses in action or other equitable estate of the delinquent shall be subjected to the payment of the amount due on any such execution. (2) On the return to the fiscal court or the county clerk of any tax bill as uncollectible, a like suit may be instituted in the name of the state on the relation of the commissioner of revenue in any court of competent jurisdiction, and the choses in action or other equitable estate of the delinquent may be subjected to the amount due on any such tax bill. In such proceedings attachment may issue and other proceedings may be taken as are authorized on the return of "no property found" on an execution in favor of individuals. (3) The county attorneys of the respective counties shall assist the Department of Revenue in prosecuting the actions mentioned in this section. (4) No action shall be maintained under the provisions of subsection (1) of this section when the last execution issued has been returned "no property found" more than ten (10) years before the institution of the action, nor shall an action be maintained on the uncollectible tax bill under the provisions of subsection (2) of this section more than five (5) years after the date of the return by the sheriff or collector. (5) Every person against whom an execution has been returned "no property found" and upon which an equitable action is instituted, as provided in subsection (1) of this section, shall be liable for a penalty of twenty percent (20%) of the amount due on the execution. The penalty may be recovered in the action, with the amount due on the execution. The penalty shall go to the delinquent tax fund provided for under KRS 134.552, unless the county attorney assists in the prosecution, in which case one-half (1/2) shall go to the county attorney. Effective: January 1, 2010 History: Amended 2009 Ky. Acts ch. 10, sec. 46, effective January 1, 2010. -- Amended 2005 Ky. Acts ch. 85, sec. 285, effective June 20, 2005. -- Amended 1978 Ky. Acts ch. 400, sec. 6, effective June 17, 1978. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 17, sec. 41, effective January 1, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4169, 4170.

KRS 135.050 Action by Department of Revenue to ascertain and collect taxes -- Injunction -- Attachment and garnishment

135.050. Action by Department of Revenue to ascertain and collect taxes -- Injunction -- Attachment and garnishment (1) The commissioner of revenue shall prosecute diligently the collection of all license fees, omitted license, inheritance, estate, income, excise or franchise taxes, judgments or other moneys, claims or demands due the state from any person. (2) The Department of Revenue may institute legal proceedings to ascertain the amount of tax due under any statute imposing a license, excise or income tax in favor of the state, and to enforce the collection of the amount due and the penalties and interest thereon, and, in the case of a license or excise tax, to enjoin the operation of the business of the delinquent until the tax is paid. (3) The Department of Revenue may, at or after the commencement of an action under subsection (2) of this section to collect the amount of license, excise or income tax due and the penalties and interest thereon, have an attachment against the property of the person liable for the tax or a garnishment of his debtors, without the execution of a bond. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 286, effective June 20, 2005. -- Amended 1984 Ky. Acts ch. 405, sec. 4, effective July 13, 1984. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4202a-31, 4223b-10, 4224c-8. 4224c-9. 4267, 4281b-23, 4281c-20, 4281e-9, 4281f-6, 4281f-7, 4281f-28, 4281g-13, 4281h-12, 4281i-6, 4281j-4.

KRS 135.060 Action by employees of Department of Revenue for money due state or taxing district from collecting officer or taxpayer -- Penalty

135.060. Action by employees of Department of Revenue for money due state or taxing district from collecting officer or taxpayer -- Penalty (1) Employees of the Department of Revenue shall, when directed by the commissioner, institute actions in the name of the state, and in the name of any county, school or other taxing district, on relation of the commissioner, against any delinquent state, county or district officer or any person to recover taxes or any other money due the state or any county, school or other taxing district. (2) Employees of the Department of Revenue before instituting or causing to be instituted any action that the commissioner is authorized by law to institute, shall file a copy of same with the commissioner, with a verified statement of the facts upon which it is based. No action shall be instituted or caused to be instituted by an employee until it is approved and authorized by the commissioner. (3) In all actions brought under subsection (1) of this section in which a judgment is recovered, the party in default shall, in addition to the amount found to be due the state or any county, school or other taxing district, be adjudged to pay a penalty of twenty percent (20%) on the amount due. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 287, effective June 20, 2005. -- Amended 1984 Ky. Acts ch. 405, sec. 5, effective July 13, 1984. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4258, 4263.

KRS 135.070 Repealed, 1994

135.070. Repealed, 1994 Catchline at repeal: Compromise or agreed judgment in action by Revenue Cabinet. History: Repealed 1994 Ky. Acts ch. 85, sec. 6, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 361, sec. 5, effective July 14, 1992. -- Amended 1986 Ky. Acts ch. 331, sec. 24, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 405, sec. 6, effective July 13, 1984. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4258.

KRS 135.080 Action by Department of Revenue against defaulting collector -- Notice -- Docketing and trial -- Judgment

135.080. Action by Department of Revenue against defaulting collector -- Notice -- Docketing and trial -- Judgment (1) When an action is brought in the Franklin Circuit Court against a sheriff or clerk, or against the sureties on his official bond, or against his heirs, devisees or representatives, or against any other person required to pay money into the State Treasury or to do any other act required by law to be done in connection with the payment of money into the State Treasury after it has been collected, the Department of Revenue shall, twenty (20) days before the trial, mail to the defendant in the action, directed to him at the courthouse of his county, a notice in writing stating the amount judgment will be asked for and the time the court will be held. The department shall file a copy of this notice, with the name of the person to whom sent and the time when and the place where sent, with the clerk of the court, to be filed by him and kept with the papers in the action. (2) The court, without further notice to the parties, shall proceed with the action. The department shall file with the clerk of the court a memorandum of the names of the parties, the amount due from each defaulter against whom judgment is demanded, and a copy of the bond if any. The clerk shall docket the action in the order in which the names stand on the memorandum. (3) Judgments, when given against the defendants in the cases referred to in this section, shall be for the principal due with interest at the rate of ten percent (10%) per annum from the time the amount was due until paid. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 288, effective June 20, 2005. -- Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 155, effective January 2, 1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4171, 4172, 4173, 4174.

KRS 135.090 Jury trial if execution of bond or instrument denied -- Evidence admitted

135.090. Jury trial if execution of bond or instrument denied -- Evidence admitted If any of the defendants in an action brought under KRS 135.080 shall, upon oath, deny the execution of the bonds or instruments whereby they are sought to be made liable, a jury, if required, shall be impaneled to try the facts. All other facts may be tried by the court. Nothing but a receipt from the State Treasurer for the payment of the taxes or money claimed shall be admitted on the trial, except orders of the court and receipts in pursuance thereof, the records of the Department of Revenue and the State Treasurer, and the delinquent list. No tender of payment nor any offset shall be pleaded or given in evidence. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 289, effective June 20, 2005. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4175.

KRS 135.100 Lien of judgment -- Replevin of execution -- Officer's return -- Interference with sale

135.100. Lien of judgment -- Replevin of execution -- Officer's return -- Interference with sale (1) Judgments in the name of the state or county against sheriffs and other public collectors, their sureties, or their heirs, devisees or personal representatives, or any of them, shall bind the estate, legal or equitable, of all of the defendants to the judgments from the commencement of the action until satisfied. No execution thereon shall be stayed by replevin or sale on credit, but in all such cases the estate taken in execution shall be sold for money, except that the Department of Revenue may, with the consent of the Attorney General, indorse the right to replevy on the execution where the tax is payable to the department, and a like privilege is given to the sheriff, with the consent of the county attorney, when the taxes are payable to the sheriff. (2) Any officer who makes a false return on such execution shall be subjected to the payment of the whole amount of the execution and costs, in addition to the penalty provided by subsection (3) of KRS 135.990. (3) No person shall attempt, by any fraudulent execution, conveyance, encumbrance or otherwise, to stop or injure the sale of the estate under the execution. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 290, effective June 20, 2005. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4176, 4177, 4180.

KRS 135.110 Liability of officer for failing to levy or return execution in name of state or county

135.110. Liability of officer for failing to levy or return execution in name of state or county Officers and their deputies failing to levy executions in the name of the state or county, or withholding any such executions, and not making return thereof for one (1) month after the return day, or failing to pay the money when collected, shall, together with their sureties, be liable for the amount of the execution and twenty percent (20%) damages thereon, to be recovered by action in the name of the state or county by the county attorney. Effective: October 1, 1942 History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4178.

KRS 135.120 Levy of execution on previously encumbered property -- Sale and distribution of proceeds

135.120. Levy of execution on previously encumbered property -- Sale and distribution of proceeds When the property of the defendant in execution, upon a judgment against a defaulting public officer, is encumbered by a previous bona fide mortgage, deed of trust or other encumbrance or prior lien, the officer shall, if no other property is found upon which to levy the execution, levy it upon the encumbered property and return the same. He shall make return of all the facts known to him, giving the date and consideration of the instrument creating the lien, to whom made, when recorded, the evidences of any prior lien, and the names of the parties who claim the same. Proceedings may be instituted by the sheriff or the Department of Revenue, in the name of the state, in the county where the property is located, to have the property sold, the claims and demands, if just, satisfied, all encumbrances removed, and the proceeds of the sale of the property rightfully applied. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 291, effective June 20, 2005. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4179.

KRS 135.130 Removal of property to other counties for sale -- Multiple executions

135.130. Removal of property to other counties for sale -- Multiple executions (1) If return is made on an execution against a sheriff or other public defaulter to the state and his sureties that there was no sale of personal property for the want of bidders, the Department of Revenue may direct the property levied upon to be removed from county to county for sale, as often as may be necessary, the cost of removal to be paid out of the sale of the estate as other costs. The officer who levied the execution may sell the property in any county to which it is so removed. If real property is levied upon, the place of sale may be changed to another county, and the officer may there sell and convey the property as in the county where the levy was made. (2) The state may have executions in the hands of collecting officers in any number of counties at the same time. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 85, sec. 292, effective June 20, 2005. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4181, 4183.

KRS 135.140 Repealed, 1962

135.140. Repealed, 1962 Catchline at repeal: Prosecution of claims against the United States for illegal taxes for 1866, 1867 or 1868; net funds recovered held in trust. History: Repealed 1962 Ky. Acts ch. 106, Art. IV, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281t-1, 4182t-2.

KRS 135.150 Repealed, 1962

135.150. Repealed, 1962 Catchline at repeal: Notice to claimants of funds recovered; time in which claims to be filed. History: Repealed 1962 Ky. Acts ch. 106, Art. IV, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281t-3.

KRS 135.160 Repealed, 1962

135.160. Repealed, 1962 Catchline at repeal: Direct Tax Commission; payment of claims and interest. History: Repealed 1962 Ky. Acts ch. 106, Art. IV, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4281t-4.

KRS 135.170 Repealed, 1962

135.170. Repealed, 1962 Catchline at repeal: Manner of filing claims; proof; notice of disposition; appeal. History: Repealed 1962 Ky. Acts ch. 106, Art. IV, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281t-3, 4281t-5, 4281t-6.

KRS 135.180 Repealed, 1962

135.180. Repealed, 1962 Catchline at repeal: Escheat of undisposed funds to state. History: Repealed 1962 Ky. Acts ch. 106, Art. IV, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4281t-7.

KRS 135.190 Reciprocity -- Tax suits by other states and political subdivisions

135.190. Reciprocity -- Tax suits by other states and political subdivisions Any state of the United States of America or any political subdivision thereof shall have the right to sue in the courts of Kentucky to recover any tax which may be owing to it when the like right is accorded to the Commonwealth of Kentucky and its political subdivisions by such state, whether such right is granted by statutory authority or as a matter of comity. History through 1968: Created 1950 Ky. Acts ch. 72, sec. 1.

KRS 135.990 Penalties

135.990. Penalties (1) Except as provided in subsection (2) of this section, any officer who fails to perform any duty required of him by KRS 135.030 shall be fined not less than fifty dollars ($50) nor more than one hundred dollars ($100) for each offense. (2) Any officer who makes a false return on an execution issued pursuant to subsection (1) of KRS 135.100 shall be fined twenty dollars ($20), upon notice and motion. (3) Any person who violates subsection (3) of KRS 135.100 shall be fined not less than five hundred dollars ($500). (4) Any person who fails to do an act required, or does an act forbidden, by any provision of this chapter for which no other penalty is provided shall be fined not less than ten dollars ($10) nor more than five hundred dollars ($500). History: Amended 1976 Ky. Acts ch. 28, sec. 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4029, 4177, 4180, 4248.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37642Fetched: 10/20/2026