Kentucky Intrastate Tax Instructions
Please Read Before Completing Tax Return
Carriers are to report every vehicle operated upon the public Highways of this state having a gross weight in excess of 26,000 lbs. or 3 or more axles regardless of weight, excluding farm licensed vehicles. (Include miles traveled loaded or empty).
 
Quarters are as follows:
​Quarter End ​Date Due
​03/31 04/30​ ​Includes the months of January, February, & March
​06/30 07/31​ ​Includes the months of April, May, & June
​09/30 10/31​ ​Includes the months of July, August, & September
​12/31 01/31​ ​Includes the months of October, November, & December
 
When reporting for a quarter, all miles & fuel consumed (used) within the months involved in the quarter need to be included.
 
Make certain all pre-printed information on tax return is correct. (KIT #., Quarter End, Name, & Address).
If incorrect check the appropriate box and/or make corrections on the tax form.
 
Amended Return - When a company has filed an incorrect tax return and now needs to make a correction to the original filed. To file an amended tax return it needs to be filled out as if it were the first time being filed (Report total miles, loaded or empty, & total gallons of fuel for the quarter). Only make adjustments in the money computation owed or to be refunded based on what was originally submitted on the tax return.
 
Address Change - For name or address change.
 
Ceased Operations - If business closed, leased onto another company, or business is on hold for an extended period of time. This keeps company from having to file tax returns quarterly if no operations are occurring for a long period of time.
 
To compute the individual lines on the KIT tax return.
 
Line 1 – All miles loaded or empty on highways (paved) and off road miles, (miles that are not run on a public highway are considered off-road), with the exception of farm tags.
 
Example: 10,000 miles
 
Line 2 - Total amount of fuel consumed.
 
Example: 2,000 gallons.
 
Line 3 - Average miles per gallon, take Line 1 & divide by Line 2.
 
Example: 10,000 miles / 2,000 gallons = 5mpg.
 
Line 4 - Report only taxable miles operated in KY, excluding any miles run off-road (miles that are not run on a public highway are considered off-road). Cannot be greater than Line 1.
 
Example: 10,000 total miles - 3,000 off-road miles = 7,000 taxable miles
 
Line 5 - Report taxable gallons of fuel consumed (used) on KY public Highways. Take Line 4 (miles) & divide by Line 3 (gallons). If greater than Line 2 list the amount on Line 2 here. (Cannot be greater than line 2).
 
Example: 7,000 taxable miles / 5mpg = 1,400 taxable gallons of fuel consumed in KY for the quarter
 
Line 6 - Tax Due is based on taxable gallons of fuel consumed (used) in KY for the quarter. Enter gallons for gasoline on 6a and/or special fuel on 6b. Combined gallons for lines 6a and 6b must equal Line 5.
 
Example:
  • 6a - 400 taxable gallons x .266 tax rate = $106.40
  • 6b - 1,000 taxable gallons x .289 tax rate = $289.00
  • 6c - is the total dollar amount for lines 6a and 6b which comes to $395.40

Line 7 - Claim credit for tax paid on fuel purchased in KY. Company can only claim consumed (used) fuel that has been purchased in KY. Can’t exceed figures on Line 2 of tax return. Line 7c cannot exceed Line 2.

  • 7a – Tax paid on gasoline used in KY in taxable units (vehicles). Take Line 2 or total gallons & multiply by tax rate to get tax paid credit.

    Example: 1,000 total gallons of gasoline x .227 tax rate = $227.00 tax credit
  • 7b – Tax paid on special fuels (Diesel, Kerosene & CNG(Compressed Natural Gas)) used in KY in taxable units (vehicles). Take Line 2 or total gallons & multiply by tax rate to get tax paid credit.

    Example: 1,000 total gallons of diesel x .197 tax rate = $197.00 tax credit
  • 7c - Add Lines 7a& 7b to get total tax credit. If you have both gasoline & special fuels consumed (7a& 7b) then combined should not exceed Line 2 total gallons. (Total amount of fuel purchased.)

    Example: $227.00 gasoline tax credit + $197.00 diesel tax credit = $424.00 total tax credit

Line 8 - Remaining tax due. If Line 6 is greater than Line 7c, enter the difference.

Example: $395.40 (Line 6c) is not greater than $424.00 (Line 7c), therefore this line is zero.

Line 9 - Credit Due. If Line 7c is greater than Line 6 enter the difference. If tax return calculates a credit on this line then tax return is complete at this point.

Example: $424.00 (Line 7c) - $395.40 (Line 6c) = $28.60 tax paid fuel credit to customer

Line 10 - Previous credit will show on this line on pre-printed forms. Credit can be a combined total from up to eight previous quarters. If continuously receiving a credit from quarter to quarter then a refund can be requested in writing.

Line 11 - Net tax due. Take Line 8 & subtract Line 10. If Line 8 is greater than Line 10, subtract Line 10 from Line 8.

Example above does not apply to this line.

Line 12 - Penalty & Interest. If filed after return due date then penalty & interest is assessed.

Penalty - Take Line 11 $ multiply by penalty rate.

Example: $50.00 net tax due x 10% penalty = $5.00 total penalty owed.

Interest - Take Line 11 without penalty added and multiply the interest rate. The figure computed from this is Per Annum (per year, 12 months). Then take that figure and divide by 12 (12 months in a year). Take that figure and multiply by the number of months the tax return is late, which will give you total interest owed. (Example: quarter end 3/31/10 is due 4/30/10, late filed date is 7/20/10, which would make the tax return 3 months late.)

Example: $50.00 net tax due x 5% interest Per Annum (per year) = $2.50
$2.50 / 12 months in a year = $.21
$.21 x 3 months late = $.63 owed in interest

Line 13 - Total liability. Add Line 11 & Line 12. Pay this amount if applicable.

Example: $50.00 net tax due + $5.00 penalty + $.63 interest = $55.63 total liability

All forms of payment make payable to: Kentucky State Treasurer

Note: Please make sure return is signed, dated, and includes phone number. Please write KIT # and quarter on check and remove stub.