2009 Kentucky Revised Statutes CHAPTER 136 CORPORATION AND UTILITY TAXES 136.071 Corporation license tax -- Apportionment of capital when corporation holds stock in other corporations.
136.071 Corporation license tax -- Apportionment of capital when corporation
holds stock in other corporations.
(1) (a) Notwithstanding KRS 136.070, a bank holding company as defined in KRS
286.3-900 that holds directly or indirectly stock or securities in financial <br>institutions subject to the tax imposed by KRS 136.500 to 136.570 equal to or <br>greater than fifty percent (50%) of its total assets may, at the option of the <br>taxpayer, compute its "capital" under KRS 136.070(2) as follows: <br>1.
Determine the corporation's total capital as provided in KRS 136.070(2).
2.
Deduct from the amount determined in subsection (a) of this section, the <br>book value of its investment in the stock and securities of any financial <br>institutions subject to the tax imposed by KRS 136.500 to 136.570 in <br>which it owns more than fifty percent (50%) of the outstanding stock.
(b) Notwithstanding KRS 136.070, a corporation other than a bank holding
company that holds directly or indirectly stock or securities in other <br>corporations equal to or greater than fifty percent (50%) of its total assets may, <br>at the option of the taxpayer, compute capital employed in the business using <br>one (1) of the following options: <br>1.
The corporation and its subsidiaries may file a consolidated license tax <br>return that computes capital employed in the business under KRS <br>136.070 and includes the parent corporation and all subsidiary <br>corporations in which the parent corporation owns more than fifty <br>percent (50%) of the outstanding stock; or
2.
The corporation may file a separate license tax return and deduct from <br>capital, determined in accordance with KRS 136.070(2), the book value <br>of its investment in the stock and securities of any corporation in which <br>it owns more than fifty percent (50%) of the outstanding stock.
(2) For purposes of determining the ratio of stock and securities to total assets, as it
relates to subsection (1) of this section, the value shall be the value of the accounts <br>as reflected on financial statements prepared for book purposes as of the last day of <br>the calendar or fiscal year. The term "stock and securities" as used in this section <br>means shares of stock in any corporation, certificates of stock or interest in any <br>corporation, notes, bonds, debentures, and evidences of indebtedness. The term <br>"book value" means the value as shown on financial statements prepared for book <br>purposes as of the last day of the calendar or fiscal year.
Effective: March 18, 2005 <br>History: Amended 2005 Ky. Acts ch. 168, sec. 2, effective March 18, 2005. --
Amended 2004 Ky. Acts ch. 142, sec. 4, effective April 21, 2004. -- Amended 1988 <br>Ky. Acts ch. 214, sec. 1. -- Created 1976 (1st Extra. Sess.) Ky. Acts ch. 25, sec. 1.
Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247 instructs
the Reviser of Statutes to adjust KRS references throughout the statutes to conform <br>with the 2006 renumbering of the Financial Services Code, KRS Chapter 286. Such <br>an adjustment has been made in this statute.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 160,
provides that amendments made to KRS 136.071 in 2005 Ky. Acts ch. 168, sec. 2,
shall apply to corporation license tax returns due without regard to extension on or <br>after April 15, 2004.
Legislative Research Commission Note (4/21/2004). 2004 Ky. Acts ch. 142, sec. 7,
provides that the amendments to KRS 136.071 in 2004 Ky. Acts ch. 142, sec. 4, are <br>retroactively effective for tax periods beginning on or after January 1, 2003.
Legislative Research Commission Note (6/24/2003). On April 3, 2003, the Governor
vetoed 2003 Ky. Acts ch. 194 (House Bill 390), sec. 19, which had repealed this <br>section. In his veto message, the Governor stated: "House Bill 390 by its title and in <br>its substance, is an appropriations bill subject to the line item veto provisions <br>afforded the Governor under Section 88 of Kentucky's Constitution."
Legislative Research Commission Note. Acts 1976, ch. 25, § 2 provides "The
provisions of this Act shall apply to taxable years beginning on or after January 1, <br>1977."
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