2013 Kentucky Revised Statutes CHAPTER 136 - CORPORATION AND UTILITY TAXES 136.071 Corporation license tax -- Apportionment of capital when corporation holds stock in other corporations.
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136.071 Corporation license tax -- Apportionment of capital when corporation
holds stock in other corporations.
(1)
(2)
(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 institutions subject to the tax imposed by KRS 136.500 to
136.570 equal to or greater than fifty percent (50%) of its total assets
may, at the option of the taxpayer, compute its "capital" under KRS
136.070(2) as follows:
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 book value of its investment in the stock and securities
of any financial institutions subject to the tax imposed by KRS
136.500 to 136.570 in 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
corporations equal to or greater than fifty percent (50%) of its total assets
may, at the option of the taxpayer, compute capital employed in the
business using one (1) of the following options:
1.
The corporation and its subsidiaries may file a consolidated license
tax return that computes capital employed in the business under
KRS 136.070 and includes the parent corporation and all subsidiary
corporations in which the parent corporation owns more than fifty
percent (50%) of the outstanding stock; or
2.
The corporation may file a separate license tax return and deduct
from capital, determined in accordance with KRS 136.070(2), the
book value of its investment in the stock and securities of any
corporation in which it owns more than fifty percent (50%) of the
outstanding stock.
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 as reflected on financial statements prepared for book purposes as of
the last day of the calendar or fiscal year. The term "stock and securities" as
used in this section means shares of stock in any corporation, certificates of
stock or interest in any corporation, notes, bonds, debentures, and evidences
of indebtedness. The term "book value" means the value as shown on financial
statements prepared for book purposes as of the last day of the calendar or
fiscal year.
Effective:March 18, 2005
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 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 with the 2006 renumbering of the Financial Services Code,
KRS Chapter 286. Such 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 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 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 section. In his veto message, the Governor stated: "House Bill 390
by its title and in its substance, is an appropriations bill subject to the line item
veto provisions 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, 1977."
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