2013 Kentucky Revised Statutes CHAPTER 136 - CORPORATION AND UTILITY TAXES 136.310 Tax on and reports from foreign savings and loan associations, savings banks and similar institutions.
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136.310 Tax on and reports from foreign savings and loan associations,
savings banks and similar institutions.
(1)
(2)
(3)
(4)
Every federally or state chartered savings and loan association, savings bank,
and other similar institution authorized to transact business in this state, with
property and payroll within and without this state, shall, during January of each
year, file with the Department of Revenue a report containing information and
in such form as the department may require.
The Department of Revenue shall fix the fair cash value, as of January 1 of
each year, of the capital attributable to Kentucky in each financial institution
included in subsection (1) of this section. The methodology employed by the
department shall be a three (3) step process as follows:
(a) The total value of deposits maintained in Kentucky less any amounts
where the amount borrowed equals or exceeds the amount paid in by
those members.
(b) The Kentucky apportioned value of capital shall include undivided profits,
surplus, general reserves, and paid-up stock. For Agricultural Credit
Associations chartered by the Farm Credit Administration, capital shall be
computed by deducting the book value of the association's investment in
any other wholly owned institution chartered by the Farm Credit
Administration that is either subject to the tax imposed by KRS 136.300 or
this section or that is exempt from state taxation by federal law. The
Kentucky value of capital shall be determined by a fraction, the numerator
of which is the receipts factor plus the outstanding loan balance factor
plus the payroll factor, and the denominator of which is three (3).
(c) The values determined in steps (a) and (b) of this subsection shall be
added together to determine total Kentucky capital and then reduced by
the influence of ownership in tax-exempt United States obligations to
determine Kentucky taxable capital. The influence of tax-exempt United
States obligations is to be determined from the reports of condition filed
with the applicable supervisory agency as follows: the average amount of
tax-exempt United States obligations for the calendar year, over the
average amount of total assets for the calendar year multiplied by total
Kentucky capital. The department shall immediately notify each institution
of the value so fixed.
The receipts factor specified in subsection (2)(b) of this section is a fraction,
the numerator of which is all receipts derived from loans and other sources
negotiated through offices or derived from customers in Kentucky, and the
denominator of which is total business receipts for the preceding calendar year.
The outstanding loan balance factor specified in subsection (2)(b) of this
section is a fraction, the numerator of which is the average balance of
outstanding loans negotiated from offices or made to customers in Kentucky.
The denominator is the average balance of all outstanding loans. The average
outstanding loan balance is determined by adding the outstanding loan balance
at the beginning of the preceding calendar year to the outstanding loan balance
at the end of the preceding calendar year and dividing by two (2). However, if
the yearly beginning balance and ending balance results in an inequitable
factor, the average outstanding loan balance may be computed on a monthly
(5)
(6)
(7)
(8)
average balance.
The payroll factor specified in subsection (2)(b) of this section shall be
determined for the preceding calendar year under the provisions of KRS
141.120(8)(b) and regulations promulgated thereunder.
By July 1 succeeding the filing of the report as provided in subsection (1) of
this section, each financial institution included in subsection (1) of this section
shall pay directly into the State Treasury a tax of one dollar ($1) for each one
thousand dollars ($1,000) paid in on its Kentucky taxable capital as fixed in
subsection (2)(c) of this section. The institution shall not be required to pay
local taxes upon its capital stock, surplus, undivided profits, notes, mortgages,
or other credits, and the tax provided by this section shall be in lieu of all taxes
for state purposes on intangible property of the institution, nor shall any
depositor of the institution be required to list his deposits for taxation under
KRS 132.020. Failure to make reports and pay taxes as provided in this section
shall subject the institution to the same penalties imposed for such failure on
the part of the other corporations.
If a financial institution included in subsection (1) of this section selects, it may
deduct taxes imposed in subsection (6) of this section from the dividends paid
or credited to a nonborrowing shareholder.
Every Agricultural Credit Association chartered by the Farm Credit
Administration being authorized to transact business in Kentucky but having no
employees located within or without the state shall be subject to the same tax
imposed pursuant to either KRS 136.300 or this section as that imposed upon
its wholly owned Production Credit Association subsidiary. For purposes of
computing Kentucky apportioned value of capital pursuant to subsection (2) of
this section, those Agricultural Credit Associations subject to the tax imposed
by this section shall utilize that Kentucky apportionment fraction computed and
utilized by its wholly owned Production Credit Association subsidiary for the
same report period.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 319, effective June 20, 2005. -Amended 2004 Ky. Acts ch. 142, sec. 6, effective April 21, 2004. -- Amended
1990 Ky. Acts ch. 262, sec. 3, effective July 13, 1990. -- Amended 1986 Ky.
Acts ch. 496, sec. 6, effective August 1, 1986. -- Amended 1966 Ky. Acts
ch. 255, sec. 132. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October
1, 1942, from Ky. Stat. sec. 876d.
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