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155.170 Certification of tax credits.
(1)
(2)
(3)
(4)
(5)
An annual excise tax is hereby levied on every corporation organized under
this chapter for the privilege of transacting business in this Commonwealth
during the calendar year, according to or measured by its entire net income, as
defined herein, received or accrued from all sources during the preceding
calendar year, hereinafter referred to as taxable year, at the rate of four and
one-half percent (4.5%) of such entire net income. The minimum tax
assessable to any one (1) such corporation shall be ten dollars ($10). The
liability for the tax imposed by this section shall arise upon the first day of each
calendar year, and shall be based upon and measured by the entire net
income of each such corporation for the preceding calendar year, including all
income received from government securities in such year. As used in this
section the words "taxable year" mean the calendar year next preceding the
calendar year for which and during which the excise tax is levied.
The excise tax levied under subsection (1) of this section shall be in lieu of the
corporation license tax imposed by KRS 136.070, the taxes imposed by KRS
141.040, and the taxes imposed by KRS 141.0401. It is the purpose and intent
of the General Assembly to levy taxes on corporations organized pursuant to
this chapter so that all such corporations will be taxed uniformly in a just and
equitable manner in accordance with the provisions of the Constitution of the
Commonwealth of Kentucky. The intent of this section is for the General
Assembly to exercise the powers of classification and of taxation on property,
franchises, and trades conferred by Section 171 of the Constitution of the
Commonwealth.
On or before June 1 of each year, the executive officer or officers of each
corporation shall file with the commissioner of the Department of Revenue a full
and accurate report of all income received or accrued during the taxable year,
and also an accurate record of the legal deductions in the same calendar year
to the end that the correct entire net income of the corporation may be
determined. This report shall be in such form and contain such information as
the commissioner of the Department of Revenue may specify. At the time of
making such report by each corporation, the taxes levied by this section with
respect to an excise tax on corporations organized pursuant to this chapter
shall be paid to the commissioner of the Department of Revenue.
The securities, evidences of indebtedness, and shares of the capital stock
issued by the corporation established under the provisions of this chapter, their
transfer, and income therefrom and deposits of financial institutions invested
therein, shall at all times be free from taxation within the Commonwealth.
Any stockholder, member, or other holder of any securities, evidences of
indebtedness, or shares of the capital stock of the corporation who realizes a
loss from the sale, redemption, or other disposition of any securities, evidences
of indebtedness, or shares of the capital stock of the corporation, including any
such loss realized on a partial or complete liquidation of the corporation, and
who is not entitled to deduct such loss in computing any of such stockholder's,
member's, or other holder's taxes to the Commonwealth shall be entitled to
credit against any taxes subsequently becoming due to the Commonwealth
from such stockholder, member, or other holder, a percentage of such loss
equivalent to the highest rate of tax assessed for the year in which the loss
occurs upon mercantile and business corporations.
Effective:June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 67, effective June
28, 2006. -- Amended 2005 Ky. Acts ch. 168, sec. 35, effective January 1, 2006.
-- Created 1960 Ky. Acts ch. 73, sec. 18, effective March 21, 1960.
Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky.
Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically
applies to an earlier tax year, the provisions of this Act shall apply to taxable
years beginning on or after January 1, 2007."
Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85,
95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory
references to agencies and officers whose names have been changed in 2005
legislation confirming the reorganization of the executive branch. Such a
correction has been made in this section.
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