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136.120
Public service corporation property tax -- Exemptions -Classification -- Assessment -- Certification.
(1)
(a)
(b)
(2)
(a)
The following public service companies shall pay a tax on their operating
property to the state, and to the extent the operating property is subject to
local taxation, shall pay a local tax to the county, incorporated city, and
taxing district where its operating property is located:
1.
Railway companies;
2.
Sleeping car companies;
3.
Chair car companies;
4.
Dining car companies;
5.
Gas companies;
6.
Water companies;
7.
Bridge companies;
8.
Street railway companies;
9.
Interurban electric railroad companies;
10. Express companies;
11. Electric light companies;
12. Electric power companies, including wind turbine and solar
generating companies;
13. Commercial air carriers;
14. Air freight carriers;
15. Pipeline companies;
16. Privately owned regulated sewer companies;
17. Municipal solid waste disposal facilities, as defined by KRS
224.1-010(15), where solid waste is disposed by landfilling;
18. Railroad car line companies, which means any company, other than
a railroad company, which owns, uses, furnishes, leases, rents, or
operates to, from, through, in, or across this state or any part
thereof, any kind of railroad car including, but not limited to, flat,
tank, refrigerator, passenger, or similar type car; and
19. Every other like company or business performing any public service.
The following companies shall not be subject to the provisions of
paragraph (a) of this subsection:
1.
Bus line companies;
2.
Regular and irregular route common carrier trucking companies;
3.
Taxicab companies;
4.
Providers of communications service as defined in KRS 136.602;
5.
Providers of multichannel video programming services as defined in
KRS 136.602; and
6.
A qualified air freight forwarder as defined in KRS 141.121.
The property of the taxpayers shall be classified as operating property,
nonoperating tangible property, and nonoperating intangible property.
(b)
(c)
(3)
(a)
(b)
(c)
Nonoperating intangible property within the taxing jurisdiction of the
Commonwealth shall be taxable for state purposes only at the same rate
as the intangible property of other taxpayers not performing public
services.
Operating property and nonoperating tangible property shall be subject to
state and local taxes at the same rate as the tangible property of other
taxpayers not performing public services.
The Department of Revenue shall:
1.
Have sole power to value and assess all of the property of every
corporation, company, association, partnership, or person
performing any public service, including those enumerated above
and all others to whom this section may apply, whether or not the
operating property, nonoperating tangible property, or nonoperating
intangible property has previously been assessed by the
department;
2.
Allocate the assessment as provided by KRS 136.170; and
3.
Certify operating property subject to local taxation and nonoperating
tangible property to the counties, cities, and taxing districts as
provided in KRS 136.180.
All of the property assessed by the department pursuant to this section
shall be assessed as of December 31 each year for the following year's
taxes, and the lien on the property shall attach as of the assessment date.
In the case of a taxpayer whose business is predominantly nonpublic
service and the public service business in which he is engaged is merely
incidental to his principal business, the department shall in the exercise of
its judgment and discretion determine, from evidence which it may have
or obtain, what portion of the operating property is devoted to the public
service business subject to assessment by the department under this
section and shall require the remainder of the property not so engaged to
be assessed by the local taxing authorities.
Effective:January 1, 2014
History: Amended 2013 Ky. Acts ch. 119, sec. 9, effective January 1, 2014. -Amended 2012 Ky. Acts ch. 101, sec. 1, effective April 11, 2012. -- Amended
2006 Ky. Acts ch. 169, sec. 7, effective January 1, 2008. -- Amended 2005 Ky.
Acts ch. 85, sec, 301, effective June 20, 2005; and 168, sec. 120, effective
December 31, 2005. -- Amended 1991 1st Extra. Sess. Acts Ch. 12, Sec. 50,
effective February 26, 1991. -- Amended 1990 Ky. Acts ch. 437, sec. 5, effective
July 13, 1990; and ch. 476, Pt. V, sec. 352, effective July 13, 1990. -- Amended
1982 Ky. Acts ch. 264, sec. 12, effective January 1, 1984. -- Amended 1976 Ky.
Acts ch. 169, sec. 1. -- Amended 1965 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 2.
-- Amended 1962 Ky. Acts ch. 29, sec. 6. -- Amended 1960 Ky. Acts ch. 186,
Art. II, sec. 2. -- Amended 1942 Ky. Acts ch. 80, secs. 1 and 2. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs.
842a-3, 4077, 4082.
Legislative Research Commission Note (1/1/2014). 2013 Ky. Acts ch. 119, sec.
26, provides that the amendments to this statute in 2013 Ky. Acts ch. 119, sec.
9, shall apply to property assessed on or after January 1, 2014.
Legislative Research Commission Note (12/31/2005). 2005 Ky. Acts ch. 168,
sec. 169, provides that Section 123 of this Act, relating to unit valuation, takes
effect on December 31, 2005. This reference to the effective date in Section 169
of the Act should have been to Section 120 of the Act (KRS 136.120), which
relates to unit valuation, rather than to Section 123 (KRS 91.200), which relates
to city license taxes. This error occurred when several sections of HB 272 were
renumbered during the preparation of a House Committee Substitute and the
corresponding changes to sections of the bill setting out the effective dates were
not made. This change has been made by the Statute Reviser under the
authority of KRS 7.136.
Legislative Research Commission Note (7/14/00). 2000 Ky. Acts ch. 446 (Senate
Bill 323), sec. 2, purports to amend this statute, and the General Assembly
version of that bill was signed by both presiding officers and by the Governor.
The Journals of the House of Representatives and Senate will reflect, however,
that House Floor Amendment 1 was adopted by the House on March 27, 2000,
but was not transmitted to the Senate for its concurrence when the bill was
returned to that body. Thus, the bill signed did not pass both chambers of the
General Assembly in the same form and did not become law. Ky. Const. secs.
46 and 88; see also Mason's Manual of Legislative Procedure sec. 737, at
508-509 (1989 ed.). Because the General Assembly's own official records
establish this constitutional deficiency, the provisions of 2000 Ky. Acts ch. 446
have not been codified into the Kentucky Revised Statutes. See KRS 7.131(2).
Legislative Research Commission Note. (7/13/90) The Act amending this section
prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476,
pursuant to Section 653(1) of Acts Ch. 476.
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