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136.500 Definitions for KRS 136.500 to 136.575.
As used in KRS 136.500 to 136.575, unless the context requires otherwise:
(1) "Billing address" means the location indicated in the books and records of the
financial institution, on the first day of the taxable year or the date in the taxable
year when the customer relationship began, as the address where any notice,
statement, or bill relating to a customer's account is mailed;
(2) "Borrower located in this state" means a borrower, other than a credit card
holder, that is engaged in a trade or business that maintains its commercial
domicile in this state or a borrower that is not engaged in a trade or business;
(3) "Credit card holder located in this state" means a credit card holder whose
billing address is in this state;
(4) "Department" means the Department of Revenue;
(5) "Commercial domicile" means:
(a) The location from which the trade or business is principally managed and
directed; or
(b) The state of the United States or the District of Columbia from which the
financial institution's trade or business in the United States is principally
managed and directed, if a financial institution is organized under the laws
of a foreign country, the Commonwealth of Puerto Rico, or any territory or
possession of the United States.
It shall be presumed, subject to rebuttal, that the location from which the
financial institution's trade or business is principally managed and directed is
the state of the United States or the District of Columbia to which the greatest
number of employees are regularly connected or out of which they are working,
irrespective of where the services of the employees are performed, as of the
last day of the taxable year;
(6) "Compensation" means wages, salaries, commissions, and any other form of
remuneration paid to employees for personal services that are included in the
employee's gross income under the Internal Revenue Code. In the case of
employees not subject to the Internal Revenue Code, the determination of
whether the payments would constitute gross income to the employees under
the Internal Revenue Code shall be made as though the employees were
subject to the Internal Revenue Code;
(7) "Credit card" means credit, travel, or entertainment card;
(8) "Credit card issuer's reimbursement fee" means the fee a financial institution
receives from a merchant's bank because one (1) of the persons to whom the
financial institution has issued a credit card has charged merchandise or
services to the credit card;
(9) "Employee" means, with respect to a particular financial institution, "employee"
as defined in Section 3121(d) of the Internal Revenue Code;
(10) "Financial institution" means:
(a) A national bank organized as a body corporate and existing or in the
process of organizing as a national bank association pursuant to the
provisions of the National Bank Act, 12 U.S.C. secs. 21 et seq., in effect
on December 31, 1997, exclusive of any amendments made subsequent
to that date;
(b) Any bank or trust company incorporated or organized under the laws of
any state, except a banker's bank organized under KRS 286.3-135;
(c) Any corporation organized under the provisions of 12 U.S.C. secs. 611 to
631, in effect on December 31, 1997, exclusive of any amendments made
subsequent to that date, or any corporation organized after December 31,
1997, that meets the requirements of 12 U.S.C. secs. 611 to 631, in effect
on December 31, 1997; or
(d) Any agency or branch of a foreign depository as defined in 12 U.S.C. sec.
3101, in effect on December 31, 1997, exclusive of any amendments
made subsequent to that date, or any agency or branch of a foreign
depository established after December 31, 1997, that meets the
requirements of 12 U.S.C. sec. 3101 in effect on December 31, 1997;
(11) "Gross rents" means the actual sum of money or other consideration payable
for the use or possession of property.
(a) "Gross rents" includes but is not limited to:
1.
Any amount payable for the use or possession of real property or
tangible property, whether designated as a fixed sum of money or as
a percentage of receipts, profits, or otherwise;
2.
Any amount payable as additional rent or in lieu of rent, such as
interest, taxes, insurance, repairs, or any other amount required to
be paid by the terms of a lease or other arrangement; and
3.
A proportionate part of the cost of any improvement to real property
made by or on behalf of the financial institution which reverts to the
owner or lessor upon termination of a lease or other arrangement.
The amount to be included in gross rents is the amount of
amortization or depreciation allowed in computing the taxable
income base for the taxable year. However, where a building is
erected on leased land by or on behalf of the financial institution, the
value of the land is determined by multiplying the gross rent by eight
(8) and the value of the building is determined in the same manner
as if owned by the financial institution;
(b) The following are not included in the term "gross rents":
1.
Reasonable amounts payable as separate charges for water and
electric service furnished by the lessor;
2.
Reasonable amounts payable as service charges for janitorial
services furnished by the lessor;
3.
Reasonable amounts payable for storage, if these amounts are
payable for space not designated and not under the control of the
financial institution; and
4.
That portion of any rental payment which is applicable to the space
subleased from the financial institution and not used by it;
(12) "Internal Revenue Code" means the Internal Revenue Code, Title 26 U.S.C., in
effect on December 31, 2001, exclusive of any amendments made subsequent
to that date;
(13) "Loan" means any extension of credit resulting from direct negotiations
between the financial institution and its customer, and the purchase, in whole
or in part, of the extension of credit from another. Loans include participations,
syndications, and leases treated as loans for federal income tax purposes.
Loans shall not include properties treated as loans under Section 595 of the
Internal Revenue Code, futures or forward contracts, options, notional principal
contracts such as swaps, credit card receivables, including purchased credit
card relationships, noninterest-bearing balances due from depository
institutions, cash items in the process of collection, federal funds sold,
securities purchased under agreements to resell, assets held in a trading
account, securities, interests in a real estate mortgage investment company, or
other mortgage-backed or asset-backed security, and other similar items;
(14) "Loan secured by real property" means a loan or other obligation for which fifty
percent (50%) or more of the aggregate value of the collateral used to secure
the loan or other obligation, when valued at fair market value as of the time the
original loan or obligation was incurred, was real property;
(15) "Merchant discount" means the fee or negotiated discount charged to a
merchant by the financial institution for the privilege of participating in a
program where a credit card is accepted in payment for merchandise or
services sold to the card holder;
(16) "Person" means an individual, estate, trust, partnership, corporation, limited
liability company, or any other business entity;
(17) "Principal base of operations" means:
(a) With respect to transportation property, the place from which the property
is regularly directed or controlled; and
(b) With respect to an employee:
1.
The place the employee regularly starts work and to which the
employee customarily returns in order to receive instructions from
his or her employer; or
2.
If the place referred to in subparagraph 1. of this paragraph does
not exist, the place the employee regularly communicates with
customers or other persons; or
3.
If the place referred to in subparagraph 2. of this paragraph does
not exist, the place the employee regularly performs any other
functions necessary to the exercise of the employee's trade or
profession at some other point or points;
(18) "Real property owned" and "tangible personal property owned" mean real and
tangible personal property, respectively, on which the financial institution may
claim depreciation for federal income tax purposes, or property to which the
financial institution holds legal title and on which no other person may claim
depreciation for federal income tax purposes or could claim depreciation if
subject to federal income tax. Real and tangible personal property do not
include coin, currency, or property acquired in lieu of or pursuant to a
foreclosure;
(19) "Regular place of business" means an office at which the financial institution
carries on its business in a regular and systematic manner and which is
(20)
(21)
(22)
(23)
(24)
(25)
continuously maintained, occupied, and used by employees of the financial
institution;
"State" means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United
States, or any foreign country;
"Syndication" means an extension of credit in which two (2) or more persons
fund and each person is at risk only up to a specified percentage of the total
extension of credit or up to a specified dollar amount;
"Taxable year" means calendar year 1996 and every calendar year thereafter;
"Transportation property" means vehicles and vessels capable of moving
under their own power, such as aircraft, trains, water vessels, and motor
vehicles, as well as any equipment or containers attached to the property, such
as rolling stock, barges, or trailers;
"United States obligations" means all obligations of the United States exempt
from taxation under 31 U.S.C. sec. 3124(a) or exempt under the United States
Constitution or any federal statute, including the obligations of any
instrumentality or agency of the United States that are exempt from state or
local taxation under the United States Constitution or any statute of the United
States; and
"Kentucky obligations" means all obligations of the Commonwealth of
Kentucky, its counties, municipalities, taxing districts, and school districts,
exempt from taxation under the Kentucky Revised Statutes and the
Constitution of Kentucky.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 330, effective June 20, 2005. -Amended 2002 Ky. Acts ch. 255, sec. 1, effective July 15, 2002. -- Amended
1998 Ky. Acts ch. 402, sec. 1, effective April 7, 1998. -- Created 1996 Ky. Acts
ch. 254, sec. 2, effective July 15, 1996.
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.
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