2017 Kentucky Revised Statutes CHAPTER 136 - CORPORATION AND UTILITY TAXES .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)
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) 1.
The total value of deposits maintained in Kentucky less any amounts
where the amount borrowed by a member equals or exceeds the amount
deposited by that member shall be determined.
2.
The total value of deposits maintained in Kentucky shall be determined
by the same method used for filing the summary of deposits report with
the Federal Deposit Insurance Corporation;
(b) 1.
The Kentucky apportioned value of capital shall be determined by
including undivided profits, surplus, general reserves, and paid-up stock.
2.
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.
3.
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); and
(c) 1.
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.
2.
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.
3.
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
(4)
(5)
(6)
(7)
(8)
which is total business receipts for the preceding calendar year.
(a) 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,
and the denominator of which is the average balance of all outstanding loans.
(b) 1.
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).
2.
If the yearly beginning balance and ending balance results in an
inequitable factor, the average outstanding loan balance may be
computed on a monthly 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
administrative regulations promulgated according to KRS Chapter 13A.
(a) 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.
(b) 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.
(c) 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.
(a) 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.
(b) 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 24, 2015
History: Amended 2015 Ky. Acts ch. 67, sec. 6, effective June 24, 2015. -- 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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