KRS § 136.575 — KY Code / Title XI / Chapter 136 / Section 136.575
136.575 Local government franchise taxes -- Filing of report of deposits -- Tax rate
Status: in_force

136.575 Local government franchise taxes -- Filing of report of deposits -- Tax rate.

(1) As used in this section:

(a) "Deposits" means all demand and time deposits, excluding deposits of the

United States government, state and political subdivisions, other financial

institutions, public libraries, educational institutions, religious institutions,

charitable institutions, and certified and officers' checks; and

(b) "Financial institution" means:

1. 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;

2. 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;

3. 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

4. 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.

(2) Counties, cities, and urban-county governments may impose a franchise tax on

financial institutions measured by the deposits in the institutions located within the

jurisdiction of the county, city, or urban-county government at a rate not to exceed

twenty-five thousandths of one percent (0.025%) of the deposits if imposed by

counties and cities and at a rate not to exceed fifty thousandths of one percent

(0.050%) of the deposits if imposed by urban-county governments. The amount and

location of deposits in the financial institutions shall be determined by the method

used for filing the summary of deposits report with the Federal Deposit Insurance

Corporation. The accounting method used to allocate deposits for completion of the

summary of deposits shall be the same as has been utilized in prior periods. Any

deviation from prior accounting methods may only be adopted with the permission

of the department.

(3) By August 15, 1997, and annually thereafter, each financial institution shall file

with the department, on a form prescribed by the department, a report of all deposits

located within this Commonwealth as of the preceding June 30, along with a copy

of the most recent summary of deposits filed with the Federal Deposit Insurance

Corporation. The department shall review the report and certify to the local

jurisdictions that have enacted the franchise tax by October 1 of each year the

amount of deposits within the jurisdiction and amount of the tax due. The local

taxing authority shall issue bills to the financial institution by December 1 and

require payment, with a two percent (2%) discount by December 31, or without

discount by January 31 of the next year.

(4) The local jurisdiction shall notify the department of the tax rate imposed upon the

enactment of the tax. The local jurisdiction shall also notify the department of any

subsequent rate changes.

(5) The tax allowed by this section shall be in lieu of all city, county, and local taxes,

except the real estate transfer tax levied in KRS Chapter 142, real property and

tangible personal property taxes levied in KRS Chapter 132, and taxes upon users of

utility services.