KRS § 155.170 — KY Code / Title XII / Chapter 155 / Section 155.170
155.170 Excise tax on corporations -- Report -- Items free from taxation -- Credit for losses
Status: in_force

155.170 Excise tax on corporations -- Report -- Items free from taxation -- Credit

for losses.

(1) 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.

(2) The excise tax levied under subsection (1) of this section shall be in lieu of 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.

(3) 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.

(4) 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.

(5) 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.