KRS § 136.310 — KY Code / Title XI / Chapter 136 / Section 136.310
136.310 Tax on and reports from foreign savings and loan associations, savings banks, and similar institutions
Status: in_force

136.310 Tax on and reports from foreign savings and loan associations, savings

banks, and similar institutions.

(1) 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.

(2) 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.

(3) 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

which is total business receipts for the preceding calendar year.

(4) (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.

(5) The payroll factor specified in subsection (2)(b) of this section shall be determined

for the preceding calendar year under KRS 141.901 and administrative regulations

promulgated according to KRS Chapter 13A.

(6) (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.

(7) 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.

(8) (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.