136.310 Tax on and reports from foreign savings and loan associations, savings banks and similar institutions. - Kentucky Statutes

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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) The total value of deposits maintained in Kentucky less any amounts where the amount borrowed equals or exceeds the amount paid in by those members. (b) The Kentucky apportioned value of capital shall include undivided profits, surplus, general reserves, and paid-up stock. 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. 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). (c) 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. 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. 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) 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. The denominator is the
average balance of all outstanding loans. 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). However, 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 the provisions of KRS 141.120(8)(b) and
regulations promulgated thereunder. (6) 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. 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. 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) 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. 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 20, 2005
History: 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.