155.170 Certification of tax credits. - Kentucky Statutes

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155.170 Certification of tax credits. (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 corporation license tax imposed by KRS 136.070, 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. Effective: June 28, 2006
History: Amended 2006 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 67, effective June 28, 2006. -- Amended 2005 Ky. Acts ch. 168, sec. 35, effective January 1, 2006. --
Created 1960 Ky. Acts ch. 73, sec. 18, effective March 21, 1960. Legislative Research Commission Note (6/28/2006). 2006 (1st Extra Sess.) Ky. Acts ch. 2, sec. 73, provides that "unless a provision of this Act specifically applies to an
earlier tax year, the provisions of this Act shall apply to taxable years beginning on or
after January 1, 2007." Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to
agencies and officers whose names have been changed in 2005 legislation confirming
the reorganization of the executive branch. Such a correction has been made in this
section.