Title XI, Revenue and Taxation

(Effective July 1, 2027) (1) For purposes of the credit permitted by KRS 154.20-195, if a taxpayer is entitled to more than one (1) of the tax credits allowed against the taxes imposed by KRS 136.320, 136.330, 136.340, 136.350, 136.370, 136.390, and 304.3-270, the priority of app…

In the event any insurer dissolves or retires from this state, either voluntarily or involuntarily, during any calendar year, the dissolution or retirement shall not defeat or excuse the filing of reports and assessment and collection of taxes imposed by KRS 136.330 to 136.395, 2…

(1) All associations of underwriters authorized under KRS 304.3-040, 304.3-140, 304.28-010, 304.28-030, 304.28-040, and 304.28-050, and their representatives, shall make the same reports as are required of foreign stock insurance companies and their representatives transacting th…

(1) (a) Every domestic, foreign, or alien insurer, other than life and health insurers, which is either subject to or exempted from Kentucky premium taxes as levied pursuant to the provisions of either KRS 136.340, 136.350, 136.370, or 136.390, shall charge and collect a surcharg…

No tax shall be imposed upon or measured by the premiums paid to or received by a hospital service corporation, a medical service plan corporation, a dental service plan corporation, or a domestic mutual insurer against the risk or cost of medical and/or surgical care organized u…

Every bail bondsman doing business in this Commonwealth shall, on or before the first day of March of each year, return to the Department of Revenue a statement of all amounts paid to him or his representatives, as premiums for bail bonds written in the courts of this Commonwealt…

As used in KRS 136.500 to 136.575, unless the context requires otherwise: (1) "Billing address" means the location indicated in the books and records of the financial institution, on the first day of the taxable year or the date in the taxable year when the customer relationship …

1, 2021. Every financial institution regularly engaged in business in this Commonwealth at any time during the taxable year as determined under KRS 136.520 shall pay an annual state franchise tax for each taxable year or portion of a taxable year prior to January 1, 2021, to be m…

institutions subject to corporation income tax, limited liability entity tax, and applicable local government franchise taxes after January 1, 2021 -- Short-year returns. (1) Beginning January 1, 2021, the state bank franchise tax under KRS 136.505 shall no longer apply to financ…

(1) The franchise tax imposed by KRS 136.505 shall be at the rate of one and one-tenth percent (1.1%) of net capital as determined by KRS 136.515 after apportionment, if applicable, under KRS 136.525. (2) Each financial institution regularly engaged in business in this Commonweal…

organization -- Effect of combination of financial institutions. (1) Net capital shall be determined by adding the value determined under subsection (2) of this section for the current taxable and preceding four (4) calendar years and dividing the resulting sum by five (5). If a …

Commonwealth by financial institutions. (1) A financial institution is presumed to be regularly engaging in business in this Commonwealth if during any taxable year it obtains or solicits business with twenty (20) or more persons within this Commonwealth, or if receipts attributa…

business activity within and without the Commonwealth. (1) A financial institution whose business activity is taxable both within and without this Commonwealth shall apportion its net capital pursuant to the provisions of this section. (2) Net capital shall be apportioned to this…

(1) The receipts factor is a fraction, the numerator of which is the receipts of the financial institution in this Commonwealth during the taxable year as determined by subsection (2) of this section and the denominator of which is the receipts of the financial institution within…

(1) As used in this section: (a) "Administration" means the process of managing an account. The process includes bookkeeping, collecting the payments, corresponding with the customer, reporting to management regarding the status of the agreement and proceeding against the borrowe…

(1) The payroll factor is a fraction the numerator of which is the total amount paid in this Commonwealth during the taxable year by the financial institution for compensation and the denominator of which is the total compensation paid both within and without this Commonwealth du…

(1) On or before the March 15 following each taxable year, a return for the preceding taxable year shall be filed with the department in the form and manner prescribed by the department, together with payment of any tax due. (2) A return shall be filed by each financial instituti…

(1) As soon as practicable after each return is received, the department shall examine and audit it. If the amount of tax computed by the department is greater than the amount returned by the financial institution, the excess shall be assessed by the department within four (4) ye…

(1) Refunds or credits for overpayments of the tax imposed by KRS 136.505 shall be obtained in accordance with KRS 134.580. (2) Refund or credits for overpayments of the tax imposed by KRS 136.575 shall be obtained in accordance with KRS 134.590.

(1) Every financial institution shall keep records, receipts, invoices, and other pertinent papers in the form as the department may require. (2) Every financial institution that files the returns required under KRS 136.545 shall keep records for not less than six (6) years from …

Notwithstanding any other provisions of KRS 136.500 to 136.575, the president, vice president, secretary, treasurer, or any other person holding any equivalent corporate office of any financial institution subject to the provisions of KRS 136.500 to 136.575 shall be personally an…

delinquent financial institutions. (1) Penalties shall be assessed in accordance with KRS 131.180. (2) Any financial institution subject to the annual franchise tax imposed by KRS 136.505 that fails to file a return as required by KRS 136.545 or that fails to pay the tax as liste…

(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 insti…

The General Assembly hereby finds that the enactment of the tax and distribution system created by KRS 132.825 and 136.600 to 136.660: (1) Addresses an important state interest in providing a fair, efficient, and uniform method for taxing communications services sold in this Comm…

As used in KRS 136.600 to 136.660: (1) "Cable service" means the provision of video, audio, or other programming service to purchasers, and the purchaser interaction, if any, required for the selection or use of the video or other programming service, regardless of whether the pr…

rule. (1) An excise tax is hereby imposed on the retail purchase of multichannel video programming service provided to a person whose place of primary use is in this state, regardless of where or to whom those services are billed or paid. (2) The multichannel video programming ex…

(1) For purposes of KRS 136.600 to 136.660 the retailer shall source communications services as follows: (a) A sale of mobile telecommunications services, other than air-to-ground radiotelephone service and prepaid wireless calling service, shall be sourced to the customer's or o…

Taxes collected constitute debt to Commonwealth. (1) The tax imposed by KRS 136.604 shall be collected by every provider engaged in business in this state from the purchaser. To the extent that the provisions of KRS Chapter 279 are inconsistent with KRS 136.600 to 136.660, KRS 13…

There are excluded from the tax imposed by KRS 136.604: (1) Multichannel video programming services the purchase of which is prohibited from taxation under the Constitution or laws of the United States; (2) Multichannel video programming services purchased by any cabinet, departm…

To prevent actual multistate taxation of a multichannel video programming service subject to taxation under KRS 136.604, any provider or purchaser, upon proof that the provider or purchaser has paid a tax in another state on the same multichannel video programming service, shall …

A provider is authorized to take as a deduction from the tax due under KRS 136.604 the amount of multichannel video programming excise tax paid in a prior reporting period on any debt or account receivable arising from the sale of multichannel video programming service that has b…

To reimburse the provider for the cost of collecting and remitting the tax imposed under KRS 136.604, the provider may deduct on each return one and three-fourths percent (1.75%) of the first one thousand dollars ($1,000) of tax due and one percent (1%) of the tax due in excess o…

services and communications services -- Rates -- Collection of tax from purchaser prohibited -- Exclusion for municipal utility. (1) A tax is hereby imposed on the gross revenues received by all providers. (2) The tax rate shall be: (a) Two and four-tenths percent (2.4%) of the g…

service paid in another state. To prevent actual multistate taxation of gross revenues for the provision of multichannel video programming service or communications service subject to tax under KRS 136.616, any provider, upon proof that the provider has paid a tax in another stat…

Every provider shall file an application for a certificate of registration with the department. The application shall be in the form prescribed by the department. The application shall be signed by the owner if a natural person; in the case of an association or partnership, by a …

(1) The taxes imposed by KRS 136.604 and 136.616 are due and payable monthly and shall be remitted on or before the twentieth day of the next succeeding calendar month. (2) On or before the twentieth day of each month, every provider shall file a return for the preceding month wi…

(1) The department shall, upon written request received on or prior to the due date of the return or tax, for good cause satisfactory to the department, extend the time for filing the return or paying the taxes imposed by KRS 136.604 and 136.616 for a period not to exceed thirty …

(1) As soon as practicable after each return is received, the department shall examine it. If the amount of tax computed by the department is greater than the amount returned by the taxpayer, the excess shall be assessed by the department within four (4) years from the later of t…

In making a determination of tax liability under KRS 136.604 or 136.616, the department may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on…

Every provider shall keep records, receipts, invoices, and other pertinent papers in a form required by the department for not less than four (4) years from the making of the records unless the department in writing authorizes their destruction at an earlier date.

In every case, any tax not paid on or before the due date shall bear interest at the tax interest rate as defined in KRS 131.010(6) from the date due until the date of payment.

(1) The taxes paid under KRS 136.604 or 136.616 shall be refunded or credited in the manner provided in KRS 134.580. (2) A claim for refund or credit shall be made on a form prescribed by the department and shall contain all information required by the department. (3) No provider…

The department shall administer the provisions of KRS 136.600 to 136.660 and shall have all of the powers, rights, duties, and authority with respect to the assessment, collection, refunding, and administration of the taxes levied by this chapter, conferred generally upon the dep…

(1) Whenever it is deemed necessary to ensure compliance with KRS 136.600 to 136.660, the department may require any person required to collect the taxes imposed by KRS 136.604 or 136.616 to place security with the department. The amount of the security shall be fixed by the depa…

(1) Notwithstanding any other provision of law to the contrary, the president, vice president, secretary, treasurer, or any other person holding any equivalent corporate office of any corporation subject to the provisions of KRS 136.600 to 136.660 shall be personally and individu…

To the extent that a provider experiences a tax savings as a result of the provisions of KRS 136.600 to 136.660 in the first year of tax collections under KRS 136.600 to 136.660, the savings shall be returned proportionately to all residential and business customers of the provid…

No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by KRS 136.604 or 136.616.

Any provider subject to the tax imposed by KRS 136.604 or 136.616 that fails to file a return as required by KRS 136.620 or fails to pay the tax as listed on the return shall not maintain an action, suit, or proceeding in any court or before any agency in this state or enforce in…

Penalties shall be imposed and assessed in accordance with the provisions of KRS 131.180.

fund -- Creation and administration of funds. (1) There is established in the State Treasury a gross revenues and excise tax fund. The fund shall be held and administered by the Finance and Administration Cabinet. The cabinet shall invest money in the fund in the same manner as m…