Title XI, Revenue and Taxation

The tax upon transfers of property as defined in the preceding sections of this chapter shall be at the following rates: (1) Class A. In case the transfer is to or for the benefit of a parent, surviving spouse, child by blood, stepchild, child adopted during infancy, child adopte…

(1) The following exemptions chargeable against the lowest bracket or brackets of inheritable interests shall be free from any tax under the preceding provisions of this chapter: (a) Surviving spouse, total inheritable interest. Effective as to decedents dying after August 1, 198…

(1) In calculating the value of the distributive shares the following deductions and no others shall be allowed: (a) Debts of the decedent, except debts secured by property not subject to the tax jurisdiction of Kentucky; and except debts barred by the statute of limitations; (b)…

(1) As used in this section the word "transfer" means a taxable transfer under the provisions of KRS Chapter 140. (2) Subject to the provisions of this section, any person to whom property is transferred shall be allowed a credit against the tax imposed by KRS 140.070, if the pro…

Valuation of surviving spouse's interest in trust or life estate. (1) The Department of Insurance, on the application of the Department of Revenue, shall determine, and certify in duplicate to the department, the value of any future or contingent estate, income or interest therei…

(1) In the case of estates in expectancy which are contingent or defeasible, a tax shall be levied at the rate which, on the happening of the most probable contingencies or conditions named in the will, deed, trust agreement, contract, insurance policy, or other instrument, would…

If a testator bequeaths or devises property to one (1) or more personal representatives or trustees in lieu of their commissions or allowances, or makes them his legatees to an amount exceeding the commissions or allowances prescribed by law, the excess in value of property so be…

(1) In addition to the inheritance tax hereinbefore imposed, an estate tax is hereby levied on all estates equal to the amount by which the credits for state death taxes allowable under the federal tax law exceeds the tax levied under KRS 140.010, less the discount allowed under …

(1) No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by KRS 140.130. The aggrieved taxpayer shall pay the tax under protest as and when required, and may at any time within two (2) years from the date of such payment sue th…

on actions to collect taxes. (1) The Department of Revenue shall have full supervision of the collection of all taxes due under the provisions of this chapter, including the power to institute suit in this and other states. It may employ attorneys and other persons necessary to c…

The department may make such audits, appraisals, and examinations of records according to KRS 131.130 to properly supervise the collection of all taxes due under the provisions of this chapter. A completed tax return with full payment attached shall be final one (1) year after re…

appraisers -- Records. (1) The District Court, upon the request of the personal representative or any interested party, shall appoint some competent person as appraiser of the estate. The appraiser shall give notice to all persons having an interest in the estate and to such othe…

If real property of a decedent is passed to another person so as to become subject to the tax, his personal representative or trustee shall inform the department thereof within six (6) months after his appointment, or if the fact is not known to him within that time, then within …

(1) All taxes imposed by this chapter shall be computed and paid on the fair cash value of the property transferred at the rates provided. All personal representatives, trustees, and beneficiaries shall be personally liable for the taxes until they are paid, but only to the exten…

(1) (a) For deaths prior to July 1, 2026, all taxes imposed by this chapter, unless otherwise provided in this chapter, shall be due at the death of the decedent and shall be payable to the Department of Revenue within eighteen (18) months thereafter. If they are paid within nine…

for tax -- Recovery of taxes from trust or life estate property. (1) A personal representative or trustee holding property subject to any of the taxes levied by this chapter shall not deliver the property until he has collected the tax thereon. (2) When a specific bequest of pers…

election to defer -- Liability for deferred payments. (1) When the net tax due from a beneficiary's distributive share exceeds five thousand dollars ($5,000), the beneficiary may elect to pay the inheritance tax in ten (10) equal installments. The first installment shall be due a…

(1) Where a beneficiary elects to pay the inheritance tax on the installment basis as provided in this chapter, such beneficiary may be required to post sufficient security at any time the department reasonably believes collection of the tax may be in jeopardy. (2) Failure of a b…

real property. (1) When any interest in property less than an estate in fee is devised or bequeathed to one or more beneficiaries with remainder to others, and the interest of one or more beneficiaries is subject to any of the taxes levied by this chapter, the personal representa…

domicile -- Reciprocity. (1) In the absence of administration in this state upon the estate of a nonresident, the Department of Revenue, at the request of a personal representative duly appointed and qualified in the state of the decedent's domicile, or of a grantee under a conve…

agreements with other states. (1) It is hereby declared to be the legislative policy that Kentucky shall not be a party to interstate double taxation under the terms of the Kentucky inheritance and estate tax laws. Pursuant to this policy, the commissioner of the Department of Re…

The official or agency charged with the administration of the death tax laws of the domiciliary state shall be deemed a creditor of the decedent, and may sue in the courts of this state and enforce such claims for taxes, penalties and interest due to that state or political subdi…

(1) When the Department of Revenue claims that a decedent was domiciled in Kentucky at the time of death and the taxing authorities of another state or states make a similar claim with respect to their state or states, the commissioner of the Department of Revenue may enter into …

Whenever debts are proved against the estate of a decedent after the payment of legacies or distribution of property from which the tax has been deducted or upon which it has been paid, and a refund is made by the legatee, devisee, heir or next of kin, a proportion of the tax so …

As used in KRS 140.310 to 140.360, these words shall have the following meaning: (1) "Agricultural land" means that real estate which is defined in KRS 132.010(9). (2) "Horticultural land" means that real estate which is defined in KRS 132.010(10). (3) "Agricultural or horticultu…

purposes. (1) Agricultural or horticultural land may be assessed at its agricultural or horticultural value in a decedent's estate for Kentucky inheritance tax purposes if the agricultural or horticultural land is qualified real estate and is passing to a qualified person or pers…

If, within five (5) years after the death of the decedent, a qualified person sells, conveys, or otherwise transfers the ownership, directly or indirectly, of the qualified real estate to any person or persons other than another qualified person who is a joint owner or the qualif…

assessed. In the event the qualified real estate is reported for inheritance tax purposes at its agricultural or horticultural value and that real estate has been assessed at its agricultural or horticultural value for ad valorem tax purposes, then that assessment shall be presum…

The person responsible for filing the inheritance tax return for a decedent's estate and who elects to report qualified real estate at its agricultural or horticultural value shall in addition report the fair market value of the qualified real estate.

At such time as the Department of Revenue accepts the agricultural or horticultural value on qualified real estate comprising a portion of a decedent's estate and issues tax waivers thereon, it shall cause to be filed in the office of the county clerk of the county where the real…

No gross estate shall be reduced by more than $500,000 as a result of the provisions of KRS 140.300 to 140.360.

(1) Any person charged with a duty in this chapter who fails or refuses to perform that duty shall be fined not less than five dollars ($5) nor more than one hundred dollars ($100). (2) Any person who violates KRS 140.170(3) shall be fined not less than two hundred dollars ($200)…

Any personal representative or other person who violates any of the provisions of this chapter shall be subject to the uniform civil penalties imposed pursuant to KRS 131.180.

2018. As used in this chapter, for taxable years beginning on or after January 1, 2018: (1) "Adjusted gross income," in the case of taxpayers other than corporations, means the amount calculated in KRS 141.019; (2) "Captive real estate investment trust" means a real estate invest…

(1) (a) The provisions of subsections (2) to (11) of this section shall apply to taxable years beginning before January 1, 1994. (b) The provisions of subsections (12) to (15) of this section shall apply to taxable years beginning after December 31, 1993. (c) The provisions of su…

(1) Notwithstanding any other provision of this chapter, the net operating loss carryback-carryforward deduction, including casualty loss, allowed under Section 172 of the Internal Revenue Code shall apply only to such losses incurred in taxable years beginning after December 31,…

Receipts derived from taxes assessed and collected under the provisions of this chapter shall be appropriated for general fund purposes.

Allocation of income and business deductions between husband and wife. (1) If the federal adjusted gross income of husband or wife is entered on a separate federal return, their Kentucky adjusted gross incomes may be entered on their separate Kentucky tax returns or their joint K…

indirectly subject to taxation under this chapter -- No item to be deducted more than once. (1) (a) All deductions allowed by this chapter shall be limited to amounts directly or indirectly allocable to income subject to taxation under the provisions of this chapter. (b) Any dedu…

income tax changes made by the 2005 Regular Session and 2006 First Extraordinary Session of the General Assembly -- Authority to promulgate administrative regulations to explain or implement changes. Consistent with the provisions of 2005 Ky. Acts ch. 168 and the provisions of 20…

than corporations. In the case of taxpayers other than corporations: (1) Adjusted gross income shall be calculated by subtracting from the gross income of those taxpayers the deductions allowed individuals by Section 62 of the Internal Revenue Code and adjusting as follows: (a) E…

credits -- Income of nonresidents subject to tax -- Election to pay tax imposed by KRS 141.023. (1) An annual tax shall be paid for each taxable year by every resident individual of this state upon his or her entire net income as defined in this chapter. The tax shall be determin…

(1) Notwithstanding any statutory provisions to the contrary, a deduction shall be allowed individuals against adjusted gross income in arriving at net income for "qualified artistic charitable contributions" in an amount equal to the fair market value of the property contributed…

If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of the credits shall be determined as follows: (1) The nonrefundable business incentive credits against the…

Taxability after December 31, 1997. Notwithstanding the provisions of KRS 141.010, federal retirement annuities, and local government retirement annuities paid pursuant to KRS 67A.320, 67A.340, 67A.360 to 67A.690, 79.080, 90.400, 90.410, 95.290, 95.520 to 95.620, 95.621 to 95.629…

December 31, 1997 -- Computation. (1) Notwithstanding the provisions of KRS 141.010(1), for tax years commencing on or after January 1, 1998, the amount of all previously untaxed distributions from a retirement plan paid pursuant to KRS Chapters 6, 16, 21, 61, 67A, 78, 90, 95, 96…

To facilitate tax computation and tax return preparation, the Department of Revenue may develop optional tax tables and specify the classes of taxpayers eligible to utilize the tables in the preparation of their returns.

fiduciaries. (1) The tax imposed by KRS 141.020 upon individuals shall apply to estates and trusts and to all fiduciaries. This tax shall be paid annually upon the net income of estates and of any property held in trust at the rates specified in KRS 141.020. (2) The fiduciary sha…

In the case of corporations: (1) Gross income shall be calculated by adjusting federal gross income as defined in Section 61 of the Internal Revenue Code as follows: (a) Exclude income that is exempt from state taxation by the Kentucky Constitution and the Constitution and statut…

(1) Every corporation doing business in this state, except those corporations listed in paragraphs (a) and (b) of this subsection, shall pay for each taxable year a tax to be computed by the taxpayer on taxable net income at the rates specified in this section: (a) For taxable ye…