{"data":{"id":"us-ky/krs-136.310","jurisdiction":"us-ky","citation":"KRS 136.310","heading":"Tax on and reports from foreign savings and loan associations, savings","body":"banks, and similar institutions.\n(1) Every federally or state chartered savings and loan association, savings bank, and\nother similar institution authorized to transact bu siness in this state, with property\nand payroll within and without this state, shall, during January of each year, file\nwith the Department of Revenue a report containing information and in such form\nas the department may require.\n(2) The Department of Rev enue shall fix the fair cash value, as of January 1 of each\nyear, of the capital attributable to Kentucky in each financial institution included in\nsubsection (1) of this section. The methodology employed by the department shall\nbe a three (3) step process as follows:\n(a) 1. The total value of deposits maintained in Kentucky less any amounts\nwhere the amount borrowed by a member equals or exceeds the amount\ndeposited by that member shall be determined.\n2. The total value of deposits maintained in Kentucky s hall be determined\nby the same method used for filing the summary of deposits report with\nthe Federal Deposit Insurance Corporation;\n(b) 1. The Kentucky apportioned value of capital shall be determined by\nincluding undivided profits, surplus, general reserves, and paid-up stock.\n2. For Agricultural Credit Associations chartered by the Farm Credit\nAdministration, capital shall be computed by deducting the book value\nof the association's investment in any other wholly owned institution\nchartered by the Farm C redit Administration that is either subject to the\ntax imposed by KRS 136.300 or this section or that is exempt from state\ntaxation by federal law.\n3. The Kentucky value of capital shall be determined by a fraction, the\nnumerator of which is the receipts f actor plus the outstanding loan\nbalance factor plus the payroll factor, and the denominator of which is\nthree (3); and\n(c) 1. The values determined in steps (a) and (b) of this subsection shall be\nadded together to determine total Kentucky capital and then  reduced by\nthe influence of ownership in tax -exempt United States obligations to\ndetermine Kentucky taxable capital.\n2. The influence of tax -exempt United States obligations is to be\ndetermined from the reports of condition filed with the applicable\nsupervisory agency as follows: the average amount of tax-exempt United\nStates obligations for the calendar year, over the average amount of total\nassets for the calendar year multiplied by total Kentucky capital.\n3. The department shall immediately notify each institution of the value so\nfixed.\n(3) The receipts factor specified in subsection (2)(b) of this section is a fraction, the\nnumerator of which is all receipts derived from loans and other sources negotiated\nthrough offices or derived from customers in Ken tucky, and the denominator of\nwhich is total business receipts for the preceding calendar year.\n(4) (a) The outstanding loan balance factor specified in subsection (2)(b) of this\nsection is a fraction, the numerator of which is the average balance of\noutstanding loans negotiated from offices or made to customers in Kentucky,\nand the denominator of which is the average balance of all outstanding loans.\n(b) 1. The average outstanding  loan balance is determined by adding the\noutstanding loan balance at the beginning of the preceding calendar year\nto the outstanding loan balance at the end of the preceding calendar year\nand dividing by two (2).\n2. If the yearly beginning balance and end ing balance results in an\ninequitable factor, the average outstanding loan balance may be\ncomputed on a monthly average balance.\n(5) The payroll factor specified in subsection (2)(b) of this section shall be determined\nfor the preceding calendar year under  KRS 141.901 and administrative regulations\npromulgated according to KRS Chapter 13A.\n(6) (a) By July 1 succeeding the filing of the report as provided in subsection (1) of\nthis section, each financial institution included in subsection (1) of this section\nshall pay directly into the State Treasury a tax of one dollar ($1) for each one\nthousand dollars ($1,000) paid in on its Kentucky taxable capital as fixed in\nsubsection (2)(c) of this section.\n(b) The institution shall not be required to pay local taxes upon its capital stock,\nsurplus, undivided profits, notes, mortgages, or other credits, and the tax\nprovided by this section shall be in lieu of all taxes for state purposes on\nintangible property of the institution, nor shall any depositor of the institut ion\nbe required to list his deposits for taxation under KRS 132.020.\n(c) Failure to make reports and pay taxes as provided in this section shall subject\nthe institution to the same penalties imposed for such failure on the part of the\nother corporations.\n(7) If a financial institution included in subsection (1) of this section selects, it may\ndeduct taxes imposed in subsection (6) of this section from the dividends paid or\ncredited to a nonborrowing shareholder.\n(8) (a) Every Agricultural Credit Association  chartered by the Farm Credit\nAdministration being authorized to transact business in Kentucky but having\nno employees located within or without the state shall be subject to the same\ntax imposed pursuant to either KRS 136.300 or this section as that impos ed\nupon its wholly owned Production Credit Association subsidiary.\n(b) For purposes of computing Kentucky apportioned value of capital pursuant to\nsubsection (2) of this section, those Agricultural Credit Associations subject to\nthe tax imposed by this sec tion shall utilize that Kentucky apportionment\nfraction computed and utilized by its wholly owned Production Credit\nAssociation subsidiary for the same report period.","path":["KRS Chapter 136"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47381","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:27Z","sha256":"a4701f37ba29088d42c653ce1801502f7b5fa943aab8f6942953bf362130f264","source_id":"us-ky","stale":false,"prev":"us-ky/krs-136.300","next":"us-ky/krs-136.320"},"notice":"GroundRules: Original legal text. Not legal advice."}