{"data":{"id":"us-ky/krs-136.320","jurisdiction":"us-ky","citation":"KRS 136.320","heading":"Tax on taxable capital of domestic life insurance companies in lieu of other","body":"taxes -- State and local rates.\n(1) Each life insurance company incorporated under the laws of and doing business in\nKentucky shall value as of January 1 and report to the De partment of Revenue by\nApril 1 each year, on forms prescribed by the Department of Revenue, the\nfollowing:\n(a) The fair cash value of the company's intangible personal property, hereinafter\nreferred to as \"capital,\" consisting of all money in hand, shares of stock, notes,\nbonds, accounts, and other credits, exclusive of due and deferred premiums,\nwhether secured by mortgage, pledge, or otherwise, or unsecured.\n(b) The fair cash value of the company's intangible personal property exempt\nfrom taxation by law.\n(c) The aggregate amount of the company's reserves, reduced by the amount of\ndue and deferred premiums, maintained in accordance with the applicable\nprovisions of KRS 304.6 -040 and 304.6-130 to 304.6-180, on all outstanding\npolicies and contracts supplementary thereto.\n(d) Other information as may be required by the Department of Revenue to\naccurately determine the fair cash value of each company's \"taxable capital\"\nand \"taxable reserves.\"\n(2) Based on information supplied by each company and other informa tion that may be\navailable, the Department of Revenue shall value each company's \"taxable capital\"\nand \"taxable reserves\" as follows:\n(a) \"Taxable capital\" shall be determined by deducting \"taxable reserves\" from\n\"capital,\" less exempt intangible personal property.\n(b) \"Taxable reserves\" shall be determined by multiplying the aggregate amount\nof reserves as computed in subsection (1)(c) of this section by the percentage\ndetermined by dividing \"capital,\" less exempt intangible personal property, by\n\"capital,\" including exempt intangible personal property.\n(3) (a) An annual tax for state purposes shall be imposed against the fair cash value\nof \"taxable capital\" for calendar years beginning before 2000, at a rate of\nseventy cents ($0.70) on each one hundred dollars ($100).\n(b) An annual tax for state purposes shall be imposed against every company\nmaking an election pursuant to KRS 136.335 to be taxed under this section,\nagainst the fair cash value of taxable capital for calendar years beginning in\n2000 as follows:\n1. For calendar year 2000, fifty -six cents ($0.56) on each one hundred\ndollars ($100);\n2. For calendar year 2001, forty -two cents ($0.42) on each one hundred\ndollars ($100);\n3. For calendar year 2002, twenty-eight cents ($0.28) on each one hundred\ndollars ($100);\n4. For calendar year 2003, fourteen cents ($0.14) on each one hundred\ndollars ($100); and\n5. For calendar year 2004 and each calendar year thereafter, one tenth of\none cent ($0.001) on each one hundred dollars ($100).\n(c) An annual tax for state purposes shall be imposed at a rate of one -tenth of one\ncent ($0.001) on each one hundred dollars ($100) of the fair cash value of\n\"taxable reserves\".\n(d) Beginning in tax year 20 04 an insurer may offset the tax liability imposed\nunder this subsection against the tax liability imposed under subsection (4) of\nthis section.\n(4) For calendar year 2000, and each calendar year thereafter, every company subject to\nthe tax imposed by subs ection (3) of this section, and making an election pursuant\nto KRS 136.335 to be taxed under this section, shall pay the following rates of tax\nupon each one hundred dollars ($100) of premium receipts:\n(a) For calendar year 2000, thirty-eight cents ($0.38);\n(b) For calendar year 2001, seventy-two cents ($0.72);\n(c) For calendar year 2002, one dollar and two cents ($1.02);\n(d) For calendar year 2003, one dollar and twenty-eight cents ($1.28); and\n(e) For calendar year 2004 and each calendar year thereafter, one dollar and fifty\ncents ($1.50).\nEvery company subject to the tax imposed by this subsection shall, by March 1 of\neach year, return to the Department of Revenue a statement under oath of all\npremium receipts on business done in this state during the pr eceding calendar year\nor since the last return was made. \"Premium receipts\" includes single premiums,\npremiums received for original insurance, premiums received for renewal, revival,\nor reinstatement of the policies, annual and periodical premiums, divide nds applied\nfor premiums and additions, and all other premium payments received on policies\nthat have been written in this state, or on the lives of residents of this state, or out of\nthis state on business done in this state, less returned premiums. No de duction shall\nbe made for dividends on life insurance but dividends on accident and health\ninsurance policies may be deducted.\n(5) The taxes imposed under subsections (3) and (4) of this section shall be in lieu of all\nexcise, license, occupational, or oth er taxes imposed by the state, county, city, or\nother taxing district, except as provided in subsections (6) and (7) of this section.\n(6) The county in which the principal office of the company is located may impose a\ntax of fifteen cents ($0.15) on each one hundred dollars ($100) of \"taxable capital.\"\n(7) The city in which the principal office of the company is located may impose a tax of\nfifteen cents ($0.15) on each one hundred dollars ($100) of \"taxable capital.\"\n(8) The Department of Revenue shall by S eptember 1 each year bill each company for\nthe state taxes. It shall immediately certify to the county clerk of the county in\nwhich the principal office of the company is located the value of \"taxable capital\"\nsubject to local taxation. The county clerk sh all prepare and deliver a bill to the\nsheriff for collection of taxes collectible by the sheriff and shall certify the value to\nall other collecting officers of districts authorized to levy a tax.\n(9) Each company's real and tangible personal property shal l be subject to taxation at\nfair cash value by the state, county, school, and other taxing districts in which the\nproperty is located in the same manner and at the same rates as all other property of\nthe same class.\n(10) Taxes on property subject to taxation under this section shall be subject to the same\ndiscount and penalties as provided in KRS 134.015 and shall be collected in the\nsame manner as taxes on property locally assessed, except that the state tax on the\n\"taxable capital\" and \"taxable reserves\" shall be collected directly by the\nDepartment of Revenue.\n(11) Any taxpayer subject to taxation under this section may protest in the manner\nprovided in KRS 131.110.","path":["KRS Chapter 136"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28549","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:27Z","sha256":"3823b43b9931cf9d7879bffb9f6f991291980dda91eefc70168542a0fb3d4dff","source_id":"us-ky","stale":false,"prev":"us-ky/krs-136.310","next":"us-ky/krs-136.330"},"notice":"GroundRules: Original legal text. Not legal advice."}