{"data":{"id":"us-ky/krs-136.500","jurisdiction":"us-ky","citation":"KRS 136.500","heading":"Definitions for KRS 136.500 to 136.575.","body":"As used in KRS 136.500 to 136.575, unless the context requires otherwise:\n(1) \"Billing address\" means the location indicated in the books and records of the\nfinancial institution, on the first day of the taxable year or the date in the taxable\nyear when th e customer relationship began, as the address where any notice,\nstatement, or bill relating to a customer's account is mailed;\n(2) \"Borrower located in this state\" means a borrower, other than a credit card holder,\nthat is engaged in a trade or business th at maintains its commercial domicile in this\nstate or a borrower that is not engaged in a trade or business;\n(3) \"Credit card holder located in this state\" means a credit card holder whose billing\naddress is in this state;\n(4) \"Department\" means the Department of Revenue;\n(5) \"Commercial domicile\" means:\n(a) The location from which the trade or business is principally managed and\ndirected; or\n(b) The state of the United States or the District of Columbia from which the\nfinancial institution's trade or busin ess in the United States is principally\nmanaged and directed, if a financial institution is organized under the laws of\na foreign country, the Commonwealth of Puerto Rico, or any territory or\npossession of the United States.\nIt shall be presumed, subject to rebuttal, that the location from which the financial\ninstitution's trade or business is principally managed and directed is the state of the\nUnited States or the District of Columbia to which the greatest number of\nemployees are regularly connected or out of which they are working, irrespective of\nwhere the services of the employees are performed, as of the last day of the taxable\nyear;\n(6) \"Compensation\" means wages, salaries, commissions, and any other form of\nremuneration paid to employees for persona l services that are included in the\nemployee's gross income under the Internal Revenue Code. In the case of employees\nnot subject to the Internal Revenue Code, the determination of whether the\npayments would constitute gross income to the employees under t he Internal\nRevenue Code shall be made as though the employees were subject to the Internal\nRevenue Code;\n(7) \"Credit card\" means credit, travel, or entertainment card;\n(8) \"Credit card issuer's reimbursement fee\" means the fee a financial institution\nreceives from a merchant's bank because one (1) of the persons to whom the\nfinancial institution has issued a credit card has charged merchandise or services to\nthe credit card;\n(9) \"Employee\" means, with respect to a particular financial institution, \"employe e\" as\ndefined in Section 3121(d) of the Internal Revenue Code;\n(10) \"Financial institution\" means:\n(a) A national bank organized as a body corporate and existing or in the process\nof organizing as a national bank association pursuant to the provisions of the\nNational Bank Act, 12 U.S.C. secs. 21 et seq., in effect on December 31,\n1997, exclusive of any amendments made subsequent to that date;\n(b) Any bank or trust company incorporated or organized under the laws of any\nstate, except a banker's bank organized under KRS 286.3-135;\n(c) Any corporation organized under the provisions of 12 U.S.C. secs. 611 to 631,\nin effect on December 31, 1997, exclusive of any amendments made\nsubsequent to that date, or any corporation organized after December 31,\n1997, that meets the requirements of 12 U.S.C. secs. 611 to 631, in effect on\nDecember 31, 1997; or\n(d) Any agency o r branch of a foreign depository as defined in 12 U.S.C. sec.\n3101, in effect on December 31, 1997, exclusive of any amendments made\nsubsequent to that date, or any agency or branch of a foreign depository\nestablished after December 31, 1997, that meets the requirements of 12 U.S.C.\nsec. 3101 in effect on December 31, 1997;\n(11) \"Gross rents\" means the actual sum of money or other consideration payable for the\nuse or possession of property.\n(a) \"Gross rents\" includes but is not limited to:\n1. Any amount pay able for the use or possession of real property or\ntangible property, whether designated as a fixed sum of money or as a\npercentage of receipts, profits, or otherwise;\n2. Any amount payable as additional rent or in lieu of rent, such as interest,\ntaxes, insurance, repairs, or any other amount required to be paid by the\nterms of a lease or other arrangement; and\n3. A proportionate part of the cost of any improvement to real property\nmade by or on behalf of the financial institution which reverts to the\nowner or lessor upon termination of a lease or other arrangement. The\namount to be included in gross rents is the amount of amortization or\ndepreciation allowed in computing the taxable income base for the\ntaxable year. However, where a building is erected on l eased land by or\non behalf of the financial institution, the value of the land is determined\nby multiplying the gross rent by eight (8) and the value of the building is\ndetermined in the same manner as if owned by the financial institution;\n(b) The following are not included in the term \"gross rents\":\n1. Reasonable amounts payable as separate charges for water and electric\nservice furnished by the lessor;\n2. Reasonable amounts payable as service charges for janitorial services\nfurnished by the lessor;\n3. Reasonable amounts payable for storage, if these amounts are payable\nfor space not designated and not under the control of the financial\ninstitution; and\n4. That portion of any rental payment which is applicable to the space\nsubleased from the financial institution and not used by it;\n(12) \"Internal Revenue Code\" means the Internal Revenue Code, Title 26 U.S.C., in\neffect on December 31, 2001, exclusive of any amendments made subsequent to\nthat date;\n(13) \"Loan\" means any extension of credit resulting from direct negotiations between the\nfinancial institution and its customer, and the purchase, in whole or in part, of the\nextension of credit from another. Loans include participations, syndications, and\nleases treated as loans for federal income tax purposes. L oans shall not include\nproperties treated as loans under Section 595 of the Internal Revenue Code, futures\nor forward contracts, options, notional principal contracts such as swaps, credit card\nreceivables, including purchased credit card relationships, no ninterest-bearing\nbalances due from depository institutions, cash items in the process of collection,\nfederal funds sold, securities purchased under agreements to resell, assets held in a\ntrading account, securities, interests in a real estate mortgage inv estment company,\nor other mortgage-backed or asset-backed security, and other similar items;\n(14) \"Loan secured by real property\" means a loan or other obligation for which fifty\npercent (50%) or more of the aggregate value of the collateral used to secure  the\nloan or other obligation, when valued at fair market value as of the time the original\nloan or obligation was incurred, was real property;\n(15) \"Merchant discount\" means the fee or negotiated discount charged to a merchant by\nthe financial institution for the privilege of participating in a program where a credit\ncard is accepted in payment for merchandise or services sold to the card holder;\n(16) \"Person\" means an individual, estate, trust, partnership, corporation, limited liability\ncompany, or any other business entity;\n(17) \"Principal base of operations\" means:\n(a) With respect to transportation property, the place from which the property is\nregularly directed or controlled; and\n(b) With respect to an employee:\n1. The place the employee regularly starts work and to which the employee\ncustomarily returns in order to receive instructions from his or her\nemployer; or\n2. If the place referred to in subparagraph 1. of this paragraph does not\nexist, the place the employee regularly communicates with custom ers or\nother persons; or\n3. If the place referred to in subparagraph 2. of this paragraph does not\nexist, the place the employee regularly performs any other functions\nnecessary to the exercise of the employee's trade or profession at some\nother point or points;\n(18) \"Real property owned\" and \"tangible personal property owned\" mean real and\ntangible personal property, respectively, on which the financial institution may\nclaim depreciation for federal income tax purposes, or property to which the\nfinancial i nstitution holds legal title and on which no other person may claim\ndepreciation for federal income tax purposes or could claim depreciation if subject\nto federal income tax. Real and tangible personal property do not include coin,\ncurrency, or property acquired in lieu of or pursuant to a foreclosure;\n(19) \"Regular place of business\" means an office at which the financial institution carries\non its business in a regular and systematic manner and which is continuously\nmaintained, occupied, and used by employees of the financial institution;\n(20) \"State\" means a state of the United States, the Dis trict of Columbia, the\nCommonwealth of Puerto Rico, any territory or possession of the United States, or\nany foreign country;\n(21) \"Syndication\" means an extension of credit in which two (2) or more persons fund\nand each person is at risk only up to a spec ified percentage of the total extension of\ncredit or up to a specified dollar amount;\n(22) (a) \"Taxable year\" means calendar year 1996 through calendar year 2020 for\npurposes of the state bank franchise tax under KRS 136.505; and\n(b) \"Taxable year\" means c alendar year 1996 and every calendar year thereafter\nfor purposes of the local government franchise tax under KRS 136.575;\n(23) \"Transportation property\" means vehicles and vessels capable of moving under their\nown power, such as aircraft, trains, water vessels, and motor vehicles, as well as any\nequipment or containers attached to the property, such as rolling stock, barges, or\ntrailers;\n(24) \"United States obligations\" means all obligations of the United States exempt from\ntaxation under 31 U.S.C. sec. 31 24(a) or exempt under the United States\nConstitution or any federal statute, including the obligations of any instrumentality\nor agency of the United States that are exempt from state or local taxation under the\nUnited States Constitution or any statute of the United States; and\n(25) \"Kentucky obligations\" means all obligations of the Commonwealth of Kentucky,\nits counties, municipalities, taxing districts, and school districts, exempt from\ntaxation under the Kentucky Revised Statutes and the Constitution of Kentucky.","path":["KRS Chapter 136"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49392","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:27Z","sha256":"baaa6e4b7cb90a0e2c5df2527798586fa97429fb698ace64f098f3340e5e940e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-136.410","next":"us-ky/krs-136.505"},"notice":"GroundRules: Original legal text. Not legal advice."}