{"data":{"id":"us-ky/krs-136.575","jurisdiction":"us-ky","citation":"KRS 136.575","heading":"Local government franchise taxes -- Filing of report of deposits -- Tax rate.","body":"(1) As used in this section:\n(a) \"Deposits\" means all demand and time deposits, excluding deposits of the\nUnited States government, state and political subdivisions, other financial\ninstitutions, public libraries, educational institutions, religious institutions,\ncharitable institutions, and certified and officers' checks; and\n(b) \"Financial institution\" means:\n1. A national bank organized as a body corporate and exist ing or in the\nprocess of organizing as a national bank association pursuant to the\nprovisions of the National Bank Act, 12 U.S.C. secs. 21 et seq., in effect\non December 31, 1997, exclusive of any amendments made subsequent\nto that date;\n2. Any bank or tru st company incorporated or organized under the laws of\nany state, except a banker's bank organized under KRS 286.3-135;\n3. Any corporation organized under the provisions of 12 U.S.C. secs. 611\nto 631, in effect on December 31, 1997, exclusive of any amendm ents\nmade subsequent to that date, or any corporation organized after\nDecember 31, 1997, that meets the requirements of 12 U.S.C. secs. 611\nto 631, in effect on December 31, 1997; or\n4. Any agency or branch of a foreign depository as defined in 12 U.S.C.\nsec. 3101, in effect on December 31, 1997, exclusive of any\namendments made subsequent to that date, or any agency or branch of a\nforeign depository established after December 31, 1997, that meets the\nrequirements of 12 U.S.C. sec. 3101 in effect on December 31, 1997.\n(2) Counties, cities, and urban -county governments may impose a franchise tax on\nfinancial institutions measured by the deposits in the institutions located within the\njurisdiction of the county, city, or urban -county government at a rate not t o exceed\ntwenty-five thousandths of one percent (0.025%) of the deposits if imposed by\ncounties and cities and at a rate not to exceed fifty thousandths of one percent\n(0.050%) of the deposits if imposed by urban -county governments. The amount and\nlocation of deposits in the financial institutions shall be determined by the method\nused for filing the summary of deposits report with the Federal Deposit Insurance\nCorporation. The accounting method used to allocate deposits for completion of the\nsummary of dep osits shall be the same as has been utilized in prior periods. Any\ndeviation from prior accounting methods may only be adopted with the permission\nof the department.\n(3) By August 15, 1997, and annually thereafter, each financial institution shall file\nwith the department, on a form prescribed by the department, a report of all deposits\nlocated within this Commonwealth as of the preceding June 30, along with a copy\nof the most recent summary of deposits filed with the Federal Deposit Insurance\nCorporation. The department shall review the report and certify to the local\njurisdictions that have enacted the franchise tax by October 1 of each year the\namount of deposits within the jurisdiction and amount of the tax due. The local\ntaxing authority shall issue bil ls to the financial institution by December 1 and\nrequire payment, with a two percent (2%) discount by December 31, or without\ndiscount by January 31 of the next year.\n(4) The local jurisdiction shall notify the department of the tax rate imposed upon the\nenactment of the tax. The local jurisdiction shall also notify the department of any\nsubsequent rate changes.\n(5) The tax allowed by this section shall be in lieu of all city, county, and local taxes,\nexcept the real estate transfer tax levied in KRS Chapt er 142, real property and\ntangible personal property taxes levied in KRS Chapter 132, and taxes upon users of\nutility services.","path":["KRS Chapter 136"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49394","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:28Z","sha256":"062c3595efde1352bd364082a52ee15f4761582532aa3e0c2fb4a5dc83d1a705","source_id":"us-ky","stale":false,"prev":"us-ky/krs-136.570","next":"us-ky/krs-136.600"},"notice":"GroundRules: Original legal text. Not legal advice."}