{"data":{"id":"us-ky/krs-155.170","jurisdiction":"us-ky","citation":"KRS 155.170","heading":"Excise tax on corporations -- Report -- Items free from taxation -- Credit","body":"for losses.\n(1) An annual excise tax is hereby levied on every corporation organized under this\nchapter for the privilege of transacting business in this Commonwealth du ring the\ncalendar year, according to or measured by its entire net income, as defined herein,\nreceived or accrued from all sources during the preceding calendar year, hereinafter\nreferred to as taxable year, at the rate of four and one -half percent (4.5%) of such\nentire net income. The minimum tax assessable to any one (1) such corporation\nshall be ten dollars ($10). The liability for the tax imposed by this section shall arise\nupon the first day of each calendar year, and shall be based upon and measured b y\nthe entire net income of each such corporation for the preceding calendar year,\nincluding all income received from government securities in such year. As used in\nthis section the words \"taxable year\" mean the calendar year next preceding the\ncalendar year for which and during which the excise tax is levied.\n(2) The excise tax levied under subsection (1) of this section shall be in lieu of the taxes\nimposed by KRS 141.040 and the taxes imposed by KRS 141.0401. It is the\npurpose and intent of the General Assembly to levy taxes on corporations organized\npursuant to this chapter so that all such corporations will be taxed uniformly in a\njust and equitable manner in accordance with the provisions of the Constitution of\nthe Commonwealth of Kentucky. The intent o f this section is for the General\nAssembly to exercise the powers of classification and of taxation on property,\nfranchises, and trades conferred by Section 171 of the Constitution of the\nCommonwealth.\n(3) On or before June 1 of each year, the executive of ficer or officers of each\ncorporation shall file with the commissioner of the Department of Revenue a full\nand accurate report of all income received or accrued during the taxable year, and\nalso an accurate record of the legal deductions in the same calend ar year to the end\nthat the correct entire net income of the corporation may be determined. This report\nshall be in such form and contain such information as the commissioner of the\nDepartment of Revenue may specify. At the time of making such report by ea ch\ncorporation, the taxes levied by this section with respect to an excise tax on\ncorporations organized pursuant to this chapter shall be paid to the commissioner of\nthe Department of Revenue.\n(4) The securities, evidences of indebtedness, and shares of t he capital stock issued by\nthe corporation established under the provisions of this chapter, their transfer, and\nincome therefrom and deposits of financial institutions invested therein, shall at all\ntimes be free from taxation within the Commonwealth.\n(5) Any stockholder, member, or other holder of any securities, evidences of\nindebtedness, or shares of the capital stock of the corporation who realizes a loss\nfrom the sale, redemption, or other disposition of any securities, evidences of\nindebtedness, or s hares of the capital stock of the corporation, including any such\nloss realized on a partial or complete liquidation of the corporation, and who is not\nentitled to deduct such loss in computing any of such stockholder's, member's, or\nother holder's taxes t o the Commonwealth shall be entitled to credit against any\ntaxes subsequently becoming due to the Commonwealth from such stockholder,\nmember, or other holder, a percentage of such loss equivalent to the highest rate of\ntax assessed for the year in which th e loss occurs upon mercantile and business\ncorporations.","path":["KRS Chapter 155"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49216","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:59Z","sha256":"ecf2e1d290c98ca98ffb097c15b644c318c208b98125338cc9900777c6ac2275","source_id":"us-ky","stale":false,"prev":"us-ky/krs-155.160","next":"us-ky/krs-155.180"},"notice":"GroundRules: Original legal text. Not legal advice."}