KRS 136.120 — Public service corporation property tax -- Exemptions -- Classification -- Assessment -- Certification

(1) (a) The following public service companies shall pay a tax on their operating
property to the state, and to the extent the operating property is subject to local
taxation, shall pay a local tax to the county, incorporated city, and taxing
district where its operating property is located:
1. Railway companies;
2. Sleeping car companies;
3. Chair car companies;
4. Dining car companies;
5. Gas companies;
6. Water companies;
7. Bridge companies;
8. Street railway companies;
9. Interurban electric railroad companies;
10. Express companies;
11. Electric light companies;
12. Electric power companies, including wind turbine and solar gener ating
companies;
13. Commercial air carriers;
14. Air freight carriers;
15. Pipeline companies;
16. Privately owned regulated sewer companies;
17. Railroad car line companies, which means any company, other than a
railroad company, which owns, uses, furnishes, leases, rents, or operates
to, from, through, in, or across this state or any part thereof, any kind of
railroad car including, but not limited to, flat, tank, refrigerator,
passenger, or similar type car; and
18. Every other like company or business performing any public service.
(b) The following companies shall not be subject to the provisions of paragraph
(a) of this subsection:
1. Bus line companies;
2. Regular and irregular route common carrier trucking companies;
3. Taxicab companies;
4. Providers of communications service as defined in KRS 136.602;
5. Providers of multichannel video programming services as defined in
KRS 136.602; and
6. A qualified air freight forwarder as defined in KRS 141.121.
(2) (a) The property of the taxpayers shall be cl assified as operating property,
nonoperating tangible property, and nonoperating intangible property.
(b) Nonoperating intangible property within the taxing jurisdiction of the
Commonwealth shall be taxable for state purposes only at the same rate as the
intangible property of other taxpayers not performing public services.
(c) Operating property and nonoperating tangible property shall be subject to state
and local taxes at the same rate as the tangible property of other taxpayers not
performing public services.
(3) (a) The Department of Revenue shall:
1. Have sole power to value and assess all of the property of every
corporation, company, association, partnership, or person performing
any public service, including those enumerated above and all others to
whom this section may apply, whether or not the operating property,
nonoperating tangible property, or nonoperating intangible property has
previously been assessed by the department;
2. Allocate the assessment as provided by KRS 136.170; and
3. Certify op erating property subject to local taxation and nonoperating
tangible property to the counties, cities, and taxing districts as provided
in KRS 136.180.
(b) All of the property assessed by the department pursuant to this section shall be
assessed as of Dece mber 31 each year for the following year's taxes, and the
lien on the property shall attach as of the assessment date.
(c) In the case of a taxpayer whose business is predominantly nonpublic service
and the public service business in which he is engaged is merely incidental to
his principal business, the department shall in the exercise of its judgment and
discretion determine, from evidence which it may have or obtain, what portion
of the operating property is devoted to the public service business subject to
assessment by the department under this section and shall require the
remainder of the property not so engaged to be assessed by the local taxing
authorities.