KRS 136.320 — Tax on taxable capital of domestic life insurance companies in lieu of other taxes -- State and local rates

(1) Each life insurance company incorporated under the laws of and doing business in
Kentucky shall value as of January 1 and report to the De partment of Revenue by
April 1 each year, on forms prescribed by the Department of Revenue, the
following:
(a) The fair cash value of the company's intangible personal property, hereinafter
referred to as "capital," consisting of all money in hand, shares of stock, notes,
bonds, accounts, and other credits, exclusive of due and deferred premiums,
whether secured by mortgage, pledge, or otherwise, or unsecured.
(b) The fair cash value of the company's intangible personal property exempt
from taxation by law.
(c) The aggregate amount of the company's reserves, reduced by the amount of
due and deferred premiums, maintained in accordance with the applicable
provisions of KRS 304.6 -040 and 304.6-130 to 304.6-180, on all outstanding
policies and contracts supplementary thereto.
(d) Other information as may be required by the Department of Revenue to
accurately determine the fair cash value of each company's "taxable capital"
and "taxable reserves."
(2) Based on information supplied by each company and other informa tion that may be
available, the Department of Revenue shall value each company's "taxable capital"
and "taxable reserves" as follows:
(a) "Taxable capital" shall be determined by deducting "taxable reserves" from
"capital," less exempt intangible personal property.
(b) "Taxable reserves" shall be determined by multiplying the aggregate amount
of reserves as computed in subsection (1)(c) of this section by the percentage
determined by dividing "capital," less exempt intangible personal property, by
"capital," including exempt intangible personal property.
(3) (a) An annual tax for state purposes shall be imposed against the fair cash value
of "taxable capital" for calendar years beginning before 2000, at a rate of
seventy cents ($0.70) on each one hundred dollars ($100).
(b) An annual tax for state purposes shall be imposed against every company
making an election pursuant to KRS 136.335 to be taxed under this section,
against the fair cash value of taxable capital for calendar years beginning in
2000 as follows:
1. For calendar year 2000, fifty -six cents ($0.56) on each one hundred
dollars ($100);
2. For calendar year 2001, forty -two cents ($0.42) on each one hundred
dollars ($100);
3. For calendar year 2002, twenty-eight cents ($0.28) on each one hundred
dollars ($100);
4. For calendar year 2003, fourteen cents ($0.14) on each one hundred
dollars ($100); and
5. For calendar year 2004 and each calendar year thereafter, one tenth of
one cent ($0.001) on each one hundred dollars ($100).
(c) An annual tax for state purposes shall be imposed at a rate of one -tenth of one
cent ($0.001) on each one hundred dollars ($100) of the fair cash value of
"taxable reserves".
(d) Beginning in tax year 20 04 an insurer may offset the tax liability imposed
under this subsection against the tax liability imposed under subsection (4) of
this section.
(4) For calendar year 2000, and each calendar year thereafter, every company subject to
the tax imposed by subs ection (3) of this section, and making an election pursuant
to KRS 136.335 to be taxed under this section, shall pay the following rates of tax
upon each one hundred dollars ($100) of premium receipts:
(a) For calendar year 2000, thirty-eight cents ($0.38);
(b) For calendar year 2001, seventy-two cents ($0.72);
(c) For calendar year 2002, one dollar and two cents ($1.02);
(d) For calendar year 2003, one dollar and twenty-eight cents ($1.28); and
(e) For calendar year 2004 and each calendar year thereafter, one dollar and fifty
cents ($1.50).
Every company subject to the tax imposed by this subsection shall, by March 1 of
each year, return to the Department of Revenue a statement under oath of all
premium receipts on business done in this state during the pr eceding calendar year
or since the last return was made. "Premium receipts" includes single premiums,
premiums received for original insurance, premiums received for renewal, revival,
or reinstatement of the policies, annual and periodical premiums, divide nds applied
for premiums and additions, and all other premium payments received on policies
that have been written in this state, or on the lives of residents of this state, or out of
this state on business done in this state, less returned premiums. No de duction shall
be made for dividends on life insurance but dividends on accident and health
insurance policies may be deducted.
(5) The taxes imposed under subsections (3) and (4) of this section shall be in lieu of all
excise, license, occupational, or oth er taxes imposed by the state, county, city, or
other taxing district, except as provided in subsections (6) and (7) of this section.
(6) The county in which the principal office of the company is located may impose a
tax of fifteen cents ($0.15) on each one hundred dollars ($100) of "taxable capital."
(7) The city in which the principal office of the company is located may impose a tax of
fifteen cents ($0.15) on each one hundred dollars ($100) of "taxable capital."
(8) The Department of Revenue shall by S eptember 1 each year bill each company for
the state taxes. It shall immediately certify to the county clerk of the county in
which the principal office of the company is located the value of "taxable capital"
subject to local taxation. The county clerk sh all prepare and deliver a bill to the
sheriff for collection of taxes collectible by the sheriff and shall certify the value to
all other collecting officers of districts authorized to levy a tax.
(9) Each company's real and tangible personal property shal l be subject to taxation at
fair cash value by the state, county, school, and other taxing districts in which the
property is located in the same manner and at the same rates as all other property of
the same class.
(10) Taxes on property subject to taxation under this section shall be subject to the same
discount and penalties as provided in KRS 134.015 and shall be collected in the
same manner as taxes on property locally assessed, except that the state tax on the
"taxable capital" and "taxable reserves" shall be collected directly by the
Department of Revenue.
(11) Any taxpayer subject to taxation under this section may protest in the manner
provided in KRS 131.110.