KRS 136.525 — Apportionment of net capital for financial institutions with taxable business activity within and without the Commonwealth

(1) A financial institution whose business activity is taxable both within and without
this Commonwealth shall apportion its ne t capital pursuant to the provisions of this
section.
(2) Net capital shall be apportioned to this Commonwealth by multiplying total net
capital by the apportionment percentage. The apportionment percentage is
determined by adding together the financial in stitution's receipts factor as
determined under the provisions of KRS 136.530, property factor as determined
under the provisions of KRS 136.535, and payroll factor as determined under the
provisions of KRS 136.540 and dividing the sum by three (3). If one (1) of the
factors is missing, the two (2) remaining factors are added and the sum is divided by
two (2). If two (2) of the factors are missing, the remaining factor is the
apportionment percentage. A factor is missing if both its numerator and
denominator are zero (0), but it is not missing merely because the numerator is zero
(0).
(3) Each factor shall be calculated by the method of accounting used by the financial
institution for the taxable year.
(4) If the apportionment provisions of KRS 136.500 to 13 6.575 do not fairly represent
the extent of the financial institution's business activity in this Commonwealth, the
financial institution may petition for or the department may require, in respect to all
or any part of the financial institution's business activity, if reasonable:
(a) Separate accounting;
(b) The exclusion of any one (1) or more of the factors;
(c) The inclusion of one (1) or more additional factors which will fairly represent
the financial institution's business activity in this Commonwealth; or
(d) The employment of any other method to effectuate an equitable apportionment
of the financial institution's net capital.