KRS 136.575 — Local government franchise taxes -- Filing of report of deposits -- Tax rate

(1) As used in this section:
(a) "Deposits" means all demand and time deposits, excluding deposits of the
United States government, state and political subdivisions, other financial
institutions, public libraries, educational institutions, religious institutions,
charitable institutions, and certified and officers' checks; and
(b) "Financial institution" means:
1. A national bank organized as a body corporate and exist ing or in the
process of organizing as a national bank association pursuant to the
provisions of the National Bank Act, 12 U.S.C. secs. 21 et seq., in effect
on December 31, 1997, exclusive of any amendments made subsequent
to that date;
2. Any bank or tru st company incorporated or organized under the laws of
any state, except a banker's bank organized under KRS 286.3-135;
3. Any corporation organized under the provisions of 12 U.S.C. secs. 611
to 631, in effect on December 31, 1997, exclusive of any amendm ents
made subsequent to that date, or any corporation organized after
December 31, 1997, that meets the requirements of 12 U.S.C. secs. 611
to 631, in effect on December 31, 1997; or
4. Any agency or branch of a foreign depository as defined in 12 U.S.C.
sec. 3101, in effect on December 31, 1997, exclusive of any
amendments made subsequent to that date, or any agency or branch of a
foreign depository established after December 31, 1997, that meets the
requirements of 12 U.S.C. sec. 3101 in effect on December 31, 1997.
(2) Counties, cities, and urban -county governments may impose a franchise tax on
financial institutions measured by the deposits in the institutions located within the
jurisdiction of the county, city, or urban -county government at a rate not t o exceed
twenty-five thousandths of one percent (0.025%) of the deposits if imposed by
counties and cities and at a rate not to exceed fifty thousandths of one percent
(0.050%) of the deposits if imposed by urban -county governments. The amount and
location of deposits in the financial institutions shall be determined by the method
used for filing the summary of deposits report with the Federal Deposit Insurance
Corporation. The accounting method used to allocate deposits for completion of the
summary of dep osits shall be the same as has been utilized in prior periods. Any
deviation from prior accounting methods may only be adopted with the permission
of the department.
(3) By August 15, 1997, and annually thereafter, each financial institution shall file
with the department, on a form prescribed by the department, a report of all deposits
located within this Commonwealth as of the preceding June 30, along with a copy
of the most recent summary of deposits filed with the Federal Deposit Insurance
Corporation. The department shall review the report and certify to the local
jurisdictions that have enacted the franchise tax by October 1 of each year the
amount of deposits within the jurisdiction and amount of the tax due. The local
taxing authority shall issue bil ls to the financial institution by December 1 and
require payment, with a two percent (2%) discount by December 31, or without
discount by January 31 of the next year.
(4) The local jurisdiction shall notify the department of the tax rate imposed upon the
enactment of the tax. The local jurisdiction shall also notify the department of any
subsequent rate changes.
(5) The tax allowed by this section shall be in lieu of all city, county, and local taxes,
except the real estate transfer tax levied in KRS Chapt er 142, real property and
tangible personal property taxes levied in KRS Chapter 132, and taxes upon users of
utility services.