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

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Page 1 of 1 136.575 Local government franchise taxes -- Filing of report of deposits -- Tax rate. (1) As used in this section, &quot;deposits&quot; means all demand and time deposits, excluding deposits of the United States government, state and political subdivisions, other <br>financial institutions, public libraries, educational institutions, religious institutions, <br>charitable institutions, and certified and officers' checks. (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 <br>jurisdiction of the county, city, or urban-county government at a rate not to exceed <br>twenty-five thousandths of one percent (0.025%) of the deposits if imposed by <br>counties and cities and at a rate not to exceed fifty thousandths of one percent <br>(0.050%) of the deposits if imposed by urban-county governments. The amount and <br>location of deposits in the financial institutions shall be determined by the method <br>used for filing the summary of deposits report with the Federal Deposit Insurance <br>Corporation. The accounting method used to allocate deposits for completion of the <br>summary of deposits shall be the same as has been utilized in prior periods. Any <br>deviation from prior accounting methods may only be adopted with the permission <br>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 <br>located within this Commonwealth as of the preceding June 30, along with a copy <br>of the most recent summary of deposits filed with the Federal Deposit Insurance <br>Corporation. The department shall review the report and certify to the local <br>jurisdictions that have enacted the franchise tax by October 1 of each year the <br>amount of deposits within the jurisdiction and amount of the tax due. The local <br>taxing authority shall issue bills to the financial institution by December 1 and <br>require payment, with a two percent (2%) discount by December 31, or without <br>discount by January 31 of the next year. (4) For calendar year 1996 only, each financial institution shall file with the department on or before September 15, 1996, a report of all deposits located within this <br>Commonwealth as of June 30, 1996, along with a copy of the most recent summary <br>of deposits filed with the Federal Deposit Insurance Corporation. The department <br>shall review the report after being given notice by the local jurisdiction that the tax <br>under this section was enacted during 1996, and shall certify to the local jurisdiction <br>the amount of deposits within the jurisdiction and the amount of tax due by March <br>1, 1997. The local taxing authority shall issue bills to the financial institution by <br>May 1, 1997, and require payment with a two percent (2%) discount by May 31, <br>1997, or without discount by June 30, 1997. (5) 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 <br>subsequent rate changes. Effective: June 20, 2005 <br>History: Amended 2005 Ky. Acts ch. 85, sec. 337, effective June 20, 2005. -- Created 1996 Ky. Acts ch. 254, sec. 17, effective July 15, 1996.