(1) Beginning January 1, 2021, the state bank franchise tax under KRS § 136.505 shall no longer apply to financial institutions.

(2) Beginning January 1, 2021, all financial institutions shall be subject to the corporation income tax under KRS § 141.040 and the limited liability entity tax under KRS § 141.0401. Notwithstanding KRS § 141.040 and KRS § 141.0401, any financial institution operating on a fiscal year basis shall file a short-year corporation income and limited liability entity tax return and pay any tax due thereon for the period beginning January 1, 2021, through the end of the financial institution’s normal fiscal year. The department may issue guidance regarding the filing of the short-year return.
(3) Financial institutions shall be subject to all applicable local government franchise taxes imposed under KRS § 136.575.

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Terms Used In Kentucky Statutes 136.506

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
  • Year: means calendar year. See Kentucky Statutes 446.010

Effective: June 27, 2019
History: Created 2019 Ky. Acts ch. 196, sec. 8, effective June 27, 2019.

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