Ky. Rev. Stat. § 136.120

Current through 2024 Ky. Acts ch.225

Section 136.120 - Public service corporation property tax - Exemptions - Classification - Assessment - Certification

(1)

(a) The following public service companies shall pay a tax on their operating property to the state, and to the extent the operating property is subject to local taxation, shall pay a local tax to the county, incorporated city, and taxing district where its operating property is located:

1. Railway companies;

2. Sleeping car companies;

3. Chair car companies;

4. Dining car companies;

5. Gas companies;

6. Water companies;

7. Bridge companies;

8. Street railway companies;

9. Interurban electric railroad companies;

10. Express companies;

11. Electric light companies;

12. Electric power companies, including wind turbine and solar generating companies;

13. Commercial air carriers;

14. Air freight carriers;

15. Pipeline companies;

16. Privately owned regulated sewer companies;

17. Railroad car line companies, which means any company, other than a railroad company, which owns, uses, furnishes, leases, rents, or operates to, from, through, in, or across this state or any part thereof, any kind of railroad car including, but not limited to, flat, tank, refrigerator, passenger, or similar type car; and

18. Every other like company or business performing any public service.

(b) The following companies shall not be subject to the provisions of paragraph (a) of this subsection:

1. Bus line companies;

2. Regular and irregular route common carrier trucking companies;

3. Taxicab companies;

4. Providers of communications service as defined in KRS 136.602;

5. Providers of multichannel video programming services as defined in KRS 136.602; and

6. A qualified air freight forwarder as defined in KRS 141.121.

(2)

(a) The property of the taxpayers shall be classified as operating property, nonoperating tangible property, and nonoperating intangible property.

(b) Nonoperating intangible property within the taxing jurisdiction of the Commonwealth shall be taxable for state purposes only at the same rate as the intangible property of other taxpayers not performing public services.

(c) Operating property and nonoperating tangible property shall be subject to state and local taxes at the same rate as the tangible property of other taxpayers not performing public services.

(3)

(a) The Department of Revenue shall:

1. Have sole power to value and assess all of the property of every corporation, company, association, partnership, or person performing any public service, including those enumerated above and all others to whom this section may apply, whether or not the operating property, nonoperating tangible property, or nonoperating intangible property has previously been assessed by the department;

2. Allocate the assessment as provided by KRS 136.170; and

3. Certify operating property subject to local taxation and nonoperating tangible property to the counties, cities, and taxing districts as provided in KRS 136.180.

(b) All of the property assessed by the department pursuant to this section shall be assessed as of December 31 each year for the following year's taxes, and the lien on the property shall attach as of the assessment date.

(c) In the case of a taxpayer whose business is predominantly nonpublic service and the public service business in which he is engaged is merely incidental to his principal business, the department shall in the exercise of its judgment and discretion determine, from evidence which it may have or obtain, what portion of the operating property is devoted to the public service business subject to assessment by the department under this section and shall require the remainder of the property not so engaged to be assessed by the local taxing authorities.

KRS 136.120

Amended by 2016 Ky. Acts ch. 93,§ 4, eff. 7/14/2016.

Amended by 2013 Ky. Acts ch. 119,§ 9, eff. 1/1/2014.

Amended by 2012 Ky. Acts ch. 101,§ 1, eff. 4/11/2012.

Amended 2006, Ky. Acts ch. 169, sec. 7, effective 1/1/2008. --Amended 2005, Ky. Acts ch. 85, sec, 301, effective 6/20/2005; and 168, sec. 120, effective 12/31/2005. -- Amended 1991 1st Extra. Sess. Acts Ch. 12, Sec. 50, effective 2/26/1991. -- Amended 1990 Ky. Acts ch. 437, sec. 5, effective 7/13/1990; and ch. 476, Pt. V, sec. 352, effective 7/13/1990. -- Amended 1982 Ky. Acts ch. 264, sec. 12, effective 1/1/1984. -- Amended 1976 Ky. Acts ch. 169, sec. 1. -- Amended 1965 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 2. --Amended 1962 Ky. Acts ch. 29, sec. 6. -- Amended 1960 Ky. Acts ch. 186, Art. II, sec. 2. -- Amended 1942 Ky. Acts ch. 80, secs. 1 and 2. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective 10/1/1942, from Ky. Stat. secs. 842a-3, 4077, 4082.