Kentucky Statutes 136.525 – Apportionment of net capital for financial institutions with taxable business activity within and without the Commonwealth
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(1) A financial institution whose business activity is taxable both within and without this Commonwealth shall apportion its net 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 institution’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 KRS § 136.575 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.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 331, effective June 20, 2005. — Created
1996 Ky. Acts ch. 254, sec. 7, effective July 15, 1996.
(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 institution’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).
Terms Used In Kentucky Statutes 136.525
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Year: means calendar year. See Kentucky Statutes 446.010
(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 KRS § 136.575 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.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 331, effective June 20, 2005. — Created
1996 Ky. Acts ch. 254, sec. 7, effective July 15, 1996.