The Bank Franchise Tax is assessed at the
rate of 1.1 % of net capital with a minimum of $300 due per year.
Bank Franchise Tax
laws are located in Kentucky Revised
136.500 to 136.570.
Every financial institution regularly engaged in business in Kentucky at any time during the taxable year must file Bank Franchise Tax. Click
here for the definition of financial institution.
A financial institution is presumed to be regularly engaging in business in Kentucky if during any taxable year it obtains or solicits business with 20 or more persons within Kentucky, or if receipts attributable to sources in Kentucky equal or exceed $100,000.
Each financial institution engaging in business in Kentucky should complete a Kentucky Registration Application for Bank Franchise Tax, Form 73A800, which is found on page 21 of this packet (73A801-P).
The bank franchise tax is in lieu of all city, county and local taxes, except the real estate transfer tax levied in
KRS Chapter 142, real property and tangible personal property taxes levied in
KRS Chapter 132, the local franchise tax levied in
KRS 136.575 and taxes upon users of utility services.
Every financial institution regularly engaged in business in Kentucky will be subject to all state taxes except the corporation income tax levied in
KRS Chapter 141 and the corporation license tax levied in
KRS Chapter 136.