FRANKFORT, Ky. (December 4, 2020) Effective January 1, 2021, savings and loan associations previously filing a Domestic Savings and Loan Tax Return or a Foreign Savings and Loan Tax Return must now file annually a Bank Deposits Tax Return, Form 62A850, and a Financial Institutions Local Deposits Summary Report, Form 62A863.
In 2019, the Kentucky General Assembly enacted HB 458, which made the savings and loan tax imposed in KRS 136.300 inapplicable to every federally or state charted savings and loan association, savings bank, and other similar institution operating solely in Kentucky. In its place, beginning January 1, 2021, savings and loan associations will be taxed similarly to other Kentucky financial institutions per KRS 136.291.
KRS 132.030 and KRS 132.040 require every financial institution defined in KRS 136.500 to file a return stating the total amount of its deposits on hand as of January 1st and pay the required tax equal to one thousandth of one percent (0.001%) to the state. These deposits must be reported on Form 62A850, and the form must be filed on or before March 1.
KRS 136.575 requires every financial institution defined in KRS 136.500 to file a report of all deposits located within Kentucky as of June 30. These deposits must be reported on Form 62A863, and the form must be filed on or before August 15.