Ky. Rev. Stat. » Chapter 136

Ky. Rev. Stat. § 136.120

Public service corporation property tax -- Exemptions -- Classification --

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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. Effective: July 15, 2016 History: Amended 2016 Ky. Acts ch. 93, sec. 4, effective July 15, 2016. -- Amended 2013 Ky. Acts ch. 119, sec. 9, effective January 1, 2014. -- Amended 2012 Ky. Acts ch. 101, sec. 1, effective April 11, 2012. -- Amended 2006 Ky. Acts ch. 169, sec. 7, effective January 1, 2008. -- Amended 2005 Ky. Acts ch. 85, sec, 301, effective June 20, 2005; and 168, sec. 120, effective December 31, 2005. -- Amended 1991 1st Extra. Sess. Acts Ch. 12, Sec. 50, effective February 26, 1991. -- Amended 1990 Ky. Acts ch. 437, sec. 5, effective July 13, 1990; and ch. 476, Pt. V, sec. 352, effective July 13, 1990. -- Amended 1982 Ky. Acts ch. 264, sec. 12, effective January 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 October 1, 1942, from Ky. Stat. secs. 842a-3, 4077, 4082. Legislative Research Commission Note (1/1/2014). 2013 Ky. Acts ch. 119, sec. 26, provides that the amendments to this statute in 2013 Ky. Acts ch. 119, sec. 9, shall apply to property assessed on or after January 1, 2014. Legislative Research Commission Note (12/31/2005). 2005 Ky. Acts ch. 168, sec. 169, provides that Section 123 of this Act, relating to unit valuation, takes effect on December 31, 2005. This reference to the effective date in Section 169 of the Act should have been to Section 120 of the Act (KRS 136.120), which relates to unit valuation, rather than to Section 123 (KRS 91.200), which relates to city license taxes. This error occurred when several sections of HB 272 were renumbered during the preparation of a House Committee Substitute and the corresponding changes to sections of the bill setting out the effective dates were not made. This change has been made by the Statute Reviser under the authority of KRS 7.136. Legislative Research Commission Note (7/14/00). 2000 Ky. Acts ch. 446 (Senate Bill 323), sec. 2, purports to amend this statute, and the General Assembly version of that bill was signed by both presiding officers and by the Governor. The Journals of the House of Representatives and Senate will reflect, however, that House Floor Amendment 1 was adopted by the House on March 27, 2000, but was not transmitted to the Senate for its concurrence when the bill was returned to that body. Thus, the bill signed did not pass both chambers of the General Assembly in the same form and did not become law. Ky. Const. secs. 46 and 88; see also Mason's Manual of Legislative Procedure sec. 737, at 508-509 (1989 ed.). Because the General Assembly's own official records establish this constitutional deficiency, the provisions of 2000 Ky. Acts ch. 446 have not been codified into the Kentucky Revised Statutes. See KRS 7.131(2). Legislative Research Commission Note. (7/13/90) The Act amending this section prevails over the repeal and reenactment in House Bill 940, Acts Ch. 476, pursuant to Section 653(1) of Acts Ch. 476.

Notes of Decisions
Cited in 21 cases (1 in the last 5 years), 1946–2022 · leading case: Revenue Cabinet v. Comcast Cablevision of the South
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Revenue Cabinet v. Comcast Cablevision of the South (2003) kyctapp · cites it 12× “The following table represents Kane’s classification of Comcast’s property to comprise the total business enterprise value (the Kane appraisal): [[Image here]] Kane concluded his direct testimony by stating that the KBTA should not accept the business enterprise value as the…”
Cooksey Bros. Disposal Co. v. Boyd County (1997) kyctapp · cites it 23× “On appeal, Cooksey again argues that KRS 136.120 is unconstitutional as applied to municipal solid waste disposal facilities that dispose of solid waste by landfill, under Sections 1, 2, 3, 61, and 171 of the Kentucky Constitution and the Fourteenth Amendment to the U.”
Central Kentucky Cellular Telephone Co. v. Commonwealth (1995) kyctapp · cites it 8× “In 1989, the appellee discovered that cellular telephone companies were not being centrally assessed for property tax as the provisions of KRS 136.120 seemed to it to mandate. Thereafter, the appellee took action to bring cellular telephone companies into compliance with its…”
City of Lebanon Junction v. Cellco Partnership (2001) kyctapp · cites it 10× “Hamilton, Verizon Wireless has paid, and continues to pay-, the tax imposed on public service companies, including cellular telephone companies, under KRS 136.120. Section 181 of the Kentucky Constitution provides that: The General Assembly may, by general laws only, provide for…”
Texas Co. v. Commonwealth (1946) kyctapphigh · cites it 3× “The county court held the franchise was not subject to taxation on the theory, as stated in briefs, that KS 4077 (now KRS 136.120) does not apply as the pipe line was used only to transport oil owned by the Company.”
Luckett v. Tennessee Gas Transmission Company (1960) kyctapphigh · cites it 2× “KRS 136.120 created a franchise tax on public service corporations, and appellee is subject to that tax.”
Dayton Power & Light Co. v. Department of Revenue, Finance & Administration Cabinet (2012) kyctapp · cites it 3× “120(2)(c) sets forth that “[o]p-erating 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.” (Emphasis added). The General Assembly has defined…”
Allphin v. Ohio River Co. (1957) kyctapp · cites it 2× “Insofar as pertinent here, it provided: “Subsection (1) of Section 136.120 of the Kentucky Revised Statutes is amended to read as follows: Thereafter the entire subsection (1) was republished, the amendment simply adding a “common carrier water transportation company” as an…”
Berea College Utilities v. City of Berea (1985) kyctapp “It is also contended by appellant that the 3% franchise fee is a de facto tax which the city is prohibited from imposing upon the utility under KRS 136.120 as incorporated in KRS 92.281.”
Milam v. Viking Energy Holdings, LLC (2012) kyctapp “The Court further notes that the Kentucky Finance & Administration Cabinet has determined that Viking is a public service company subject to public service company taxes under KRS 136.120. 33. Wherefore, this Court concludes that the petitioner is a corporation organized for the…”
Union Barge Line Corp. v. Marcum (1962) kyctapp “In that case we held that KRS 136.120 was unconstitutional to the extent it purported to impose a franchise tax upon a foreign common carrier water transportation company based upon the value of the right to navigate the Ohio River through this state.”
City of Pikeville v. United Parcel Service, Inc. (1967) kyctapp · cites it 2× “KRS 136.120, 136.170 and 136.-180 make provision for allocating and apportioning among local taxing units all assessments made by the Department of Revenue upon property (including franchises) subject to taxation by those local units.”
Show all 21 citing cases →
— Ky. Rev. Stat. § 136.120(1) — 5 cases
Revenue Cabinet v. Comcast Cablevision of the South (2003) kyctapp “The following table represents Kane’s classification of Comcast’s property to comprise the total business enterprise value (the Kane appraisal): [[Image here]] Kane concluded his direct testimony by stating that the KBTA should not accept the business enterprise value as the…”
Cooksey Bros. Disposal Co. v. Boyd County (1997) kyctapp “On appeal, Cooksey again argues that KRS 136.120 is unconstitutional as applied to municipal solid waste disposal facilities that dispose of solid waste by landfill, under Sections 1, 2, 3, 61, and 171 of the Kentucky Constitution and the Fourteenth Amendment to the U.”
Central Kentucky Cellular Telephone Co. v. Commonwealth (1995) kyctapp “In 1989, the appellee discovered that cellular telephone companies were not being centrally assessed for property tax as the provisions of KRS 136.120 seemed to it to mandate. Thereafter, the appellee took action to bring cellular telephone companies into compliance with its…”
City of Lebanon Junction v. Cellco Partnership (2001) kyctapp “Hamilton, Verizon Wireless has paid, and continues to pay-, the tax imposed on public service companies, including cellular telephone companies, under KRS 136.120. Section 181 of the Kentucky Constitution provides that: The General Assembly may, by general laws only, provide for…”
Commercial Carriers, Inc. v. Kentucky Tax Commission (1959) kyctapp
— Ky. Rev. Stat. § 136.120(2) — 2 cases
Revenue Cabinet v. Comcast Cablevision of the South (2003) kyctapp “The following table represents Kane’s classification of Comcast’s property to comprise the total business enterprise value (the Kane appraisal): [[Image here]] Kane concluded his direct testimony by stating that the KBTA should not accept the business enterprise value as the…”
Kentucky Retirement Systems v. Ronald Ashcraft (2018) ky
— Ky. Rev. Stat. § 136.120(2)(c) — 1 case
Dayton Power & Light Co. v. Department of Revenue, Finance & Administration Cabinet (2012) kyctapp “120(2)(c) sets forth that “[o]p-erating 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.” (Emphasis added). The General Assembly has defined…”
— Ky. Rev. Stat. § 136.120(3) — 2 cases
Revenue Cabinet v. Comcast Cablevision of the South (2003) kyctapp “The following table represents Kane’s classification of Comcast’s property to comprise the total business enterprise value (the Kane appraisal): [[Image here]] Kane concluded his direct testimony by stating that the KBTA should not accept the business enterprise value as the…”
Cooksey Bros. Disposal Co. v. Boyd County (1997) kyctapp “On appeal, Cooksey again argues that KRS 136.120 is unconstitutional as applied to municipal solid waste disposal facilities that dispose of solid waste by landfill, under Sections 1, 2, 3, 61, and 171 of the Kentucky Constitution and the Fourteenth Amendment to the U.”
— Ky. Rev. Stat. § 136.120(4) — 1 case
Commonwealth ex rel. Reeves v. American Barge Line Co. (1952) kyctapp
— Ky. Rev. Stat. § 136.120(l) — 1 case
City of Lebanon Junction v. Cellco Partnership (2001) kyctapp “Hamilton, Verizon Wireless has paid, and continues to pay-, the tax imposed on public service companies, including cellular telephone companies, under KRS 136.120. Section 181 of the Kentucky Constitution provides that: The General Assembly may, by general laws only, provide for…”
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