(A) Pursuant to the provisions of KRS Chapter 136, an annual franchise tax is hereby levied on financial institutions, said tax to be measured by the deposits in the institutions located within the city and fixed at the rate of 0.025% of deposits as reflected by the financial institutions' report of deposits submitted to the Kentucky Revenue Cabinet and certified by the Cabinet to the city. Each such financial institution shall pay the tax to the city each year as hereinafter provided.
(B) The words used in this section shall have the same meanings as provided in KRS Chapter 136, including, without limitation, the following:
DEPOSITS. All demand and time deposits, excluding deposits of the United States Government, state and political subdivision, other financial institutions, public libraries, education institutions, religious institutions, charitable institutions, and certified and offices' checks.
FINANCIAL INSTITUTION.
(1) A national bank organized and existing as a national bank association pursuant to the provisions of the National Bank Act, 12 U.S.C. sec. 21 et seq., in effect on December 31, 1995, exclusive of any amendments made subsequent to that date, or a national bank organized after December 31, 1995, that meets the requirements of the National Bank Act in effect on December 31, 1995;
(2) Any bank or trust company incorporated or organized under the laws of any state, except a banker's bank organized under KRS 286.3-135;
(3) Any corporation organized under the provisions of 12 U.S.C. sec. 611 to 631, in effect on December 31, exclusive of any amendments made subsequent to that date, or any corporation organized after December 31, 1995, that meets the requirements of 12 U.S.C. sec. 611 to 631, in effect on December 31, 1995; or
(4) Any agency or branch of a foreign depository as defined in 12 U.S.C. sec. 3101, in effect on December 31, 1995, exclusive of any amendments made subsequent to that date, or any agency or branch of a foreign depository established after December 31, 1995, that meets the requirements of 12 U.S.C. sec. 3101 in effect on December 31, 1995.
TAX and TAXES. Includes interest for any late payment accrued at the rate provided by KRS 131.010(6).
(C) The amount and location of deposits in said financial institutions shall be determined by the method used by the financial institution for filing the summary of its reports with the Federal Deposit Insurance Corporation. The accounting method used to allocate deposits for completion of the summary of deposits shall be the same as has been utilized in prior periods. Any deviation from prior accounting methods may only be adopted with the permission of the Kentucky Revenue Cabinet.
(D) For the calendar year 1996, the city shall issue bills to the financial institution by May 1, 1997, and payment of the taxes shall be made by the institution with a 2% discount by May 31, 1997, or without discount by June 30, 1997. For calendar years 1997 and thereafter, the city shall issue bills to the financial institution by December 1 of each calendar year, and payment of the taxes shall be made, with a 2% discount by December 31 of each calendar year, or without discount by January 31 of the next calendar year.
(E) Pursuant to KRS Chapter 136, the president, vice- president, secretary, treasurer, or any other person holding any equivalent corporate office of any financial institution subject to this section shall be personally and individually liable jointly and severally, for the taxes under this section in the event that the financial institution is unable to make payment. Neither the corporate dissolution or withdrawal of the financial institution from the Commonwealth nor the cessation of holding any corporate office shall discharge the liability imposed by this section. The personal and individual liability shall apply to each and every person holding a corporate office at the time the taxes become or became due. No person will be personally and individually liable pursuant to this section if that person did not have authority in the management of the business or financial affairs of the financial institution at the time the taxes imposed by this section become or became due.
(F) The proceeds of such taxes and interest are to be placed in the General Fund of the city and are to be used for the general operation expenses of the city, including, but not limited to, purchase of city supplies, safety and security, health and sanitation, recreation and welfare, improvements and maintenance of streets, garbage collection, street lights and expenses thereof, and other improvements of the city, and all other necessary and proper municipal functions as may be properly ordained and resolved by the City Council.
(Ord. 328-1996, passed 8-19-96)