Kentucky Administrative Regulations
Title 103 - FINANCE AND ADMINISTRATION CABINET - DEPARTMENT OF REVENUE
Chapter 8 - Ad Valorem Tax; State Assessment
Section 103 KAR 8:090 - Classification of property; public service corporations
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 136.010, 136.120, 136.130
NECESSITY, FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue to promulgate administrative regulations for the administration and enforcement of all tax laws of this state. KRS 136.130 requires all public service corporations performing any public service in Kentucky to report certain facts prescribed by the department annually for purposes of the ad valorem tax on public service corporations imposed by KRS 136.120. KRS 136.120(2) states that the property of all taxpayers shall be classified as operating property, nonoperating tangible property, and nonoperating intangible property. This administrative regulation specifies the classification of certain operating property commonly held by public service corporations as real estate, personalty, and manufacturing machinery.
Section 1. Classification of Public Service Company Property. The department prescribes the following classification of property to be used by public service corporations in reporting under KRS 136.120 et seq. This list is not intended to be complete and comprehends only those items of property whose proper classification has been subject to some confusion in the past.
Type of Property |
Classification |
Leasehold |
Real Estate |
Oil & Gas Wells |
Real Estate |
Transmission Pipelines (Oil, Gas & Water) |
Real Estate |
Conduits |
Real Estate |
Oil & Gas Gathering Lines |
Tangible Personal |
Electric Transmission Lines |
Tangible Personal |
Electric Distribution Lines |
Tangible Personal |
Underground Cables |
Tangible Personal |
Telephone Lines |
Tangible Personal |
Wire in Underground Conduits |
Tangible Personal |
Electric Substations/ Transformers |
Manufacturing Machinery |
Machinery & Equipment used in the Manufacture of Gas |
Manufacturing Machinery |
STATUTORY AUTHORITY: KRS 131.130