132.200 Property subject to state tax only

132.200 Property subject to state tax only.

All property subject to taxation for state purposes shall also be subject to taxation in the

county, city, school, or other taxing district in which it has a taxable situs, except the

class of property described in KRS 132.030 and the following classes of property, which

shall be subject to taxation for state purposes only:

(1) Capital stock of savings and loan associations;

(2) Machinery actually engaged in manufacturing, products in the course of

manufacture, and raw material actually on hand at the plant for the purpose of

manufacture. The printing, publication, and distribution of a newspaper or operating

a job printing plant shall be deemed to be manufacturing;

(3) (a) Commercial radio and television equipment used to receive, capture, produce,

edit, enhance, modify, process, store, convey, or transmit audio or video

content or electronic signals which are broadcast over the air to an antenna;

(b) Equipment directly used or associated with the equipment identified in

paragraph (a) of this subsection, including radio and television towers used to

transmit or facilitate the transmission of the signal broadcast, but excluding

telephone and cellular communications towers; and

(c) Equipment used to gather or transmit weather information;

(4) Unmanufactured agricultural products. They shall be exempt from taxation for state

purposes to the extent of the value, or amount, of any unpaid nonrecourse loans

thereon granted by the United States government or any agency thereof, and except

that cities and counties may each impose an ad valorem tax of not exceeding one

and one-half cents ($0.015) on each one hundred dollars ($100) of the fair cash

value of all unmanufactured tobacco and not exceeding four and one-half cents

($0.045) on each one hundred dollars ($100) of the fair cash value of all other

unmanufactured agricultural products, subject to taxation within their limits that are

not actually on hand at the plants of manufacturing concerns for the purpose of

manufacture, nor in the hands of the producer or any agent of the producer to whom

the products have been conveyed or assigned for the purpose of sale;

(5) All privately owned leasehold interest in industrial buildings, as defined under KRS

103.200, owned and financed by a tax-exempt governmental unit, or tax-exempt

statutory authority under the provisions of KRS Chapter 103, except that the rate

shall not apply to the proportion of value of the leasehold interest created through

any private financing;

(6) Tangible personal property which has been certified as a pollution control facility as

defined in KRS 224.1-300. In the case of tangible personal property certified as a

pollution control facility which is incorporated into a landfill facility, the tangible

personal property shall be presumed to remain tangible personal property for

purposes of this subsection if the tangible personal property is being used for its

intended purposes;

(7) On and after January 1, 1977, the assessed value of unmined coal shall be included

in the formula contained in KRS 132.590(9) in determining the amount of county

appropriation to the office of the property valuation administrator;

(8) Motor vehicles qualifying for permanent registration as historic motor vehicles

under the provisions of KRS 186.043. However, nothing herein shall be construed

to exempt historical motor vehicles from the usage tax imposed by KRS 138.460;

(9) All motor vehicles:

(a) Held for sale in the inventory of a licensed motor vehicle dealer, including

motor vehicle auction dealers, which are not currently titled and registered in

Kentucky and are held on an assignment pursuant to the provisions of KRS

186A.230;

(b) That are in the possession of a licensed motor vehicle dealer, including

licensed motor vehicle auction dealers, for sale, although ownership has not

been transferred to the dealer; and

licensed motor vehicle dealer, including

motor vehicle auction dealers, which are not currently titled and registered in

Kentucky and are held on an assignment pursuant to the provisions of KRS

186A.230;

(b) That are in the possession of a licensed motor vehicle dealer, including

licensed motor vehicle auction dealers, for sale, although ownership has not

been transferred to the dealer; and

(c) With a salvage title held by an insurance company;

(10) Machinery or equipment owned by a business, industry, or organization in order to

collect, source separate, compress, bale, shred, or otherwise handle waste materials

if the machinery or equipment is primarily used for recycling purposes as defined in

KRS 139.010;

(11) New farm machinery and other equipment held in the retailer's inventory for sale

under a floor plan financing arrangement by a retailer, as defined under KRS

365.800;

(12) New boats and new marine equipment held for retail sale under a floor plan

financing arrangement by a dealer registered under KRS 235.220;

(13) Aircraft not used in the business of transporting persons or property for

compensation or hire if an exemption is approved by the county, city, school, or

other taxing district in which the aircraft has its taxable situs;

(14) Federally documented vessels not used in the business of transporting persons or

property for compensation or hire or for other commercial purposes, if an

exemption is approved by the county, city, school, or other taxing district in which

the federally documented vessel has its taxable situs;

(15) Any nonferrous metal that conforms to the quality, shape, and weight specifications

set by the New York Mercantile Exchange's special contract rules for metals, and

which is located or stored in a commodity warehouse and held on warrant, or for

which a written request has been made to a commodity warehouse to place it on

warrant, according to the rules and regulations of a trading facility. In this

subsection:

(a) "Commodity warehouse" means a warehouse, shipping plant, depository, or

other facility that has been designated or approved by a trading facility as a

regular delivery point for a commodity on contracts of sale for future delivery;

and

(b) "Trading facility" means a facility that is designated by or registered with the

federal Commodity Futures Trading Commission under 7 U.S.C. secs. 1 et

seq. "Trading facility" includes the Board of Trade of the City of Chicago, the

Chicago Mercantile Exchange, and the New York Mercantile Exchange;

(16) Qualifying voluntary environmental remediation property for a period of three (3)

years following the Energy and Environment Cabinet's issuance of a No Further

Action Letter or its equivalent, pursuant to the correction of the effect of all known

releases of hazardous substances, pollutants, contaminants, petroleum, or petroleum

products located on the property consistent with a corrective action plan approved

by the Energy and Environment Cabinet pursuant to KRS 224.1-400, 224.1-405, or

224.60-135, and provided the cleanup was not financed through a public grant

program of the petroleum storage tank environmental assurance fund;

(17) Biotechnology products held in a warehouse for distribution by the manufacturer or

by an affiliate of the manufacturer. For the purposes of this section:

(a) "Biotechnology products" means those products that are applicable to the

prevention, treatment, or cure of a disease or condition of human beings and

that are produced using living organisms, materials derived from living

organisms, or cellular, subcellular, or molecular components of living

organisms. Biotechnology products does not include pharmaceutical products

which are produced from chemical compounds;

(b) "Warehouse" includes any establishment that is designed to house or store

biotechnology products, but does not include blood banks, plasma centers, or

other similar establishments;

derived from living

organisms, or cellular, subcellular, or molecular components of living

organisms. Biotechnology products does not include pharmaceutical products

which are produced from chemical compounds;

(b) "Warehouse" includes any establishment that is designed to house or store

biotechnology products, but does not include blood banks, plasma centers, or

other similar establishments;

(c) "Affiliate" means an individual, partnership, or corporation that directly or

indirectly owns or controls, or is owned or controlled by, or is under common

ownership or control with, another individual, partnership, or corporation;

(18) Recreational vehicles held for sale in a retailer's inventory;

(19) A privately owned leasehold interest in residential property described in KRS

132.195(2)(g), if an exemption is approved by the county, city, school, or other

taxing district in which the residential property is located; and

(20) Prefabricated homes held for sale in a manufacturer's or retailer's inventory.