# KRS § 136.120: 136.120 Public service corporation property tax -- Exemptions -- Classification -- Assessment -- Certification

> Kentucky · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.120

## Section

- **Citation:** KRS § 136.120
- **Heading:** 136.120 Public service corporation property tax -- Exemptions -- Classification -- Assessment -- Certification
- **Jurisdiction:** Kentucky
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** KY Code / Title XI / Chapter 136 / Section 136.120

## Text

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

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.

## Nearby sections

- [KRS § 136.010 136.010 Definitions for chapter, except KRS 136.500 to 136.575](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.010.md)
- [KRS § 136.012 136.012 "Production credit association" defined](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.012.md)
- [KRS § 136.013 136.013 "Bank for cooperatives" defined](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.013.md)
- [KRS § 136.020 136.020 Assessment of property of corporations](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.020.md)
- [KRS § 136.050 136.050 Time of payment of corporation, property, and franchise taxes -- Interest -- Penalties](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.050.md)
- [KRS § 136.060 136.060 Corporation organization tax](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.060.md)
- [KRS § 136.073 136.073 Average net capital tax on open-end registered investment companies](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.073.md)
- [KRS § 136.076 136.076 Auditing of returns -- Assessment of additional tax](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.076.md)
- [KRS § 136.115 136.115 Definitions for KRS 136.120 to 136.180](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.115.md)
- [KRS § 136.120 136.120 Public service corporation property tax -- Exemptions -- Classification -- Assessment -- Certification](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.120.md)
- [KRS § 136.130 136.130 Reports of all public service corporations -- Extensions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.130.md)
- [KRS § 136.132 136.132 Report of vehicles owned or operated by public service corporations -- Vehicle assessment certified separately](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.132.md)
- [KRS § 136.140 136.140 Reports of interstate public service corporations](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.140.md)
- [KRS § 136.150 136.150 Ascertainment of facts on failure to report](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.150.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_TXI_C136_S136.120. Check the current official text before relying on it. Not legal advice.