AN ACT relating to the farm implements and farm machinery ad valorem tax exemption.

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AN ACT relating to the farm implements and farm machinery ad valorem tax 1
exemption. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
Section 1. KRS 132.096 is amended to read as follows: 4
The following classes of property shall be exempt from state and local ad valorem taxes, 5
including the county, city, school, and other taxing district in which it has a taxable situs: 6
(1) Farm implements and farm machinery [owned by or leased to a person a ctually 7
]engaged in farming [and used in his or her farm ]operations; 8
(2) Livestock, ratite birds, and domestic fowl; 9
(3) Tangible personal property located in a foreign trade zone established pursuant to 10
19 U.S.C. secs. 81a to 81u, provided that the zone is activated in accordance with 11
the regulations of[ the] United States Customs and Border Protection[Service] and 12
the Foreign Trade Zones Board; 13
(4) Property that is certified as an alcohol production facility as defined in KRS 14
247.910; 15
(5) Property that is certified as a fluidized bed energy production facility as defined in 16
KRS 211.390; 17
(6) Computer software, except prewrit ten computer software as defined in KRS 18
139.010; 19
(7) Trucks, tractors, and buses used on routes or in systems that are partly within and 20
partly outside this state, and that are subject to the fee imposed by KRS 136.188; 21
(8) Semitrailers and trailers, as de fined in KRS 189.010, if the semitrailers or trailers 22
are used on a route or in a system that is partly within and partly outside this state. 23
Semitrailers or trailers required to be registered under KRS 186.655 that are used 24
only in this state shall be subject to the ad valorem tax imposed by KRS 132.487; 25
(9) All intangible personal property, except intangible personal property assessed under 26
KRS 132.030 or KRS Chapter 136. Nothing in this subsection shall prohibit local 27
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taxation of franchises of: 1
(a) Corporations; 2
(b) Financial institutions as provided in KRS 136.575; or 3
(c) Domestic life insurance companies; 4
(10) All real and personal property owned by another state or a political subdivision of 5
another state that is used exclusively for public purposes, i f a comparable 6
exemption is provided in that state or political subdivision for property owned by 7
the Commonwealth of Kentucky or its political subdivisions; 8
(11) Every fraternal benefit society organized or licensed under Subtitle 29 of KRS 9
Chapter 304 th at is a charitable and benevolent institution, and its funds shall be 10
exempt from all state, county, district, city, and school taxes, other than taxes on 11
real property and office equipment; and 12
(12) (a) Any bridge built by an adjoining state, by the gover nment of the United 13
States, or by any commission created by an Act of Congress, over a boundary 14
line stream between this state and an adjoining state, which is: 15
1. Not operated for profit and, if it connects with a primary highway of this 16
state, is declared to be public property used for public purposes; and 17
2. Exempt from taxation unless the adjoining state, or other public body 18
constructing the bridge, taxes similar bridges built by this 19
Commonwealth in like manner. 20
(b) The issuance of bonds for the purpo se of amortizing the cost of construction 21
of the bridges, as described in paragraph (a) of this subsection, shall not affect 22
the tax exemption granted. 23