Title 103 | Chapter 008 | Regulation 090
PREVIOUS VERSION
The previous document that this document is based upon is available.
103 KAR 8:090.Classification of property; public service corporations.
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 |
HISTORY: (FN-2; 1 Ky.R. 1008; eff. 6-11-75; Am. 8 Ky.R. 68; eff. 9-2-81; 48 Ky.R. 465; 1584; eff. 3-1-2022.)
APPROVED BY AGENCY: October 15, 2021
FILED WITH LRC: October 15, 2021 at 11:44 a.m.
CONTACT PERSON: Gary Morris, Executive Director, Office of Tax Policy and Regulation, Department of Revenue, 501 High Street, Station 1, Frankfort, Kentucky 40601, phone (502) 564-0424, fax (502) 564-3875, email Gary.Morris@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Gary Morris
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation amends 103 KAR 8:090 to provide updated classifications of certain commonly held properties of public service corporations (PSC’s) pursuant to KRS 136.130(1).
(b) The necessity of this administrative regulation:
To comply with statutory requirements; add new utility technology; and remove outdated guidance.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
The proposed regulatory language conforms with KRS 13A, KRS 131.130, KRS 132.020, KRS 132.200, KRS 136.010, and KRS 136.130.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation outlines the administrative process for the classification of property owned by PSC’s and provides them with a list of assets and classifications as guidance, creating uniformity in how they classify their property for tax purposes.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment updates the regulation to be in compliance with KRS Chapter 13A.
(b) The necessity of the amendment to this administrative regulation:
see 1(b)
(c) How the amendment conforms to the content of the authorizing statutes:
see 1(c)
(d) How the amendment will assist in the effective administration of the statutes:
see 1(d)
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
Approximately 251 public service corporations across the Commonwealth will be able to utilize the guidance contained herein.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
None that the Department of Revenue is aware of other than updating their reporting pursuant to KRS 136.120.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There are no costs known to the Department.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
They will have a greater understanding of the requirements for filing, and experience more efficient and timely tax filings with the Department of Revenue.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Current department staff and resources will be used to absorb the implementation costs of this administrative regulation.
(b) On a continuing basis:
None, until amendments are made in the future.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Currently budgeted agency funding.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
No increase in fees or funding will be necessary to implement this administrative regulation.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
There are no fees established or increased in this amendment.
(9) TIERING: Is tiering applied?
Tiering is not applied because all PSC’s using the classification and guidance contained in this administrative regulation will be treated equally.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
Only the Finance and Administration Cabinet, Department of Revenue will be impacted.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS Chapter 13A and 131.130.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
There will be no effect on expenditures and revenues for government agencies as a result of amending this administrative regulation.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
None.
(d) How much will it cost to administer this program for subsequent years?
None.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:
103 KAR 8:090.Classification of property; public service corporations.
Section 1.
(1)
(2)
(a)
(b)
(c)
(3)
(4)
Section 2.
Classification of Public Service Company Property. The department | 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 |
HISTORY: (FN-2; 1 Ky.R. 1008; eff. 6-11-75; Am. 8 Ky.R. 68; eff. 9-2-81; 48 Ky.R. 465; 1584; eff. 3-1-2022.)
APPROVED BY AGENCY: October 15, 2021
FILED WITH LRC: October 15, 2021 at 11:44 a.m.
CONTACT PERSON: Gary Morris, Executive Director, Office of Tax Policy and Regulation, Department of Revenue, 501 High Street, Station 1, Frankfort, Kentucky 40601, phone (502) 564-0424, fax (502) 564-3875, email Gary.Morris@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Gary Morris
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation amends 103 KAR 8:090 to provide updated classifications of certain commonly held properties of public service corporations (PSC’s) pursuant to KRS 136.130(1).
(b) The necessity of this administrative regulation:
To comply with statutory requirements; add new utility technology; and remove outdated guidance.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
The proposed regulatory language conforms with KRS 13A, KRS 131.130, KRS 132.020, KRS 132.200, KRS 136.010, and KRS 136.130.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation outlines the administrative process for the classification of property owned by PSC’s and provides them with a list of assets and classifications as guidance, creating uniformity in how they classify their property for tax purposes.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
This amendment updates the regulation to be in compliance with KRS Chapter 13A.
(b) The necessity of the amendment to this administrative regulation:
see 1(b)
(c) How the amendment conforms to the content of the authorizing statutes:
see 1(c)
(d) How the amendment will assist in the effective administration of the statutes:
see 1(d)
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
Approximately 251 public service corporations across the Commonwealth will be able to utilize the guidance contained herein.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
None that the Department of Revenue is aware of other than updating their reporting pursuant to KRS 136.120.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There are no costs known to the Department.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
They will have a greater understanding of the requirements for filing, and experience more efficient and timely tax filings with the Department of Revenue.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Current department staff and resources will be used to absorb the implementation costs of this administrative regulation.
(b) On a continuing basis:
None, until amendments are made in the future.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Currently budgeted agency funding.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
No increase in fees or funding will be necessary to implement this administrative regulation.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
There are no fees established or increased in this amendment.
(9) TIERING: Is tiering applied?
Tiering is not applied because all PSC’s using the classification and guidance contained in this administrative regulation will be treated equally.
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
Only the Finance and Administration Cabinet, Department of Revenue will be impacted.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS Chapter 13A and 131.130.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
There will be no effect on expenditures and revenues for government agencies as a result of amending this administrative regulation.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
None.
(d) How much will it cost to administer this program for subsequent years?
None.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation: