Column 3: This is the amount actually due the local government for each quarter (check schedule for minimum
taxes or flat fees). In this column, always indicate the amount of tax that should have been paid even when filing
amended reconciliations.
Column 4: The collection fee shall be 15% of the tax or 2% of the premium, whichever is less. (The collection fee
is not to be deducted from the tax payable.)
Column 5: When the tax payable (the amount in Column 3) is assessed upon the policyholder, Column 5 is the
total of Columns 2 and 3. When the tax and collection fee are assessed upon the policyholder, Column 5 is the
total of Columns 2, 3 and 4. If the tax and collection fee are paid solely by the insurance company/surplus lines
broker, Column 5 will equal Column 2.
Column 6: This is used when there was an error reported in Column 3 on the quarterly filings (Form LGT-141) to
the local government. When any additional tax is due the local government, the amount should be shown in
Column 6 and also in Section II for computation of interest due. Any overpayment should be shown in Column 6
and taken in subsequent quarters.
Credits (Form LGT-142): In the columns for the line listed “Credits (Form LGT 142), please fill out for each
quarter and compute the total in the “Annual Totals” section.
ANNUAL TOTALS: Total annual figures for premiums received, tax payable, and interest paid are necessary.
B. SECTION II
This section must be completed for all taxes that were not paid. Be certain to give totals for “Interest Due” and
“Total Tax and Interest Due,” along with “Date Tax Was Paid.” Interest is computed from the date the tax was due
(30 days after the end of each calendar quarter) until the date the tax is paid at the interest rate prescribed by the
Kentucky Revenue Cabinet. The Kentucky Department of Revenue has set the annual interest rate for the 2010 tax
year at 3%.
C. SECTION III
Surplus lines brokers filing LGT-140 in accordance with KRS 304.10 shall complete Section III. Each return
submitted to the local governments by surplus lines brokers shall include a listing of the insurance companies that
supplied the coverage for which the premiums and taxes are being reported. Please note that surplus lines
brokers are not required to submit a separate Form LGT-140 to each local government for each insurance
company through which insurance business was exported.
D. SECTION IV
Filings will not be approved without the proper certificate (signature of preparer and date prepared).
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