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Enron Mail |
March 23, 2001
Notice to Members Number: 01-109 TO: ALL NYMEX AND COMEX DIVISION MEMBERS ALL NYMEX AND COMEX DIVISION MEMBER FIRMS ALL NYMEX AND COMEX DIVISION CLEARING MEMBERS FROM: Neal Wolkoff, Executive Vice President SUBJECT: Inventory Taxes on Aluminum in the State of Kentucky Recently enacted legislation in the State of Kentucky has amended the=20 Kentucky Revised Statutes (KRS) Chapter 132.200, =01&Property subject to st= ate=20 tax only=018. The amendment applies for property assessed on or after Janu= ary=20 1, 2001. Paragraph 21 of KRS 132.200 exempts for the purpose of taxation in the=20 county, city, school or other taxing district in which it has taxable situs= : Any nonferrous metal that conforms to the quality, shape, and weight=20 specifications set by the New York Mercantile Exchange=01,s special contrac= t=20 rules for metals, and which is located or stored in a commodity warehouse a= nd=20 held on warrant, or for which a written request has been made to a commodit= y=20 warehouse to place it on warrant, according to the rules and regulations of= a=20 trading facility. (a) =01&Commodity warehouse=018 means a warehouse, shipping plant, deposito= ry, or=20 other facility that has been designated or approved by a trading facility a= s=20 a regular delivery point for a commodity on contracts of sale for future=20 delivery; and (b) =01&Trading facility=018 means a facility that is designated by or regi= stered=20 with the federal Commodity Futures Trading Commission under 7 U.S.C. secs. = 1=20 et seq. =01&Trading facility=018 includes the Board of Trade of the City o= f=20 Chicago, the Chicago Mercantile Exchange, and the New York Mercantile=20 Exchange. Please note that aluminum inventory remains taxable at the state level if t= he=20 aluminum is not deemed to be =01&in transit=018. Paragraph 10 of KRS 132.0= 20=20 =01&State ad valorem taxes=018 states that an ad valorem tax for state purp= oses of=20 five cents ($0.05) upon each one hundred dollars ($100) of value shall be= =20 paid upon goods held for sale in the regular course of business. KRS=20 132.097, =01&Exemption from state ad valorem tax of personal property held = for=20 shipment out of state=018, states that =01&there shall be exempt from ad v= alorem=20 tax for state purposes, personal property placed in a warehouse or=20 distribution center for the purpose of subsequent shipment to an out-of-sta= te=20 destination. Personal property shall be deemed to be held for shipment to = an=20 out-of-state destination if the owner can reasonable demonstrate that the= =20 personal property will be shipped out of state within the next six (6)=20 months.=018 Therefore, aluminum on warrant or for which a written request has been made= =20 to place aluminum that meets the specification for delivery against the New= =20 York Mercantile Exchange, Inc.=01,s Aluminum Futures Contract on warrant is= now=20 uniformly taxed throughout the State of Kentucky regardless of the local=20 jurisdiction in which an Exchange Licensed Warehouse is located. Companies who own aluminum inventory at Exchange Licensed Warehouses should= =20 obtain professional advise regarding their particular tax situation. Should you require any further information please contact Christopher Bowen= =20 at 212-299-2200 or Albert J. Getz at 212-299-2608. __________________________________________________ Please click on the link below to indicate you have received this email. "http://208.206.41.61/email/email_log.cfm?useremail=3Dtana.jones@enron.com&= refdo c=3D(01-109)" Note: If you click on the above line and nothing happens, please copy the text between the quotes, open your internet browser, paste it into the web site address and press Return.
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