65.495 State and local development contracts for release of tax increments or grant

233 words·~1 min read·/ky/65-495

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

awards -- Limitations.

(1)In connection with the establishment of any development area, an agency may enter

into contracts with one

(1)or more taxing districts for the release to the agency of

increments expected to be derived by a taxing district within a development area

with an existing development asset as leveraged in part by the undertaking of a

project.

(2)No contract shall require the release of less than fifty percent (50%) of the

increments, or more than ninety-five percent (95%) of the increments where the

revenue is derived solely from ad valorem taxation or solely from occupational

license fees, or more than eighty percent (80%) of the increments where the revenue

is derived from ad valorem taxes and occupational license fees.

(3)An agency may enter into a contract with the state, acting by and through the

Governor, for an annual grant to the agency in an amount equal to not less than fifty

percent (50%) nor more than eighty percent (80%) of the increment in ad valorem

taxes, sales taxes, income taxes, and limited liability entity taxes derived by the

state within the development area with an existing economic development asset as

leveraged in part by the undertaking of a project.

(4)Any amount derived by the agency under the terms of a release shall be used solely

for the purposes of the project and in the development area.