65A.110 Fees and ad valorem taxes levied by special purpose governmental entities
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/ky/65a-110A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
-- Reporting to governing body of city or county -- Reporting exceptions.
(1)This section applies to any ad valorem tax or fee levied by a special purpose
governmental entity that is not otherwise required by statute or ordinance to be
adopted or approved through an official act of an establishing entity.
(2)This section does not apply to:
(a)An air board established or operating under KRS 183.132 to 183.160;
(b)A fire protection district established or operating under KRS Chapter 75; or
(c)An ambulance taxing district established or operating under KRS 108.090 to
108.180.
(3)As used in this section, "compensating tax rate" has the same meaning as in KRS
132.010 and applies to all special purpose governmental entities with the authority
to levy ad valorem taxes, regardless of whether the special purpose governmental
entity is subject to KRS 132.023 or any other provision of the Kentucky Revised
Statutes that requires advertisement or allows for voter recall.
(a)Notwithstanding any other provision of the Kentucky Revised Statutes, any
special purpose governmental entity, other than the special purpose
governmental entities described in subsection
(2)of this section, proposing to
levy:
1. An ad valorem tax rate for the upcoming year that is projected to
generate more revenue than would be generated by the levy of the
compensating tax rate; or
2. An ad valorem tax for the first time;
shall submit in writing the proposed rate to the establishing entity. If the
establishing entity includes more than one
(1)city or county, or if there is no
establishing entity, the rate shall be submitted to the governing body of the
city or county in which the largest number of citizens served by the special
purpose governmental entity reside. If the special purpose governmental entity
serves only the residents of a city, the notice shall be provided to the
governing body of that city. The rate shall be submitted no later than seven
days after the adoption of the ordinance, order, resolution, or motion to levy a
tax rate that exceeds the compensating tax rate, or to levy a new ad valorem
tax.
(b)The governing body of the city or county to which the rate was submitted shall
have thirty
(30)days from the date of submission to:
1. Approve or fail to act on the proposed rate, in which case the proposed
rate may be implemented by the special purpose governmental entity
after all other statutory requirements for levying the rate are met;
2. a. Approve a rate that is less than the proposed rate but greater than
the compensating tax rate when the special purpose governmental
entity is proposing the levy of a rate that is projected to generate
more revenue than would be generated by the levy of the
compensating tax rate; or
b. Approve a rate that is less than the proposed rate when the special
purpose governmental entity is proposing the levy of an ad
valorem tax for the first time.
If the governing body approves a rate under subdivision a. or b. of this
subparagraph, the approved amount of the rate may be implemented by
the special purpose governmental entity after all other statutory
requirements for levying the rate are met; or
3. Disapprove the entire proposed rate by a majority vote of the governing
body, in which case subdivisions a. and b. of this subparagraph shall
apply:
a. If the special purpose governmental entity levied an ad valorem tax
during the current year, the special purpose governmental entity
may levy a rate for the upcoming year that does not exceed the
compensating tax rate; and
b. If the special purpose governmental entity is proposing an initial
levy, the levy shall not be imposed, and the special purpose
governmental entity shall wait at least one
(1)year before
proposing another ad valorem tax levy.
(c)Upon request of a special purpose governmental entity, the DLG shall
calculate rates on behalf of the special purpose governmental entity.
(a)Notwithstanding any other provision of the Kentucky Revised Statutes, any
special purpose governmental entity, other than the special purpose
governmental entities described in subsection
(2)of this section, proposing the
imposition of a new fee, or a fee which is expected to produce increased
revenue as compared to revenue generated during the prior fiscal year, and
that is not subject to an approval process for the proposed fee under another
provision of the Kentucky Revised Statutes or administrative regulations
promulgated pursuant thereto, shall submit the proposed fee to the
establishing entity. If the establishing entity includes more than one
(1)city or
county, or if there is no establishing entity, the fee shall be submitted to the
governing body of the city or county in which the largest number of citizens
served by the special purpose governmental entity reside, except as provided
in subsection
(6)of this section. If the special purpose governmental entity
serves only the residents of a city, the notice shall be provided to the
governing body of that city. The proposed fee shall be submitted to the
relevant city or county no later than forty-five
(45)days prior to the scheduled
implementation of the fee.
(b)The governing body of the city or county shall have thirty
(30)days from the
date of submission to:
1. Approve or fail to act on the proposed fee, in which case the proposed
fee may be implemented by the special purpose governmental entity
after all other statutory requirements for levying the fee are met;
2. Approve a fee in an amount less than the amount of the proposed fee, in
which case the approved fee amount may be implemented by the special
purpose governmental entity after all other statutory requirements for
levying the fee are met; or
3. Disapprove the entire proposed fee by a majority vote of the governing
body, in which case subdivisions a. and b. of this subparagraph shall
apply:
a. If a proposed increase of an existing fee is disapproved, any fee
then in existence shall remain unchanged, and the special purpose
governmental entity shall not seek to increase the fee again for at
least one
(1)year from the date of the submission of the
disapproved fee increase; and
b. If a proposed initial fee is disapproved, the special purpose
governmental entity shall not seek to impose the fee again for at
least one
(1)year from the date of the submission of the
disapproved initial fee.
(6)The requirements established by subsection
(5)of this section shall not apply to the
following provisions of this subsection:
(a)Rental fees;
(b)Fees established by contractual arrangement;
(c)Admission fees;
(d)Fees or charges to recover costs incurred by a special purpose governmental
entity for the connection, restoration, relocation, or discontinuation of any
service requested by any person;
(e)Any penalty, interest, sanction, or other fee or charge imposed by a special
purpose governmental entity for a failure to pay a charge or fee, or for the
violation or breach of or failure to pay or perform as agreed pursuant to a
contractual agreement or as reflected in a published schedule;
(f)Amounts charged to customers or contractual partners for nonessential
services provided on a voluntary basis;
(g)Fees or charges authorized under federal law that pursuant to federal law may
not be regulated by the Commonwealth or local governments within the
Commonwealth;
(h)Purchased water or sewage treatment adjustments, as authorized by KRS
278.015, made by a special purpose governmental entity as a direct result of a
rate increase by its wholesale water supplier or wholesale sewage treatment
provider;
(i)Any new fee or fee increase for which a special purpose governmental entity
must obtain prior approval from the Public Service Commission pursuant to
KRS Chapter 278;
(j)Other charges or fees imposed by a special purpose governmental entity for
the provision of any service that is also available on the open market; or
(k)Fees or charges imposed by municipal utilities for the provision of power,
water, wastewater, natural gas, or telecommunications services, unless
submission is otherwise required by statute or an ordinance adopted by the
establishing entity.
(a)Subsections
(4)and
(5)of this section shall not be interpreted as transferring
any tax-levying or fee-levying authority granted to a special purpose
governmental entity under any other provision of the Kentucky Revised
Statutes to cities and counties charged with reviewing tax and fee increases
under this section.
(b)This section shall not be interpreted to grant tax-levying or fee-levying
authority on behalf of special purpose governmental entities to any city or
county reviewing tax rates or fees proposed by a special purpose governmental
entity and subject to review under this section.
(8)This section shall apply independently of and in addition to any other statutory
requirements and provisions relating to the levy of ad valorem taxes or fees by
special purpose governmental entities, other than the special purpose governmental
entities described in subsection
(2)of this section, including statutory rate limits,
public hearing requirements, and recall provisions, and shall not be interpreted to
circumvent, supplant, or otherwise replace those requirements and provisions.
(9)The provisions of this section shall not be interpreted as limiting the ability of any
city, county, or other establishing entity to impose reporting or submission
requirements that are more stringent than those established in this section.