67C.147 Taxes and services in area of former city of the first class -- Imposition of
1,355 words·~6 min read·
/ky/67c-147A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
different tax rates -- Urban service tax district -- Reporting requirements --
Modification of boundaries -- Reimbursement to fire districts operating into
the area of the urban service tax district -- Use of revenue from differential tax
rate.
(1)In order to maintain the tax structure, tax rates, or level of services in the area of the
consolidated local government formerly comprising the city of the first class, the
legislative council of a consolidated local government may provide in the manner
described in this chapter for taxes and services within the area comprising the
former city of the first class which are different from the taxes and services which
are applicable in the remainder of the county. These differences may include
differences in tax rates upon the class of property which includes the surface of the
land, differences in ad valorem tax rates upon personal property, and differences in
tax rates upon insurance premiums.
(2)Any difference in the ad valorem tax rate on the class of property which includes
the surface of the land in the portion of the county formerly comprising the city of
the first class and in the portion of the county other than that formerly comprising
the city of the first class may be imposed directly by the consolidated local
government council. Any change in these ad valorem tax rates shall comply with
KRS 68.245, 132.010, 132.017, and 132.027 and shall be used for services as
provided by KRS 82.085.
(3)If the consolidated local government council determines to provide for tax rates
applicable to health insurance premiums and personal property which are different
in the area formerly comprising the city of the first class than the rates applicable in
the remainder of the county, it shall do so in the following manner. The
consolidated local government council shall by ordinance create a tax district to be
known as the "urban service tax district" bounded by the former boundaries of the
former city of the first class. The ordinance shall designate the number of members
of the board of this tax district and the manner in which they shall be appointed.
The ordinance shall provide that the board of the tax district shall receive the
income derived from the differential tax rate applicable in the area formerly
comprising the city of the first class with respect to personal property, health
insurance premiums, or both, and shall contract with the consolidated local
government to pay all sums collected to the consolidated local government, in
return for the provision of services performed by the consolidated local government
within the area formerly comprising the city of the first class which services are in
addition to services performed by the consolidated local government in the
remainder of the county. The consolidated local government shall provide at least
an annual reporting to the urban service tax district board and the legislative body
of the consolidated local government containing but not limited to detailed
operating and capital expenditures of each service performed by the consolidated
local government.
(4)After the initial formation of an urban service tax district in a consolidated local
government, the boundaries of the district may be modified in the following
manner. The proposal to alter the boundaries of the urban service tax district within
a consolidated local government may be initiated by:
(a)A resolution enacted by the consolidated local government describing the
boundaries of the area to be added to or deleted from the tax district and duly
passed and signed by the mayor not less than one hundred twenty
(120)days
before the next regularly scheduled election day within the county; or
(b)A petition signed by a number of qualified voters living within precincts
within the area to be added to or deleted from the tax district equal to ten
percent (10%) of the votes cast within each precinct in the last general
election for President of the United States and delivered to the clerk of the
legislative council more than one hundred twenty
(120)days next preceding
the next regularly scheduled election day within the county.
The boundaries so described in either case shall not cross precinct lines. The
question of whether the area bounded as described should be added to or deleted
from, as the case may be, the urban service tax district shall then be placed upon the
ballot in the precincts in the area to be added or deleted at the next regular election
and the question stated on the ballot shall be so phrased that a "Yes" vote shall be
cast in favor of making the proposed change and a "No" vote shall be cast to oppose
the proposed change. If a majority of those voting in those precincts support the
change, then the change in the boundaries of the urban service tax district shall be
implemented.
(a)No later than July 1, 2025, the consolidated local government shall reimburse
a fire district operating under KRS Chapter 75 for expenses related to each
emergency medical response made by the fire district operating under KRS
Chapter 75 into the area of the urban service tax district. A fire district so
responding shall receive from the consolidated local government three
hundred dollars ($300) for transporting a person and one hundred fifty dollars
($150) for arriving at person's location when no person is transported.
(b)The payment established in paragraph
(a)of this subsection shall be in
addition to any insurance moneys the fire district may be eligible to receive
resulting from the response.
(c)The payment established in paragraph
(a)of this subsection shall be adjusted
on July 1 of each year by the percentage increase in the nonseasonally
adjusted annual average Consumer Price Index for All Urban Consumers
(CPI-U), U.S. City Average, All Items, between the two
(2)most recent
calendar years available, as published by the United States Bureau of Labor
Statistics.
(d)The consolidated local government shall not charge a fire district operating
under KRS Chapter 75 for any expenses or services that the consolidated local
government was not charging the fire district prior to January 1, 2024.
(6)Except for services provided within the central business district as defined by the
consolidated local government via ordinance as of April 1, 2024:
(a)From July 1, 2025, to June 30, 2028, the differential tax received by the urban
service tax district shall fund no less than eighty-five percent (85%) of all
costs related to the services provided, including capital expenditures related to
the services, within the urban service tax district by the consolidated local
government as set out in this section that are in addition to the services
performed by the consolidated local government in the remainder of the
county;
(b)From July 1, 2028, to June 30, 2031, the differential tax received by the urban
service tax district shall fund no less than ninety percent (90%) of all costs
related to the services provided, including capital expenditures related to the
services, within the urban service tax district by the consolidated local
government as set out in this section that are in addition to the services
performed by the consolidated local government in the remainder of the
county;
(c)From July 1, 2031, to June 30, 2034, the differential tax received by the urban
service tax district shall fund no less than ninety-five percent (95%) of all
costs related to the services provided, including capital expenditures related to
the services, within the urban service tax district by the consolidated local
government as set out in this section that are in addition to the services
performed by the consolidated local government in the remainder of the
county; and
(d)After June 30, 2034, the differential tax received by the urban service tax
district shall fund no less than one hundred percent (100%) of all costs related
to the services provided, including capital expenditures related to the services,
within the urban service tax district by the consolidated local government as
set out in this section that are in addition to the services performed by the
consolidated local government in the remainder of the county.