96.895 Proration and distribution of payments of sums equivalent to taxes
989 words·~4 min read·
/ky/96-895A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
based on book value among the state, counties, cities, and school
districts -- Regional development agency assistance fund -- Portion of
TVA payment received by state to be transferred to fund for distribution
to regional development agencies in fund-eligible counties -- Annual
report.
(1)As used in this section, unless the context requires otherwise:
(a)"Book value" means original cost unadjusted for depreciation as reflected
in the TVA's books of account;
(b)"Fund" means the regional development agency assistance fund
established in subsection
(4)of this section;
(c)"Fund-eligible county" means one
(1)of Adair, Allen, Ballard, Barren, Bell,
Butler, Caldwell, Calloway, Carlisle, Christian, Clinton, Cumberland,
Edmonson, Fulton, Graves, Grayson, Harlan, Hart, Henderson, Hickman,
Livingston, Logan, Lyon, Marshall, McCracken, McCreary, Metcalfe,
Monroe, Muhlenberg, Ohio, Russell, Simpson, Todd, Trigg, Union,
Warren, Wayne, Webster, or Whitley Counties;
(d)"Regional development agency" or "agency" means a special purpose
governmental entity as defined in KRS 65A.010(9) that is designated by a
fiscal court to receive a payment pursuant to this section;
(e)"TVA" means the Tennessee Valley Authority; and
(f)"TVA property" means land owned by the United States and in the
custody of the TVA, together with improvements that have a fixed situs on
the land, including work in progress but excluding temporary construction
facilities, if these improvements either:
1. Were in existence when title to the land on which they are situated
was acquired by the United States; or
2. Are allocated by the TVA or determined by it to be allocable to
power. However, manufacturing machinery as interpreted by the
Department of Revenue for franchise tax determination; ash
disposal systems; and coal handling facilities, including railroads,
cranes and hoists, and crushing and conveying equipment, shall be
excluded.
(2)Book value shall be determined, for purposes of applying this section, as of the
June 30 used by the TVA in computing the annual payment to the
Commonwealth that is subject to redistribution by the Commonwealth.
(3)Except for payments made directly by the TVA to counties, the total fiscal year
payment received by the Commonwealth of Kentucky from the TVA, as
authorized by Section 13 of the Tennessee Valley Authority Act, as amended,
shall be prorated thirty percent (30%) to the general fund of the Commonwealth
and seventy percent (70%) among counties, cities, and school districts, as
provided in subsections
(6)and
(7)of this section.
(a)The regional development agency assistance fund is hereby established
in the State Treasury.
(b)The fund shall be administered by the Department for Local Government
for the purpose of providing funding to agencies that are designated to
receive funding in a given fiscal year by the fiscal court of each
fund-eligible county through the Regional Development Agency
Assistance Program established in KRS 96.905.
(c)The fund shall only receive the moneys transferred from the general fund
pursuant to subsection
(5)of this section.
(d)Notwithstanding KRS 45.229, any moneys remaining in the fund at the
close of the fiscal year shall not lapse but shall be carried forward into the
succeeding fiscal year. Any interest earnings of the fund shall become a
part of the fund and shall not lapse.
(a)For fiscal years beginning on or after July 1, 2020, a portion of the total
fiscal year payment received by the Commonwealth that is allocated to
the general fund shall be transferred from the general fund to the regional
development agency assistance fund established in subsection
(4)of this
section.
(b)This portion shall be equal to six million dollars ($6,000,000).
(c)Distribution of these moneys shall be made by dividing the amount in
paragraph
(b)of this subsection equally among each fund-eligible county.
(6)The payment to each county, city, and school district shall be determined by
the proportion that the book value of TVA property in such taxing district,
multiplied by the current tax rate, bears to the total of the book values of TVA
property in all such taxing districts in the Commonwealth, multiplied by their
respective tax rates. However, for purposes of this calculation, each public
school district shall have its tax rate increased by thirty cents ($0.30).
(a)As soon as practicable after the amount of payment to be made to the
Commonwealth is finally determined by the TVA, the Department of
Revenue shall determine the book value of TVA property in each county,
city, and school district and shall prorate the payments allocated to
counties, cities, and school districts under subsection
(3)of this section
among the distributees as provided in subsection
(6)of this section.
(b)The Department of Revenue shall:
1. Certify the payment due each county, city, and school district,
including the amount distributed to the county under subsection
of this section, to the Finance and Administration Cabinet; and
2. Notify the Department for Local Government of that certification.
(c)Upon certification by the Department of Revenue, the Finance and
Administration Cabinet shall make the payment to such district.
(8)In each fiscal year, after the Department of Revenue has calculated the
prorated payment amount that is due to each county, city, and school district
under subsections
(6)and
(7)of this section, the Department for Local
Government shall notify in writing the fiscal court of each fund-eligible county
regarding the amount that the county, city, and school district shall receive for
the fiscal year, including the amount distributed to the county under subsection
(5)of this section.
(9)No amount shall be taken from the fund to pay administrative expenses by the
Department for Local Government.
(10)All agencies receiving funds under this section shall provide a written report
annually, no later than October 1, to the fiscal court that designated it for
payment and to the Interim Joint Committee on Appropriations and Revenue.
The report shall describe how the funds were expended and the results of the
use of funds in terms of economic development and job creation.