KRS § 96.895 — KY Code / Title IX / Chapter 96 / Section 96.895
96.895 Proration and distribution of payments of sums equivalent to taxes 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
Status: in_force

96.895 Proration and distribution of payments of sums equivalent to taxes

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.

(4) (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.

(5) (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).

(7) (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 (5)

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.