KRS § 65A.110 — KY Code / Title IX / Chapter 65A / Section 65A.110
65A.110 Fees and ad valorem taxes levied by special purpose governmental entities -- Reporting to governing body of city or county -- Reporting exceptions
Status: in_force

65A.110 Fees and ad valorem taxes levied by special purpose governmental entities

-- 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.

(4) (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 (7)

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.

(5) (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.

(7) (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.