KRS § 160.470 — KY Code / Title XIII / Chapter 160 / Section 160.470
160.470 Tax rate limits -- Hearing -- Levy exceeding four percent increase subject to recall vote or reconsideration -- Levy of minimum equivalent tax rate
Status: in_force

160.470 Tax rate limits -- Hearing -- Levy exceeding four percent increase subject

to recall vote or reconsideration -- Levy of minimum equivalent tax rate.

(1) (a) Notwithstanding any statutory provisions to the contrary, no district board of

education shall levy a general tax rate which will produce more revenue,

exclusive of revenue from net assessment growth as defined in KRS 132.010,

than would be produced by application of the general tax rate that could have

been levied in the preceding year to the preceding year's assessment, except as

provided in subsections (9) and (10) of this section and KRS 157.440.

(b) If an election is held as provided for in KRS 132.017 and the question should

fail, such failure shall not reduce the "...general tax rate that could have been

levied in the preceding year...," referred to in subsection (1)(a) of this section,

for purposes of computing the general tax rate for succeeding years.

In the event of a merger of school districts, the limitations contained in this section

shall be based upon the combined revenue of the merging districts, as computed

under the provisions of this section.

(2) No district board of education shall levy a general tax rate within the limits imposed

in subsection (1) of this section which respectively exceeds the compensating tax

rate defined in KRS 132.010, except as provided in subsections (9) and (10) of this

section, KRS 157.440, and KRS 157.621, until the district board of education has

complied with the provisions of subsection (7) of this section.

(3) Upon receipt of property assessments from the Department of Revenue, the

commissioner of education shall certify the following to each district board of

education:

(a) The general tax rate that a district board of education could levy under the

provisions of subsection (1) of this section, and the amount of revenue

expected to be produced;

(b) The compensating tax rate as defined in KRS 132.010 for a district's general

tax rate the amount of revenue expected to be produced;

(c) The general tax rate which will produce, respectively, no more revenue from

real property, exclusive of revenue from new property, than four percent (4%)

over the amount of revenue produced by the compensating tax rate defined in

KRS 132.010, and the amount of revenue expected to be produced.

(4) Upon completion of action on property assessment data, the Department of

Revenue shall submit certified property assessment data as required in KRS

133.125 to the chief state school officer.

(5) Within thirty (30) days after the district board of education has received its

assessment data, the rates levied shall be forwarded to the Kentucky Board of

Education for its approval or disapproval. The failure of the district board of

education to furnish the rates within the time prescribed shall not invalidate any

levy made thereafter.

(6) (a) Each district board of education shall, on or before January 31 of each

calendar year, formally and publicly examine detailed line item estimated

revenues and proposed expenditures for the subsequent fiscal year. On or

before May 30 of each calendar year, each district board of education shall

adopt a tentative working budget which shall include a minimum reserve of

two percent (2%) of the total budget.

(b) Each district board of education shall submit to the Kentucky Board of

Education no later than September 30, a close estimate or working budget

which shall conform to the administrative regulations prescribed by the

Kentucky Board of Education.

(7) (a) Except as provided in subsections (9) and (10) of this section and KRS

157.440, a district board of education proposing to levy a general tax rate

within the limits of subsection (1) of this section which exceed the

compensating tax rate defined in KRS 132.010 shall hold a public hearing to

hear comments from the public regarding the proposed tax rate. The hearing

shall be held in the principal office of the taxing district or, in the event the

taxing district has no office, or the office is not suitable for such a hearing, the

hearing shall be held in a suitable facility as near as possible to the geographic

center of the district.

(b) The district board of education shall advertise the hearing by causing the

following to be published at least twice for two (2) consecutive weeks, in the

newspaper of largest circulation in the county, a display type advertisement of

not less than twelve (12) column inches:

1. The general tax rate levied in the preceding year, and the revenue

produced by that rate;

2. The general tax rate for the current year, and the revenue expected to be

produced by that rate;

3. The compensating general tax rate, and the revenue expected from it;

4. The revenue expected from new property and personal property;

5. The general areas to which revenue in excess of the revenue produced in

the preceding year is to be allocated;

6. A time and place for the public hearing which shall be held not less than

seven (7) days nor more than ten (10) days after the day that the second

advertisement is published;

7. The purpose of the hearing; and

8. A statement to the effect that the General Assembly has required

publication of the advertisement and the information contained herein.

(c) In lieu of the two (2) published notices, a single notice containing the required

information may be sent by first-class mail to each person owning real

property, addressed to the property owner at his residence or principal place

of business as shown on the current year property tax roll.

(d) The hearing shall be open to the public. All persons desiring to be heard shall

be given an opportunity to present oral testimony. The district board of

education may set reasonable time limits for testimony.

(8) (a) That portion of a general tax rate, except as provided in subsections (9) and

(10) of this section, KRS 157.440, and KRS 157.621, levied by an action of a

district board of education which will produce, respectively, revenue from real

property, exclusive of revenue from new property, more than four percent

(4%) over the amount of revenue produced by the compensating tax rate

defined in KRS 132.010, shall be subject to a recall vote or reconsideration by

the district board of education as provided for in KRS 132.017, and shall be

advertised as provided for in paragraph (b) of this subsection.

(b) The district board of education shall, within seven (7) days following adoption

of an ordinance, order, resolution, or motion to levy a general tax rate, except

as provided in subsections (9) and (10) of this section and KRS 157.440,

which will produce revenue from real property, exclusive of revenue from

new property as defined in KRS 132.010, more than four percent (4%) over

the amount of revenue produced by the compensating tax rate defined in KRS

132.010, cause the following to be published, in the newspaper of largest

circulation in the county, a display type advertisement of not less than twelve

(12) column inches:

1. The fact that the district board of education has adopted such a rate;

2. The fact that the part of the rate which will produce revenue from real

property, exclusive of new property as defined in KRS 132.010, in

excess of four percent (4%) over the amount of revenue produced by the

compensating tax rate defined in KRS 132.010 is subject to recall; and

3. The name, address, and telephone number of the county clerk of the

county or urban-county in which the school district is located, with a

notation to the effect that that official can provide the necessary

information about the petition required to initiate recall of the tax rate.

(9) (a) Notwithstanding any statutory provisions to the contrary, effective for school

years beginning after June 30, 1990, the board of education of each school

district shall levy a minimum equivalent tax rate of thirty cents ($0.30) for

general school purposes. Equivalent tax rate is defined as the rate which

results when the income collected during the prior year from all taxes levied

by the district for school purposes is divided by the total assessed value of

property plus the assessment for motor vehicles certified by the Department of

Revenue. School districts collecting school taxes authorized by KRS 160.593

to 160.597, 160.601 to 160.633, or 160.635 to 160.648 for less than twelve

(12) months during a school year shall have included in income collected

under this section the pro rata tax collection for twelve (12) months.

(b) Failure of a board to comply with paragraph (a) of this subsection may

constitute a forfeiture of office by its members pursuant to KRS 415.050 and

415.060.

(10) A district board of education may levy a general tax rate that will produce revenue

from real property, exclusive of revenue from new property, that is four percent

(4%) over the amount of the revenue produced by the compensating tax rate as

defined in KRS 132.010.