KRS § 160.637 — KY Code / Title XIII / Chapter 160 / Section 160.637
160.637 Administrative costs -- Department of Revenue collection procedure
Status: in_force

160.637 Administrative costs -- Department of Revenue collection procedure.

(1) "Requesting school districts" shall mean those school districts for which the

Department of Revenue is requested to act as tax collector under the authority of

KRS 160.627(2).

(2) Reasonable expenses not to exceed the actual costs of collection incurred by any tax

collector, except the Department of Revenue, for the administration or collection of

the school taxes authorized by KRS 160.605 to 160.611, 160.613 to 160.617, and

160.621 to 160.633 shall be reimbursed by the school district boards of education

on a monthly basis or on the basis agreed upon by the boards of education and the

tax collector. The expenses shall be borne by the school districts on a basis

proportionate to the revenue received by the districts.

(3) The following shall apply only when the Department of Revenue is acting as tax

collector under the authority of KRS 160.627(2):

(a) When the department is initially requested to be the tax collector under KRS

160.627(2), the department shall estimate the costs of implementing the

administration of the tax so requested, and shall inform the requesting school

district of this estimated cost. The requesting school district shall pay to the

department ten percent (10%) of this estimated cost referred to as "start-up

costs" within thirty (30) days of notification by the department. Subsequent

requesting school districts shall pay their pro rata share, or ten percent (10%),

whichever is less, of the unpaid balance of the initial "start-up costs" until the

department has fully recovered the costs. The payment shall be made within

thirty (30) days of notification by the department.

(b) The Department of Revenue shall also be reimbursed by each school district

for its proportionate share of the actual operational expenses incurred by the

department in collecting the excise tax. The expenses, which shall be deducted

by the Department of Revenue from payments to school districts made under

the provisions of KRS 160.627(2), shall be allocated by the department to

school districts on a basis proportionate to the number of returns processed by

the Department of Revenue for each district compared to the total processed

by the Department of Revenue for all districts.

(c) All funds received by the department under the authority of paragraphs (a) and

(b) of this subsection shall be deposited into an account entitled the "school

tax fund account," an account created within the restricted fund group set forth

in KRS 45.305. The use of these funds shall be restricted to paying the

department for the costs described in paragraphs (a) and (b) of this subsection.

This account shall not lapse.

(d) The department may retain a portion of the school tax revenues collected in a

special account entitled the "school tax refund account" which is an account

created within the restricted fund group set forth in KRS 45.305. The sole

purpose of this account shall be to authorize the Department of Revenue to

refund school taxes. This account shall not lapse. Refunds shall be made in

accordance with the provisions in KRS 134.580(6), and when the taxpayer has

made an overpayment or a payment where no tax was due as defined in KRS

134.580(7), within four (4) years of payment.

(e) KRS 160.621 notwithstanding, when the department is acting as tax collector

under the authority of KRS 160.627(2), the requesting school district may

enact the tax enumerated in KRS 160.621 only at the following rates: five

percent (5%), ten percent (10%), fifteen percent (15%), and twenty percent

(20%) on a school district resident's state individual income tax liability as

computed under KRS Chapter 141.

(f) Beginning August 1, 1982, any school district which requests the department

to collect taxes under the authority of KRS 160.627(2) shall inform the

department of this request not less than one hundred fifty (150) days prior to

January 1.

(g) The department shall not be required to collect taxes authorized in KRS

160.621 of an individual when the department is not pursuing collection of

that individual's state income taxes. The department shall not be required to

collect or defend the tax set forth in KRS 160.621 in any board or court of this

state.

(h) Any overpayments of the tax set forth in KRS 141.020 or payments made

when no tax was due may be applied to any tax liability arising under KRS

160.621 before a refund is authorized to the taxpayer. No individual's tax

payment shall be credited to the tax set forth in KRS 160.621 until all

outstanding state income tax liabilities of that individual have been paid.

(i) KRS 160.510 notwithstanding, the State Auditor shall be the only party

authorized to audit the Department of Revenue with respect to the

performance of its duties under KRS 160.621.