KRS § 136.654 — KY Code / Title XI / Chapter 136 / Section 136.654
136.654 Determination of distributions -- State baseline and local growth fund
Status: in_force

136.654 Determination of distributions -- State baseline and local growth fund.

(1) On or before December 1, 2005, and every January 31 thereafter, each participating

political subdivision shall certify to the department its total tax receipts for the prior

fiscal year. This amount shall be used to calculate the percentage of each political

subdivision's portion of the account labeled under its county's name within the state

baseline and local growth fund as described in subsection (3)(b) of this section.

"Total tax receipts" shall not include revenue from nontax sources, such as

intergovernmental revenues, charges for services, tuition, interfund transfers,

interest and investment income, rental income, income from asset sales, beginning

balances, or revenue from licenses and permits. "Total tax receipts" shall include

the following:

(a) Real estate and tangible personal property taxes, including delinquent tax

receipts;

(b) Franchise fees or taxes on utilities, other than multichannel video

programming service and communications service utilities;

(c) Occupational and business license fees or taxes, including insurance premium

taxes, net profits taxes, gross receipts taxes, payroll taxes, transient room

taxes, restaurant taxes, and bank deposit taxes;

(d) Telephone emergency surcharge fees;

(e) Gross revenues tax hold-harmless and growth fund receipts; and

(f) Payments in lieu of taxes.

(2) On or before every January 31, each participating school district and special district

shall certify to the department the amount of its prior year tax assessments under

KRS Chapter 132 on companies' providing of multichannel video programming

service and communications service. This amount shall be used to calculate the

percentage of each school district's and special district's portion of the account

labeled under its county's name within the state baseline and local growth fund as

described in subsection (3)(b) of this section. For tax years with no assessments

under KRS Chapter 132, the local historical percentage as defined in KRS 136.650

shall be used.

(3) Each political subdivision's, school district's, and special district's monthly portion

of the state baseline and local growth fund shall be computed as follows:

(a) A "local growth portion" shall be determined as an amount of money that

when added to the hold-harmless amount identified in KRS 136.650(2)(c)

equals fifteen and six-tenths percent (15.6%) of the total amount deposited in

the gross revenues and excise tax fund, minus the amount of distributions

made under KRS 136.652(1) and (3).

(b) The local growth portion shall be accounted for by county within the state

baseline and local growth fund based on the ratio of the gross revenues tax

collected on multichannel video programming services and communications

services provided in each county to the total statewide collections of the gross

revenues tax. The county-by-county allotment of the local growth portion

shall be known as the "county growth portion."

(c) The county growth portion shall be further segregated into the political

subdivision allotment, the school district allotment, and the special district

allotment based upon the ratio of each allotment category's total historical

collections as calculated under KRS 136.650(2) to the total overall county

historical collections as calculated from the certified collections under KRS

136.650(1).

(d) On or before April 25, 2006, each political subdivision's share of the political

subdivision allotment shall be determined by multiplying the political

subdivision allotment of the local growth portion as determined in paragraph

(b) of this subsection by the percentage calculated in subsection (1) of this

section.

(e) On or before April 25, 2006, each school district's share of the school district

allotment shall be determined by multiplying the school district allotment as

determined in paragraph (c) of this subsection by the percentage calculated in

subsection (2) of this section.

(f) On or before April 25, 2006, each special district's share of the special district

allotment shall be determined by multiplying the special district allotment as

determined in paragraph (c) of this subsection by the percentage calculated in

subsection (2) of this section.

(g) The respective allotment share for each participating political subdivision,

school district, and special district shall be adjusted every July 1 following the

year 2006, to account for any change in its percentages based on annual

certifications required in subsections (1) and (2) of this section.

(h) Notwithstanding the annual certifications required in subsection (1) of this

section, following the year 2006, political subdivisions may choose to

determine their respective shares of the political subdivision allotment

pursuant to an interlocal agreement as authorized under KRS 65.240.

Activation or termination of an interlocal agreement shall comply with the

notification requirements of subsection (1) of this section and shall become

effective the following July 1. The terms of a timely interlocal agreement

governing the distribution of a political subdivision allotment shall remain in

effect until its timely termination by one of the participating political

subdivisions.