AN ACT relating to rural revitalization.

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AN ACT relating to rural revitalization. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The General Assembly finds and declares the following: 5
(a) The revitalization area shall include the voluntary participation of the 6
Kentucky counties, and the cities in corporated therein, that are defined as 7
rural based upon the Rural -Urban Continuum Codes 4 to 9 in alignment 8
with the United States Department of Agriculture Economic Research 9
Service’s metro and nonmetro designations; 10
(b) The revitalization area possesses a rich and proud history of social, cultural, 11
and economic contributions to the Commonwealth from its very beginning; 12
(c) Even though the revitalization area saw a significant decline in population 13
during the period 2011 through 2019, its population continues to be the 14
home to one million eight hundred fifty thousand (1,850,000) citizens who 15
live and work in the Commonwealth and desire to build a better future for 16
themselves, their families, and the generations that follow; 17
(d) The gross domestic product growth from 2001 to 2023 of eighteen percent 18
(18%) within the revitalization area was slower than the growth of forty -19
nine percent (49%) in the thirty-five (35) urban areas; 20
(e) The citizens within the revitalization area currently, on average, earn 21
twenty-six percent (26%) less per capita than citizens within urban counties, 22
and citizens with a bachelor’s degree earn forty percent (40%) less; 23
(f) The revitalization area has a higher rate of home ownership than urban 24
areas, although the area also has triple the vacancy rate of urban areas; 25
(g) Agriculture and coal mining, both major contributors to the economy of the 26
revitalization area, have been declining for several years without 27
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comparable economic opportunities to mitigate the loss of earnings and tax 1
revenue; 2
(h) In the revitalization area, twenty -two percent (22%) of the population and 3
twenty-nine percent (29%) of all children live below the federal poverty level 4
compared to fourteen percent (14%) and twenty -one percent (21%), 5
respectively, in the urban areas; 6
(i) The revitalization area has a larger elderly population than urban areas, 7
resulting in part from the out migrat ion of its young adults seeking 8
educational and economic opportunities; 9
(j) The revitalization area experiences worsening health care outcomes 10
resulting in shorter life expectancies and higher chronic illness rates than 11
urban areas due to higher risk facto rs, lack of health insurance coverage, 12
and lack of access to health care services; and 13
(k) In addition to many nonprofit and social organizations working in the 14
revitalization area to improve residential quality of life, elected leaders, 15
community leaders, and local philanthropists are united to envision a 16
public-private partnership to make investments which will promote 17
economic growth and the long-term well-being of the community. 18
(2) The purpose of Sections 1 to 7 and 8 of this Act is to: 19
(a) Support the restoration of and investment in the revitalization area; and 20
(b) Provide resources for additional opportunities for residents and businesses 21
of the revitalization area to work together to improve income, education 22
attainment, health outcomes, unemployment and job insecurity, working life 23
conditions, food insecurity, housing, basic amenities and the environment, 24
early childhood development, and the overall quality of life, thus 25
positioning the revitalization area to provide safe, prosperous, and enjoyable 26
communities needed, deserved, and expected by the residents, and for the 27
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area to become an equal partner with its urban counterparts in the future 1
for all of the Commonwealth. 2
SECTION 2. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
As used in Sections 1 to 7 of this Act: 5
(1) "Affiliated" means each of the following: 6
(a) Members of a family, including brothers and sisters of the whole or half -7
blood, spouse, parents, grandparents, ancestors, children, sp ouses of 8
children, grandchildren, spouses of grandchildren, and other lineal 9
descendants of an individual; 10
(b) An individual and a corporation, if more than ten percent (10%) in value of 11
the outstanding stock of which is owned, directly or indirectly, by o r for that 12
individual; 13
(c) An individual and a limited liability company or partnership, if more than 14
ten percent (10%) of the capital interest or profits are owned or controlled, 15
directly or indirectly, by or for that individual; and 16
(d) An individual and a trust, if the individual is a grantor, fiduciary, or 17
beneficiary of the trust; 18
(2) "Board" means the Rural Kentucky Revitalization Opportunity Partnership; 19
(3) "CPI" means the nonseasonally adjusted average Consumer Price Index for All 20
Urban Consumers ( CPI-U), U.S. City Average, All Items, between the two (2) 21
most recent calendar years available, as published by the United States Bureau of 22
Labor Statistics; 23
(4) "Governing body" means the legislative body of a city or county; 24
(5) "Incremental revenues" means the amount of revenues received by: 25
(a) A city or county, determined by subtracting old revenues from new revenues 26
in a calendar year with respect to the project development area; and 27
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(b) The Commonwealth, determined by subtracting old revenues from ne w 1
revenues in a calendar year with respect to the project development area; 2
(6) "Local tax revenues": 3
(a) Means revenues derived by a city or county from one (1) or more of the 4
following sources: 5
1. Real property ad valorem taxes, excluding any taxes not a ssessed 6
while a property is participating in an assessment or reassessment 7
moratorium program under KRS 99.600; and 8
2. Occupational license taxes; and 9
(b) Does not mean revenues that have been pledged to support a tax increment 10
financing project established under KRS 65.490 to 65.499, 65.500 to 65.506, 11
65.680 to 65.699, or 65.7041 to 65.7083 or an economic development project 12
within the project development area; 13
(7) "New revenues" means the amount of: 14
(a) Local tax revenues received by a city or county with respect to the project 15
development area in any calendar year beginning with the calendar year 16
described under subsection (1) of Section 5 of this Act; and 17
(b) State tax revenues received by the Commonwealth with respect to the project 18
development area in any calendar year beginning with the calendar year 19
described under subsection (1) of Section 5 of this Act; 20
(8) "Old revenues": 21
(a) Means the amount of: 22
1 Local tax revenues received by a city and county with respect to the 23
project development area in any calendar year beginning with the 24
calendar year immediately preceding the calendar years described 25
under subsection (1) of Section 5 of this Act; and 26
2 State tax revenues received by the Commonwealth with respect to the 27
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project development area in any calendar year beginning with the 1
calendar year immediately preceding the calendar years described 2
under subsection (1) of Section 5 of this Act; and 3
(b) Shall be adjusted annually to incorporate the percentage change in the CPI. 4
In the first calendar year of the calendar years described under subsection 5
(1) of Section 5 of this Act, the calculated amount for the state tax revenues 6
and the local tax revenues shall be adjusted by multiplying each amount by 7
the percentage change in the CPI. For every calendar year thereafter until 8
the expiration of the calendar years described under subsection (1) of 9
Section 5 of this Act, the calculated amount for the state tax reve nues and 10
the local tax revenues shall be the previous year's calculated amount 11
multiplied by the percentage change in the CPI; 12
(9) "Percentage change in the CPI" means the percentage of change in CPI from 13
one (1) year to the next based on averaging the twe lve (12) consecutive months of 14
CPI data for each of the two (2) immediately preceding calendar years and then 15
using those two (2) averages to calculate a year-over-year percentage change; 16
(10) "Project" means a development approved by the board that provid es 17
opportunities for improving income, education, health, employment, working 18
conditions, food insecurity, housing needs, childcare, child development, 19
environmental conditions, access to basic needs, and quality of life; 20
(11) "Project development area" me ans a geographic area defined within a 21
revitalization area by the board for the purpose of a project; 22
(12) "Revitalization area" means a region as identified by the Kentucky counties that 23
is defined as rural based upon the Rural -Urban Continuum Codes 4 to 9 in 24
alignment with the United States Department of Agriculture Economic Research 25
Service’s metro and nonmetro designations; and 26
(13) "State tax revenues": 27
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(a) Means revenues received by the Commonwealth from one (1) or more of the 1
following sources: 2
1. State real property ad valorem taxes, excluding any taxes not assessed 3
while a property is participating in an assessment or reassessment 4
moratorium program under KRS 99.600; 5
2. Individual income taxes required to be withheld by an employer under 6
KRS 141.310; and 7
3. Sales taxes imposed under KRS 139.200, excluding sales taxes already 8
pledged for: 9
a. Approved tourism attraction projects, as defined in KRS 148.851, 10
within the revitalization area; and 11
b. Projects which are approved for sales tax refunds under 12
Subchapter 20 of KRS Chapter 154 within the revitalization 13
area; and 14
(b) Does not mean revenues that have been pledged to support a tax increment 15
financing project established under KRS 65.490 to 65.499, 65.500 to 65.506, 16
65.680 to 65.699, or 65.7041 to 65.7083 or an economic development project 17
within the project development area. 18
SECTION 3. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 19
READ AS FOLLOWS: 20
(1) The Rural Kentucky Revitalization Opportunity Partnership is hereby created and 21
shall be a public body corporate and politic, with the powers and duties in its 22
corporate name to: 23
(a) Have a corporate seal; 24
(b) Determine membership of the revitalization area based upon: 25
1. Voluntary participation of city and county governments within the 26
revitalization area evidenced by a resolution passed by the respective 27
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governing bodies authorizing participation in and contribution to the 1
revitalization area; and 2
2. Voluntary participant s agreeing to the terms and conditions of 3
membership participation; 4
(c) Determine renewal of voluntary memberships based upon: 5
1. Participation in the activities of the revitalization area; 6
2. The payment of any dues or fees, if any, approved by the board; 7
3. Development and submission of a biennial strategic plan by each 8
voluntary participant that identifies the perceived strengths, 9
weaknesses, opportunities, and threats within their specific city or 10
county and a plan with measurable goals to address oppor tunities for 11
improvement which are related to: 12
a. Improving incomes; 13
b. Improving education attainment; 14
c. Improving health outcomes; 15
d. Reducing unemployment; 16
e. Increasing job insecurity; 17
f. Improving working life conditions; 18
g. Reducing food insecurity; 19
h. Addressing housing need; 20
i. Improving access to childcare and improving early childhood 21
development; 22
j. Protecting the environment; and 23
k. Addressing access to basic amenities and improving the overall 24
quality of life; and 25
4. Development and submission of an annual strategic plan progress 26
report; 27
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(d) Sue and be sued; 1
(e) Make or execute contracts and other instruments necessary or convenient to 2
the exercise of its powers; 3
(f) Make, and from time to time amend and repeal, bylaws and procedures, 4
including a policy and procedure for replacing any institution that has a 5
permanent seat on the board, should an institution cease to exist or change 6
corporate form, to effect the purposes of Sections 1 to 7 and 8 of this Act; 7
(g) Hire and maintain personnel; 8
(h) Borrow from and accept loans and grants from the federal, state, local 9
jurisdictions, or any agency thereof, or from any sources, public or private, 10
and to pledge security as may be required; 11
(i) Invest any funds held in reserves or any funds not required f or immediate 12
disbursements, in property or securities in which savings banks may legally 13
invest funds subject to their control; 14
(j) Purchase bonds at a price not more than the principal amount thereof and 15
accrued interest, and cancel all bonds so purchased; 16
(k) Plan initiatives within the revitalization area; 17
(l) Establish project development areas within the revitalization area; 18
(m) Ensure that the defined borders for a project development area do not cross 19
over the defined borders of another project development area; 20
(n) Invest in projects and neighborhood -based or neighborhood -directed 21
initiatives led by other organizations seeking to invest within the 22
revitalization area; 23
(o) Make loans to businesses, individuals, or other organizations seeking to 24
invest within the revitalization area; 25
(p) Receive proceeds from loans and grants; 26
(q) Purchase, acquire, own, hold, and dispose of all r eal and personal property 27
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necessary for carrying out its corporate purposes; 1
(r) Invest in projects that create affordable housing within the revitalization 2
area; 3
(s) Communicate with the advisory council established in Section 7 of this Act 4
to seek specific knowledge about the community; 5
(t) Adopt and comply with KRS Chapter 45A or develop a procurement code 6
designed to provide for the purchase of supplies, equipment, services, and 7
construction items that provide the greatest long -term benefit to the 8
revitalization area, the greatest integrity for the Rural Kentucky 9
Revitalization Opportunity Partnership, and the best service and products 10
for the public; 11
(u) Develop a program that will: 12
1. Raise awareness of the income tax credit created in Section 8 of thi s 13
Act; 14
2. Enable individuals in the revitalization area to timely pay property 15
taxes by lending funds on a short -term basis until the income tax 16
credit is paid to the individual; and 17
3. Assist individuals residing in the revitalization area and qualifying for 18
the income tax credit by filling out returns or other paperwork 19
required to claim the tax credit; 20
(v) Create an account for the incremental tax increases collected from property 21
owners of residential property located within the revitalization area; 22
(w) Create an account to make home improvements for existing property 23
owners of residential property located within the revitalization area; and 24
(x) Exercise any power, duties, and requirements for carrying out its corporate 25
purposes under Sections 1 to 7 and 8 of this Act. 26
(2) The purpose of the Rural Kentucky Revitalization Opportunity Partnership shall 27
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be to: 1
(a) Manage and support the restoration of and investment in the revitalization 2
area, with a focus on projects supported by residents and businesses wi thin 3
the revitalization area; 4
(b) Encourage private investment in businesses and residential projects that 5
will have a significant impact within the revitalization area; 6
(c) Ensure that all projects include the employment of area residents, both in 7
short-term construction jobs and long -term employment in businesses 8
locating within the revitalization area; and 9
(d) Ensure that all housing projects include the creation of housing that is 10
deemed affordable in accordance with federal guidelines for low -income 11
families. 12
(3) The Rural Kentucky Revitalization Opportunity Partnership shall comply with 13
KRS 61.800 to 61.850 and 61.870 to 61.884. 14
(4) The board shall comply with KRS Chapter 65A and the Rural Kentucky 15
Revitalization Opportunity Partnership shall be subjec t to audit under KRS 16
43.070. 17
(5) (a) The Rural Kentucky Revitalization Opportunity Partnership is solely 18
responsible for its operations. A debt of the Rural Kentucky Revitalization 19
Opportunity Partnership is not a debt of the Commonwealth or any city or 20
county. An action of the Rural Kentucky Revitalization Opportunity 21
Partnership is not an action of the Commonwealth or any city or county and 22
shall not obligate the Commonwealth or any city or county in any manner. 23
(b) Bonds issued by the board under this se ction do not constitute a debt of the 24
Commonwealth or of any political subdivision thereof, or a pledge of the 25
faith and credit of the Commonwealth or of any political subdivision 26
thereof, and such bonds shall be payable solely from the funds and security 27
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provided therefor under Sections 1 to 7 of this Act, and all such bonds shall 1
contain on the face thereof a statement to that effect. 2
(6) Operating expenditures, including but not limited to management fees, 3
investment fees, legal fees, and administrative fees shall not exceed five percent 4
(5%) of gross contributions received by the Rural Kentucky Revitalization 5
Opportunity Partnership. 6
SECTION 4. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) The Rural Kentucky Revitalization Opportunity Partnership shall be governed by 9
a board. The board shall initially consist of the following members: 10
(a) Two (2) members, for a term of three (3) years, appointed by the executive 11
board of directors of the Kentucky League of Cities from the pool of mayors 12
who are members of that organization and presently serve within the 13
revitalization area; 14
(b) Three (3) members, for a term of three (3) years, appointed by the executive 15
board of directors of the Kentucky Coun ty Judge/Executive Association 16
from the pool of county judges executive who are members of that 17
organization and presently serve within the revitalization area; 18
(c) A representative of the University of Kentucky, appointed by its board of 19
trustees for a term of three (3) years; 20
(d) A representative of one (1) of the regional public universities located east of 21
Interstate 65 appointed by the Council on Postsecondary Education, for a 22
term of three (3) years; 23
(e) A representative of one (1) of the regional public universities located west of 24
Interstate 65 appointed by the Council on Postsecondary Education, for a 25
term of three (3) years; 26
(f) A representative of the Kentucky Community and Technical College System 27
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appointed by its board of trustees, for a term of three (3) years; 1
(g) A representative of Shaping Our Appalachian Region appointed by its 2
board of trustees, for a term of three (3) years; and 3
(h) 1. The following members who shall be appointed by the Governor: 4
a. One (1) member from among the executive directors of area 5
chambers of commerce within the revitalization area ; 6
b. One (1) member from the Federal Reserve Bank of St. Louis, 7
Louisville Branch; 8
c. One (1) member from a Kentucky -based foundation with assets 9
over one hundred million dollars ($100,000,000); and 10
d. One (1) member from a Kentucky bank with local assets greater 11
than one billion dollars ($1,000,000,000). 12
2. The initial appointments of the members described in subparagraph 1. 13
of this paragraph shall be for terms as follows: 14
a. One (1) member for a term of one (1) year; 15
b. One (1) member for a term of two (2) years; 16
c. One (1) member for a term of three (3) years; and 17
d. One (1) member for a term of four (4) years. 18
(2) The board shall include in its bylaws a process for appointing one (1) m ember 19
from each of the six (6) geographic regions within the revitalization area as 20
additional members. The process shall: 21
(a) Ensure the six (6) members are each from a different geographic region 22
within the state which are identified as the Eastern Kentucky Coal Field, the 23
Knobs, the Bluegrass, the Pennyroyal, the Western Kentucky Coal Field, 24
and the Jackson Purchase; 25
(b) Require that, at all times, at least one (1) of the six (6) members 26
representing the different geographic regions within the state shal l be 27
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between the ages of eighteen (18) and thirty (30) at the time of appointment 1
or reappointment; and 2
(c) Provide that the initial appointment of the members be for terms as follows: 3
1. Four (4) members for a term of two (2) years; and 4
2. Two (2) members for a term of three (3) years. 5
(3) After expiration of the terms provided in subsections (1) and (2) of this section, 6
the board shall self-perpetuate. The overall makeup of the board shall remain the 7
same unless an institution ceases to exist or changes corporate form. All 8
successors of the representatives described in subsection (1) of this section shall 9
serve four (4) year terms and all successors of the representatives described in 10
subsection (2) of this section shall serve three (3) year terms. No ind ividual shall 11
serve more than two (2) consecutive terms. 12
(4) Additional members of the board to serve as nonvoting, ex officio members shall 13
be: 14
(a) The executive directors of each of the area development districts within the 15
revitalization area, or their designees; 16
(b) The secretary of the Cabinet for Economic Development or his or her 17
designee; 18
(c) The Commissioner of Agriculture or his or her designee; and 19
(d) The secretary of the Cabinet for Health and Family Services or his or her 20
designee. 21
(5) The membership of the board shall not exceed twenty-one (21) voting members. 22
(6) A chair of the board shall be selected annually from its members and shall have 23
responsibility for board meeting agendas and presiding at board meetings. 24
(7) Members of the board shall be entitled only to reimbursement from the Rural 25
Kentucky Revitalization Opportunity Partnership for actual expenses incurred in 26
the performance of their duties as board members. 27
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(8) A majority of the entire voting membership of the board shall constitute a 1
quorum, and all actions of the board shall be by vote of a majority of its entire 2
voting membership. 3
(9) A member of the board shall abstain fro m action on an official decision in which 4
he or she has or may have a personal or private interest, or if the member is 5
affiliated with any party conducting business with the Rural Kentucky 6
Revitalization Opportunity Partnership, shall disclose the existen ce of that 7
personal or private interest or affiliation in writing to the other members of the 8
board on the same day on which the member becomes aware that the interest or 9
affiliation exists or that an official decision may be under consideration by the 10
board. The member which has or may have a personal or private interest or 11
affiliation shall be absent from all meetings and votes in relation to the matter. 12
(10) As a prerequisite to service, each appointee to the board and each member of the 13
Rural Kentucky R evitalization Advisory Council established in Section 7 of this 14
Act shall participate in a board -sanctioned training program on the topics of 15
community and economic development, finance, equity and community 16
engagement, gentrification, and the implications of these concepts. 17
SECTION 5. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 18
READ AS FOLLOWS: 19
(1) Notwithstanding KRS 6.945, beginning in the calendar year following the full 20
receipt of the initial funds statutorily requ ired to be invested by private sector 21
investors, a city or county, and the Commonwealth to the Rural Kentucky 22
Revitalization Opportunity Partnership and continuing for twenty (20) years, 23
eighty-five (85%) percent of the incremental revenues shall be pledge d to the 24
Rural Kentucky Revitalization Opportunity Partnership by a city or county and 25
the Commonwealth. 26
(2) A local participation agreement shall be executed between the Rural Kentucky 27
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Revitalization Opportunity Partnership and the governing bodies involv ed in 1
providing financing or pledging incremental revenues to support the 2
implementation of a development plan in a project development area. 3
(3) The local participation agreement shall be adopted by a governing body by 4
ordinance and shall include but not be limited to the following provisions: 5
(a) Identification of the parties to the local participation agreement and the 6
duties and responsibilities of each entity under the agreement; 7
(b) Specific identification of the incremental revenues released or pledg ed by 8
type of tax by each taxing district; 9
(c) The anticipated benefit to be received by each taxing district for the release 10
or pledge, including a detailed summary of old revenues collected; 11
(d) A requirement that pledged incremental revenues shall be ac counted for 12
within a separate account under Section 6 of this Act; 13
(e) Terms of default and remedies, provided that no remedy shall permit the 14
withholding by any party to the local participation agreement of any 15
incremental revenues pledged to the special fund if increment bonds are 16
outstanding that are secured by a pledge of those incremental revenues; 17
(f) The commencement date, activation date, and termination date; and 18
(g) Any other provisions not inconsistent with Sections 1 to 7 and 8 of this Act. 19
(4) Any pledge of incremental revenues in a local participation agreement shall be 20
superior to any other pledge of revenues for any other purpose and shall, from 21
the activation date to the termination date set forth in the local participation 22
agreement, supers ede any statute, ordinance, or resolution regarding the 23
application or use of incremental revenues. An ordinance in conflict with a local 24
participation agreement shall not be adopted while any increment bonds secured 25
by that pledge remain outstanding. Ordi nances or resolutions pledging 26
incremental revenues on a subordinate basis to any existing pledges may be 27
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adopted. 1
(5) The local participation agreement executed under this section and a project 2
development area shall not be included in the percentage calc ulation established 3
by KRS 65.7049(2). 4
(6) Notwithstanding KRS 65.7049(2), the local participation agreement shall permit 5
residential property located within the project development area to be eligible for 6
participation in a program granting property asses sment or reassessment 7
moratoriums pursuant to KRS 99.600 when the incremental revenues related to 8
that residential property have not been pledged to support a tax increment 9
financing project established under KRS 65.490 to 65.499, 65.500 to 65.506, 10
65.680 to 65.699, or 65.7041 to 65.7083 or an economic development project 11
within the project development area. 12
SECTION 6. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) As used in this section, " department" means the Department of Revenue. 15
(2) All documentation, records, and release of incremental revenues relating to local 16
tax revenues shall be maintained and determined by the governing body. 17
(3) All documentation, records, and release of incremental revenues relating to state 18
tax revenues shall be maintained and determined by the department. 19
(4) Upon notice from the Rural Kentucky Revitalization Opportunity Partnership, a 20
governing body obligated under a local partic ipation agreement and the 21
department shall release to the Rural Kentucky Revitalization Opportunity 22
Partnership the incremental revenues due. 23
(5) (a) The governing body and the department shall have no obligation to refund 24
or otherwise return any of the in cremental revenues to the taxpayer from 25
whom the incremental revenues arose or are attributable. 26
(b) No additional incremental revenues resulting from audit, amended returns, 27
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or other activity for any period shall be transferred after the initial release 1
to the Rural Kentucky Revitalization Opportunity Partnership for that 2
period. 3
(6) If the Rural Kentucky Revitalization Opportunity Partnership issues bonds for 4
project developments within the revitalization area and incremental revenues 5
have been pledged f or the developments, the Rural Kentucky Revitalization 6
Opportunity Partnership shall maintain a separate account to account for the: 7
(a) Bond proceeds received; 8
(b) Incremental revenues received; and 9
(c) Payment of debt charges of the bond. 10
(7) The Rural K entucky Revitalization Opportunity Partnership shall provide a 11
biennial report to the Legislative Research Commission for referral to the Interim 12
Joint Committee on Appropriations and Revenue on or before August 1, 2027, 13
and on or before August 1 of each o dd-numbered year thereafter. The report 14
shall contain the following information: 15
(a) The amounts of money received by private sector investors, a city or county 16
and the Commonwealth, including the party that made the payment; 17
(b) The annual financial state ments of the Rural Kentucky Revitalization 18
Opportunity Partnership, including the current balances of all funds and 19
accounts of the Rural Kentucky Revitalization Opportunity Partnership; 20
(c) The total amount of state tax revenues and local tax revenues rec eived by a 21
project development area within the revitalization area for the preceding 22
biennial period categorized by each type of tax; 23
(d) The operating expenditures incurred by the Rural Kentucky Revitalization 24
Opportunity Partnership, including management fees, investment fees, legal 25
fees, or administrative fees incurred; 26
(e) A list of the projects supported by investments from the Rural Kentucky 27
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Revitalization Opportunity Partnership in the preceding year and a 1
description of the investment amount contrib uted by the Rural Kentucky 2
Revitalization Opportunity Partnership for each project; 3
(f) The amount of bonds issued or other borrowed moneys received by the 4
Rural Kentucky Revitalization Opportunity Partnership; 5
(g) Any personal or private interests or affi liated board members as described 6
in subsection (9) of Section 4 of this Act; and 7
(h) Upon request from the General Assembly, copies of the Rural Kentucky 8
Revitalization Opportunity Partnership's bylaws and any contracts or 9
agreements in which the Rural Ke ntucky Revitalization Opportunity 10
Partnership is a party. 11
SECTION 7. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) The Rural Kentucky Revitalization Advisory Council is hereby established as a 14
subcommittee of the Rural Kentucky Revitalization Opportunity Partnership. The 15
council shall consist of: 16
(a) One (1) resident from each of the fifteen (15) area development districts 17
located within the revitalization area; 18
(b) One (1) member from the Volunteers of America Mid States; 19
(c) One (1) member from the Foundation for a Healthy Kentucky; and 20
(d) One (1) member from the Central Kentucky Community Action Council. 21
(2) The members of the council shall serve four (4) year terms, except initial 22
appointments shall be for terms as follows: 23
(a) Four (4) members for a term of one (1) year; 24
(b) Six (6) members for a term of two (2) years; 25
(c) Six (6) members for a term of three (3) years; and 26
(d) Two (2) members for a term of four (4) years. 27
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(3) The Governor shall appoint the initial members of the council, and after 1
expiration of the terms provided in subsection (2) of this section the council shall 2
self-perpetuate. 3
(4) The council shall: 4
(a) Elect its own chairperson and establish other officers as needed to execute 5
the duties of the council; 6
(b) Adopt bylaws and operate under its bylaws; 7
(c) Establish and evaluate goals and outcomes for economic development and 8
housing issues in the revitalization area; and 9
(d) Assist the board with information about the revitalization area community 10
and its economic development and housing project needs. 11
SECTION 8. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) As used in this section: 14
(a) "Owner" means: 15
1. The individual who owned a residential property on January 1, 2026; 16
or 17
2. Upon the death of the individual specified in subparagraph 1. of this 18
paragraph, a beneficiary who: 19
a. Is a lineal descendant of t he individual, but also including a 20
spouse, child, legally adopted child, grandchild, brother, sister, 21
parent, or grandparent; and 22
b. Inherits the residential property of the individual; 23
(b) "Project development area" has the same meaning as in Section 2 o f this 24
Act; 25
(c) "Property tax" means the total ad valorem tax paid to the Commonwealth, a 26
local city or county, and all taxing districts on the residential property; and 27
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(d) "Residential property" means: the principal residence of the owner that is 1
located in a project development area and is owned as of January 1, 2026. 2
(2) There is hereby created the rural Kentucky revitalization credit allowable against 3
the tax imposed under KRS 141.020, with the ordering of credits under Section 9 4
of this Act. 5
(3) (a) The credit permitted by subsection (2) of this section shall be a refundable, 6
nontransferable tax credit to the owner of residential property in the project 7
development area. 8
(b) The credit shall be equal to the amount in which the property tax timely 9
paid on the residential property in a taxable year exceeds the amount of 10
property tax assessed on that residential property on January 1, 2026. 11
(4) The credit shall end the earlier of the taxable year in which: 12
(a) The residential property is sold by the owner; or 13
(b) The period allowed for incremental revenues under Section 5 of this Act 14
ends. 15
(5) (a) In order for the General Assembly to evaluate the rural Kentucky 16
revitalization area credit, the department shall provide the following 17
information on a cumulati ve basis for each taxable year to provide a 18
historical impact of the credit to the Commonwealth: 19
1. The total amount of tax credit claimed for each taxable year by all 20
owners; 21
2. The total amount of tax credit for each taxable year which is used to 22
offset tax liability of owners and the total amount that is refunded to 23
owners; 24
3. The physical address of the residential property which created the tax 25
credit; 26
4. The amount of the tax credit claimed for the taxable year for each 27
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physical address; 1
5. The amount of the tax credit used to offset tax liability and the amount 2
refunded to the owner at that physical address; and 3
6. Based on ranges of net income no larger than five thousand do llars 4
($5,000), the total amount of tax credit claimed and the number of 5
returns claiming a tax credit for each adjusted gross income range. 6
(b) The report required by paragraph (a) of this subsection shall be submitted 7
to the Legislative Research Commissi on for referral to the Interim Joint 8
Committee on Appropriations and Revenue beginning no later than 9
November 1, 2028, and each November 1 thereafter, as long as the credit is 10
claimed on any return processed by the department. 11
Section 9. KRS 141.0205 is amended to read as follows: 12
If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax 13
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 14
the credits shall be determined as follows: 15
(1) The nonrefundable business incen tive credits against the tax imposed by KRS 16
141.020 shall be taken in the following order: 17
(a) The limited liability entity tax credit permitted by KRS 141.0401; 18
(b) The economic development credits computed under KRS 141.347, 141.381, 19
141.384, 141.3841, 1 41.400, 141.403, 141.407, 141.415, 154.12 -207, and 20
154.12-2088; 21
(c) The qualified farming operation credit permitted by KRS 141.412; 22
(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 23
(e) The health insurance credit permitted by KRS 141.062; 24
(f) The tax paid to other states credit permitted by KRS 141.070; 25
(g) The credit for hiring the unemployed permitted by KRS 141.065; 26
(h) The recycling or composting equipment credit permitted by KRS 141.390; 27
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(i) The [tax ]credit for cash contributio ns in investment funds permitted by KRS 1
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 2
154.20-258; 3
(j) The research facilities credit permitted by KRS 141.395; 4
(k) The employer High School Equivalency Diploma program incentive credit 5
permitted under KRS 151B.402; 6
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 7
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 8
(n) The clean coal incentive credit permitted by KRS 141.428; 9
(o) The ethanol credit permitted by KRS 141.4242; 10
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 11
(q) The energy efficiency credits permitted by KRS 141.436; 12
(r) The railroad maintenance and improvement credit permitted by KRS 141.385; 13
(s) The Endow Kentucky credit permitted by KRS 141.438; 14
(t) The New Markets Development Program credit permitted by KRS 141.434; 15
(u) The distilled spirits credit permitted by KRS 141.389; 16
(v) The angel investor credit permitted by KRS 141.396; 17
(w) The film industry credit permitted by KRS 141.383 for applications approved 18
on or after April 27, 2018, but before January 1, 2022; 19
(x) The inventory credit permitted by KRS 141.408; 20
(y) The renewable chemical production credit permitted by KRS 141.4231; and 21
(z) The qualified broadband investment [tax] credit permitted by KRS 141.391; 22
(2) After the application of the nonrefundable credits in subsection (1) of this section, 23
the nonrefundable personal tax credits against the tax imposed by KRS 141.020 24
shall be taken in the following order: 25
(a) The individual credits permitted by KRS 141.020(3); 26
(b) The credit permitted by KRS 141.066; 27
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(c) The tuition credit permitted by KRS 141.069; 1
(d) The household and dependent care credit permitted by KRS 141.067; 2
(e) The income gap credit permitted by KRS 141.066; and 3
(f) The Education Opportunity Account Program [tax ]credit permitted by KRS 4
141.522; 5
(3) After the application of the nonrefundable credits provided for in subsection (2) of 6
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 7
taken in the following order: 8
(a) The individual withholding tax credit permitted by KRS 141.350; 9
(b) The individual estimated tax payment credit permitted by KRS 141.305; 10
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 11
171.397(1)(b); 12
(d) The film industry [tax ] credit permitted by KRS 141.383 for applications 13
approved prior to April 27, 2018, or on or after January 1, 2022; 14
(e) The development area [tax ]credit permitted by KRS 141.398; 15
(f) The decontamination [tax ]credit permitted by KRS 141.419;[ and] 16
(g) The pass-through entity tax credit permitted by KRS 141.209; and 17
(h) The rural Kentucky revitalization credit permitted by Section 8 of this act. 18
(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 19
tax imposed by KRS 141.040; 20
(5) The following nonrefundable credits shall be applied against the sum of the tax 21
imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 22
of this section, and the tax imposed by KRS 141.0401 in the following order: 23
(a) The economic development credits computed under KRS 141.347, 141.381, 24
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12 -207, and 25
154.12-2088; 26
(b) The qualified farming operation credit permitted by KRS 141.412; 27
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(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 1
(d) The health insurance credit permitted by KRS 141.062; 2
(e) The unemployment credit permitted by KRS 141.065; 3
(f) The recycling or composting equipment credit permitted by KRS 141.390; 4
(g) The coal conversion credit permitted by KRS 141.041; 5
(h) The enterprise zone credit permitted by KRS 154.45 -090, for taxable periods 6
ending prior to January 1, 2008; 7
(i) The [tax] credit for cash contributions to investment funds permitted by KRS 8
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 9
154.20-258; 10
(j) The research facilities credit permitted by KRS 141.395; 11
(k) The employer High School Equivalency Diploma program incentive credit 12
permitted by KRS 151B.402; 13
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 14
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 15
(n) The clean coal incentive credit permitted by KRS 141.428; 16
(o) The ethanol credit permitted by KRS 141.4242; 17
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 18
(q) The energy efficiency credits permitted by KRS 141.436; 19
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 20
permitted by KRS 141.437; 21
(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 22
(t) The railroad expansion credit permitted by KRS 141.386; 23
(u) The Endow Kentucky credit permitted by KRS 141.438; 24
(v) The New Markets Development Program credit permitted by KRS 141.434; 25
(w) The distilled spirits credit permitted by KRS 141.389; 26
(x) The film industry credit permitted by KRS 141.383 for applications approved 27
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on or after April 27, 2018, but before January 1, 2022; 1
(y) The inventory credit permitted by KRS 141.408; 2
(z) The renewable chemical production [tax ]credit permitted by KRS 141.4231; 3
(aa) The Education Opportunity Account Program [tax ]credit permitted by KRS 4
141.522; and 5
(ab) The qualified broadband investment [tax ]credit permitted by KRS 141.391; 6
and 7
(6) After the application of the nonrefundable credits in subsection (5) of this section, 8
the refundable credits shall be taken in the following order: 9
(a) The corporation estimated tax payment credit permitted by KRS 141.044; 10
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 11
171.397(1)(b); 12
(c) The film industry [tax ] credit permitted by KRS 141.383 for applications 13
approved prior to April 27, 2018, or on or after January 1, 2022; 14
(d) The decontamination [tax ]credit permitted by KRS 141.419; and 15
(e) The pass-through entity tax credit permitted by KRS 141.209. 16
Section 10. KRS 131.190 is amended to read as follows: 17
(1) No present or former commissioner or employee of the department, present or 18
former member of a county board of assessment appeals, present or former property 19
valuation administrator or employee, present or former secretary or employee of the 20
Finance and Administration Cabinet, former secretary or employee of the Revenue 21
Cabinet, or any other person, shall intentionally and without authorization inspect 22
or divulge any information acquired by him or her of the affairs of any person, or 23
information regarding the tax schedules, returns, or reports required to be filed with 24
the department or other proper officer, or any information produced by a hearing or 25
investigation, insofar as the information may have to do with the affairs of the 26
person's business. 27
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(2) The prohibition established by subsection (1) of this section shall not extend to: 1
(a) Information required in prosecutions for making false reports or returns of 2
property for taxation, or any other infraction of the tax laws; 3
(b) Any matter properly entered upon any assessment record, or in any way made 4
a matter of public record; 5
(c) Furnishing any taxpayer or his or her properly authorized agent with 6
information respecting his or her own return; 7
(d) Testimony provided by the commissioner or any employee of the department 8
in any court, or the introduction as evidence of returns or reports filed with the 9
department, in an action for violation of state or federal tax laws or in any 10
action challenging state or federal tax laws; 11
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 12
energy resources assessed under KRS 132.820, or owners of surface land 13
under which the unmined minerals lie, factual information about the owner's 14
property derived from third-party returns filed for that owner's property, under 15
the provisions of KRS 132.820, that is used to determine the owner's 16
assessment. This information shall be provided to the owner on a confidential 17
basis, and the owner shall be subject to the penalties provided in KRS 18
131.990(2). The t hird-party filer shall be given prior notice of any disclosure 19
of information to the owner that was provided by the third-party filer; 20
(f) Providing to a third -party purchaser pursuant to an order entered in a 21
foreclosure action filed in a court of compete nt jurisdiction, factual 22
information related to the owner or lessee of coal, oil, gas reserves, or any 23
other mineral resources assessed under KRS 132.820. The department may 24
promulgate an administrative regulation establishing a fee schedule for the 25
provision of the information described in this paragraph. Any fee imposed 26
shall not exceed the greater of the actual cost of providing the information or 27
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ten dollars ($10); 1
(g) Providing information to a licensing agency, the Transportation Cabinet, or 2
the Kentucky Supreme Court under KRS 131.1817; 3
(h) Statistics of gasoline and special fuels gallonage reported to the department 4
under KRS 138.210 to 138.448; 5
(i) Providing any utility gross receipts license tax return information that is 6
necessary to administer th e provisions of KRS 160.613 to 160.617 to 7
applicable school districts on a confidential basis; 8
(j) Providing documents, data, or other information to a third party pursuant to an 9
order issued by a court of competent jurisdiction; 10
(k) Publishing administrative writings on its official website in accordance with 11
KRS 131.020(1)(b); or 12
(l) Providing information to the Legislative Research Commission under: 13
1. KRS 139.519 for purposes of the sales and use tax refund on building 14
materials used for disaster recovery; 15
2. KRS 141.436 for purposes of the energy efficiency products credits; 16
3. KRS 141.437 for purposes of the ENERGY STAR home and the 17
ENERGY STAR manufactured home credits; 18
4. KRS 141.383 for purposes of the film industry incentives; 19
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 20
credit and the job assessment fees; 21
6. KRS 141.068 for purposes of the Kentucky investment fund; 22
7. KRS 141.396 for purposes of the angel investor credit; 23
8. KRS 141.389 for purposes of the distilled spirits credit; 24
9. KRS 141.408 for purposes of the inventory credit; 25
10. KRS 141.390 for purposes of the recycling and composting credits; 26
11. KRS 141.3841 for purposes of the selling farmer credit; 27
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12. KRS 141.4231 for purposes of the renewable chemical production 1
credit; 2
13. KRS 141.524 for purposes of the Education Opportunity Account 3
Program credit; 4
14. KRS 141.398 for purposes of the development area credit; 5
15. KRS 139.516 for purposes of the sales and use tax exemptions for the 6
commercial mining of cryptocurrency; 7
16. KRS 141.419 for purposes of the decontamination credit; 8
17. KRS 141.391 for purposes of the qualified broadband investment credit; 9
18. KRS 139.499 for purposes of the sales and use tax exemptions for a 10
qualified data center project;[ and] 11
19. KRS 139.5325 for purposes of the sales and use tax incentive for a 12
qualifying attraction; and 13
20. Section 8 of this Act for purposes of the rural Kentucky revitalization 14
credit. 15
(3) The commissioner shall make available any information for official use only and on 16
a confidential basis to the proper officer, agency, board or commission of this state, 17
any Kentucky county, any Kentucky city, any other state, or the federal 18
government, under reciprocal agreements whereby the department shall receive 19
similar or useful information in return. 20
(4) Access to and inspection of information received from the Internal Revenue Service 21
is for department use only, and is restricted to tax admin istration purposes. 22
Information received from the Internal Revenue Service shall not be made available 23
to any other agency of state government, or any county, city, or other state, and 24
shall not be inspected intentionally and without authorization by any p resent 25
secretary or employee of the Finance and Administration Cabinet, commissioner or 26
employee of the department, or any other person. 27
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(5) Statistics of crude oil as reported to the department under the crude oil excise tax 1
requirements of KRS Chapter 13 7 and statistics of natural gas production as 2
reported to the department under the natural resources severance tax requirements 3
of KRS Chapter 143A may be made public by the department by release to the 4
Energy and Environment Cabinet, Department for Natural Resources. 5
(6) Notwithstanding any provision of law to the contrary, beginning with mine -map 6
submissions for the 1989 tax year, the department may make public or divulge only 7
those portions of mine maps submitted by taxpayers to the department pursuant t o 8
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined -9
out parcel areas. These electronic maps shall not be relied upon to determine actual 10
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 11
required under KRS Chapters 350 and 352 shall not be construed to constitute land 12
surveying or boundary surveys as defined by KRS 322.010 and any administrative 13
regulations promulgated thereto. 14
Section 11. If any provision of th is Act or the application thereof to any person 15
or circumstance is held invalid, the invalidity shall not affect other provisions or 16
applications of the Act that can be given effect without the invalid provision or 6 17
application, and to this end the provisions of this Act are severable. 18