AN ACT relating to the levy of an ad valorem tax rate.

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AN ACT relating to the levy of an ad valorem tax rate. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 132.017 is amended to read as follows: 3
(1) As used in this section: 4
(a) "Local governmental entity" includes a county fiscal court and legislative 5
body of a city, urban -county government, consolidated local governm ent, 6
charter county government, unified local government, or other taxing district;[ 7
and] 8
(b) "Next regular election" means the regular election that occurs immediately 9
after all statutory requirements for levying a property tax rate have been met, 10
regardless of whether the election occurs in the same or a subsequent calendar 11
year as the levy of the property tax rate; and 12
(c) "School nickel tax rate" means a five cents ($0.05) equivalent tax rate that 13
is: 14
1. Subject to recall at the time it is levied; and 15
2. Levied by a local board of education for the purpose of supporting 16
debt service, new facilities, or major renovation of existing facilities. 17
(2) (a) 1. Except as provided in subparagraph 2. of this paragraph, [ the portion of] 18
a school nickel tax rate levied by a local[an ordinance, order, resolution, 19
or motion of a local governmental entity or district] board of education[ 20
subject to recall as provided for in KRS 68.245, 132.023, 132.027, and 21
160.470,] shall go into effect forty-five (45) days after its passage. 22
2. When a school nickel tax rate is levied by a local[district] board of 23
education[ or other taxing district] that is primarily located in a county 24
containing an urban -county government or a consolidated local 25
government, the [ portion of a] school nickel tax rate [ levied by an 26
ordinance, order, resolution, or motion of a district board of education or 27
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other taxing dis trict subject to recall as provided for in KRS 68.245, 1
132.023, 132.027, and 160.470,] shall go into effect fifty (50) days after 2
its passage. 3
(b) During the same forty -five (45) day or fifty (50) day time period provided by 4
paragraph (a) of this subsectio n, any three (3) qualified voters, who reside in 5
the area where the school nickel tax rate levy will be imposed, may 6
commence petition proceedings to protest the passage of the [ ordinance,] 7
order, resolution, or motion of the local board of education by fi ling an 8
affidavit with the county clerk. The affidavit shall state: 9
1. The three (3) qualified voters constitute the members of the petition 10
committee; 11
2. The petition committee will be responsible for circulating the petition; 12
3. The petition committee wi ll file the petition in the proper form within 13
the same forty -five (45) day or fifty (50) day time period provided by 14
paragraph (a) of this subsection; 15
4. The names and addresses of the petition committee members; 16
5. The address to which all notices to the committee are to be sent; and 17
6. For petition committees filing petitions in response to a school nickel 18
tax rate levied by a local[district] board of education [ or other taxing 19
district] that is primarily located in a county containing an urban -county 20
government or a consolidated local government, whether or not the 21
petition committee is willing to incur all of the expenses associated with 22
electronic petition signatures. If the petition committee is not willing to 23
incur all of the expenses, then electroni c petition signatures shall not be 24
allowed for the petition. 25
(c) Upon receipt of the affidavit, the county clerk shall immediately: 26
1. Notify the petition committee of all statutory requirements for the filing 27
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of a valid petition under this section; 1
2. Notify the petition committee that the clerk will publish a notice 2
identifying the school nickel tax rate levy being challenged and 3
providing the names and addresses of the petition committee in a 4
newspaper of general circulation within the county, if: 5
a. There is a newspaper within the county in which to publish the 6
notice; and 7
b. The petition committee remits an amount equal to the cost of 8
publishing the notice determined in accordance with the provisions 9
of KRS 424.160 at the time of the filing of the affidavit. 10
If the petition committee elects to have the notice published, the clerk 11
shall publish the notice within five (5) days of receipt of the affidavit; 12
and 13
3. Deliver a copy of the affidavit to the local[appropriate local 14
governmental entity or district] board of education. 15
(d) The petition shall meet the following requirements: 16
1. All papers of the petition shall be substantially uniform in size and style 17
and shall be assembled in one (1) instrument for filing; 18
2. Each sheet of the petition may contain the names of voters from more 19
than one (1) voting precinct; 20
3. Each nonelectronic petition signature shall be executed in ink or 21
indelible pencil; 22
4. Each electronic petition signature shall comply with the requirements of 23
the Uniform Electronic Transactions Act, KRS 369.101 to 369.120; 24
5. Each petition signature shall be followed by the printed name, street 25
address, birth month, and birth year of the person signing; and 26
6. a. [i. Except for petitions filed in response to a tax rate levied by a 27
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district board of education, the petition shall be signed by a 1
number of registered and qualified voters residing in the 2
affected jurisdiction equal to at least ten percent (10%) of the 3
total number of votes cast in the last preceding presidential 4
election. 5
ii. For petitions filed in response to a tax rate levied by a district 6
board of education, ] The petition shall be signed by at least 7
five thousand (5,000) registered and qualified voters residing 8
in the affected jurisdiction or signed by a number of 9
registered and qualified voters residing in the affected 10
jurisdiction equal to at least ten percent (10%) of the total 11
number of votes cast in the last preceding presidential 12
election, whichever is less. 13
b. Electronic petition signatures shall be included in determi ning 14
whether the required number of petition signatures has been 15
obtained when: 16
i. The expenses associated with the electronic petition 17
signatures have been incurred in accordance with paragraph 18
(b)6. of this subsection; 19
ii. The electronic petition signatu res comply with the 20
requirements of this subsection; and 21
iii. The petition was filed in response to a school nickel tax rate 22
levied by a local[district] board of education[ or other taxing 23
district] that is primarily located in a county containing an 24
urban-county government or a consolidated local 25
government. 26
c. The inclusion of an invalid petition signature on a page shall not 27
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invalidate the entire page of the petition, but shall instead result in 1
the invalid petition signature being stricken and not counted. 2
(e) Upon the filing of the petition with the county clerk, the [ ordinance,] order, 3
resolution, or motion of the local board of education shall be suspended from 4
going into effect until after the election referred to in subsection (4)[(3)] of 5
this section is held, or until the petition is finally determined to be insufficient 6
and[ no] further action may not be taken pursuant to paragraph (i) of this 7
subsection. 8
(f) The county clerk shall immediately notify the presiding officer of the local[ 9
appropriate local governmental entity or district] board of education that the 10
petition has been received and shall, within thirty (30) days of the receipt of 11
the petition, make a determination of whether the petition contains enough 12
signatures of qualified voters to place the [ ordinance,] order, resolution, or 13
motion of the local board of education before the voters. 14
(g) If the county clerk finds the petition to be sufficient, th e clerk shall certify to 15
the petition committee and the local [ governmental entity or district] board of 16
education within the thirty (30) day period provided for in paragraph (f) of 17
this subsection that the petition is properly presented and in compliance with 18
the provisions of this section, and that the [ ordinance] , order, resolution, or 19
motion of the local board of education levying the school nickel tax rate will 20
be placed before the voters for approval. 21
(h) If the county clerk finds the petition to be i nsufficient, the clerk shall, within 22
the thirty (30) day period provided for in paragraph (f) of this subsection, 23
notify, in writing, the petition committee and the local[local governmental 24
entity or district] board of education of the specific deficiencie s found. 25
Notification shall be sent by certified mail and shall be published at least one 26
(1) time in a newspaper of general circulation within the county containing the 27
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local[ governmental entity or district] board of education levying the school 1
nickel tax rate. If there is not a newspaper within the county in which to 2
publish the notification, then the notification shall be posted at the courthouse 3
door. 4
(i) A final determination of the sufficiency of a petition shall be subject to final 5
review by the C ircuit Court of the county in which the local [ governmental 6
entity or district] board of education is located, and shall be limited to the 7
validity of the county clerk's determination. Any petition challenging the 8
county clerk's final determination shall b e filed within ten (10) days of the 9
issuance of the clerk's final determination. 10
(j) The local[ governmental entity or district] board of education may cause the 11
cancellation of the election by reconsidering and amending its[the ordinance,] 12
order, resoluti on, or motion to levy a school nickel tax rate [ which will 13
produce no more revenue from real property, exclusive of revenue from new 14
property as defined in KRS 132.010, than four percent (4%) over the amount 15
of revenue produced by the compensating tax rate defined in KRS 132.010 16
from real property] . The action by the local [ governmental entity or district] 17
board of education shall be valid only if taken within fifteen (15) days 18
following the date the clerk finds the petition to be sufficient. 19
(3) (a) This subsection applies to: 20
1. An ad valorem tax rate, other than a school nickel tax rate, that is 21
levied by a local governmental entity and subject to recall under 22
Section 2, 5, or 6 of this Act; and 23
2. A general ad valorem tax rate levied by a local board of education and 24
subject to recall under Section 7 of this Act. 25
(b) The levy of an ad valorem tax rate which will produce revenue from real 26
property, exclusive of revenue from new property, more than four percent 27
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(4%) over the amount of revenue produced by th e compensating tax rate, 1
shall be subject to recall by placing a question on a ballot before the voters 2
of the taxing district. 3
(c) The ordinance, order, resolution, or motion of the local governmental entity 4
or local board of education levying the tax rat e shall be suspended from 5
going into effect until after an election is held. The taxing district may 6
cause the cancellation of the election by reconsidering and amending its 7
ordinance, order, resolution, or motion to levy the compensating tax rate. 8
(4) (a) If an election is necessary under [ the provisions of] subsection (2) of this 9
section,[: 10
1. The local governmental entity shall cause to be submitted to the voters 11
of the district at the next regular election, the question as to whether the 12
property tax rate shall be levied; or 13
2. ] the local[district] board of education shall cause to be submitted to the 14
voters of the district in a called [ common school] election not less than 15
thirty-five (35) days nor more than forty-five (45) days from the date the 16
signatures on the petition are validated by the county clerk, or at the next 17
regular election, at the option of the local[district] board of education, 18
the question as to whether the school nickel[property] tax rate shall be 19
levied. 20
(b) 1. If an election is nec essary under subsection (3) of this section, a local 21
governmental entity or local board of education shall cause to be 22
submitted to the voters of the taxing district in either a called election 23
or at the next regular election, the question as to whether th e tax rate 24
shall be levied. 25
2. If the question is submitted to the voters in a called election: 26
a. At least thirty (30) days prior to the election, the taxing district 27
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shall inform the voters of the district about the details of the 1
election through postin g information on the first page of the 2
taxing district's website for a period of two (2) weeks, and: 3
i. Publishing the information through the largest newspaper 4
in the county, whether viewable to the public through an 5
online subscription or by paper distribution, for a period of 6
two (2) weeks; or 7
ii. Sending a single notice containing the information by first -8
class mail to each person owning real property in the 9
taxing district, addressed to the property owner at his or her 10
residence or principal place of business as shown on the 11
current year property tax roll; and 12
b. For a local governmental entity subject to KRS 65A.11 0, the 13
election shall be held after the approval of the tax rate by the 14
establishing entity or the expiration of the thirty (30) day failure 15
to act deadline. 16
(c) If an election is necessary under either subsection (2) or (3) of this section: 17
1. The cost of a called [ common school] election shall be borne by the 18
taxing[school] district holding the election; 19
2. [. ] Any called [ common school] election shall comply with the 20
provisions of KRS 118.025; and[.] 21
3.[(b)] If an election [ under paragraph (a) of this su bsection] is held in 22
conjunction with a regular election, the question as to whether the [ 23
property] tax rate shall be levied shall be submitted to the county clerk 24
no later than the second Tuesday in August preceding the regular 25
election. 26
(5) (a)[(c)] In an election held under subsection (4) of this section [paragraph (a) of 27
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this subsection], the question shall be framed to ask whether the voter is for 1
the levy of the [ property] tax rate. If a majority of the votes cast upon the 2
question oppose its passage, the ordinance, order, resolution, or motion of the 3
local governmental entity or local board of education shall not go into effect. 4
If a majority of the votes cast upon the question favor its passage, the 5
ordinance, order, r esolution, or motion of the local governmental entity or 6
local board of education shall become effective. 7
(b)[(d)] If the ordinance, order, resolution, or motion of the local governmental 8
entity or local board of education fails to pass in[pursuant to] an election 9
held under subsection (4)(b) of this section, [paragraph (a) of this subsection, 10
the property tax rate which will produce four percent (4%) more revenues 11
from real property, exclusive of revenue from new property[ as defined in 12
KRS 132.010], than t he amount of revenue produced by] the compensating 13
tax rate[ defined in KRS 132.010,] shall be levied without further approval by 14
the local governmental entity or local[district] board of education. 15
(6)[(e)] Local, state, and federal tax dollars shall not be used to advocate, in partial 16
terms, for or against any public question that appears on a[the] ballot under[in] this 17
section[subsection]. As used in [For purposes of] this subsection[section], "local" 18
means and includes any city, county, urban -county government, consolidated local 19
government, unified local government, charter county, or special district. 20
(7)[(4)] Notwithstanding any statutory provision to the contrary, if a local 21
governmental entity or local[district] board of education has not established a final 22
tax rate as of September 15, due to the recall provisions of this section, KRS 23
68.245, 132.027, or 160.470, regular tax bills shall be prepared as required in KRS 24
133.220 for all taxing districts having a tax rate established by that date; and a 25
second set of bills shall be prepared and collected in the regular manner, according 26
to the provisions of KRS Chapter 132, upon establishment of final tax rates by the 27
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remaining taxing districts. 1
(8)[(5)] If a second billing is necessary, the collection per iod shall be extended to 2
conform with the second billing date.[ 3
(6) ] All costs associated with the second billing shall be paid by the taxing district [ or 4
districts] requiring the second billing. 5
Section 2. KRS 68.245 is amended to read as follows: 6
(1) The property valuation administrator shall submit an official estimate of real and 7
personal property and new property assessment as defined in KRS 132.010, to the 8
county judge/executive by April 1 of each year. 9
(2) A[No] county fiscal court shall not levy a tax rate, excluding any special tax rate 10
which may be levied at the request of a county community improvement district 11
pursuant to KRS 107.350 and 107.360, following a favorable vote upon the[such] 12
tax by the voters of that county, which exceeds the compensating tax rate defined in 13
KRS 132.010, until the taxing district has complied with the provisions of 14
subsection (5) of this section. 15
(3) The state local finance officer shall certify to each county judge/executive, by June 16
30 of each year, the following: 17
(a) The compensating tax rate, as defined in KRS 132.010, and the amount of 18
revenue expected to be produced by it; 19
(b) The tax rate which will produce no more revenue from real property, 20
exclusive of revenue from new p roperty, than four percent (4%) over the 21
amount of revenue produced by the compensating tax rate as defined in KRS 22
132.010 and the amount of revenue expected to be produced by it. 23
(4) Real and personal property assessment and new property determined in acc ordance 24
with KRS 132.010 shall be certified to the state local finance officer by the 25
Department of Revenue upon completion of action on property assessment data. 26
(5) (a) A county fiscal court, proposing to levy a tax rate, excluding any special tax 27
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rate which may be levied at the request of a county community improvement 1
district pursuant to KRS 107.350 and 107.360, following a favorable vote 2
upon the tax by the voters of that county, which exceeds the compensating tax 3
rate as defined in KRS 132.010, shall hold a public hearing to hear comments 4
from the public regarding the proposed tax rate. The hearing shall be held in 5
the principal office of the taxing district, or, in the event the taxing district 6
does not have an [has no] office[,] or the office is not suitable for a hearing, 7
the hearing shall be held in a suitable facility as near as possible to the 8
geographic center of the district. 9
(b) County fiscal courts of counties containing a city of the first class proposing 10
to levy a tax rate, excluding any spe cial tax rate which may be levied at the 11
request of a county community improvement district pursuant to KRS 12
107.350 and 107.360, following a favorable vote upon the tax by the voters of 13
that county, which exceeds the compensating tax rate as defined in KRS 14
132.010, shall hold three (3) public hearings to hear comments from the 15
public regarding the proposed tax rate. The hearings shall be held in three (3) 16
separate locations; each location shall be determined by dividing the county 17
into three (3) approximately equal geographic areas, and identifying a suitable 18
facility as near as possible to the geographic center of each area. 19
(c) The county fiscal court shall advertise the hearing by causing to be published 20
at least twice in two (2) consecutive weeks, in the newspaper of largest 21
circulation in the county, a display type advertisement of not less than twelve 22
(12) column inches, the following: 23
1. The tax rate levied in the preceding year, and the revenue produced by 24
that rate; 25
2. The tax rate proposed for the current year and the revenue expected to 26
be produced by that rate; 27
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3. The compensating tax rate and the revenue expected from it; 1
4. The revenue expected from new property and personal property; 2
5. The general areas to which revenue in excess of the revenue produced in 3
the preceding year is to be allocated; 4
6. A time and place for the public hearings which shall be held not less 5
than seven (7) days nor more than ten (10) days, after the day that the 6
second advertisement is published; 7
7. The purpose of the hearing; and 8
8. A statement to the effect that the General Assembly has required 9
publication of the advertisement and the information contained therein. 10
(d) In lieu of the two (2) published notices, a single notice containing the required 11
information may be sent by first -class mail to each person owning real 12
property, addressed to the property owner at his or her residence or principal 13
place of business as shown on the current year property tax roll. 14
(e) The hearing shall be ope n to the public. All persons desiring to be heard shall 15
be given an opportunity to present oral testimony. The county fiscal court may 16
set reasonable time limits for testimony. 17
(6) (a) [That portion of ] A tax rate, excluding any special tax rate which may be 18
levied at the request of a county community improvement district pursuant to 19
KRS 107.350 and 107.360, following a favorable vote upon a tax by the 20
voters of that county, levied by an action of a county fiscal court which will 21
produce revenue from real p roperty, exclusive of revenue from new property, 22
more than four percent (4%) over the amount of revenue produced by the 23
compensating tax rate as defined in KRS 132.010 shall be subject to a recall 24
vote or reconsideration by the taxing district, as provided for in KRS 132.017, 25
and shall be advertised as provided for in paragraph (b) of this subsection. 26
(b) The county fiscal court shall, within seven (7) days following the adoption of 27
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its[an] ordinance to levy a tax rate, excluding any special tax rate which may 1
be levied at the request of a county community improvement district pursuant 2
to KRS 107.350 and 107.360, following a favorable vote upon a tax by the 3
voters of that county, which will produce revenue from real property, 4
exclusive of revenue from new pr operty as defined in KRS 132.010, more 5
than four percent (4%) over the amount of revenue produced by the 6
compensating tax rate as defined in KRS 132.010, cause to be published, in 7
the newspaper of largest circulation in the county, a display type 8
advertisement of not less than twelve (12) column inches the following: 9
1. The fact that the county fiscal court has adopted a rate; and 10
2. The fact that[ the part of] the rate which will produce revenue from real 11
property, exclusive of new property as defined in K RS 132.010, in 12
excess of four percent (4%) over the amount of revenue produced by the 13
compensating tax rate defined in KRS 132.010 is subject to recall[; and 14
3. The name, address, and telephone number of the county clerk, with a 15
notation to the effect that that official can provide the necessary 16
information about the petition required to initiate recall of the tax rate]. 17
Section 3. KRS 75A.050 is amended to read as follows: 18
(1) (a) Upon the creation of a district, the tru stees of a district are authorized to 19
provide fire services, emergency medical services subject to KRS Chapter 20
311A, or rescue services pursuant to KRS Chapter 39F, as provided in 21
paragraph (c) of this subsection, and to levy a tax upon the property in the 22
district. 23
(b) The property taxed shall be subject to county tax, and the tax levied by the 24
board upon creation of the district shall be approved by the county fiscal 25
court, consolidated local government, charter county government, or unified 26
local government having jurisdiction over the district at the time of passage of 27
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the ordinance creating the district. The tax shall not exceed ten cents ($0.10) 1
per one hundred dollars ($100) of valuation as assessed for county taxes, for 2
the purpose of defraying the e xpenses for the provision of fire services or 3
rescue services. The rate set in this subsection shall apply, notwithstanding the 4
provisions of KRS 132.023. 5
(c) The district that establishes and operates an emergency ambulance service and 6
is the primary service provider in the district may levy a tax upon the property 7
in the district. The tax to be levied shall be proposed by the board, shall be 8
approved by the county fiscal court, consolidated local government, charter 9
county government, or unified local gov ernment having jurisdiction over the 10
district and the tax shall not exceed twenty cents ($0.20) per one hundred 11
dollars ($100) of valuation as assessed for county taxes, for the purpose of 12
defraying the expenses of the provision of fire services, emergency medical 13
services, or rescue service, or to make contracts for fire protection for the 14
districts as provided in KRS 75.050. The rate set in this subsection shall 15
apply, notwithstanding KRS 132.023. 16
(d) 1. Any increase of the total tax levy beyond the rate initially approved by 17
the board and authorized by the county fiscal court, consolidated local 18
government, charter county government, or unified local government 19
shall be subject to KRS 132.023. Any increase in excess of the annual 20
compensating rate for the consolidated emergency services district shall 21
require the approval of the county fiscal court, consolidated local 22
government, charter county government, or unified local government 23
having jurisdiction over the district. If at any time an election [ resulting 24
from a recall petition] pursuant to KRS 132.017 is required, the question 25
shall be presented to all voters in every precinct for which any part of 26
the precinct is served by the district[ subject to the recall petition]. 27
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2. If two (2) or more established consolidated emergency services merge to 1
create a new consolidated emergency services district, as authorized in 2
this chapter, the initial tax to be levied, as proposed by the board, shall 3
be approved by the county fiscal court, consolidated local govern ment, 4
charter county government, or unified local government having 5
jurisdiction over the district, and the initial tax levied shall not exceed 6
the highest tax rate currently levied by one (1) of the merging districts. 7
Any increase to the initial tax rate shall be subject to KRS 132.023. Any 8
increase in excess of the annual compensating rate for the consolidated 9
emergency services district shall require the approval of the county 10
fiscal court, consolidated local government, charter county government, 11
or uni fied local government having jurisdiction over the district. If at 12
any time an election [ resulting from a recall petition] pursuant to KRS 13
132.017 is required, the question shall be presented to all voters in every 14
precinct for which any part of the district serves. 15
(2) The property valuation administrator of the county in which the district is created, 16
with the cooperation of the board, shall note on the tax rolls the taxpayers and 17
valuation of the property subject to an[such] assessment. The county clerk shall 18
compute the tax on the regular state and county tax bills in a[such] manner as may 19
be directed by regulation of the Department of Revenue. 20
(3) These taxes shall be subject to the same delinquency date, discounts, penalties, and 21
interest as are applied to the collection of ad valorem taxes and shall be collected by 22
the sheriff of the county involved and accounted for to the treasurer of the district. 23
The sheriff shall be entitled to a fee of the amount collected by him or her . The 24
fiscal court shall, i n the ordinance set forth in subsection (2) of this section and in 25
consultation with the sheriff and the consolidated emergency services district, set a 26
collection fee for the sheriff in an amount not to exceed four and one -fourth percent 27
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(4.25%). 1
Section 4. KRS 132.018 is amended to read as follows: 2
(1) If the tax rate applicable to real property levied by a county fiscal court, 3
local[district] board of education, or legislative body of a city, consolidated local 4
government, urban-county government, or other taxing district is reduced as a result 5
of reconsideration by the county fiscal court, local[district] board of education, or 6
legislative bo dy of a city, consolidated local government, urban -county 7
government, or other taxing district under [ the provisions of] KRS 132.017[(2)(j)], 8
the tax rate applicable to personal property levied under [ the provisions of] KRS 9
68.248(1), 132.024(1), 132.029(1 ), and 160.473(1) shall be reduced by the 10
respective county fiscal court, local[district] board of education, or legislative body 11
of a city, consolidated local government, urban -county government, or other taxing 12
district to an amount which will produce th e same percentage increase in revenue 13
from personal property as the percentage increase in revenue from real property 14
resulting from the reduced tax rate applicable to real property. 15
(2) If the tax rate applicable to real property levied by a county fiscal court, 16
local[district] board of education, or legislative body of a city, consolidated local 17
government, urban-county government, or other taxing district is reduced [,] under[ 18
the provisions of] KRS 132.017[(3)], as a result of a majority of votes cast in an 19
election being opposed to the[such a] rate, the tax rate applicable to personal 20
property levied by the respective county fiscal court, local[district] board of 21
education, or legislati ve body of a city, consolidated local government, urban -22
county government, or other taxing district shall be reduced, without further action 23
by the levying body, to an amount which will produce the same percentage increase 24
in revenue from personal property as the percentage increase in revenue from real 25
property resulting from the reduced tax rate applicable to real property. 26
Section 5. KRS 132.023 is amended to read as follows: 27
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(1) A[No] special purpose governmental enti ty shall not levy a tax rate which exceeds 1
the compensating tax rate until the taxing district has complied with the provisions 2
of KRS 65A.110 and subsection (2) of this section. 3
(2) (a) A special purpose governmental entity proposing to levy a tax rate wh ich 4
exceeds the compensating tax rate shall submit the proposed rate as required 5
by KRS 65A.110 and shall hold a public hearing to hear comments from the 6
public regarding the proposed tax rate. The hearing shall be held in the same 7
location where the gover ning body of the city or county where the largest 8
number of citizens served by the special purpose governmental entity reside 9
meets, and shall be held immediately before a regularly scheduled meeting of 10
that governing body. 11
(b) The special purpose governme ntal entity shall advertise the hearing by 12
causing to be published at least twice in two (2) consecutive weeks, in the 13
newspaper of largest circulation in the county, a display type advertisement of 14
not less than twelve (12) column inches, the following: 15
1. The tax rate levied in the preceding year, and the revenue produced by 16
that rate; 17
2. The tax rate proposed for the current year and the revenue expected to 18
be produced by that rate; 19
3. The compensating tax rate and the revenue expected from it; 20
4. The revenue expected from new property and personal property; 21
5. The general areas to which revenue in excess of the revenue produced in 22
the preceding year is to be allocated; 23
6. A time and place for the public hearing which shall be held not less than 24
seven (7) days, nor more than ten (10) days, after the day that the second 25
advertisement is published; 26
7. The purpose of the hearing; and 27
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8. A statement to the effect that the General Assembly has required 1
publication of the advertisement and the information contained therein. 2
(c) In lieu of the two (2) published notices, a single notice containing the required 3
information may be sent by first -class mail to each person owning real 4
property in the special purpose governmental entity, addressed to the property 5
owner at his or her residence or principal place of business as shown on the 6
current year property tax roll. 7
(d) The hearing shall be open to the public. All persons desiring to be heard shall 8
be given an opportunity to present oral testimony. The special purpose 9
governmental entity may set reasonable time limits for testimony. 10
(3) (a) [That portion of ] A tax rate levied by an action of a special purpose 11
governmental entity which will produce revenue from real property, exclusive 12
of revenue from new property, more than four percent (4%) over the amount 13
of revenue produced by the compensating tax rate shall be subject to a recall 14
vote or reconsideration by the special purpose governmental entity, as 15
provided for in KRS 132.017, and shall be advertised as provided in 16
paragraph (b) of this subsection. 17
(b) The special purpose governmental entity shall, within seven (7) days 18
following the adoption of its[an] ordinance, order, resolution, or motion to 19
levy a tax rate which will produce revenue from real property, exclusiv e of 20
revenue from new property, more than four percent (4%) over the amount of 21
revenue produced by the compensating tax rate, cause to be published, in the 22
newspaper of largest circulation in the county, a display type advertisement of 23
not less than twelve (12) column inches the following: 24
1. The fact that the taxing district has adopted a rate; and 25
2. The fact that[ the part of] the rate which will produce revenue from real 26
property, exclusive of new property, in excess of four percent (4%) over 27
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the amount of revenue produced by the compensating tax rate is subject 1
to recall[; and 2
3. The name, address, and telephone number of the county clerk of the 3
county in which the special purpose governmental entity is located, with 4
a notation to the effect that that o fficial can provide the necessary 5
information about the petition required to initiate recall of the tax rate]. 6
Section 6. KRS 132.027 is amended to read as follows: 7
(1) A[No] city or urban-county government shall not levy a tax rate which exceeds the 8
compensating tax rate [ defined in KRS 132.010] until the city or urban -county 9
government has complied with the provisions of subsection (2) of this section. 10
(2) (a) Cities or urba n-county governments proposing to levy a tax rate which 11
exceeds the compensating tax rate [ defined in KRS 132.010] shall hold a 12
public hearing to hear comments from the public regarding the proposed tax 13
rate. The hearing shall be held in the principal offi ce of the taxing district, or, 14
in the event the taxing district does not have an[has no] office[,] or the office 15
is not suitable for a hearing, the hearing shall be held in a suitable facility as 16
near as possible to the geographic center of the district. 17
(b) The city or urban-county government shall advertise the hearing by causing to 18
be published at least twice in two (2) consecutive weeks, in the newspaper of 19
largest circulation in the county, a display type advertisement of not less than 20
twelve (12) column inches, the following: 21
1. The tax rate levied in the preceding year, and the revenue produced by 22
that rate; 23
2. The tax rate proposed for the current year and the revenue expected to 24
be produced by that rate; 25
3. The compensating tax rate and the revenue expected from it; 26
4. The revenue expected from new property and personal property; 27
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5. The general areas to which revenue in excess of the revenue produced in 1
the preceding year is to be allocated; 2
6. A time and place for the public hearing which shall be held not less than 3
seven (7) days nor more than ten (10) days after the day the second 4
advertisement is published; 5
7. The purpose of the hearing; and 6
8. A statement to the effect that the General Assembly has required 7
publication of the advertisement and the information contained therein. 8
(c) In lieu of the two (2) published notices, a single notice containing the required 9
information may be sent by first -class mail to each person owning real 10
property in the taxing district, addressed to the property owner at his or her 11
residence or principal place of business as shown on the current year property 12
tax roll. 13
(d) The hearing shall be open to the public. All persons desiring to be heard shall 14
be given an opportunity to present oral testimony. The taxing district may set 15
reasonable time limits for testimony. 16
(3) (a) [That portion of ] A tax rate levied by an action of a city or urban -county 17
government which will produce revenue from real property, exclusive of 18
revenue from new property, more than four percent (4%) over the amount of 19
revenue produced by the compensating tax rate [ defined in KRS 132.010] 20
shall be subject to a re call vote or reconsideration by the taxing district, as 21
provided for in KRS 132.017, and shall be advertised as provided for in 22
paragraph (b) of this subsection. 23
(b) The city or urban -county government shall, within seven (7) days following 24
the adoption of its[an] ordinance to levy a tax rate which will produce revenue 25
from real property, exclusive of revenue from new property [ as defined in 26
KRS 132.010] , more than four percent (4%) over the amount of revenue 27
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produced by the compensating tax rate [ defined in KRS 132.010], cause to be 1
published, in the newspaper of largest circulation in the county, a display type 2
advertisement of not less than twelve (12) column inches the following: 3
1. The fact that the city or urban -county government has adopted a rate; 4
and 5
2. The fact that[ the part of] the rate which will produce revenue from real 6
property, exclusive of new property [ as defined in KRS 132.010] , in 7
excess of four percent (4%) over the amount of revenue produced by the 8
compensating tax rate [ defined in KRS 132.010] is subject to recall [, 9
and 10
3. The name, address, and telephone number of the county clerk of the 11
county or urban -county in which the taxing district is located, with a 12
notation to the effect that that official can provide the necessary 13
information about the petition required to initiate recall of the tax rate]. 14
Section 7. KRS 160.470 is amended to read as follows: 15
(1) (a) Notwithstanding any statutory provisions to the contrary, a local[no district] 16
board of educ ation shall not levy a general tax rate which will produce more 17
revenue, exclusive of revenue from net assessment growth as defined in KRS 18
132.010, than would be produced by application of the general tax rate that 19
could have been levied in the preceding y ear to the preceding year's 20
assessment, except as provided in subsections (9) and (10) of this section and 21
KRS 157.440. 22
(b) If an election is held as provided for in KRS 132.017 and the question should 23
fail, the[such] failure shall not reduce the "...gener al tax rate that could have 24
been levied in the preceding year...," referred to in subsection (1)(a) of this 25
section, for purposes of computing the general tax rate for succeeding years. 26
In the event of a merger of school districts, the limitations contain ed in this section 27
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shall be based upon the combined revenue of the merging districts, as computed 1
under the provisions of this section. 2
(2) A local[No district] board of education shall not levy a general tax rate within the 3
limits imposed in subsection (1 ) of this section which respectively exceeds the 4
compensating tax rate as defined in KRS 132.010, except as provided in 5
subsections (9) and (10) of this section, KRS 157.440, and KRS 157.621, until the 6
local[district] board of education has complied with the provisions of subsection (7) 7
of this section. 8
(3) Upon receipt of property assessments from the Department of Revenue, the 9
commissioner of education shall certify the following to each local[district] board 10
of education: 11
(a) The general tax rate that a local[district] board of education could levy under 12
the provisions of subsection (1) of this section, and the amount of revenue 13
expected to be produced; 14
(b) The compensating tax rate as defined in KRS 132.010 for a district's ge neral 15
tax rate the amount of revenue expected to be produced; 16
(c) The general tax rate which will produce, respectively, no more revenue from 17
real property, exclusive of revenue from new property, than four percent (4%) 18
over the amount of revenue produced by the compensating tax rate as defined 19
in KRS 132.010, and the amount of revenue expected to be produced. 20
(4) Upon completion of action on property assessment data, the Department of 21
Revenue shall submit certified property assessment data as required in K RS 22
133.125 to the chief state school officer. 23
(5) Within thirty (30) days after the local[district] board of education has received its 24
assessment data, the rates levied shall be forwarded to the Kentucky Board of 25
Education for its approval or disapproval. The failure of the local[district] board of 26
education to furnish the rates within the time prescribed shall not invalidate any 27
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levy made thereafter. 1
(6) (a) Each local[district] board of education shall, on or before January 31 of each 2
calendar year, formally and publicly examine detailed line item estimated 3
revenues and proposed expenditures for the subsequent fiscal year. On or 4
before May 30 of each calendar year, each local[district] board of education 5
shall adopt a tentative working budget which shall include a minimum reserve 6
of two percent (2%) of the total budget. 7
(b) Each local[district] board of education shall submit to the Kentucky Board of 8
Education no later than Septe mber 30, a close estimate or working budget 9
which shall conform to the administrative regulations prescribed by the 10
Kentucky Board of Education. 11
(7) (a) Except as provided in subsections (9) and (10) of this section and KRS 12
157.440, a local[district] board of education proposing to levy a general tax 13
rate within the limits of subsection (1) of this section which exceed the 14
compensating tax rate as defined in KRS 132.010 shall hold a public hearing 15
to hear comments from the public regarding the proposed tax rate. The 16
hearing shall be held in the principal office of the taxing district or, in the 17
event the taxing district does not have an[has no] office[,] or the office is not 18
suitable for the[such a] hearing, the hearing shall be held in a suitable facility 19
as near as possible to the geographic center of the district. 20
(b) The local[district] board of education shall advertise the hearing by causing 21
the following to be published at least twice for two (2) consecutive weeks, in 22
the newspaper of largest circulati on in the county, a display type 23
advertisement of not less than twelve (12) column inches: 24
1. The general tax rate levied in the preceding year, and the revenue 25
produced by that rate; 26
2. The general tax rate for the current year, and the revenue expected t o be 27
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produced by that rate; 1
3. The compensating general tax rate, and the revenue expected from it; 2
4. The revenue expected from new property and personal property; 3
5. The general areas to which revenue in excess of the revenue produced in 4
the preceding year is to be allocated; 5
6. A time and place for the public hearing which shall be held not less than 6
seven (7) days nor more than ten (10) days after the day that the second 7
advertisement is published; 8
7. The purpose of the hearing; and 9
8. A statement to th e effect that the General Assembly has required 10
publication of the advertisement and the information contained herein. 11
(c) In lieu of the two (2) published notices, a single notice containing the required 12
information may be sent by first -class mail to each person owning real 13
property, addressed to the property owner at his or her residence or principal 14
place of business as shown on the current year property tax roll. 15
(d) The hearing shall be open to the public. All persons desiring to be heard shall 16
be given an opportunity to present oral testimony. The local[district] board of 17
education may set reasonable time limits for testimony. 18
(8) (a) [That portion of ]A general tax rate, except as provided in subsections (9) and 19
(10) of this section, KRS 157.440, and KRS 157.621, levied by an action of a 20
local[district] board of education which will produce, respectively, revenue 21
from real property, exclusive of revenue from new property, more than four 22
percent (4%) over the amount of revenue produced by the compensati ng tax 23
rate as defined in KRS 132.010, shall be subject to a recall vote or 24
reconsideration by the local[district] board of education as provided for in 25
KRS 132.017, and shall be advertised as provided for in paragraph (b) of this 26
subsection. 27
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(b) The local[district] board of education shall, within seven (7) days following 1
the adoption of its[an] ordinance, order, resolution, or motion to levy a 2
general tax rate, except as provided in subsections (9) and (10) of this section 3
and KRS 157.440, which will prod uce revenue from real property, exclusive 4
of revenue from new property as defined in KRS 132.010, more than four 5
percent (4%) over the amount of revenue produced by the compensating tax 6
rate as defined in KRS 132.010, cause the following to be published, i n the 7
newspaper of largest circulation in the county, a display type advertisement of 8
not less than twelve (12) column inches: 9
1. The fact that the local[district] board of education has adopted the[such 10
a] rate; and 11
2. The fact that[ the part of] the rate which will produce revenue from real 12
property, exclusive of new property as defined in KRS 132.010, in 13
excess of four percent (4%) over the amount of revenue produced by the 14
compensating tax rate as defined in KRS 132.010 is subject to recall [; 15
and 16
3. The name, address, and telephone number of the county clerk of the 17
county or urban -county in which the school district is located, with a 18
notation to the effect that that official can provide the necessary 19
information about the petition required to initiate recall of the tax rate]. 20
(9) (a) Notwithstanding any statutory provisions to the contrary, effective for school 21
years beginning after June 30, 1990, the local board of education of each 22
school district shall levy a minimum equivalent tax rate of thirty cent s ($0.30) 23
for general school purposes. "Equivalent tax rate" is defined as the rate which 24
results when the income collected during the prior year from all taxes levied 25
by the district for school purposes is divided by the total assessed value of 26
property plus the assessment for motor vehicles certified by the Department of 27
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Revenue. School districts collecting school taxes authorized by KRS 160.593 1
to 160.597, 160.601 to 160.633, or 160.635 to 160.648 for less than twelve 2
(12) months during a school year sha ll have included in income collected 3
under this section the pro rata tax collection for twelve (12) months. 4
(b) Failure of a board to comply with paragraph (a) of this subsection may 5
constitute a forfeiture of office by its members pursuant to KRS 415.050 and 6
415.060. 7
(10) Except as required under subsection (5)(b) of Section 1 of this Act, a 8
local[district] board of education may levy a general tax rate that will produce 9
revenue from real property, exclusive of revenue from new property, that is four 10
percent (4%) over the amount of the revenue produced by the compensating tax rate 11
as defined in KRS 132.010. 12
Section 8. This Act takes effect January 1, 2027. 13