67C.147 Taxes and services in area of former city of the first class -- Imposition of different tax rates -- Urban service tax district -- Modification of boundaries. - Kentucky Statutes

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Page 1 of 2 67C.147 Taxes and services in area of former city of the first class -- Imposition of different tax rates -- Urban service tax district -- Modification of boundaries. (1) In order to maintain the tax structure, tax rates, or level of services in the area of the consolidated local government formerly comprising the city of the first class, the
legislative council of a consolidated local government may provide in the manner
described in this chapter for taxes and services within the area comprising the
former city of the first class which are different from the taxes and services which
are applicable in the remainder of the county. These differences may include
differences in tax rates upon the class of property which includes the surface of the
land, differences in ad valorem tax rates upon personal property, and differences in
tax rates upon insurance premiums. (2) Any difference in the ad valorem tax rate on the class of property which includes the surface of the land in the portion of the county formerly comprising the city of
the first class and in the portion of the county other than that formerly comprising
the city of the first class may be imposed directly by the consolidated local
government council. Any change in these ad valorem tax rates shall comply with
KRS 68.245, 132.010, 132.017, and 132.027 and shall be used for services as
provided by KRS 82.085. (3) If the consolidated local government council determines to provide for tax rates applicable to health insurance premiums and personal property which are different
in the area formerly comprising the city of the first class than the rates applicable in
the remainder of the county, it shall do so in the following manner. The
consolidated local government council shall by ordinance create a tax district to be
known as the "urban service tax district" bounded by the former boundaries of the
former city of the first class. The ordinance shall designate the number of members
of the board of this taxing district and the manner in which they shall be appointed.
The ordinance shall provide that the board of the taxing district shall receive the
income derived from the differential in tax rate applicable in the area formerly
comprising the city of the first class with respect to personal property, health
insurance premiums, or both, and shall contract with the consolidated local
government to pay all sums collected to the consolidated local government, in
return for the provision of services performed by the consolidated local government
within the area formerly comprising the city of the first class which services are in
addition to services performed by the consolidated local government in the
remainder of the county. (4) After the initial formation of an urban service taxing district in a consolidated local government, the boundaries of the district may be modified in the following
manner. The proposal to alter the boundaries of the urban service taxing district
within a consolidated local government may be initiated by:
(a) A resolution enacted by the consolidated local government describing the boundaries of the area to be added to or deleted from the taxing district and
duly passed and signed by the mayor not less than one hundred twenty (120)
days before the next regularly scheduled election day within the county; or Page 2 of 2 (b) A petition signed by a number of qualified voters living within precincts within the area to be added to or deleted from the taxing district equal to ten
percent (10%) of the votes cast within each precinct in the last general election
for President of the United States and delivered to the clerk of the legislative
council more than one hundred twenty (120) days next preceding the next
regularly scheduled election day within the county. The boundaries so described in either case shall not cross precinct lines. The
question of whether the area bounded as described should be added to or deleted
from, as the case may be, the urban services taxing district shall then be placed upon
the ballot in the precincts in the area to be added or deleted at the next regular
election and the question stated on the ballot shall be so phrased that a "Yes" vote
shall be cast in favor of making the proposed change and a "No" vote shall be cast
to oppose the proposed change. If a majority of those voting in those precincts
support the change, then the change in the boundaries of the urban service district
shall be implemented. Effective: July 15, 2002
History: Created 2002 Ky. Acts ch. 346, sec. 5, effective July 15, 2002.