91A.390 Room tax -- Special transient room tax -- Authorization for additional tax by a county with a city of the first class, urban-county governments, and multicounty tourist and convention commissi - Kentucky Statutes

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91A.390 Room tax -- Special transient room tax -- Authorization for additional tax by a county with a city of the first class, urban-county governments, and
multicounty tourist and convention commissions -- Revenue bonds. (1) The commission shall annually submit to the local governing body or bodies which established it a request for funds for the operation of the commission. The local
governing body or bodies shall include the commission in the annual budget and
shall provide funds for the operation of the commission by imposing a transient
room tax, not to exceed three percent (3%) of the rent for every occupancy of a
suite, room, or rooms, charged by all persons, companies, corporations, or other like
or similar persons, groups, or organizations doing business as motor courts, motels,
hotels, inns, or like or similar accommodations businesses. In addition to the three
percent (3%), the local governing body may impose a special transient room tax not
to exceed one percent (1%) for the sole purpose of meeting the operating expenses
of a convention center. A transient room tax imposed by an urban-county
government shall not exceed four percent (4%) of the rent for every occupancy of a
suite, room, or rooms, charged by all persons, companies, corporations, or other like
or similar persons, groups, or organizations doing business as motor courts, motels,
hotels, inns, or like or similar accommodations businesses. Transient room taxes
shall not apply to the rental or leasing of an apartment supplied by an individual or
business that regularly holds itself out as exclusively providing apartments.
Apartment means a room or set of rooms, in an apartment building, fitted especially
with a kitchen and usually leased as a dwelling for a minimum period of thirty (30)
days or more. The local governing body or bodies that have established a
commission by joint or separate action shall enact an ordinance for the enforcement
of the tax measure enacted pursuant to this section and the collection of the
proceeds of this tax measure on a monthly basis. (2) All moneys collected pursuant to this section and KRS 91A.400 shall be maintained in an account separate and unique from all other funds and revenues collected, and
shall be considered tax revenue for the purposes of KRS 68.100 and KRS 92.330. (3) A portion of the money collected from the imposition of this tax, as determined by the tax levying body, upon the advice and consent of the tourist and convention
commission, may be used to finance the cost of acquisition, construction, operation,
and maintenance of facilities useful in the attraction and promotion of tourist and
convention business, including projects described in KRS 154.30-050(2)(a). The
balance of the money collected from the imposition of this tax shall be used for the
purposes set forth in KRS 91A.350. Proceeds of the tax shall not be used as a
subsidy in any form to any hotel, motel, or restaurant, except as provided in KRS
154.30-050(2)(a)3.c. Money not expended by the commission during any fiscal year
shall be used to make up a part of the commission's budget for its next fiscal year. (4) A county with a city of the first class may impose an additional tax, not to exceed one and one-half percent (1.5%) of the room rent. This additional tax, if approved
by the local governing body, shall be collected and administered in the same manner
as the regular tax and shall be used for the purpose of funding additional promotion
of tourist and convention business. (5) An urban-county government may impose an additional tax, not to exceed one percent (1%) of the room rents included in this subsection. This additional tax shall
be collected and administered in the same manner as the regular tax with the
exception that this additional tax shall be used for the purpose of funding the
purchase of development rights program provided for under KRS 67A.845. (6) Local governing bodies which have formed multicounty tourist and convention commissions as provided by KRS 91A.350(3) may impose an additional tax, not to
exceed one percent (1%) of the room rents. This additional tax, if approved by each
governing body, shall be collected and administered in the same manner as the
regular tax, with the exception that this additional tax shall be used for the purpose
of funding regional efforts relating to the promotion of tourist and convention
business and convention centers. In no event shall any revenues collected as
provided for under KRS 91A.350(3) be utilized for the construction, renovation,
maintenance, or additions to any convention center that is located outside the
boundaries of the Commonwealth of Kentucky. (7) The commission, with the approval of the tax levying body, may borrow money to pay its obligations that cannot be paid at maturity out of current revenue from the
transient room tax, but shall not borrow a sum greater than can be repaid out of the
revenue anticipated from the transient room tax during the year the money is
borrowed. The commission may pledge its securities for the repayment of any sum
borrowed. (8) The fiscal court or legislative body of a consolidated local government or city establishing a commission pursuant to KRS 91A.350(1) or (2) and, in its own name,
a commission established pursuant to of KRS 91A.350(1) is authorized and
empowered to issue revenue bonds pursuant to KRS Chapter 58 for public projects.
Bonds issued for the purposes of KRS 91A.350 to 91A.390, may be used to pay any
cost for the acquisition of real estate, the construction of buildings and
appurtenances, the preparation of plans and specifications, and legal and other
services incidental to the project or to the issuance of the bonds. The payment of the
bonds, with interest, may be secured by a pledge of and a first lien on all of the
receipts and revenue derived, or to be derived, from the rental or operation of the
property involved. Bond and interest obligations issued pursuant to this section shall
not constitute an indebtedness of the county, consolidated local government, or city.
All bonds sold under the authority of this section shall be subject to competitive
bidding as provided by law, and shall bear interest at a rate not to exceed that
established for bonds issued for public projects under KRS Chapter 58. (9) A commission established pursuant to KRS 91A.350(3) is authorized and empowered to issue revenue bonds in its own name, payable solely from its income
and revenue, pursuant to KRS Chapter 58 for revenue bonds for public projects.
Bonds issued for the purposes of KRS 91A.350 to 91A.390, may be used to pay any
cost for the acquisition of real estate, the construction of buildings and
appurtenances, the preparation of plans and specifications, and legal and other
services incidental to the project or to the issuance of the bonds. The payment of the
bonds, with interest, may be secured by a pledge of and a first lien on all of the receipts and revenue derived, or to be derived, from the rental or operation of the
property involved. Bond and interest obligations issued pursuant to this section shall
not constitute an indebtedness of the county. All bonds sold pursuant to this section
shall be subject to competitive bidding as provided by law, and shall not bear
interest at rates exceeding those for bonds issued for public projects under KRS
Chapter 58. Effective: July 15, 2008
History: Amended 2008 Ky. Acts ch. 178, sec. 26, effective July 15, 2008. -- Amended 2007 Ky. Acts ch. 95, sec. 27, effective March 23, 2007. -- Amended 2002 Ky. Acts
ch. 167, sec. 1, effective July 15, 2002; and ch. 346, sec. 104, effective July 15,
2002. -- Amended 2000 Ky. Acts ch. 154, sec. 2, effective July 14, 2000; and
ch. 344, sec. 5, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 372, sec. 8,
effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 505, sec. 1, effective July 15,
1994.