160.6153 Procedure when allocation on taxpayer's return varies from school district boundary information provided by superintendents -- Adjustment -- Exceptions -- Reallocation agreement. - Kentucky Statutes

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Page 1 of 2 160.6153 Procedure when allocation on taxpayer's return varies from school district boundary information provided by superintendents -- Adjustment --
Exceptions -- Reallocation agreement. (1) If the department determines that the allocation among districts as submitted by the taxpayer on the return varies from the school district boundary information
submitted to the department pursuant to KRS 160.6152, the department shall:
(a) Make a proposed administrative adjustment to correct the erroneous allocation going forward; (b) Determine whether the erroneous allocation was used on prior returns and if it was, make a proposed administrative adjustment going back a maximum of
one (1) year from the date the erroneous allocation was discovered; and (c) Retain taxes collected and still on hand for distribution to the impacted districts that are related to the erroneous allocation until the proposed
administrative adjustment becomes final. (2) Within ten (10) days of the discovery of the erroneous allocation, the department shall notify the taxpayer and the impacted school districts in writing of the
allocation discrepancy, including the dollar amount at issue, the proposed
administrative adjustment to be made, and the process for agreeing to or filing an
exception to the proposed administrative adjustment. (3) The proposed administrative adjustment shall become final upon the earlier of the receipt by the department of written acceptance of the administrative adjustment by
all impacted school districts or the expiration of forty-five (45) days from the date
of the notice with no exception having been filed. (4) (a) Exceptions to the proposed administrative adjustment shall be filed with the commissioner of the department, within forty-five (45) days from the date of
the notice, and shall include a supporting statement setting forth the basis of
the exception. A copy of any exception filed shall also be mailed to the
impacted utility services provider and any other impacted school district. (b) After the exception has been filed, the impacted school district may request a conference with the department. The request shall be granted in writing stating
the time and date of the conference. Other impacted school districts and the
impacted utility services provider may also attend any conference. Additional
conferences may be held upon mutual agreement. (c) After considering the exceptions filed by the impacted school district, including any information provided during any conferences, a final
administrative ruling shall be issued by the department. The final
administrative ruling shall be mailed to all impacted school districts as well as
the impacted utility services provider. (d) The impacted school district filing the exception may request in writing a final ruling at any time after filing exceptions and a supporting statement, and the
department shall issue the ruling within thirty (30) days after the request is
received by the department. Page 2 of 2 (e) After a final ruling has been issued, the school district may appeal to the Franklin Circuit Court or to the Circuit Court of the county in which the
school district is located. (5) The method and timing of the implementation of a final administrative ruling that requires a reallocation of previously distributed tax receipts shall be determined by
agreement of the impacted school districts, provided that any agreement allowing
for adjustments to be made over time in the future shall not extend beyond four (4)
years.
(a) The department shall, upon request of the impacted school districts, assist in the development of an agreement. (b) An agreement that requires distribution changes that vary from the district boundary information shall be provided to the department so that distributions
can be made in accordance with the agreement. (c) If the impacted school districts fail to reach an agreement regarding the reallocation of previously distributed tax receipts, the department shall adjust
distributions going forward for four (4) years so that at the expiration of four
(4) years, the district that should have received the original distribution has
recouped all of the funds distributed erroneously, and the district that
erroneously received the funds has repaid all of the funds distributed
erroneously. Effective: March 6, 2006
History: Amended 2006 Ky. Acts ch. 6, sec. 22, effective March 6, 2006. -- Created 2004 Ky. Acts ch. 79, sec. 7, effective July 1, 2005.