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AN ACT relating to real property taxes levied by fire districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 75.015 is amended to read as follows: 3
(1) A fire protection subdistrict may be formed according to the provisions of this 4
section. A fire protection subdistrict shall: 5
(a) Be located within the territorial limits of a fire protection district or volunteer 6
fire department district; 7
(b) Have a continuous boundary; and 8
(c) Be managed by the board of trustees of the district, which shall: 9
1. Impose an ad valorem tax on property in the subdistrict in addition to the 10
ad valorem tax the board imposes on property in the district as a whole; 11
and 12
2. Expend the revenue from that additional tax on improved fire protection 13
facilities and services for the subdistrict. 14
(2) Persons desiring to form a fire protection subdistrict shall present a petition to the 15
fiscal court clerk and to each member of the fiscal court. The petition shall be 16
accompanied by a map and a metes and bounds description or other description 17
which specifically identifies the boundaries of the proposed subdistrict. The petition 18
shall be signed by more than sixty percent (60%) of the persons who both: 19
(a) Live within the proposed subdistrict; and 20
(b) Own property that is located within the proposed subdistrict and is subject to 21
taxation by the district under KRS 75.040. 22
(3) The petition shall contain the name and address of each petitioner and the address of 23
each petitioner's property that is located within the proposed subdistrict. It shall be 24
in substantially the following form: "The following owners of property located 25
within (insert the name of the fire protection district or volunteer fire department 26
district) hereby petition the fiscal court to form a fire protection subdistrict located 27 UNOFFICIAL COPY 22 RS BR 1653
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at (insert a brief description of the location of the proposed subdistrict). The board 1
of trustees of (insert the name of the fire protection district or volunteer fire 2
department district) shall have the authority to impose a special ad valorem tax of 3
(insert amount, not to exceed the maximum allowed under subsection (6) of this 4
section) on each one hundred dollars ($100) worth of property assessed for local 5
taxation in the subdistrict, in order to provide enhanced fire protection for the 6
subdistrict. This tax shall be in addition to the ad valorem tax imposed by the 7
trustees on the district as a whole." 8
(4) Upon receipt of the petition, the fiscal court shall hold a hearing and provide 9
notification in the manner required for creation of a taxing district under KRS 10
65.182(2) to (5). Following the hearing, the fiscal court shall set forth its written 11
findings of fact and shall approve or disapprove the formation of the subdistrict. 12
The creation of the subdistrict shall be of legal effect only upon the adoption of an 13
ordinance in accordance with the provisions of KRS 67.075 to 67.077. A certified 14
copy of the ordinance creating the subdistrict shall be filed with the county clerk. 15
(5) Upon the creation of a fire protection subdistrict, the trustees shall levy a tax, not to 16
exceed the amount stated in the petition, on the property in the subdistrict, for the 17
purpose of improving fire protection facilities and services in the subdistrict. 18
(6) The tax levied under this section, combined with the tax for fire and emergency 19
services levied on the entire district under KRS 75.040, shall not exceed: 20
(a) Ten cents ($0.10) per one hundred dollars ($100) of valuation as assessed for 21
county taxes if neither the fire district nor the fire subdistrict operates an 22
emergency ambulance service under KRS 75.040; or 23
(b) Twenty cents ($0.20) per one hundred dollars ($100) of valuation as assessed 24
for county taxes if either the fire district or fire subdistrict operates an 25
emergency ambulance service under KRS 75.040. However, any portion of 26
the tax rate that is above ten cents ($0.10) per one hundred dollars ($100) of 27 UNOFFICIAL COPY 22 RS BR 1653
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assessed valuation is subject to opt-out provisions of subsection (7) of this 1
section. 2
At no time shall the trustees increase either of these taxes so that the combined total 3
exceeds this limit. 4
(7) (a) As used in this subsection: 5
1. "Opt out" means a voluntary choice to not have a tax assessed on real 6
property; and 7
2. "Portion of the tax rate" means the portion of the real property tax 8
rate levied under subsection (6)(b) of this section that exceeds ten 9
cents ($0.10) per one hundred dollars ($100) of assessed valuation. 10
(b) When a city or county provides an emergency ambulance service and a fire 11
protection subdistrict located within that city or county levies a tax rate in 12
accordance with subsection (6)(b) of this section, the fire protection 13
subdistrict shall provide each person who owns real property located within 14
the fire protection subdistrict the option to opt out of a portion of the tax 15
rate. 16
(c) Prior to the levy of the tax rate provided by subsection (6)(b) of this section, 17
the fire protection subdistrict shall advertise a property owner's option to 18
opt out of a portion of the tax rate by publishing a notification at least twice 19
in two (2) consecutive weeks in the newspaper of largest circulation in the 20
county. The size of the newspaper advertisement shall not be less than 21
twelve (12) column inches, and shall include: 22
1. The total tax rate levied by the fire protection subdistrict; 23
2. The portion of the tax rate from which a property owner may choose 24
to opt out; 25
3. The process for a property owner to opt out of a portion of the 26
property tax rate; and 27 UNOFFICIAL COPY 22 RS BR 1653
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4. A statement to the effect that the General Assembly has required 1
publication of the advertisement and a reference to this section. 2
In lieu of the two (2) published notices, a single notice containing the 3
required information may be sent by first-class mail to each person owning 4
real property in the fire protection subdistrict, addressed to the owner at his 5
or her residence or principal place of business as shown on the current year 6
property tax roll. 7
(d) To opt out of a portion of the property tax rate as permitted by paragraph 8
(b) of this subsection, the property owner shall notify the county clerk of the 9
county in which the fire protection subdistrict is located. After opting out of 10
the portion of the tax rate, the county clerk shall provide the property owner 11
a written confirmation that he or she has successfully opted out of the 12
portion of the tax rate. 13
(e) Once a property owner chooses to opt out of a portion of the tax rate, the 14
portion of the tax rate shall not be assessed on the property tax bill for the 15
property unless: 16
1. The property owner contacts the county clerk to notify the county clerk 17
that he or she would like to have the portion of the tax rate assessed 18
on his or her property; or 19
2 The property is transferred. 20
(f) 1. A fire protection subdistrict may charge a fee to the property owner if 21
the fire protection district or volunteer fire district responds to an 22
emergency ambulance service request at a property address of a 23
property owner who chose to opt out of the portion of the tax rate. 24
2. The fee charged to the property owner shall be equal to an amount 25
that enables the fire protection subdistrict to recover the total 26
necessary and reasonable costs incurred for providing the service and 27 UNOFFICIAL COPY 22 RS BR 1653
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shall be assessed to the property owner on a written itemized 1
statement. Disputes involving fees shall be submitted to arbitration by 2
the commission. 3
(g) Each year the county clerk shall provide to the fire protection subdistrict a 4
list of all property owners who have opted out of a portion of the tax rate 5
and a list of the property addresses of property owners who have opted out 6
of a portion of the tax rate. 7
(h) The county clerk shall maintain records identifying the boundaries of 8
districts providing emergency ambulance services. The fire protection 9
subdistrict, city, and county shall provide the county clerk any information 10
needed in order to maintain accurate records for the boundaries. 11
(8) The county clerk shall add the levy to the tax bills of the affected property owners. 12
For taxing purposes, the effective date of the tax levy shall be January 1 of the year 13
following the certification and creation of the subdistrict. The tax shall be 14
administered in the same manner as the tax on the entire district under KRS 15
75.040(2) and (3). 16
(9)[(8)] The board of trustees shall not reduce the tax rate imposed on property in the 17
district as a whole as a result of receiving extra revenue from the additional tax on 18
property in the subdistrict. The trustees shall expend the extra revenue solely on 19
improving fire protection facilities and services in the subdistrict and shall not 20
expend the extra revenue on facilities or services that are shared by the entire 21
district. 22
(10)[(9)] Fire subdistrict taxes shall be placed on the tax bill in a place separate from 23
the bill of the fire district tax so that ratepayers can ascertain the amount of each tax 24
and its rate. 25
(11)[(10)] The sheriff shall separately account to the fire district for the funds collected 26
for each subdistrict within the fire district. 27 UNOFFICIAL COPY 22 RS BR 1653
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(12)[(11)] Fire districts shall maintain a separate accounting of all subdistrict funds, and 1
if there is more than one (1) subdistrict, a separate accounting for each subdistrict. 2
Section 2. KRS 75.040 is amended to read as follows: 3
(1) (a) Upon the creation of a fire protection district or a volunteer fire 4
department district as provided in KRS 75.010 to 75.031, the trustees of 5
a district are authorized to establish and operate a fire department and 6
emergency ambulance service as provided in subsection (6) of this 7
section and to levy a tax upon the property in the district. Property that 8
may be taxed includes property within cities in a fire protection district 9
or a volunteer fire department district: 10
1. As provided by KRS 75.022; or 11
2. Within the metes and bounds of a city that does not maintain a regular 12
fire department as defined by KRS 95.010(3)(b). 13
The property taxed shall be subject to county tax, and the tax levied by the 14
district shall not exceed ten cents ($0.10) per one hundred dollars ($100) of 15
valuation as assessed for county taxes, for the purpose of defraying the 16
expenses of the establishment, maintenance, and operation of the fire 17
department or to make contracts for fire protection for the districts as provided 18
in KRS 75.050. The rate set in this subsection shall apply, notwithstanding the 19
provisions of KRS 132.023. 20
(b) 1. A fire protection district or a volunteer fire department district that 21
establishes and operates an emergency ambulance service and is the 22
primary service provider in the district may levy a tax upon the property 23
in the district not to exceed twenty cents ($0.20) per one hundred dollars 24
($100) of valuation as assessed for county taxes, for the purpose of 25
defraying the expenses of the establishment, maintenance, and operation 26
of the fire department and emergency ambulance service or to make 27 UNOFFICIAL COPY 22 RS BR 1653
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contracts for fire protection for the districts as provided in KRS 75.050. 1
However, any portion of the tax rate that is above ten cents ($0.10) per 2
one hundred dollars ($100) of assessed valuation is subject to the opt-3
out provisions of subparagraph 2. of this paragraph. The rate set in 4
this subsection shall apply, notwithstanding the provisions of KRS 5
132.023. 6
2. a. As used in this subparagraph: 7
i. "Opt out" means a voluntary choice to not have a tax 8
assessed on real property; and 9
ii. "Portion of the tax rate" means the portion of the real 10
property tax rate levied under subparagraph 1. of this 11
paragraph that exceeds ten cents ($0.10) per one hundred 12
dollars ($100) of assessed valuation. 13
b. When a city or county provides an emergency ambulance service 14
and a fire protection district or volunteer fire district located 15
within that city or county levies a tax rate in accordance with 16
subparagraph 1. of this paragraph, the fire protection district or 17
volunteer fire district shall provide each person who owns real 18
property located within the fire protection district or volunteer 19
fire district the option to opt out of a portion of the tax rate. 20
c. Prior to the levy of the tax rate provided by subparagraph 1. of 21
this paragraph, the fire protection district or volunteer fire 22
district shall advertise a property owner's option to opt out of a 23
portion of the tax rate by publishing a notification at least twice 24
in two (2) consecutive weeks in the newspaper of largest 25
circulation in the county. The size of the newspaper 26
advertisement shall not be less than twelve (12) column inches, 27 UNOFFICIAL COPY 22 RS BR 1653
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and shall include: 1
i. The total tax rate levied by the fire protection district or 2
volunteer fire district; 3
ii. The portion of the tax rate from which a property owner 4
may choose to opt out; 5
iii. The process for a property owner to opt out of a portion of 6
the property tax rate; and 7
iv. A statement to the effect that the General Assembly has 8
required publication of the advertisement and a reference 9
to this section. 10
In lieu of the two (2) published notices, a single notice 11
containing the required information may be sent by first-class 12
mail to each person owning real property in the fire protection 13
district or volunteer fire district, addressed to the owner at his or 14
her residence or principal place of business as shown on the 15
current year property tax roll. 16
d. To opt out of a portion of the property tax rate as permitted by 17
subparagraph 2.b. of this paragraph, the property owner shall 18
notify the county clerk of the county in which the fire protection 19
district or volunteer fire district is located. After opting out of the 20
portion of the tax rate, the county clerk shall provide the 21
property owner a written confirmation that he or she has 22
successfully opted out of the portion of the tax rate. 23
e. Once a property owner chooses to opt out of a portion of the tax 24
rate, the portion of the tax rate shall not be assessed on the 25
property tax bill for the property unless: 26
i. The property owner contacts the county clerk to notify the 27 UNOFFICIAL COPY 22 RS BR 1653
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county clerk that he or she would like to have the portion of 1
the tax rate assessed on his or her property; or 2
ii. The property is transferred. 3
f. i. A fire protection district or a volunteer fire district may 4
charge a fee to the property owner if the fire protection 5
district or volunteer fire district responds to an emergency 6
ambulance service request at a property address of a 7
property owner who chose to opt out of the portion of the 8
tax rate. 9
ii. The fee charged to the property owner shall be equal to an 10
amount that enables the fire protection district or volunteer 11
fire district to recover the total necessary and reasonable 12
costs incurred for providing the service and shall be 13
assessed to the property owner on a written itemized 14
statement. Disputes involving fees shall be submitted to 15
arbitration by the commission. 16
g. Each year the county clerk shall provide to the fire protection 17
district and volunteer fire district a list of all property owners 18
who have opted out of a portion of the tax rate and a list of the 19
property addresses of property owners who have opted out of a 20
portion of the tax rate. 21
h. The county clerk shall maintain records identifying the 22
boundaries of districts providing emergency ambulance services. 23
The fire protection district, volunteer fire district, city, and 24
county shall provide the county clerk any information needed in 25
order to maintain accurate records for the boundaries. 26
(2) The establishment, maintenance, and operation of a fire protection district or 27 UNOFFICIAL COPY 22 RS BR 1653
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volunteer fire department district shall include, but not be limited to, the following 1
activities: 2
(a) Acquisition and maintenance of adequate fire protection facilities; 3
(b) Acquisition and maintenance of adequate firefighting equipment; 4
(c) Recruitment, training, and supervision of firefighters; 5
(d) Control and extinguishment of fires; 6
(e) Prevention of fires; 7
(f) Conducting fire safety activities; 8
(g) Payment of compensation to firefighters and providing the necessary support 9
and supervisory personnel; 10
(h) Payment for reasonable benefits or a nominal fee to volunteer firefighters 11
when benefits and fees do not constitute wages or salaries under KRS Chapter 12
337 and are not taxable as income to the volunteer firefighters under Kentucky 13
or federal income tax laws; and 14
(i) The use of fire protection district equipment for activities which are for a 15
public purpose and which do not materially diminish the value of the 16
equipment. 17
(3) The property valuation administrator of the county or counties involved, with the 18
cooperation of the board of trustees, shall note on the tax rolls the taxpayers and 19
valuation of the property subject to such assessment. The county clerk shall 20
compute the tax on the regular state and county tax bills in such manner as may be 21
directed by regulation of the Department of Revenue. 22
(4) Such taxes shall be subject to the same delinquency date, discounts, penalties, and 23
interest as are applied to the collection of ad valorem taxes and shall be collected by 24
the sheriff of the county or counties involved and accounted for to the treasurer of 25
the district. The sheriff shall be entitled to a fee of one percent (1%) of the amount 26
collected by him. 27 UNOFFICIAL COPY 22 RS BR 1653
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(5) Nothing contained in this subsection shall be construed to prevent the trustees of a 1
fire protection district located in a city or county which provides emergency 2
ambulance service from using funds derived from taxes for the purpose of providing 3
supplemental emergency medical services so long as the mayor of the city or the 4
county judge/executive of the county, as appropriate, certifies to the trustees in 5
writing that supplemental emergency medical services are reasonably required in 6
the public interest. For the purposes of this subsection, "supplemental emergency 7
medical services" may include EMT, EMT-D, and paramedic services rendered at 8
the scene of an emergent accident or illness until an emergency ambulance can 9
arrive at the scene. 10
(6) The trustees of those fire protection districts or volunteer fire department districts 11
whose districts or portions thereof do not receive emergency ambulance services 12
from an emergency ambulance service district or, whose districts are not being 13
served by an emergency ambulance service operated or contracted by a city or 14
county government, may develop, maintain, and operate or contract for an 15
emergency ambulance service as part of any fire department created pursuant to this 16
chapter. No taxes levied pursuant to subsection (1) of this section shall be used to 17
develop, maintain, operate, or contract for an emergency ambulance service until 18
the tax year following the year the trustees of the district authorize the establishment 19
of the emergency ambulance service. 20