UNOFFICIAL COPY 23 RS BR 1367
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AN ACT relating to resources for local development. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section, "county" includes all counties, urban-county 5
governments, charter county governments, consolidated local governments, and 6
unified local governments. 7
(2) The legislative body of any: 8
(a) City or county that has formed a tourist and convention commission 9
pursuant to KRS Chapter 91A; or 10
(b) City or county that is served by a tourist and convention commission 11
pursuant to an interlocal agreement or other provision of law; 12
may levy a tax not to exceed three percent (3%) of the retail sales made by all 13
restaurants doing business in the city or county imposing the tax. 14
(3) (a) The revenue generated by the restaurant tax shall be divided between: 15
1. The taxing jurisdiction; and 16
2. The tourist and convention commission that is: 17
a. Established by the taxing jurisdiction pursuant to KRS 91A.345 18
to 91A.394; or 19
b. One that serves the taxing jurisdiction pursuant to an interlocal 20
agreement or other provision of law. 21
(b) The taxing jurisdiction shall first distribute a minimum of twenty-five 22
percent (25%) of all restaurant tax revenue collected to the tourist and 23
convention commission for uses consistent with KRS 91A.345 to 91A.394. 24
(c) After the distribution required in paragraph (b) of this subsection, the 25
taxing jurisdiction shall use the remainder of all restaurant tax revenue 26
collected as follows: 27 UNOFFICIAL COPY 23 RS BR 1367
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1. At least one-third (1/3) to fund recreation infrastructure or programs 1
within the taxing jurisdiction; and 2
2. The remaining funds for capital construction, maintenance, or 3
operation of infrastructure that supports tourism, recreation, or 4
economic development within the taxing jurisdiction. 5
(4) (a) A restaurant that pays a restaurant tax levied pursuant to this section to a 6
taxing jurisdiction shall not have an occupational license fee or license tax 7
imposed on the net profits or gross receipts of the business by the same 8
taxing jurisdiction. 9
(b) This subsection shall not be construed to: 10
1. Eliminate the requirement for any restaurant to apply for and obtain a 11
business license for operation as may be required under local 12
ordinance; or 13
2. Prevent the application of an occupational license fee or tax from 14
being assessed on the wages of the restaurant's employees for the 15
privilege of working within the taxing jurisdiction. 16
(5) A city or county levying the restaurant tax allowed by this section for the first 17
time, or changing a rate of levy allowed by this section that is already in force, 18
shall provide through ordinance that the initial levy or rate change takes effect at 19
the beginning of a calendar month. 20
Section 2. KRS 67.938 is amended to read as follows: 21
(1) The tax structure, tax rates, and level of services in effect in the county and in each 22
of the participating cities upon the adoption of a unified local government shall 23
remain in effect after the adoption of the unified local government and shall remain 24
the same until changed by the newly elected unified local government legislative 25
council. 26
(2) In order to maintain the tax structure, tax rates, or level of services in the areas of 27 UNOFFICIAL COPY 23 RS BR 1367
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the unified local government formerly comprising incorporated cities, the unified 1
local government council may provide, in a manner described in this section, for 2
taxes and services within the formerly incorporated cities that are different from the 3
taxes and services which are applicable in the remainder of the unified local 4
government. If a unified local government is formed that contains a participating 5
city with a restaurant tax imposed pursuant to Section 1 of this Act or KRS 6
91A.400, the restaurant tax may be retained by the unified local government in the 7
area of the participating city. 8
(3) Any difference in the ad valorem tax rate on the class of property which includes 9
the surface of the land in the portion of the county formerly comprising the 10
incorporated cities, and the surface of the land in the portion of the county other 11
than that formerly comprising the incorporated cities, may be imposed directly by 12
the unified local government legislative council. Any change in these ad valorem 13
tax rates shall comply with KRS 68.245, 132.010, 132.017, and 132.027 and shall 14
be used for services as provided by KRS 82.085. 15
(4) All delinquent taxes of a participating city in a unified local government shall be 16
filed with the county clerk and shall be known as certificates of delinquency or 17
personal property certificates of delinquency and shall be governed by the 18
procedures set out in KRS Chapter 134, except that certificates of delinquency and 19
personal property certificates of delinquency on former city tax bills may be paid or 20
purchased directly from the clerk under KRS 134.126 and 134.127. 21
Section 3. KRS 91A.390 is amended to read as follows: 22
(1) (a) The commission shall annually submit to the local governing body or bodies 23
which established it a request for funds for the operation of the commission. 24
(b) The local governing body or bodies shall include the commission in the 25
annual budget and shall provide funds for the operation of the commission by 26
imposing a transient room tax on the rent for every occupancy of a suite, 27 UNOFFICIAL COPY 23 RS BR 1367
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room, rooms, cabins, lodgings, campsites, or other accommodations charged 1
by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, 2
recreational vehicle parks, or any other place in which accommodations are 3
regularly furnished to transients for consideration or by any person that 4
facilitates the rental of the accommodations by brokering, coordinating, or in 5
any other way arranging for the rental of the accommodations as follows: 6
1. For a local governing body or bodies, other than an urban-county 7
government, the tax rate shall not exceed three percent (3%); and 8
2. For an urban-county government, the tax rate shall not exceed four 9
percent (4%). 10
(c) In addition to the three percent (3%) levy authorized by paragraph (b)1. of this 11
subsection, the local governing body other than an urban-county government 12
may impose a special transient room tax not to exceed one percent (1%) for 13
the purposes of: 14
1. Meeting the operating expenses of a convention center; and 15
2. In the case of a consolidated local government, financing the renovation 16
or expansion of a convention center that is government-owned and 17
located in the central business district of the consolidated local 18
government, except that if a consolidated local government imposes the 19
special transient room tax authorized under this paragraph on or after 20
August 1, 2014, revenue derived from the levy shall not be used to meet 21
the operating expenses of a convention center until any debt issued for 22
financing the renovation or expansion of a government-owned 23
convention center located in the central business district of the 24
consolidated local government is retired. 25
(d) Transient room taxes shall not apply to rooms, lodgings, campsites, or 26
accommodations supplied for a continuous period of thirty (30) days or more 27 UNOFFICIAL COPY 23 RS BR 1367
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to a person. 1
(e) The local governing body or bodies that have established a commission by 2
joint or separate action shall enact an ordinance for the enforcement of the tax 3
measure enacted pursuant to this section and the collection of the proceeds of 4
this tax measure on a monthly basis. 5
(2) All moneys collected pursuant to this section, Section 1 of this Act, and KRS 6
91A.400 shall be maintained in an account separate and unique from all other funds 7
and revenues collected, and shall be considered tax revenue for the purposes of 8
KRS 68.100 and KRS 92.330. 9
(3) A portion of the money collected from the imposition of this tax, as determined by 10
the tax levying body, upon the advice and consent of the tourist and convention 11
commission, may be used to finance the cost of acquisition, construction, operation, 12
and maintenance of facilities useful in the attraction and promotion of tourist and 13
convention business, including projects described in KRS 154.30-050(2)(a). The 14
balance of the money collected from the imposition of this tax shall be used for the 15
purposes set forth in KRS 91A.350. Proceeds of the tax shall not be used as a 16
subsidy in any form to any hotel, motel, inn, motor court, tourist camp, tourist 17
cabin, campgrounds, recreational vehicle parks, or any other person furnishing 18
accommodations, or restaurant, except as provided in KRS 154.30-050(2)(a)3.c. 19
Money not expended by the commission during any fiscal year shall be used to 20
make up a part of the commission's budget for its next fiscal year. 21
(4) A county with a city of the first class may impose an additional tax, not to exceed 22
one and one-half percent (1.5%) of the rent. This additional tax, if approved by the 23
local governing body, shall be collected and administered in the same manner as the 24
tax authorized by subsection (1)(b) of this section and shall be used for the purpose 25
of funding additional promotion of tourist and convention business. 26
(5) An urban-county government may impose an additional tax, not to exceed one 27 UNOFFICIAL COPY 23 RS BR 1367
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percent (1%) of the rents included in this subsection. This additional tax shall be 1
collected and administered in the same manner as the tax authorized by subsection 2
(1)(b) of this section with the exception that this additional tax shall be used for the 3
purpose of funding the purchase of development rights program provided for under 4
KRS 67A.845. 5
(6) Local governing bodies which have formed multicounty tourist and convention 6
commissions as provided by KRS 91A.350(3) may impose an additional tax, not to 7
exceed one percent (1%) of the rents. This additional tax, if approved by each 8
governing body, shall be collected and administered in the same manner as the tax 9
authorized by subsection (1)(b) of this section, with the exception that this 10
additional tax shall be used for the purpose of funding regional efforts relating to 11
the promotion of tourist and convention business and convention centers. In no 12
event shall any revenues collected as provided for under KRS 91A.350(3) be 13
utilized for the construction, renovation, maintenance, or additions to any 14
convention center that is located outside the boundaries of the Commonwealth of 15
Kentucky. 16
(7) The commission, with the approval of the tax levying body, may borrow money to 17
pay its obligations that cannot be paid at maturity out of current revenue from the 18
transient room tax, but shall not borrow a sum greater than can be repaid out of the 19
revenue anticipated from the transient room tax during the year the money is 20
borrowed. The commission may pledge its securities for the repayment of any sum 21
borrowed. 22
(8) The fiscal court or legislative body of a consolidated local government or city 23
establishing a commission pursuant to KRS 91A.350(1) or (2) and, in its own name, 24
a commission established pursuant to of KRS 91A.350(1) is authorized and 25
empowered to issue revenue bonds pursuant to KRS Chapter 58 for public projects. 26
Bonds issued for the purposes of KRS 91A.345 to 91A.394, may be used to pay any 27 UNOFFICIAL COPY 23 RS BR 1367
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cost for the acquisition of real estate, the construction of buildings and 1
appurtenances, the preparation of plans and specifications, and legal and other 2
services incidental to the project or to the issuance of the bonds. The payment of the 3
bonds, with interest, may be secured by a pledge of and a first lien on all of the 4
receipts and revenue derived, or to be derived, from the rental or operation of the 5
property involved. Bond and interest obligations issued pursuant to this section 6
shall not constitute an indebtedness of the county, consolidated local government, 7
or city. All bonds sold under the authority of this section shall be subject to 8
competitive bidding as provided by law, and shall bear interest at a rate not to 9
exceed that established for bonds issued for public projects under KRS Chapter 58. 10
(9) A commission established pursuant to KRS 91A.350(3) is authorized and 11
empowered to issue revenue bonds in its own name, payable solely from its income 12
and revenue, pursuant to KRS Chapter 58 for revenue bonds for public projects. 13
Bonds issued for the purposes of KRS 91A.345 to 91A.394, may be used to pay any 14
cost for the acquisition of real estate, the construction of buildings and 15
appurtenances, the preparation of plans and specifications, and legal and other 16
services incidental to the project or to the issuance of the bonds. The payment of the 17
bonds, with interest, may be secured by a pledge of and a first lien on all of the 18
receipts and revenue derived, or to be derived, from the rental or operation of the 19
property involved. Bond and interest obligations issued pursuant to this section 20
shall not constitute an indebtedness of the county. All bonds sold pursuant to this 21
section shall be subject to competitive bidding as provided by law, and shall not 22
bear interest at rates exceeding those for bonds issued for public projects under 23
KRS Chapter 58. 24
Section 4. KRS 91A.400 is amended to read as follows: 25
(1) As used in this section, "authorized city" means a city on the registry maintained by 26
the Department for Local Government under subsection (2) of this section. 27 UNOFFICIAL COPY 23 RS BR 1367
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(2) On or before January 1, 2015, the Department for Local Government shall create 1
and maintain a registry of cities that, as of January 1, 2014, were classified as cities 2
of the fourth or fifth class. The Department for Local Government shall make the 3
information included on the registry available to the public by publishing it on its 4
website[Web site]. 5
(3) Prior to the effective date of this Act, in addition to the three percent (3%) transient 6
room tax authorized by KRS 91A.390(1)(b), the city legislative body in an 7
authorized city may levy an additional restaurant tax not to exceed three percent 8
(3%) of the retail sales by all restaurants doing business in the city. 9
(4) (a) Prior to the effective date of this Act, all moneys collected from the tax 10
authorized by this section shall be turned over to the tourist and convention 11
commission established in that city as provided by KRS 91A.345 to 91A.394. 12
(b) After the effective date of this Act, all moneys collected from the tax 13
authorized by this section shall be distributed as follows: 14
1. An amount to the tourist and convention commission that is equal to 15
the base restaurant tax receipts plus a minimum of twenty-five percent 16
(25%) of the restaurant tax revenues collected above the base 17
restaurant tax receipts for uses consistent with KRS 91A.345 to 18
91A.394; and 19
2. After the distribution required in subparagraph 1. of this paragraph, 20
the city shall use the remainder of restaurant tax revenue collected as 21
follows: 22
a. At least one-third (1/3) to fund recreation infrastructure or 23
programs within the taxing jurisdiction; and 24
b. The remaining funds for capital construction, maintenance, or 25
operation of infrastructure that support tourism, recreation, and 26
economic development within the taxing jurisdiction. 27 UNOFFICIAL COPY 23 RS BR 1367
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(c) The revenue distributed to a tourist and convention commission pursuant to 1
paragraph (b) of this subsection that equals the base restaurant tax receipts: 2
1. Shall be requested and budgeted in the same manner as the transient 3
room tax as provided in subsection (1)(a) and (b) of Section 3 of this 4
Act; 5
2. Shall be separately maintained, accounted for, and considered as tax 6
revenue; 7
3. Shall be used to make up a part of the commission's budget for its next 8
fiscal year when not expended by the commission in its current year; 9
4. May, upon the advice and consent of the tourist and convention 10
commission, be partially used by the city legislative body to finance the 11
cost of acquisition, construction, operation, and maintenance of 12
facilities useful in the attraction and promotion of tourist and 13
convention business; 14
5. May, with the approval of the city legislative body, be pledged by the 15
tourist and convention commission as security to borrow money to pay 16
its obligations that cannot be paid at maturity out of current revenue 17
from the restaurant tax, except that the tourist and convention 18
commission shall not borrow a sum greater than can be repaid out of 19
the revenue anticipated from the restaurant tax during the year the 20
money is borrowed; and 21
6. Shall not be used as a subsidy in any form to any hotel, motel, or 22
restaurant. 23
(d) Paragraph (b) of this subsection shall not be interpreted to: 24
1. Void, supplant, or otherwise affect any existing agreement between a 25
city and a tourist and convention commission regarding the 26
distribution of use of restaurant tax revenues; or 27 UNOFFICIAL COPY 23 RS BR 1367
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2. Prevent any future agreement between a city and tourist and 1
convention commission that provides terms for the distribution or use 2
of restaurant tax revenues. 3
(e) As used in this subsection, "base restaurant tax receipts" means the amount 4
of revenue collected as a result of the imposition of the restaurant tax 5
pursuant to this section from July 1, 2022, to June 30, 2023, by a city that 6
imposed the tax prior to the effective date of this Act. 7
(f) 1. This subsection shall expire on July 1, 2025. 8
2. On or after July 1, 2025, cities that imposed the restaurant tax prior to 9
the effective date of this Act shall comply with the requirements of 10
subsection (3) of Section 1 of this Act. 11
(5) (a) A restaurant that pays a restaurant tax levied pursuant to this section to a 12
city shall not have an occupational license fee or license tax imposed on the 13
net profits or gross receipts of the business by the city. 14
(b) This subsection shall not be construed to: 15
1. Eliminate the requirement for any restaurant to apply for and obtain a 16
business license for operation as may be required under local 17
ordinance; or 18
2. Prevent the application of an occupational license fee or tax from 19
being assessed on the wages of the restaurant's employees for the 20
privilege of working within the city. 21
Section 5. KRS 91.200 is amended to read as follows: 22
(1) The board of aldermen of every city of the first class, in addition to levying ad 23
valorem taxes, may by ordinance impose license fees on franchises, provide for 24
licensing any business, trade, occupation, or profession and the using, holding, or 25
exhibiting of any animal, article, or other thing. 26
(2) License fees on a business, trade, occupation, or profession for revenue purposes 27 UNOFFICIAL COPY 23 RS BR 1367
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may be imposed at a percentage rate not to exceed those hereinafter set forth on: 1
(a) Salaries, wages, commissions and other compensations earned by every 2
person within the city for work done and services performed or rendered in 3
the city ([all of such being ]hereinafter collectively referred to as "wages"); 4
and 5
(b) The net profits of all businesses, professions, or occupations from activities 6
conducted in the city (hereinafter collectively referred to as "net profits"). 7
(3) (a) Licenses imposed for regulatory purposes shall not be subject to[ such] 8
limitations as to form and amount. 9
(b) No company that pays an ad valorem tax and a franchise tax is required to pay 10
a license tax. 11
(c) 1. It is the intent of the General Assembly to continue the exemption from 12
local license fees and occupational taxes that existed on January 1, 2006, 13
for providers of multichannel video programming services or 14
communications services as defined in KRS 136.602 that were taxed 15
under KRS 136.120 prior to January 1, 2006. 16
2. To further this intent, no company providing multichannel video 17
programming services or communications services as defined in KRS 18
136.602 shall be required to pay a license tax. If only a portion of an 19
entity's business is providing multichannel video programming services 20
or communications services, including products or services that are 21
related to and provided in support of the multichannel video 22
programming services or communications services, this exclusion 23
applies only to that portion of the business that provides multichannel 24
video programming services or communications services including 25
products or services that are related to and provided in support of the 26
multichannel video programming services or communications services. 27 UNOFFICIAL COPY 23 RS BR 1367
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(d) No license tax shall be imposed upon or collected from any bank, trust 1
company, combined bank and trust company or combined trust, banking and 2
title business in this state, any savings and loan association whether state or 3
federally chartered. 4
(e) No license tax shall be imposed upon income received by members of the 5
Kentucky national guard for active duty training, unit training assemblies, and 6
annual field training. 7
(f) No license tax shall be imposed on income received by precinct workers for 8
election training or work at election booths in state, county, and local primary, 9
regular, or special elections. 10
(g) No license tax shall be imposed upon any profits, earnings, or distributions of 11
an investment fund which would qualify under KRS 154.20-250 to 154.20-12
284 to the extent any profits, earnings, or distributions would not be taxable to 13
an individual investor, or in any other case where the city is prohibited by 14
statute from imposing a license tax. 15
(h) 1. No license tax shall be imposed upon: 16
a. The profits earned; or 17
b. Income received for work performed; 18
during a disaster response period by a disaster response business or a 19
disaster response employee. 20
2. As used in this paragraph, "disaster response business," "disaster 21
response employee," and "disaster response period" have the same 22
meaning as in KRS 141.010. 23
(i) No license tax shall be imposed upon the net profits or gross receipts of a 24
restaurant that pays a restaurant tax under Section 1 or 4 of this Act. 25
(4) The rate fixed on both "wages" and "net profits" shall be one and one-fourth percent 26
(1.25%). 27 UNOFFICIAL COPY 23 RS BR 1367
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(5) License fees or taxes shall be collected by the commissioners of the sinking fund. 1
The proceeds from the taxes shall be paid to the secretary and treasurer of the 2
sinking fund until income from all sources of the sinking fund is sufficient to pay 3
the cost of administration and the interest charges for the current fiscal year of the 4
sinking fund in addition to a sum sufficient to amortize the outstanding principal 5
indebtedness of the city on a yearly basis in accordance with regularly used 6
amortization tables. 7
(6) Revenue remaining after meeting the foregoing requirements shall be transferred to 8
the city. The[Such] revenues shall be credited to the general fund of the city as 9
received and may be expended for general purposes or for capital improvements. 10
(7) The term "capital improvements" as used in this section is limited to additions or 11
improvements of a substantial and permanent nature and services rendered in 12
connection therewith, and includes but is not limited to: 13
(a) The purchase of rights of way for highways, expressways, and the widening 14
of existing streets; 15
(b) The purchase of lands for park, recreational, and other governmental facilities 16
and for public off-street parking facilities; 17
(c) The purchase, construction, reconstruction, renovation, or remodeling of 18
municipal buildings, and facilities; 19
(d) The replacement of machinery, wires, pipes, structural members or fixtures, 20
and other essential portions of municipal buildings; 21
(e) The initial equipment of any newly acquired facility wherein any essential 22
governmental function of the municipality may be located or carried on; 23
(f) The purchase and installation of traffic control devices and fire alarm 24
equipment; 25
(g) The reconstruction and resurfacing, but not routine maintenance, of streets 26
and other public ways; 27 UNOFFICIAL COPY 23 RS BR 1367
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(h) The acquisition of motorized equipment purchased as additions to, but not 1
replacements for, existing equipment; and 2
(i) Engineering and other costs incurred by the city in connection with the 3
construction of public improvements financed under a special assessment 4
plan. 5
(8) Ad valorem taxes for the benefit of the sinking fund shall not be levied unless the 6
income of the sinking fund is otherwise insufficient to meet the[such] requirements. 7
(9) Licenses shall be issued and enforced on terms and conditions as prescribed by 8
ordinance. 9
(10) Pursuant to this section, no city of the first class shall regulate any aspect of the 10
manner in which any duly ordained, commissioned, or denominationally licensed 11
minister of religion may perform his or her duties and activities as a minister of 12
religion. Duly ordained, commissioned, or denominationally licensed ministers of 13
religion shall be subject to the same license fees imposed on others in the city on 14
salaries, wages, commissions, and other compensation earned for work done and 15
services performed or rendered. 16
Section 6. KRS 92.281 is amended to read as follows: 17
(1) Cities of all classes are authorized to levy and collect any and all taxes provided for 18
in Section 181 of the Constitution of the Commonwealth of Kentucky, and to use 19
the revenue therefrom for the[such] purposes[ as may be] provided by the 20
legislative body of the city. 21
(2) Nothing in this section shall be construed to repeal, amend, or affect in any way the 22
provisions of KRS 243.070. 23
(3) This section shall not in any wise repeal, amend, affect, or apply to any existing 24
statute exempting property from local taxation or fixing a special rate on proper 25
classification or imposing a state tax which is declared to be in lieu of all local 26
taxation, nor shall it be construed to authorize a city to require any company that 27 UNOFFICIAL COPY 23 RS BR 1367
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pays both an ad valorem tax and a franchise tax to pay a license tax. 1
(4) This section shall also be subject to the provisions of KRS 91.200 in cities of the 2
first class having a sinking fund and commissioners of a sinking fund. 3
(5) License fees or occupational taxes may not be imposed against or collected on 4
income received by precinct workers for election training or work at election booths 5
in state, county, and local primary, regular, or special elections. 6
(6) License fees or occupational taxes may not be imposed against or collected on any 7
profits, earnings, or distributions of an investment fund which would qualify under 8
KRS 154.20-250 to 154.20-284 to the extent any profits, earnings, or distributions 9
would not be taxable to an individual investor. 10
(7) (a) It is the intent of the General Assembly to continue the exemption from local 11
license fees and occupational taxes that existed on January 1, 2006, for 12
providers of multichannel video programming services or communications 13
services as defined in KRS 136.602 that were taxed under KRS 136.120 prior 14
to January 1, 2006. 15
(b) To further this intent, license fees or occupational taxes may not be imposed 16
against any company providing multichannel video programming services or 17
communications services as defined in KRS 136.602. If only a portion of an 18
entity's business is providing multichannel video programming services or 19
communications services including products or services that are related to and 20
provided in support of the multichannel video programming services or 21
communications services, this exclusion applies only to that portion of the 22
business that provides multichannel video programming services or 23
communications services including products or services that are related to and 24
provided in support of the multichannel video programming services or 25
communications services. 26
(8) License fees or occupational taxes may not be imposed against the net profits or 27 UNOFFICIAL COPY 23 RS BR 1367
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gross receipts of a restaurant that pays a restaurant tax under Section 1 or 4 of 1
this Act. 2
Section 7. KRS 92.300 is amended to read as follows: 3
(1) (a) The legislative body of an urban-county government and any city of the home 4
rule class may by ordinance exempt manufacturing establishments, including 5
qualified data centers, from city taxation for a period not exceeding five (5) 6
years as an inducement to their location in the urban-county government, or 7
city. 8
(b) As used in this subsection: 9
1. "Data center" means a structure or portion of a structure that is 10
predominantly used to house and continuously operate computer servers 11
and associated telecommunications, electronic data processing or 12
storage, or other similar components; 13
2. "Overall tier rating" means the overall tier rating of a data center 14
according to the TIA-942 Telecommunications Infrastructure Standard 15
for Data Centers established by the Telecommunications Industry 16
Association and published in April 2005, exclusive of any amendments 17
made subsequent to that date; and 18
3. "Qualified data center" means a data center having an overall tier rating 19
of three (3) or four (4) on the assessment date of a given taxable year, as 20
established by the owner thereof. 21
(2) (a) No city of the home rule class or urban-county government may impose or 22
collect any license tax upon: 23
1. Any bank, trust company, combined bank and trust company, or trust, 24
banking and title insurance company organized and doing business in 25
this state; 26
2. Any savings and loan association whether state or federally chartered; 27 UNOFFICIAL COPY 23 RS BR 1367
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3. The provision of multichannel video programming services or 1
communications services as defined in KRS 136.602. It is the intent of 2
the General Assembly to continue the exemption from local license fees 3
and occupational taxes that existed on January 1, 2006, for providers of 4
multichannel video programming services or communications services 5
as defined in KRS 136.602 that were taxed under KRS 136.120 prior to 6
January 1, 2006. If only a portion of an entity's business is providing 7
multichannel video programming services or communications services 8
including products or services that are related to and provided in support 9
of the multichannel video programming services or communications 10
services, this exclusion applies only to that portion of the business that 11
provides multichannel video programming services or communications 12
services including products or services that are related to and provided 13
in support of the multichannel video programming services or 14
communications services;[ or] 15
4. A disaster relief business as defined in KRS 141.010 for work 16
performed during a disaster response period as defined in KRS 141.010; 17
or 18
5. The net profits or gross receipts of a restaurant that pays a restaurant 19
tax under Section 1 or 4 of this Act. 20
(b) No city of the home rule class or urban-county government may impose or 21
collect any license tax upon income received: 22
1. By members of the Kentucky National Guard for active duty training, 23
unit training assemblies and annual field training; 24
2. By precinct workers for election training or work at election booths in 25
state, county, and local primary, regular, or special elections; or 26
3. By a disaster response employee as defined in KRS 141.010 for work 27 UNOFFICIAL COPY 23 RS BR 1367
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performed during a disaster response period as defined in KRS 141.010. 1
(3) Pursuant to KRS 92.281, no city shall regulate any aspect of the manner in which 2
any duly ordained, commissioned, or denominationally licensed minister of religion 3
may perform his or her duties and activities as a minister of religion. Duly ordained, 4
commissioned, or denominationally licensed ministers of religion shall be subject to 5
the same license fees imposed on others in the city enacted pursuant to KRS 92.281. 6
Section 8. This Act takes effect January 1, 2024. 7