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AN ACT relating to exempting houseboat rentals from transient room taxes. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 91A.390 is amended to read as follows: 3
(1) (a) The commission shall annually submit to the local governing body or bodies 4
which established it a request for funds for the operation of the commission. 5
(b) The local governing body or bodies shall include the commission in the 6
annual budget and shall provide funds for the operation of the commission by 7
imposing a transient room tax on the rent for every occupancy of a suite, 8
room, rooms, cabins, lodgings, campsites, or other accommodations charged 9
by any hotel, motel, inn, tourist camp, tourist cabin, campgrounds, 10
recreational vehicle parks, or any other place in which accommodations are 11
regularly furnished to transients for consideration or by any person that 12
facilitates the rental of the accommodations by brokering, coordinating, or in 13
any other way arranging for the rental of the accommodations as follows: 14
1. For a local governing body or bodies, other than an urban-county 15
government, the tax rate shall not exceed three percent (3%); and 16
2. For an urban-county government, the tax rate shall not exceed four 17
percent (4%). 18
(c) In addition to the three percent (3%) levy authorized by paragraph (b)1. of this 19
subsection, the local governing body other than an urban-county government 20
may impose a special transient room tax not to exceed one percent (1%) for 21
the purposes of: 22
1. Meeting the operating expenses of a convention center; and 23
2. In the case of a consolidated local government, financing the renovation 24
or expansion of a convention center that is government-owned and 25
located in the central business district of the consolidated local 26
government, except that if a consolidated local government imposes the 27 UNOFFICIAL COPY 23 RS BR 832
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special transient room tax authorized under this paragraph on or after 1
August 1, 2014, revenue derived from the levy shall not be used to meet 2
the operating expenses of a convention center until any debt issued for 3
financing the renovation or expansion of a government-owned 4
convention center located in the central business district of the 5
consolidated local government is retired. 6
(d) Transient room taxes shall not apply to: 7
1. Rooms, lodgings, campsites, or accommodations supplied for a 8
continuous period of thirty (30) days or more to a person; or 9
2. The rental of a houseboat as defined in KRS 235.410. 10
(e) The local governing body or bodies that have established a commission by 11
joint or separate action shall enact an ordinance for the enforcement of the tax 12
measure enacted pursuant to this section and the collection of the proceeds of 13
this tax measure on a monthly basis. 14
(2) All moneys collected pursuant to this section and KRS 91A.400 shall be maintained 15
in an account separate and unique from all other funds and revenues collected, and 16
shall be considered tax revenue for the purposes of KRS 68.100 and KRS 92.330. 17
(3) A portion of the money collected from the imposition of this tax, as determined by 18
the tax levying body, upon the advice and consent of the tourist and convention 19
commission, may be used to finance the cost of acquisition, construction, operation, 20
and maintenance of facilities useful in the attraction and promotion of tourist and 21
convention business, including projects described in KRS 154.30-050(2)(a). The 22
balance of the money collected from the imposition of this tax shall be used for the 23
purposes set forth in KRS 91A.350. Proceeds of the tax shall not be used as a 24
subsidy in any form to any hotel, motel, inn, motor court, tourist camp, tourist 25
cabin, campgrounds, recreational vehicle parks, or any other person furnishing 26
accommodations, or restaurant, except as provided in KRS 154.30-050(2)(a)3.c. 27 UNOFFICIAL COPY 23 RS BR 832
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Money not expended by the commission during any fiscal year shall be used to 1
make up a part of the commission's budget for its next fiscal year. 2
(4) A county with a city of the first class may impose an additional tax, not to exceed 3
one and one-half percent (1.5%) of the rent. This additional tax, if approved by the 4
local governing body, shall be collected and administered in the same manner as the 5
tax authorized by subsection (1)(b) of this section and shall be used for the purpose 6
of funding additional promotion of tourist and convention business. 7
(5) An urban-county government may impose an additional tax, not to exceed one 8
percent (1%) of the rents included in this subsection. This additional tax shall be 9
collected and administered in the same manner as the tax authorized by subsection 10
(1)(b) of this section with the exception that this additional tax shall be used for the 11
purpose of funding the purchase of development rights program provided for under 12
KRS 67A.845. 13
(6) Local governing bodies which have formed multicounty tourist and convention 14
commissions as provided by KRS 91A.350(3) may impose an additional tax, not to 15
exceed one percent (1%) of the rents. This additional tax, if approved by each 16
governing body, shall be collected and administered in the same manner as the tax 17
authorized by subsection (1)(b) of this section, with the exception that this 18
additional tax shall be used for the purpose of funding regional efforts relating to 19
the promotion of tourist and convention business and convention centers. In no 20
event shall any revenues collected as provided for under KRS 91A.350(3) be 21
utilized for the construction, renovation, maintenance, or additions to any 22
convention center that is located outside the boundaries of the Commonwealth of 23
Kentucky. 24
(7) The commission, with the approval of the tax levying body, may borrow money to 25
pay its obligations that cannot be paid at maturity out of current revenue from the 26
transient room tax, but shall not borrow a sum greater than can be repaid out of the 27 UNOFFICIAL COPY 23 RS BR 832
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revenue anticipated from the transient room tax during the year the money is 1
borrowed. The commission may pledge its securities for the repayment of any sum 2
borrowed. 3
(8) The fiscal court or legislative body of a consolidated local government or city 4
establishing a commission pursuant to KRS 91A.350(1) or (2) and, in its own name, 5
a commission established pursuant to of KRS 91A.350(1) is authorized and 6
empowered to issue revenue bonds pursuant to KRS Chapter 58 for public projects. 7
Bonds issued for the purposes of KRS 91A.345 to 91A.394, may be used to pay any 8
cost for the acquisition of real estate, the construction of buildings and 9
appurtenances, the preparation of plans and specifications, and legal and other 10
services incidental to the project or to the issuance of the bonds. The payment of the 11
bonds, with interest, may be secured by a pledge of and a first lien on all of the 12
receipts and revenue derived, or to be derived, from the rental or operation of the 13
property involved. Bond and interest obligations issued pursuant to this section 14
shall not constitute an indebtedness of the county, consolidated local government, 15
or city. All bonds sold under the authority of this section shall be subject to 16
competitive bidding as provided by law, and shall bear interest at a rate not to 17
exceed that established for bonds issued for public projects under KRS Chapter 58. 18
(9) A commission established pursuant to KRS 91A.350(3) is authorized and 19
empowered to issue revenue bonds in its own name, payable solely from its income 20
and revenue, pursuant to KRS Chapter 58 for revenue bonds for public projects. 21
Bonds issued for the purposes of KRS 91A.345 to 91A.394, may be used to pay any 22
cost for the acquisition of real estate, the construction of buildings and 23
appurtenances, the preparation of plans and specifications, and legal and other 24
services incidental to the project or to the issuance of the bonds. The payment of the 25
bonds, with interest, may be secured by a pledge of and a first lien on all of the 26
receipts and revenue derived, or to be derived, from the rental or operation of the 27 UNOFFICIAL COPY 23 RS BR 832
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property involved. Bond and interest obligations issued pursuant to this section 1
shall not constitute an indebtedness of the county. All bonds sold pursuant to this 2
section shall be subject to competitive bidding as provided by law, and shall not 3
bear interest at rates exceeding those for bonds issued for public projects under 4
KRS Chapter 58. 5
Section 2. KRS 91A.392 is amended to read as follows: 6
(1) In addition to the three percent (3%) transient room tax authorized by KRS 7
91A.390(1)(b), and the one percent (1%) transient room tax authorized by KRS 8
153.440, a consolidated local government, or the fiscal court in a county containing 9
an authorized city, except those counties that are included in a multicounty tourist 10
and convention commission under KRS 91A.350, may levy an additional transient 11
room tax not to exceed two percent (2%) of the rent for every occupancy of a suite, 12
room, rooms, cabin, lodgings, campsites, or other accommodations charged by any 13
hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle 14
parks, or other place in which accommodations are regularly furnished to transients 15
for a consideration or by any person that facilitates the rental of the 16
accommodations by brokering, coordinating, or in any other way arranging for the 17
rental of the accommodations for consideration. 18
(2) The taxes imposed under this section shall not apply to: 19
(a) Rooms, lodgings, campsites, or accommodations supplied for a continuous 20
period of thirty (30) days or more to a person; or 21
(b) The rental of a houseboat as defined in KRS 235.410. 22
(3) (a) Except as otherwise provided in paragraph (b) of this subsection, all money 23
collected from the tax authorized by this section shall be applied toward the 24
retirement of bonds issued pursuant to KRS 91A.390(8) to finance in part the 25
expansion or construction or operation of a governmental or nonprofit 26
convention center or fine arts center useful to the promotion of tourism 27 UNOFFICIAL COPY 23 RS BR 832
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located in the central business district of the consolidated local government or 1
the authorized city located in the county. 2
(b) 1. This paragraph shall apply to the tax levied pursuant to this section, 3
prior to July 1, 2015, by a fiscal court of a county having a population 4
between seventy-five thousand (75,000) and one hundred thousand 5
(100,000) based on the 2010 federal decennial census. 6
2. When, in any fiscal year, the money collected from the tax authorized by 7
this section exceeds the amount required to satisfy the annual debt 8
service for the bond for that fiscal year, all or a portion of the excess 9
amount collected for that fiscal year may be used to defray the costs to 10
operate, renovate, or expand the governmental or nonprofit convention 11
center or fine arts center described in paragraph (a) of this subsection, if 12
an amount equal to one (1) year's required debt service is held in reserve 13
to satisfy any future debt service obligations of the bond. 14
(4) After the retirement of the bonds provided for in this section, the additional 15
transient room tax levied pursuant to this section shall be void, and the consolidated 16
local government or fiscal court shall take action to repeal the ordinance which 17
levied the tax. 18
(5) As used in this section, "authorized city" means a city of the first class and a city 19
included on the registry maintained by the Department for Local Government under 20
subsection (6) of this section. 21
(6) On or before January 1, 2015, the Department for Local Government shall create 22
and maintain a registry of cities that, as of August 1, 2014, were classified as cities 23
of the second class. The Department for Local Government shall make the 24
information included on the registry available to the public by publishing it on its 25
website[Web site]. 26
Section 3. KRS 142.400 is amended to read as follows: 27 UNOFFICIAL COPY 23 RS BR 832
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(1) As used in this section: 1
(a) "Person" has the same meaning as in KRS 91A.345; and 2
(b) "Rent" has the same meaning as in KRS 91A.345. 3
(2) A statewide transient room tax shall be imposed at a rate of one percent (1%) of the 4
rent for every occupancy of any suite, room, rooms, cabins, lodgings, campsites, or 5
other accommodations charged by any hotel, motel, inn, tourist camp, tourist cabin, 6
campgrounds, recreational vehicle parks, or other place in which accommodations 7
are regularly furnished to transients for a consideration or by any person that 8
facilitates the rental of the accommodations by brokering, coordinating, or in any 9
other way arranging for the rental of the accommodations for consideration. 10
(3) As used in this subsection, rent shall not include any other local or state taxes paid 11
by the person or entity renting the accommodations. 12
(4) The tax imposed by subsection (1) of this section shall not apply to: 13
(a) Rooms, lodgings, campsites, or accommodations supplied for a continuous 14
period of thirty (30) days or more to a person; or 15
(b) The rental of a houseboat as defined in KRS 235.410. 16
Section 4. KRS 153.440 is amended to read as follows: 17
(1) As used in this section and KRS 153.450: 18
(a) "Person" has the same meaning as in KRS 91A.345; and 19
(b) "Rent" has the same meaning as in KRS 91A.345. 20
(2) In addition to the three percent (3%) transient room tax authorized by KRS 21
91A.390(1)(b), fiscal courts in counties containing cities of the first class or 22
consolidated local governments may levy an additional transient room tax not to 23
exceed one percent (1%) of the rent for every occupancy of a suite, room, rooms, 24
cabins, lodgings, campsites, or other accommodations charged by any hotel, motel, 25
inn, tourist camp, tourist cabins, campgrounds, recreational vehicle parks, or other 26
place in which accommodations are regularly furnished to transients for a 27 UNOFFICIAL COPY 23 RS BR 832
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consideration or by any person that facilitates the rental of the accommodations by 1
brokering, coordinating, or in any other way arranging for the rental of the 2
accommodations for consideration. 3
(3) The tax imposed under this section shall not apply to: 4
(a) Rooms, lodgings, campsites, or accommodations supplied for a continuous 5
period of thirty (30) days or more to a person; or 6
(b) The rental of a houseboat as defined in KRS 235.410. 7
(4) All moneys collected from the tax authorized by this section shall be turned over to 8
the Kentucky Center for the Arts Corporation and shall be used to defray operating 9
costs of the Kentucky Center for the Arts. 10
Section 5. KRS 153.450 is amended to read as follows: 11
(1) In addition to the four percent (4%) transient room tax authorized by KRS 12
91A.390(1)(b)2., an urban-county government may levy an additional transient 13
room tax not to exceed two percent (2%) of the rent for every occupancy of a suite, 14
room, rooms, cabins, lodgings, campsites, or other accommodations charged by any 15
hotel, motel, inn, tourist camp, tourist cabin, campgrounds, recreational vehicle 16
parks, or other place in which accommodations are regularly furnished to transients 17
for a consideration or by any person that facilitates the rental of the 18
accommodations by brokering, coordinating, or in any other way arranging for the 19
rental of the accommodations for consideration. 20
(2) All additional moneys collected from the tax authorized by subsection (1) of this 21
section shall be applied toward the retirement of bonds used to finance a nonprofit 22
corporation which is created for the funding, construction, and management of a 23
convention center in an urban-county, and to defray the operating costs of the 24
nonprofit corporation. 25
(3) (a) As used in this subsection, "project" means the renovation, expansion, or 26
improvement of a convention center on or after July 15, 2016. 27 UNOFFICIAL COPY 23 RS BR 832
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(b) In addition to the levy authorized by subsection (1) of this section, an urban-1
county government may levy an additional transient room tax not to exceed 2
two and one-half percent (2.5%) to provide funding for a project. 3
(c) Proceeds from the levy shall be used only for the direct expenditure for, or 4
repayment of debt associated with, the project. 5
(d) The levy shall sunset upon completion of the project and repayment of all 6
associated debt. 7
(4) The taxes imposed under this section shall not apply to: 8
(a) Rooms, lodgings, campsites, or accommodations supplied for a continuous 9
period of thirty (30) days or more to a person; or 10
(b) The rental of a houseboat as defined in KRS 235.410. 11