UNOFFICIAL COPY 24 RS BR 2428
Page 1 of 3
XXXX 2/28/2024 12:52 PM Jacketed
AN ACT relating to riverports and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 136.1804 is amended to read as follows: 3
(1) The department shall notify the corporation of the assessed value of its watercraft 4
each year, as soon as possible after rates set by local authorities are provided to the 5
department. The corporation shall have sixty (60) days from the date of the 6
department's notice of assessment to protest as provided by KRS 131.110. 7
(2) No appeal shall delay the collection or payment of taxes based upon the assessment 8
in controversy. The corporation shall pay to the department all state and local taxing 9
district taxes due on the undisputed value of its watercraft as stated in the protest 10
filed under KRS 131.110. When the valuation is finally determined upon appeal, 11
the corporation shall be billed for any additional tax and interest at the tax interest 12
rate as defined in KRS 131.010(6) from the date the tax would have become due if 13
the assessment had not been appealed. The provisions of KRS 134.015(6) shall 14
apply to the tax bill. 15
(3) The state and local taxing district taxes on the watercraft are due sixty (60) days 16
from the date of notice of assessment. The tangible property taxes on watercraft 17
shall be collected in accordance with the provisions of KRS Chapter 134. 18
(4) (a) The state rate of taxation on watercraft shall be forty-five cents ($0.45) upon 19
each one hundred dollars ($100) of assessed value of the watercraft. 20
(b) The state portion of the tax imposed under this section shall be distributed 21
to the riverport financial assistance trust fund established in Section 2 of 22
this Act. 23
(5) The department shall annually calculate an aggregate local rate, which shall be 24
imposed upon each one hundred dollars ($100) of assessed value of the watercraft. 25
(a) The aggregate local rate shall be the sum of each local personal property tax 26
rate for each local taxing district multiplied by a fraction, the numerator of 27 UNOFFICIAL COPY 24 RS BR 2428
Page 2 of 3
XXXX 2/28/2024 12:52 PM Jacketed
which shall be the length of the navigable waterways in the local taxing 1
district and the denominator of which shall be the total of the length of all 2
navigable waterways in this state. Both the numerator and the denominator 3
shall be adjusted, if necessary, by paragraph (b) of this subsection. 4
(b) For purposes of computing the local property tax rate in paragraph (a) of this 5
section, the length of the navigable waterways of the Green River shall be 6
reduced by fifty percent (50%) and the length of the navigable waterways of 7
the Kentucky River shall be reduced by seventy-five percent (75%). 8
(6) The watercraft taxes collected for local taxing districts by the department shall be 9
distributed to each local taxing district based upon the local taxing district's 10
fractional portion of the amount calculated in subsection (5) of this section. 11
(7) Prior to distribution of taxes to local taxing districts, the department shall retain an 12
administrative fee of one percent (1%) of the amount due each district. The fee 13
imposed by this subsection shall have no effect upon the discount provided to 14
taxpayers pursuant to KRS 134.015. 15
Section 2. KRS 174.210 is amended to read as follows: 16
(1) There is created a riverport financial assistance trust fund, to be administered by the 17
Transportation Cabinet. 18
(2) The riverport financial assistance trust fund: 19
(a) May receive appropriations, federal funds, contributions, gifts, and donations; 20
and 21
(b) Shall receive the state portion of the commercial watercraft tax assessed 22
under Section 1 of this Act. 23
(3) The purpose of the riverport financial assistance trust fund shall be to improve 24
riverport facilities and infrastructure, to capture the economic and trade potential 25
offered by water transportation. To the extent funds are available, the fund shall 26
make grants to riverport authorities for new construction and major replacement or 27 UNOFFICIAL COPY 24 RS BR 2428
Page 3 of 3
XXXX 2/28/2024 12:52 PM Jacketed
repair projects, including but not limited to improvement of docks, wharves, 1
equipment, port buildings, storage facilities, roads and railroads to facilitate the 2
flow of commerce through the port, other on-site improvements, and related 3
professional services. Eligible projects shall not include routine operations, 4
maintenance, or repair activities. 5
(4) Notwithstanding KRS 45.229, moneys remaining in the fund at the close of a fiscal 6
year shall not lapse but shall carry forward into the succeeding fiscal year. Interest 7
earned on any moneys in the fund shall accrue to the fund. Amounts from the fund 8
shall be disbursed and expended in accordance with this section. 9
(5) To be eligible for a grant under this section, the applicant shall provide at least a 10
twenty percent (20%) match, which may be obtained from any public or private 11
source. 12
(6) (a) Grant applications shall be reviewed and awarded annually. 13
(b) The Transportation Cabinet shall submit all applications to the Water 14
Transportation Advisory Board established by KRS 174.200 for evaluation 15
and recommendations prior to awarding any grant funding under this section. 16
(c) Priority shall be given to applicants with a riverport master plan, for capital-17
intensive projects for which permits have been obtained, and for projects for 18
which matching funds have been obtained. 19
(7) The Transportation Cabinet shall submit on an annual basis a report detailing all 20
grants awarded under this section to the Water Transportation Advisory Board, the 21
Interim Joint Committee on Transportation, and the Interim Joint Committee on 22
Appropriations and Revenue. 23