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AN ACT relating to revenue. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. KRS 132.010 IS REPEALED AND REENACTED TO READ 3
AS FOLLOWS: 4
As used in this chapter: 5
(1) "Agricultural land" means: 6
(a) Any tract of land, including all income-producing improvements, of at least 7
ten (10) contiguous acres in area used for the production of livestock, 8
livestock products, poultry, poultry products and/or the growing of tobacco 9
and/or other crops including timber; 10
(b) Any tract of land, including all income-producing improvements, of at least 11
five (5) contiguous acres in area commercially used for aquaculture; or 12
(c) Any tract of land devoted to and meeting the requirements and 13
qualifications for payments pursuant to agriculture programs under an 14
agreement with the state or federal government; 15
(2) "Agricultural or horticultural value" means the use value of agricultural or 16
horticultural land based upon income-producing capability and comparable sales 17
of farmland purchased for farm purposes where the price is indicative of farm 18
use value, excluding sales representing purchases for farm expansion, better 19
accessibility, and other factors which inflate the purchase price beyond farm use 20
value, if any, considering the following factors as they affect a taxable unit: 21
(a) Relative percentages of tillable land, pasture land, and woodland; 22
(b) Degree of productivity of the soil; 23
(c) Risk of flooding; 24
(d) Improvements to and on the land that relate to the production of income; 25
(e) Row crop capability including allotted crops other than tobacco; 26
(f) Accessibility to all-weather roads and markets; and 27 UNOFFICIAL COPY 25 RS BR 1212
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(g) Factors which affect the general agricultural or horticultural economy, 1
such as interest, price of farm products, cost of farm materials and supplies, 2
labor, or any economic factor which would affect net farm income; 3
(3) (a) "Broadcast" means the transmission of audio, video, or other signals, 4
through any electronic, radio, light, or similar medium or method now in 5
existence or later devised over the airwaves to the public in general. 6
(b) "Broadcast" shall not apply to operations performed by multichannel video 7
programming service providers as defined in KRS 136.602 or any other 8
operations that transmit audio, video, or other signals, exclusively to 9
persons for a fee; 10
(4) "Compensating tax rate" means that rate which, rounded to the next higher one-11
tenth of one cent ($0.001) per one hundred dollars ($100) of assessed value and 12
applied to the current year's assessment of the property subject to taxation by a 13
taxing district, excluding new property and personal property, produces an 14
amount of revenue approximately equal to that produced in the preceding year 15
from real property. However, in no event shall the compensating tax rate be a rate 16
which, when applied to the total current year assessment of all classes of taxable 17
property, produces an amount of revenue less than was produced in the preceding 18
year from all classes of taxable property. For purposes of this subsection, 19
"property subject to taxation" means the total fair cash value of all property 20
subject to full local rates, less the total valuation exempted from taxation by the 21
homestead exemption provision of the Constitution of Kentucky and the 22
difference between the fair cash value and agricultural or horticultural value of 23
agricultural or horticultural land; 24
(5) "County" means any county, consolidated local government, urban-county 25
government, unified local government, or charter county government; 26
(6) "County judge/executive" means the chief executive officer of any county, 27 UNOFFICIAL COPY 25 RS BR 1212
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consolidated local government, urban-county government, unified local 1
government, or charter county government; 2
(7) "Department" means the Department of Revenue; 3
(8) "Fiscal court" means the legislative body of any county, consolidated local 4
government, urban-county government, unified local government, or charter 5
county government; 6
(9) "Government restriction on use" means a limitation on the use of at least fifty 7
percent (50%) of the individual dwelling units of a multi-unit rental housing in 8
order to receive a federal or state government incentive based on low-income 9
renter restrictions, including the following government incentives: 10
(a) A tax credit under Section 42 of the Internal Revenue Code; 11
(b) Financing derived from exempt facility bonds for qualified residential 12
rental projects under Section 142 of the Internal Revenue Code; 13
(c) A low-interest loan under Section 235 or 236 of the National Housing Act 14
or Section 515 of the Housing Act of 1949; 15
(d) A rent subsidy; 16
(e) A guaranteed loan; 17
(f) A grant; or 18
(g) A guarantee; 19
(10) "Hazardous substances" has the same meaning as in KRS 224.1-400; 20
(11) "Heavy equipment rental agreement" means the short-term rental contract under 21
which qualified heavy equipment is rented without an operator for a period: 22
(a) Not to exceed three hundred sixty-five (365) days; or 23
(b) That is open-ended under the terms of the contract with no specified end 24
date; 25
(12) "Heavy equipment rental company" means an entity that is primarily engaged in 26
a line of business described in Code 532412 or 532310 of the North American 27 UNOFFICIAL COPY 25 RS BR 1212
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Industry Classification System Manual in effect on January 1, 2019; 1
(13) "Homestead" means real property maintained as the permanent residence of the 2
owner with all land and improvements adjoining and contiguous thereto 3
including but not limited to lawns, drives, flower or vegetable gardens, 4
outbuildings, and all other land connected thereto; 5
(14) "Horticultural land" means any tract of land, including all income-producing 6
improvements, of at least five (5) contiguous acres in area commercially used for 7
the cultivation of a garden, orchard, or the raising of fruits or nuts, vegetables, 8
flowers, or ornamental plants; 9
(15) "Intangible personal property" means stocks, mutual funds, money market 10
funds, bonds, loans, notes, mortgages, accounts receivable, land contracts, cash, 11
credits, patents, trademarks, copyrights, tobacco base, allotments, annuities, 12
deferred compensation, retirement plans, and any other type of personal property 13
that is not tangible personal property; 14
(16) "Livestock" means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, 15
and any other animals of the bovine, ovine, porcine, caprine, equine, or camelid 16
species; 17
(17) "Low income" means earning at or below eighty percent (80%) of the area 18
median income as defined by the United States Department of Housing and 19
Urban Development for the location of the multi-unit rental housing; 20
(18) "Manufactured home" means a structure manufactured after June 15, 1976, in 21
accordance with the National Manufactured Housing Construction and Safety 22
Standards Act, transportable in one (1) or more sections, which when erected on 23
site measures eight (8) body feet or more in width and thirty-two (32) body feet or 24
more in length, and which is built on a permanent chassis and designed to be 25
used as a dwelling, with or without a permanent foundation, when connected to 26
the required utilities, and includes the plumbing, heating, air-conditioning, and 27 UNOFFICIAL COPY 25 RS BR 1212
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electrical systems contained therein. It may be used as a place of residence, 1
business, profession, or trade by the owner, lessee, or their assignees and may 2
consist of one (1) or more units that can be attached or joined together to 3
comprise an integral unit or condominium structure; 4
(19) "Mobile home" means a structure manufactured on or before June 15, 1976, 5
that was not required to be constructed in accordance with the National 6
Manufactured Housing Construction and Safety Standards Act, transportable in 7
one (1) or more sections, which when erected on site measures eight (8) body feet 8
or more in width and thirty-two (32) body feet or more in length, and which is 9
built on a permanent chassis and designed to be used as a dwelling, with or 10
without a permanent foundation, when connected to the required utilities, and 11
includes the plumbing, heating, air-conditioning, and electrical systems 12
contained therein. It may be used as a place of residence, business, profession, or 13
trade by the owner, lessee, or their assigns and may consist of one (1) or more 14
units that can be attached or joined together to comprise an integral unit or 15
condominium structure; 16
(20) "Modular home" means a structure which is certified by its manufacturer as 17
being constructed in accordance with all applicable provisions of the Kentucky 18
Building Code and standards adopted by the local authority which has 19
jurisdiction, transportable in one (1) or more sections, and designed to be used as 20
a dwelling on a permanent foundation when connected to the required utilities, 21
and includes the plumbing, heating, air-conditioning, and electrical systems 22
contained therein; 23
(21) "Multi-unit rental housing" means residential property or project consisting of 24
four (4) or more individual dwelling units and does not include: 25
(a) Assisted living facilities; or 26
(b) Duplexes or single-family units unless they are included as part of a larger 27 UNOFFICIAL COPY 25 RS BR 1212
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property that is subject to government restriction on use; 1
(22) "Net assessment growth" means the difference between: 2
(a) The total valuation of property subject to taxation by the county, city, school 3
district, or special district in the preceding year, less the total valuation 4
exempted from taxation by the homestead exemption provision of the 5
Constitution of Kentucky in the current year over that exempted in the 6
preceding year; and 7
(b) The total valuation of property subject to taxation by the county, city, school 8
district, or special district for the current year; 9
(23) "New property" means the net difference in taxable value between real property 10
additions and real property deletions to the property tax roll for the current year; 11
(24) "Personal property" means every species and character of property, tangible and 12
intangible, other than real property; 13
(25) "Prefabricated home" means a manufactured home, a mobile home, or a 14
modular home; 15
(26) "Pollutant or contaminant" has the same meaning as in KRS 224.1-400; 16
(27) "Qualified heavy equipment" means machinery and equipment, including 17
ancillary equipment and any attachments used in conjunction with the machinery 18
and equipment, that is: 19
(a) Primarily used and designed for construction, mining, forestry, or industrial 20
purposes, including but not limited to cranes, earthmoving equipment, well-21
drilling machinery and equipment, lifts, material handling equipment, 22
pumps, generators, and pollution-reducing equipment; and 23
(b) Held in a heavy equipment rental company's inventory for: 24
1. Rental under a heavy equipment rental agreement; or 25
2. Sale in the regular course of business; 26
(28) "Qualifying voluntary environmental remediation property" means real property 27 UNOFFICIAL COPY 25 RS BR 1212
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subject to the provisions of KRS 224.1-400 and 224.1-405, or 224.60-135 where 1
the Energy and Environment Cabinet has made a determination that: 2
(a) All releases of hazardous substances, pollutants, contaminants, petroleum, 3
or petroleum products at the property occurred prior to the property owner's 4
acquisition of the property; 5
(b) The property owner has made all appropriate inquiry into previous 6
ownership and uses of the property in accordance with generally accepted 7
practices prior to the acquisition of the property; 8
(c) The property owner or a responsible party has provided all legally required 9
notices with respect to hazardous substances, pollutants, contaminants, 10
petroleum, or petroleum products found at the property; 11
(d) The property owner is in compliance with all land use restrictions and does 12
not impede the effectiveness or integrity of any institutional control; 13
(e) The property owner complied with any information request or 14
administrative subpoena under KRS Chapter 224; and 15
(f) The property owner is not affiliated with any person who is potentially liable 16
for the release of hazardous substances, pollutants, contaminants, 17
petroleum, or petroleum products on the property pursuant to KRS 224.1-18
400, 224.1-405, or 224.60-135, through: 19
1. Direct or indirect familial relationship; 20
2. Any contractual, corporate, or financial relationship, excluding 21
relationships created by instruments conveying or financing title or by 22
contracts for sale of goods or services; or 23
3. Reorganization of a business entity that was potentially liable; 24
(29) "Real property": 25
(a) Means all lands within this state and improvements thereon; and 26
(b) For property assessed on January 1, 2024, and on January 1, 2025, 27 UNOFFICIAL COPY 25 RS BR 1212
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includes but is not limited to mains, pipes, pipelines, and conduits that are: 1
1. Authorized to be installed in, upon, or under any public or private 2
street or place; and 3
2. Used or to be used for or in connection with the collection, 4
transmission, distribution, conducting, sale, or furnishing of heat, 5
steam, water, sewage, natural or manufactured gas, or electricity to or 6
for the public; 7
(30) "Real property additions" means: 8
(a) Property annexed or incorporated by a municipal corporation, or any other 9
taxing jurisdiction; however, this definition shall not apply to property 10
acquired through the merger or consolidation of school districts, or the 11
transfer of property from one (1) school district to another; 12
(b) Property, the ownership of which has been transferred from a tax-exempt 13
entity to a nontax-exempt entity; 14
(c) The value of improvements to existing nonresidential property; 15
(d) The value of new residential improvements to property; 16
(e) The value of improvements to existing residential property when the 17
improvement increases the assessed value of the property by fifty percent 18
(50%) or more; 19
(f) Property created by the subdivision of unimproved property, provided, that 20
when the property is reclassified from farm to subdivision by the property 21
valuation administrator, the value of the property as a farm shall be a 22
deletion from that category; 23
(g) Property exempt from taxation, as an inducement for industrial or business 24
use, at the expiration of its tax exempt status; 25
(h) Property, the tax rate of which will change, according to the provisions of 26
KRS 82.085, to reflect additional urban services to be provided by the taxing 27 UNOFFICIAL COPY 25 RS BR 1212
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jurisdiction, provided, however, that the property shall be considered real 1
property additions only in proportion to the additional urban services to be 2
provided to the property over the urban services previously provided; and 3
(i) The value of improvements to real property previously under assessment 4
moratorium; 5
(31) "Real property deletions" means the value of real property removed from, or 6
reduced over the preceding year on, the property tax roll for the current year; 7
(32) "Recreational vehicle" means a vehicular type unit primarily designed as 8
temporary living quarters for recreational, camping, or travel use, which either 9
has its own motive power or is mounted on or drawn by another vehicle. The 10
basic entities are camping trailer, motor home, travel trailer, and truck camper. 11
As used in this subsection: 12
(a) "Camping trailer" means a vehicular portable unit mounted on wheels and 13
constructed with collapsible partial side walls which fold for towing by 14
another vehicle and unfold at the camp site to provide temporary living 15
quarters for recreational, camping, or travel use; 16
(b) "Motor home" means a vehicular unit designed to provide temporary living 17
quarters for recreational, camping, or travel use built on or permanently 18
attached to a self-propelled motor vehicle chassis or on a chassis cab or van 19
which is an integral part of the completed vehicle; 20
(c) "Travel trailer" means a vehicular unit, mounted on wheels, designed to 21
provide temporary living quarters for recreational, camping, or travel use, 22
and of a size or weight that does not require special highway movement 23
permits when drawn by a motorized vehicle, and with a living area of less 24
than two hundred twenty (220) square feet, excluding built-in equipment 25
such as wardrobes, closets, cabinets, kitchen units or fixtures, and bath and 26
toilet rooms; and 27 UNOFFICIAL COPY 25 RS BR 1212
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(d) "Truck camper" means a portable unit constructed to provide temporary 1
living quarters for recreational, travel, or camping use, consisting of a roof, 2
floor, and sides, designed to be loaded onto and unloaded from the bed of a 3
pick-up truck; 4
(33) "Release" has the same meaning as in either or both KRS 224.1-400 and 224.60-5
115; 6
(34) "Resident" means any person who has taken up a place of abode within this state 7
with the intention of continuing to abide in this state; any person who has had his 8
or her actual or habitual place of abode in this state for the larger portion of the 9
twelve (12) months next preceding the date as of which an assessment is due to be 10
made shall be deemed to have intended to become a resident of this state; 11
(35) "Residential unit" means all or that part of real property occupied as the 12
permanent residence of the owner; 13
(36) "Special benefits" means those benefits that are provided by public works not 14
financed through the general tax levy but through special assessments against the 15
benefited property; 16
(37) "Special purpose governmental entity" has the same meaning as in KRS 17
65A.010, and as used in this chapter includes only those special purpose 18
governmental entities with the authority to levy ad valorem taxes and that are not 19
specifically exempt from the provisions of this chapter by another provision of the 20
Kentucky Revised Statutes; 21
(38) "Taxing district" means any entity with the authority to levy a local ad valorem 22
tax, including special purpose governmental entities; 23
(39) "Taxpayer" means any person made liable by law to file a return or pay a tax; 24
and 25
(40) "Veteran service organization" means an organization wholly dedicated to 26
advocating on behalf of military veterans and providing charitable programs in 27 UNOFFICIAL COPY 25 RS BR 1212
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honor and on behalf of military veterans. 1
Section 2. KRS 132.017 is amended to read as follows: 2
(1) As used in this section: 3
(a) "Local governmental entity" includes a county fiscal court and legislative 4
body of a city, urban-county government, consolidated local government, 5
charter county government, unified local government, or other taxing district; 6
and 7
(b) "Next regular election" means the regular election that occurs immediately 8
after all statutory requirements for levying a property tax rate have been met, 9
regardless of whether the election occurs in the same or a subsequent calendar 10
year as the levy of the property tax rate. 11
(2) (a) 1. Except as provided in subparagraph 2. of this paragraph, the portion of a 12
tax rate levied by an ordinance, order, resolution, or motion of a local 13
governmental entity or district board of education subject to recall as 14
provided for in KRS 68.245, 132.023, 132.027, and 160.470, shall go 15
into effect forty-five (45) days after its passage. 16
2. When a tax rate is levied by a district board of education or other taxing 17
district that is primarily located in a county containing an urban-county 18
government or a consolidated local government, the portion of a tax rate 19
levied by an ordinance, order, resolution, or motion of a district board of 20
education or other taxing district subject to recall as provided for in KRS 21
68.245, 132.023, 132.027, and 160.470, shall go into effect fifty (50) 22
days after its passage. 23
(b) During the same forty-five (45) day or fifty (50) day time period provided by 24
paragraph (a) of this subsection, any three (3) qualified voters, who reside in 25
the area where the tax levy will be imposed, may commence petition 26
proceedings to protest the passage of the ordinance, order, resolution, or 27 UNOFFICIAL COPY 25 RS BR 1212
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motion by filing an affidavit with the county clerk. The affidavit shall state: 1
1. The three (3) qualified voters constitute the members of the petition 2
committee; 3
2. The petition committee will be responsible for circulating the petition; 4
3. The petition committee will file the petition in the proper form within 5
the same forty-five (45) day or fifty (50) day time period provided by 6
paragraph (a) of this subsection; 7
4. The names and addresses of the petition committee members; 8
5. The address to which all notices to the committee are to be sent; and 9
6. For petition committees filing petitions in response to a tax rate levied 10
by a district board of education or other taxing district that is primarily 11
located in a county containing an urban-county government or a 12
consolidated local government, whether or not the petition committee is 13
willing to incur all of the expenses associated with electronic petition 14
signatures. If the petition committee is not willing to incur all of the 15
expenses, then electronic petition signatures shall not be allowed for the 16
petition. 17
(c) Upon receipt of the affidavit, the county clerk shall immediately: 18
1. Notify the petition committee of all statutory requirements for the filing 19
of a valid petition under this section; 20
2. Notify the petition committee that the clerk will publish a notice 21
identifying the tax levy being challenged and providing the names and 22
addresses of the petition committee in a newspaper of general 23
circulation within the county, if: 24
a. There is a newspaper within the county in which to publish the 25
notice; and 26
b. The petition committee remits an amount equal to the cost of 27 UNOFFICIAL COPY 25 RS BR 1212
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publishing the notice determined in accordance with the provisions 1
of KRS 424.160 at the time of the filing of the affidavit. 2
If the petition committee elects to have the notice published, the clerk 3
shall publish the notice within five (5) days of receipt of the affidavit; 4
and 5
3. Deliver a copy of the affidavit to the appropriate local governmental 6
entity or district board of education. 7
(d) The petition shall meet the following requirements: 8
1. All papers of the petition shall be substantially uniform in size and style 9
and shall be assembled in one (1) instrument for filing; 10
2. Each sheet of the petition may contain the names of voters from more 11
than one (1) voting precinct; 12
3. Each nonelectronic petition signature shall be executed in ink or 13
indelible pencil; 14
4. Each electronic petition signature shall comply with the requirements of 15
the Uniform Electronic Transactions Act, KRS 369.101 to 369.120; 16
5. Each petition signature shall be followed by the printed name, street 17
address, birth month, and birth year of the person signing; and 18
6. a. i. Except for petitions filed in response to a tax rate levied by a 19
district board of education, the petition shall be signed by a 20
number of registered and qualified voters residing in the 21
affected jurisdiction equal to at least ten percent (10%) of the 22
total number of votes cast in the last preceding presidential 23
election. 24
ii. For petitions filed in response to a tax rate levied by a district 25
board of education, the petition shall be signed by at least 26
five thousand (5,000) registered and qualified voters residing 27 UNOFFICIAL COPY 25 RS BR 1212
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in the affected jurisdiction or signed by a number of 1
registered and qualified voters residing in the affected 2
jurisdiction equal to at least ten percent (10%) of the total 3
number of votes cast in the last preceding presidential 4
election, whichever is less. 5
b. Electronic petition signatures shall be included in determining 6
whether the required number of petition signatures has been 7
obtained when: 8
i. The expenses associated with the electronic petition 9
signatures have been incurred in accordance with paragraph 10
(b)6. of this subsection; 11
ii. The electronic petition signatures comply with the 12
requirements of this subsection; and 13
iii. The petition was filed in response to a tax rate levied by a 14
district board of education or other taxing district that is 15
primarily located in a county containing an urban-county 16
government or a consolidated local government. 17
c. The inclusion of an invalid petition signature on a page shall not 18
invalidate the entire page of the petition, but shall instead result in 19
the invalid petition signature being stricken and not counted. 20
(e) Upon the filing of the petition with the county clerk, the ordinance, order, 21
resolution, or motion shall be suspended from going into effect until after the 22
election referred to in subsection (3) of this section is held, or until the 23
petition is finally determined to be insufficient and no further action may be 24
taken pursuant to paragraph (i) of this subsection. 25
(f) The county clerk shall immediately notify the presiding officer of the 26
appropriate local governmental entity or district board of education that the 27 UNOFFICIAL COPY 25 RS BR 1212
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petition has been received and shall, within thirty (30) days of the receipt of 1
the petition, make a determination of whether the petition contains enough 2
signatures of qualified voters to place the ordinance, order, resolution, or 3
motion before the voters. 4
(g) If the county clerk finds the petition to be sufficient, the clerk shall certify to 5
the petition committee and the local governmental entity or district board of 6
education within the thirty (30) day period provided for in paragraph (f) of 7
this subsection that the petition is properly presented and in compliance with 8
the provisions of this section, and that the ordinance, order, resolution, or 9
motion levying the tax will be placed before the voters for approval. 10
(h) If the county clerk finds the petition to be insufficient, the clerk shall, within 11
the thirty (30) day period provided for in paragraph (f) of this subsection, 12
notify, in writing, the petition committee and the local governmental entity or 13
district board of education of the specific deficiencies found. Notification 14
shall be sent by certified mail and shall be published at least one (1) time in a 15
newspaper of general circulation within the county containing the local 16
governmental entity or district board of education levying the tax. If there is 17
not a newspaper within the county in which to publish the notification, then 18
the notification shall be posted at the courthouse door. 19
(i) A final determination of the sufficiency of a petition shall be subject to final 20
review by the Circuit Court of the county in which the local governmental 21
entity or district board of education is located, and shall be limited to the 22
validity of the county clerk's determination. Any petition challenging the 23
county clerk's final determination shall be filed within ten (10) days of the 24
issuance of the clerk's final determination. 25
(j) The local governmental entity or district board of education may cause the 26
cancellation of the election by reconsidering and amending the ordinance, 27 UNOFFICIAL COPY 25 RS BR 1212
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order, resolution, or motion to levy a tax rate which will produce no more 1
revenue from real property, exclusive of revenue from new property[ as 2
defined in KRS 132.010], than four percent (4%) over the amount of revenue 3
produced by the compensating tax rate[ defined in KRS 132.010] from real 4
property. The action by the local governmental entity or district board of 5
education shall be valid only if taken within fifteen (15) days following the 6
date the clerk finds the petition to be sufficient. 7
(3) (a) If an election is necessary under the provisions of subsection (2) of this 8
section: 9
1. The local governmental entity shall cause to be submitted to the voters 10
of the district at the next regular election, the question as to whether the 11
property tax rate shall be levied; or 12
2. The district board of education shall cause to be submitted to the voters 13
of the district in a called common school election not less than thirty-14
five (35) days nor more than forty-five (45) days from the date the 15
signatures on the petition are validated by the county clerk, or at the next 16
regular election, at the option of the district board of education, the 17
question as to whether the property tax rate shall be levied. The cost of a 18
called common school election shall be borne by the school district 19
holding the election. Any called common school election shall comply 20
with the provisions of KRS 118.025. 21
(b) If an election under paragraph (a) of this subsection is held in conjunction 22
with a regular election, the question as to whether the property tax rate shall 23
be levied shall be submitted to the county clerk no later than the second 24
Tuesday in August preceding the regular election. 25
(c) In an election held under paragraph (a) of this subsection, the question shall 26
be framed to ask whether the voter is for the levy of the property tax rate. If a 27 UNOFFICIAL COPY 25 RS BR 1212
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majority of the votes cast upon the question oppose its passage, the ordinance, 1
order, resolution, or motion shall not go into effect. If a majority of the votes 2
cast upon the question favor its passage, the ordinance, order, resolution, or 3
motion shall become effective. 4
(d) If the ordinance, order, resolution, or motion fails to pass pursuant to an 5
election held under paragraph (a) of this subsection, the property tax rate 6
which will produce four percent (4%) more revenues from real property, 7
exclusive of revenue from new property[ as defined in KRS 132.010], than the 8
amount of revenue produced by the compensating tax rate[ defined in KRS 9
132.010], shall be levied without further approval by the local governmental 10
entity or district board of education. 11
(e) Local, state, and federal tax dollars shall not be used to advocate, in partial 12
terms, for or against any public question that appears on the ballot in this 13
subsection. For purposes of this section, "local" means and includes any city, 14
county, urban-county government, consolidated local government, unified 15
local government, charter county, or special district. 16
(4) Notwithstanding any statutory provision to the contrary, if a local governmental 17
entity or district board of education has not established a final tax rate as of 18
September 15, due to the recall provisions of this section, KRS 68.245, 132.027, or 19
160.470, regular tax bills shall be prepared as required in KRS 133.220 for all 20
districts having a tax rate established by that date; and a second set of bills shall be 21
prepared and collected in the regular manner, according to the provisions of KRS 22
Chapter 132, upon establishment of final tax rates by the remaining districts. 23
(5) If a second billing is necessary, the collection period shall be extended to conform 24
with the second billing date. 25
(6) All costs associated with the second billing shall be paid by the taxing district or 26
districts requiring the second billing. 27 UNOFFICIAL COPY 25 RS BR 1212
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Section 3. KRS 132.020 is amended to read as follows: 1
(1) The owner or person assessed shall pay an annual ad valorem tax for state purposes 2
at the rate of: 3
(a) Thirty-one and one-half cents ($0.315) upon each one hundred dollars ($100) 4
of value of all real property directed to be assessed for taxation; 5
(b) Twenty-five cents ($0.25) upon each one hundred dollars ($100) of value of 6
all motor vehicles qualifying for permanent registration as historic motor 7
vehicles under KRS 186.043; 8
(c) Fifteen cents ($0.15) upon each one hundred dollars ($100) of value of all: 9
1. Machinery actually engaged in manufacturing; 10
2. Commercial radio and television equipment used to receive, capture, 11
produce, edit, enhance, modify, process, store, convey, or transmit audio 12
or video content or electronic signals which are broadcast over the air to 13
an antenna, including radio and television towers used to transmit or 14
facilitate the transmission of the signal broadcast and equipment used to 15
gather or transmit weather information, but excluding telephone and 16
cellular communication towers; and 17
3. Tangible personal property which has been certified as a pollution 18
control facility as defined in KRS 224.1-300. In the case of tangible 19
personal property certified as a pollution control facility which is 20
incorporated into a landfill facility, the tangible personal property shall 21
be presumed to remain tangible personal property for purposes of this 22
paragraph if the tangible personal property is being used for its intended 23
purposes; 24
(d) Ten cents ($0.10) upon each one hundred dollars ($100) of value on the 25
operating property of railroads or railway companies that operate solely 26
within the Commonwealth; 27 UNOFFICIAL COPY 25 RS BR 1212
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(e) Five cents ($0.05) upon each one hundred dollars ($100) of value of goods 1
held for sale in the regular course of business, which includes: 2
1. Machinery and equipment held in a retailer's inventory for sale or lease 3
originating under a floor plan financing arrangement; 4
2. Motor vehicles: 5
a. Held for sale in the inventory of a licensed motor vehicle dealer, 6
including licensed motor vehicle auction dealers, which are not 7
currently titled and registered in Kentucky and are held on an 8
assignment pursuant to KRS 186A.230; or 9
b. That are in the possession of a licensed motor vehicle dealer, 10
including licensed motor vehicle auction dealers, for sale, although 11
ownership has not been transferred to the dealer; 12
3. Raw materials, which includes distilled spirits and distilled spirits 13
inventory; 14
4. In-process materials, which includes distilled spirits and distilled spirits 15
inventory, held for incorporation in finished goods held for sale in the 16
regular course of business; and 17
5. Qualified heavy equipment; 18
(f) One and one-half cents ($0.015) upon each one hundred dollars ($100) of 19
value of all: 20
1. Privately owned leasehold interests in industrial buildings, as defined 21
under KRS 103.200, owned and financed by a tax-exempt governmental 22
unit, or tax-exempt statutory authority under the provisions of KRS 23
Chapter 103, upon the prior approval of the Kentucky Economic 24
Development Finance Authority, except that the rate shall not apply to 25
the proportion of value of the leasehold interest created through any 26
private financing; 27 UNOFFICIAL COPY 25 RS BR 1212
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2. Qualifying voluntary environmental remediation property, provided the 1
property owner has corrected the effect of all known releases of 2
hazardous substances, pollutants, contaminants, petroleum, or petroleum 3
products located on the property consistent with a corrective action plan 4
approved by the Energy and Environment Cabinet pursuant to KRS 5
224.1-400, 224.1-405, or 224.60-135, and provided the cleanup was not 6
financed through a public grant or the petroleum storage tank 7
environmental assurance fund. This rate shall apply for a period of three 8
(3) years following the Energy and Environment Cabinet's issuance of a 9
No Further Action Letter or its equivalent, after which the regular tax 10
rate shall apply; 11
3. Tobacco directed to be assessed for taxation; 12
4. Unmanufactured agricultural products; 13
5. Aircraft not used in the business of transporting persons or property for 14
compensation or hire; 15
6. Federally documented vessels not used in the business of transporting 16
persons or property for compensation or hire, or for other commercial 17
purposes; and 18
7. Privately owned leasehold interests in residential property described in 19
KRS 132.195(2)(g); and 20
(g) Forty-five cents ($0.45) upon each one hundred dollars ($100) of value of all 21
other property directed to be assessed for taxation shall be paid by the owner 22
or person assessed, except as provided in KRS 132.030, 132.200, 136.300, 23
and 136.320, providing a different tax rate for particular property. 24
(2) Notwithstanding subsection (1)(a) of this section, the state tax rate on real property 25
shall be reduced to compensate for any increase in the aggregate assessed value of 26
real property to the extent that the increase exceeds the preceding year's assessment 27 UNOFFICIAL COPY 25 RS BR 1212
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by more than four percent (4%), excluding: 1
(a) The assessment of new property[ as defined in KRS 132.010(8)]; 2
(b) The assessment from property which is subject to tax increment financing 3
pursuant to KRS Chapter 65; and 4
(c) The assessment from leasehold property which is owned and financed by a 5
tax-exempt governmental unit, or tax-exempt statutory authority under the 6
provisions of KRS Chapter 103 and entitled to the reduced rate of one and 7
one-half cents ($0.015) pursuant to subsection (1)(f) of this section. In any 8
year in which the aggregate assessed value of real property is less than the 9
preceding year, the state rate shall be increased to the extent necessary to 10
produce the approximate amount of revenue that was produced in the 11
preceding year from real property. 12
(3) By July 1 each year, the department shall compute the state tax rate applicable to 13
real property for the current year in accordance with the provisions of subsection 14
(2) of this section and certify the rate to the county clerks for their use in preparing 15
the tax bills. If the assessments for all counties have not been certified by July 1, the 16
department shall, when either real property assessments of at least seventy-five 17
percent (75%) of the total number of counties of the Commonwealth have been 18
determined to be acceptable by the department, or when the number of counties 19
having at least seventy-five percent (75%) of the total real property assessment for 20
the previous year have been determined to be acceptable by the department, make 21
an estimate of the real property assessments of the uncertified counties and compute 22
the state tax rate. 23
(4) If the tax rate set by the department as provided in subsection (2) of this section 24
produces more than a four percent (4%) increase in real property tax revenues, 25
excluding: 26
(a) The revenue resulting from new property[ as defined in KRS 132.010(8)]; 27 UNOFFICIAL COPY 25 RS BR 1212
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(b) The revenue from property which is subject to tax increment financing 1
pursuant to KRS Chapter 65; and 2
(c) The revenue from leasehold property which is owned and financed by a tax-3
exempt governmental unit, or tax-exempt statutory authority under the 4
provisions of KRS Chapter 103 and entitled to the reduced rate of one and 5
one-half cents ($0.015) pursuant to subsection (1) of this section; 6
the rate shall be adjusted in the succeeding year so that the cumulative total of each 7
year's property tax revenue increase shall not exceed four percent (4%) per year. 8
(5) The provisions of subsection (2) of this section notwithstanding, the assessed value 9
of unmined coal certified by the department after July 1, 1994, shall not be included 10
with the assessed value of other real property in determining the state real property 11
tax rate. All omitted unmined coal assessments made after July 1, 1994, shall also 12
be excluded from the provisions of subsection (2) of this section. The calculated 13
rate shall, however, be applied to unmined coal property, and the state revenue shall 14
be devoted to the program described in KRS 146.550 to 146.570, except that four 15
hundred thousand dollars ($400,000) of the state revenue shall be paid annually to 16
the State Treasury and credited to the Office of Energy Policy for the purpose of 17
public education of coal-related issues. 18
Section 4. KRS 132.0225 is amended to read as follows: 19
(1) (a) A taxing district that does not elect to attempt to set a rate that will produce 20
more than four percent (4%) in additional revenue, exclusive of revenue from 21
new property[ as defined in KRS 132.010], over the amount of revenue 22
produced by the compensating tax rate[ as defined in KRS 132.010] shall 23
establish a final tax rate within forty-five (45) days of the department's 24
certification of the county's property tax roll. 25
(b) For boards of education, the forty-five (45) days shall begin from the date of 26
the department's certification to the chief state school officer as required by 27 UNOFFICIAL COPY 25 RS BR 1212
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KRS 160.470(4). 1
(c) A city that does not elect to have city ad valorem taxes collected by the sheriff 2
as provided in KRS 91A.070(1) shall be exempt from the forty-five (45) day 3
deadline. 4
(d) Any nonexempt taxing district that fails to meet the forty-five (45) day 5
deadline shall be required to use the compensating tax rate for that year's 6
property tax bills. 7
(2) A taxing district that elects to attempt to set a rate that will produce more than four 8
percent (4%) in additional revenue, exclusive of revenue from new property[ as 9
defined in KRS 132.010], over the amount of revenue produced by the 10
compensating tax rate[ as defined in KRS 132.010] shall follow the provisions of 11
KRS 132.017. 12
Section 5. KRS 132.027 is amended to read as follows: 13
(1) No city or urban-county government shall levy a tax rate which exceeds the 14
compensating tax rate[ defined in KRS 132.010] until the city or urban-county 15
government has complied with the provisions of subsection (2) of this section. 16
(2) (a) Cities or urban-county governments proposing to levy a tax rate which 17
exceeds the compensating tax rate[ defined in KRS 132.010] shall hold a 18
public hearing to hear comments from the public regarding the proposed tax 19
rate. The hearing shall be held in the principal office of the taxing district, or, 20
in the event the taxing district has no office, or the office is not suitable for a 21
hearing, the hearing shall be held in a suitable facility as near as possible to 22
the geographic center of the district. 23
(b) The city or urban-county government shall advertise the hearing by causing to 24
be published at least twice in two (2) consecutive weeks, in the newspaper of 25
largest circulation in the county, a display type advertisement of not less than 26
twelve (12) column inches, the following: 27 UNOFFICIAL COPY 25 RS BR 1212
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1. The tax rate levied in the preceding year, and the revenue produced by 1
that rate; 2
2. The tax rate proposed for the current year and the revenue expected to 3
be produced by that rate; 4
3. The compensating tax rate and the revenue expected from it; 5
4. The revenue expected from new property and personal property; 6
5. The general areas to which revenue in excess of the revenue produced in 7
the preceding year is to be allocated; 8
6. A time and place for the public hearing which shall be held not less than 9
seven (7) days nor more than ten (10) days after the day the second 10
advertisement is published; 11
7. The purpose of the hearing; and 12
8. A statement to the effect that the General Assembly has required 13
publication of the advertisement and the information contained therein. 14
(c) In lieu of the two (2) published notices, a single notice containing the required 15
information may be sent by first-class mail to each person owning real 16
property in the taxing district, addressed to the property owner at his residence 17
or principal place of business as shown on the current year property tax roll. 18
(d) The hearing shall be open to the public. All persons desiring to be heard shall 19
be given an opportunity to present oral testimony. The taxing district may set 20
reasonable time limits for testimony. 21
(3) (a) That portion of a tax rate levied by an action of a city or urban-county 22
government which will produce revenue from real property, exclusive of 23
revenue from new property, more than four percent (4%) over the amount of 24
revenue produced by the compensating tax rate[ defined in KRS 132.010] 25
shall be subject to a recall vote or reconsideration by the taxing district, as 26
provided for in KRS 132.017, and shall be advertised as provided for in 27 UNOFFICIAL COPY 25 RS BR 1212
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paragraph (b) of this subsection. 1
(b) The city or urban-county government shall, within seven (7) days following 2
adoption of an ordinance to levy a tax rate which will produce revenue from 3
real property, exclusive of revenue from new property[ as defined in KRS 4
132.010], more than four percent (4%) over the amount of revenue produced 5
by the compensating tax rate[ defined in KRS 132.010], cause to be 6
published, in the newspaper of largest circulation in the county, a display type 7
advertisement of not less than twelve (12) column inches the following: 8
1. The fact that the city or urban-county government has adopted a rate; 9
2. The fact that the part of the rate which will produce revenue from real 10
property, exclusive of new property[ as defined in KRS 132.010], in 11
excess of four percent (4%) over the amount of revenue produced by the 12
compensating tax rate[ defined in KRS 132.010] is subject to recall, and 13
3. The name, address, and telephone number of the county clerk of the 14
county or urban-county in which the taxing district is located, with a 15
notation to the effect that that official can provide the necessary 16
information about the petition required to initiate recall of the tax rate. 17
Section 6. KRS 132.825 is amended to read as follows: 18
(1) It shall be the duty of all persons providing communications services or 19
multichannel video programming services defined under KRS 136.602 owning or 20
having any interest in tangible personal property in this state to list or have listed 21
the property with the department between January 1 and May 15 in each year 22
reporting the full details, a correct description of the property and its value. 23
(2) The department shall have sole power to value and assess all tangible personal 24
property of multichannel video programming service providers and 25
communications service providers. Such property shall be valued and assessed in 26
accordance with procedures established for locally assessed tangible property. The 27 UNOFFICIAL COPY 25 RS BR 1212
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department shall develop forms for reporting. 1
(3) Providers of multichannel video programming services or communications services 2
shall not be required to list, and the department shall not assess intangible property[ 3
as defined in KRS 132.010]. 4
(4) It is the intent of KRS 136.600 to 136.660 to relieve communications service 5
providers and multichannel video programming service providers from the tax 6
liability imposed under KRS 136.120 by: 7
(a) Requiring real, tangible, and intangible property owned by communications 8
service providers and multichannel video programming service providers to 9
be assessed and taxed in the same manner as real, tangible, and intangible 10
property of all other taxpayers under KRS Chapter 132 excluding KRS 11
132.030; and 12
(b) Replacing revenues received from communications service providers and 13
multichannel video programming service providers under KRS 136.120, 14
attributable to the franchise portion of operating property as defined in KRS 15
136.115, with the levy imposed under KRS 136.616. 16
To the extent that any tangible or intangible property was considered a part of the 17
franchise portion of operating property under KRS 136.115 and 136.120 for tax 18
periods ending prior to January 1, 2006, for a communications service provider or a 19
multichannel video programming service provider, such property shall be exempt 20
from taxation under KRS Chapter 132 and shall not be listed, valued or assessed 21
under this section for tax periods beginning on or after December 31, 2005. 22
(5) It is also the intent of KRS 136.600 to 136.660 that for communications service 23
providers and multichannel video programming service providers the following 24
items, to the extent these items are intangible property, shall be exempt from 25
taxation under KRS Chapter 132 and shall not be listed, valued, or assessed by the 26
department or local jurisdictions. The items include but shall not be limited to: 27 UNOFFICIAL COPY 25 RS BR 1212
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(a) Franchises; 1
(b) Certificates of public convenience and necessity; 2
(c) Licenses; 3
(d) Authorizations issued by the Federal Communications Commission or any 4
state public service commission; 5
(e) Customer lists; 6
(f) Assembled labor force; 7
(g) Goodwill; 8
(h) Managerial skills; 9
(i) Business enterprise value; 10
(j) Speculative value; and 11
(k) Any other type of personal property that is not tangible personal property. 12
(6) Any person dissatisfied with or aggrieved by the finding or ruling of the department 13
may appeal the finding or ruling in the manners provided in KRS 131.110. 14
(7) All persons in whose name property is assessed shall remain bound for the tax, 15
notwithstanding that they may have sold or parted with it. 16
(8) The department shall allocate the assessed value of property described in subsection 17
(1) of this section among the counties, cities, and taxing districts. The assessed 18
value shall be allocated to the county, city, or taxing district where the property is 19
situated. 20
(9) The department shall certify, unless otherwise specified, to the county clerk of each 21
county in which any of the property assessment listed by the corporation is liable to 22
local taxation, the amount of tangible personal property liable for county, city, or 23
district tax. 24
(10) No appeal shall delay the collection or payment of taxes based upon the assessment 25
in controversy. The taxpayer shall pay all state, county, and district taxes due on the 26
valuation that the taxpayer claims as the true value as stated in the protest filed 27 UNOFFICIAL COPY 25 RS BR 1212
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under KRS 131.110. When the valuation is finally determined upon appeal, the 1
taxpayer shall be billed for any additional tax and interest at the tax interest rate as 2
defined in KRS 131.010(6), from the date the tax would have become due if no 3
appeal had been taken. The provisions of KRS 134.015(6) shall apply to the tax bill. 4
(11) The certification of valuation shall be filed by each county clerk in the clerk's office 5
and shall be certified by the county clerk to the proper collecting officer of the 6
county, city, or taxing district for collection. Any district that has the value certified 7
by the department shall pay an annual fee to the department that represents an 8
allocation of the department's operating and overhead expenses incurred in 9
generating the valuations. This fee shall be determined by the department and shall 10
apply to valuations for tax periods beginning on or after January 1, 2005. 11
Section 7. KRS 140.300 is amended to read as follows: 12
As used in KRS 140.310 to 140.360, these words shall have the following meaning: 13
(1) "Agricultural land" has the same meaning as[means that real estate which is 14
defined] in KRS 132.010[(9)]. 15
(2) "Horticultural land" has the same meaning as[means that real estate which is 16
defined] in KRS 132.010[(10)]. 17
(3) "Agricultural or horticultural value" has the same meaning as[means the value as 18
defined] in KRS 132.010[(11)]. 19
(4) "Qualified real estate" means real property which: 20
(a) Is either horticultural or agricultural land; 21
(b) Has been used for agricultural or horticultural purposes for five (5) years prior 22
to the death of the owner of the real estate or a joint owner thereof; and 23
(c) Fair cash value exceeds fifty percent (50%) of the gross taxable estate of 24
decedent for Kentucky inheritance tax purposes. 25
(5) "Qualified person" means the spouse of a deceased owner of agricultural or 26
horticultural land; the children, adopted children, and stepchildren of that deceased 27 UNOFFICIAL COPY 25 RS BR 1212
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owner; the spouses and issue of that deceased owner's children, adopted children, 1
and stepchildren, and is a person who proposes to devote the real property to 2
agricultural or horticultural purposes for at least five (5) years after the death of the 3
decedent in whose estate the agricultural or horticultural land is subject to 4
assessment. 5
Section 8. KRS 217.015 is amended to read as follows: 6
For the purposes of KRS 217.005 to 217.215: 7
(1) "Advertisement" means all representations, disseminated in any manner or by any 8
means, other than by labeling, for the purpose of inducing, or which are likely to 9
induce, directly or indirectly, the purchase of food, drugs, devices, or cosmetics; 10
(2) "Bread" and "enriched bread" mean only the foods commonly known and described 11
as white bread, white rolls, white buns, enriched white bread, enriched rolls, and 12
enriched white buns, as defined under the federal act. For the purposes of KRS 13
217.136 and 217.137, "bread" or "enriched bread" also means breads that may 14
include vegetables or fruit as an ingredient; 15
(3) "Cabinet" means the Cabinet for Health and Family Services or its designee; 16
(4) "Color" means but is not limited to black, white, and intermediate grays; 17
(5) "Color additive" means a material that: 18
(a) Is a dye, pigment, or other substance made by a process of synthesis or similar 19
artifice, or extracted, isolated, or otherwise derived, with or without 20
intermediate or final change of identity, from a vegetable, animal, mineral, or 21
other source. Nothing in this paragraph shall be construed to apply to any 22
pesticide chemical, soil or plant nutrient, or other agricultural chemical solely 23
because of its effect in aiding, retarding, or otherwise affecting, directly or 24
indirectly, the growth or other natural physiological process of produce of the 25
soil and thereby affecting its color, whether before or after harvest; or 26
(b) When added or applied to a food, drug, or cosmetic, or to the human body or 27 UNOFFICIAL COPY 25 RS BR 1212
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any part thereof, is capable, alone or through reaction with another substance, 1
of imparting color. "Color additive" does not include any material that has 2
been or may in the future be exempted under the federal act; 3
(6) "Contaminated with filth" means any food, drug, device, or cosmetic that is not 4
securely protected from dust, dirt, and as far as may be necessary by all reasonable 5
means, from all foreign or injurious contaminants; 6
(7) "Cosmetic" means: 7
(a) Articles intended to be rubbed, poured, sprinkled, sprayed on, introduced into, 8
or otherwise applied to the human body or any part thereof for cleansing, 9
beautifying, promoting attractiveness, or altering the appearance; and 10
(b) Articles intended for use as a component of those articles, except that the term 11
shall not include soap; 12
(8) "Device," except when used in subsection (48) of this section, KRS 217.035(6), 13
KRS 217.065(3), KRS 217.095(3), and KRS 217.175(10), means instruments, 14
apparatus, and contrivances, including their components, parts, and accessories, 15
intended: 16
(a) For use in the diagnosis, cure, mitigation, treatment, or prevention of disease 17
in man or other animals; or 18
(b) To affect the structure or any function of the body of man or other animals; 19
(9) "Dispense" means to deliver a drug or device to an ultimate user or research subject 20
by or pursuant to the lawful order of a practitioner, including the packaging, 21
labeling, or compounding necessary to prepare the substance for that delivery; 22
(10) "Dispenser" means a person who lawfully dispenses a drug or device to or for the 23
use of an ultimate user; 24
(11) "Drug" means: 25
(a) Articles recognized in the official United States pharmacopoeia, official 26
homeopathic pharmacopoeia of the United States, or official national 27 UNOFFICIAL COPY 25 RS BR 1212
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formulary, or any supplement to any of them; 1
(b) Articles intended for use in the diagnosis, cure, mitigation, treatment or 2
prevention of disease in man or other animals; 3
(c) Articles, other than food, intended to affect the structure or any function of the 4
body of man or other animals; and 5
(d) Articles intended for use as a component of any article specified in this 6
subsection but does not include devices or their components, parts, or 7
accessories; 8
(12) "Enriched," as applied to flour, means the addition to flour of vitamins and other 9
nutritional ingredients necessary to make it conform to the definition and standard 10
of enriched flour as defined under the federal act; 11
(13) "Environmental Pesticide Control Act of 1972" means the Federal Environmental 12
Pesticide Control Act of 1972, Pub. L. 92-516, and all amendments thereto; 13
(14) "Fair Packaging and Labeling Act" means the Fair Packaging and Labeling Act as it 14
relates to foods and cosmetics, 15 U.S.C. sec.[secs.] 1451 et seq., and all 15
amendments thereto; 16
(15) "Federal act" means the Federal Food, Drug and Cosmetic Act, 21 U.S.C. 17
sec.[secs.] 301 et seq., 52 Stat. sec. 1040 et seq., or amendments thereto; 18
(16) "Filled milk" means any milk, cream, or skimmed milk, whether or not condensed, 19
evaporated, concentrated, frozen, powdered, dried, or desiccated, to which has been 20
added, or which has been blended or compounded with, any fat or oil other than 21
milk fat, except the fat or oil of contained eggs and nuts and the fat or oil of 22
substances used for flavoring purposes only, so that the resulting product is an 23
imitation or semblance of milk, cream, skimmed milk, ice cream mix, ice cream, or 24
frozen desserts, whether or not condensed, evaporated, concentrated, frozen, 25
powdered, dried, or desiccated, whether in bulk or in containers, hermetically 26
sealed or unsealed. This definition does not mean or include any milk or cream 27 UNOFFICIAL COPY 25 RS BR 1212
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from which no part of the milk or butter fat has been extracted, whether or not 1
condensed, evaporated, concentrated, powdered, dried, or desiccated, to which has 2
been added any substance rich in vitamins, nor any distinctive proprietary food 3
compound not readily mistaken for milk or cream or for condensed, evaporated, 4
concentrated, powdered, dried, or desiccated milk or cream, if the compound is 5
prepared and designed for the feeding of infants or young children, sick or infirm 6
persons, and customarily used on the order of a physician, and is packed in 7
individual containers bearing a label in bold type that the contents are to be used for 8
those purposes; nor shall this definition prevent the use, blending, or compounding 9
of chocolate as a flavor with milk, cream, or skimmed milk, desiccated, whether in 10
bulk or in containers, hermetically sealed or unsealed, to or with which has been 11
added, blended or compounded no other fat or oil other than milk or butter fat; 12
(17) "Flour" means only the foods commonly known as flour, white flour, wheat flour, 13
plain flour, bromated flour, self-rising flour, self-rising white flour, self-rising 14
wheat flour, phosphated flour, phosphated white flour, and phosphated wheat flour, 15
defined under the federal act; 16
(18) "Food" means: 17
(a) Articles used for food or drink for man or other animals; 18
(b) Chewing gum; and 19
(c) Articles used for components of any such article; 20
(19) "Food additive" means any substance the intended use of which results or may be 21
reasonably expected to result, directly or indirectly, in its becoming a component or 22
otherwise affecting the characteristics of any food, including any substance 23
intended for use in producing, manufacturing, packing, processing, preparing, 24
treating, packaging, transporting, or holding food; and including any source of 25
radiation intended for any of these uses, if the substance is not generally 26
recognized, among experts qualified by scientific training and experience to 27 UNOFFICIAL COPY 25 RS BR 1212
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evaluate its safety, as having been adequately shown through scientific procedures 1
or, in the case of a substance used in a food prior to January 1, 1958, through either 2
scientific procedures or experience based on common use in food to be safe under 3
the conditions of its intended use; except that the term does not include: 4
(a) A pesticide chemical in or on a raw agricultural commodity; 5
(b) A pesticide chemical to the extent that it is intended for use or is used in the 6
production, storage, or transportation of any raw agricultural commodity; 7
(c) A color additive; or 8
(d) Any substance used in accordance with a sanction or approval granted prior to 9
the enactment of the Food Additives Amendment of 1958, pursuant to the 10
federal act; the Poultry Products Inspection Act, 21 U.S.C. sec.[secs.] 451 et 11
seq.; or the Meat Inspection Act of 1907; and amendments thereto; 12
(20) "Food processing establishment" means any commercial establishment in which 13
food is manufactured, processed, or packaged for human consumption, but does not 14
include retail food establishments, home-based processors, or home-based 15
microprocessors; 16
(21) "Food service establishment" means any fixed or mobile commercial establishment 17
that engages in the preparation and serving of ready-to-eat foods in portions to the 18
consumer, including but not limited to: restaurants; coffee shops; cafeterias; short 19
order cafes; luncheonettes; grills; tea rooms; sandwich shops; soda fountains; 20
taverns; bars; cocktail lounges; nightclubs; roadside stands; industrial feeding 21
establishments; private, public or nonprofit organizations or institutions routinely 22
serving food; catering kitchens; commissaries; charitable food kitchens; or similar 23
places in which food is prepared for sale or service on the premises or elsewhere 24
with or without charge. It does not include food vending machines, establishments 25
serving beverages only in single service or original containers, or retail food stores 26
which only cut, slice, and prepare cold-cut sandwiches for individual consumption; 27 UNOFFICIAL COPY 25 RS BR 1212
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(22) "Food storage warehouse" means any establishment in which food is stored for 1
subsequent distribution; 2
(23) "Immediate container" does not include package liners; 3
(24) "Imminent health hazard" means a significant threat or danger to health that is 4
considered to exist when there is evidence sufficient to show that a product, 5
practice, circumstance, or event creates a situation that requires immediate 6
correction or cessation of operation to prevent illness or injury based on: 7
(a) The number of potential illnesses or injuries; or 8
(b) The nature, severity, and duration of the anticipated illness or injury; 9
(25) "Interference" means threatening or otherwise preventing the performance of lawful 10
inspections or duties by agents of the cabinet during all reasonable times of 11
operation; 12
(26) "Label" means a display of written, printed, or graphic matter upon the immediate 13
container of any article; and a requirement made by or under authority of KRS 14
217.005 to 217.215 that any word, statement, or other information appearing on the 15
label shall not be considered to be complied with unless the word, statement, or 16
other information also appears on the outside container or wrapper, if any there be, 17
of the retail package of the article, or is easily legible through the outside container 18
or wrapper; 19
(27) "Labeling" means all labels and other written, printed, or graphic matter: 20
(a) Upon an article or any of its containers or wrappers; or 21
(b) Accompanying the article; 22
(28) "Legend drug" means a drug defined by the Federal Food, Drug and Cosmetic Act, 23
as amended, and under which definition its label is required to bear the statement 24
"Caution: Federal law prohibits dispensing without prescription."; 25
(29) "Meat Inspection Act" means the Federal Meat Inspection Act, 21 U.S.C. 26
sec.[secs.] 71 et seq., 34 Stat. sec. 1260 et seq., including any amendments thereto; 27 UNOFFICIAL COPY 25 RS BR 1212
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(30) "New drug" means: 1
(a) Any drug the composition of which is such that the drug is not generally 2
recognized among experts qualified by scientific training and experience to 3
evaluate the safety of drugs as safe for use under the conditions prescribed, 4
recommended, or suggested in the labeling thereof; or 5
(b) Any drug the composition of which is such that the drug, as a result of 6
investigations to determine its safety for use under prescribed conditions, has 7
become so recognized, but which has not, otherwise than in the investigations, 8
been used to a material extent or for a material time under the conditions; 9
(31) "Official compendium" means the official United States pharmacopoeia, official 10
homeopathic pharmacopoeia of the United States, official national formulary, or 11
any supplement to any of them; 12
(32) "Person" means an individual, firm, partnership, company, corporation, trustee, 13
association, or any public or private entity; 14
(33) "Pesticide chemical" means any substance that alone in chemical combination, or in 15
formulation with one or more other substances, is an "economic poison" within the 16
meaning of the Federal Insecticide, Fungicide and Rodenticide Act and 17
amendments thereto, and that is used in the production, storage, or transportation of 18
raw agricultural commodities; 19
(34) "Poultry Products Inspection Act" means the Federal Poultry and Poultry Products 20
Inspection Act, 21 U.S.C. sec.[secs.] 451 et seq., Pub. L. 85-172, 71 Stat. sec. 441, 21
and any amendments thereto; 22
(35) "Practitioner" means medical or osteopathic physicians, dentists, chiropodists, and 23
veterinarians who are licensed under the professional licensing laws of Kentucky to 24
prescribe and administer drugs and devices. "Practitioner" includes optometrists 25
when administering or prescribing pharmaceutical agents authorized in KRS 26
320.240(12) to (14), advanced practice registered nurses as authorized in KRS 27 UNOFFICIAL COPY 25 RS BR 1212
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314.011 and 314.042, physician assistants when administering or prescribing 1
pharmaceutical agents as authorized in KRS 311.858, and health care professionals 2
who are residents of and actively practicing in a state other than Kentucky and who 3
are licensed and have prescriptive authority under the professional licensing laws of 4
another state, unless the person's Kentucky license has been revoked, suspended, 5
restricted, or probated, in which case the terms of the Kentucky license shall 6
prevail; 7
(36) "Prescription" means a written or oral order for a drug or medicine, or combination 8
or mixture of drugs or medicines, or proprietary preparation, that is signed, given, 9
or authorized by a medical, advanced practice registered nurse, dental, chiropody, 10
veterinarian, or optometric practitioner, and intended for use in the diagnosis, cure, 11
mitigation, treatment, or prevention of disease in man or other animals; 12
(37) "Prescription blank" means a document that conforms with KRS 217.216 and is 13
intended for prescribing a drug to an ultimate user; 14
(38) "Raw agricultural commodity" means any food in its raw or natural state, including 15
all fruits that are washed, colored, or otherwise treated in their unpeeled natural 16
form prior to marketing; 17
(39) "Retail food establishment" means any food service establishment, retail food store, 18
or a combination of both within the same establishment; 19
(40) "Retail food store" means any fixed or mobile establishment where food or food 20
products, including prepackaged, labeled sandwiches or other foods to be heated in 21
a microwave or infrared oven at the time of purchase, are offered for sale to the 22
consumer, and intended for off-premises consumption, but does not include 23
establishments which handle only prepackaged, snack-type, nonpotentially 24
hazardous foods, markets that offer only fresh fruits and vegetables for sale, food 25
service establishments, food and beverage vending machines, vending machine 26
commissaries, food processing establishments, or home-based processors; 27 UNOFFICIAL COPY 25 RS BR 1212
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(41) "Salvage distributor" means a person who engages in the business of distributing, 1
peddling, or otherwise trafficking in any salvaged merchandise; 2
(42) "Salvage processing plant" means an establishment operated by a person engaged in 3
the business of reconditioning, labeling, relabeling, repackaging, recoopering, 4
sorting, cleaning, culling or who by other means salvages, sells, offers for sale, or 5
distributes for human or animal consumption or use any salvaged food, beverage, 6
including beer, wine and distilled spirits, vitamins, food supplements, dentifices, 7
cosmetics, single-service food containers or utensils, containers and packaging 8
materials used for foods and cosmetics, soda straws, paper napkins, or any other 9
product of a similar nature that has been damaged or contaminated by fire, water, 10
smoke, chemicals, transit, or by any other means; 11
(43) "Second or subsequent offense" has the same meaning as it does in KRS 218A.010; 12
(44) "Secretary" means the secretary of the Cabinet for Health and Family Services; 13
(45) "Temporary food service establishment" means any food service establishment 14
which operates at a fixed location for a period of time, not to exceed fourteen (14) 15
consecutive days; 16
(46) "Traffic" has the same meaning as[ it does] in KRS 218A.010; 17
(47) "Ultimate user" has the same meaning as[ it does] in KRS 218A.010; 18
(48) If an article is alleged to be misbranded because the labeling is misleading, or if an 19
advertisement is alleged to be false because it is misleading, in determining whether 20
the labeling or advertisement is misleading, there shall be taken into account, 21
among other things, not only representations made or suggested by statement, word, 22
design, device, sound, or in any combination thereof, but also the extent to which 23
the labeling or advertisement fails to reveal facts that are material in the light of the 24
representations or material with respect to consequences which may result from the 25
use of the article to which the labeling or advertisement relates under the conditions 26
of use prescribed in the labeling or advertisement thereof or under the conditions of 27 UNOFFICIAL COPY 25 RS BR 1212
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use as are customary or usual; 1
(49) The representation of a drug in its labeling or advertisement as an antiseptic shall be 2
considered to be a representation that it is a germicide, except in the case of a drug 3
purporting to be, or represented as, an antiseptic for inhibitory use as a wet 4
dressing, ointment, dusting powder, or other use involving prolonged contact with 5
the body; 6
(50) The provisions of KRS 217.005 to 217.215 regarding the selling of food, drugs, 7
devices, or cosmetics shall be considered to include the manufacture, production, 8
processing, packing, exposure, offer, possession, and holding of those articles for 9
sale, the sale, dispensing, and giving of those articles, and the supplying or applying 10
of those articles in the conduct of any food, drug, or cosmetic establishment; 11
(51) "Home" means a primary residence occupied by the processor, that contains only 12
two (2) ranges, ovens, or double-ovens, and no more than three (3) refrigerators 13
used for cold storage. This equipment shall have been designed for home use and 14
not for commercial use, and shall be operated in the kitchen within the residence; 15
(52) "Formulated acid food product" means an acid food in which the addition of a small 16
amount of low-acid food results in a finished equilibrium pH of 4.6 or below that 17
does not significantly differ from that of the predominant acid or acid food; 18
(53) "Acidified food product" means a low-acid food to which acid or acidic food is 19
added and which has a water activity value greater than 0.85, and a finished 20
equilibrium pH of 4.6 or below; 21
(54) "Low-acid food" means foods, other than alcoholic beverages, with a finished 22
equilibrium pH greater than 4.6, and a water activity value greater than 0.85; 23
(55) "Acid food" means foods that have a natural pH of 4.6 or below; 24
(56) "Home-based processor" means a person who in his or her home, produces or 25
processes non-potentially hazardous foods, including but not limited to dried herbs, 26
spices, nuts, candy, dried grains, whole fruit and vegetables, mixed-greens, jams, 27 UNOFFICIAL COPY 25 RS BR 1212
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jellies, sweet sorghum syrup, preserves, fruit butter, bread, fruit pies, cakes, or 1
cookies, and who has a gross income of no more than sixty thousand dollars 2
($60,000) annually from the sale of the products; 3
(57) "Home-based microprocessor" means a farmer who, in the farmer's home or 4
certified or permitted kitchen, produces or processes foods, including but not 5
limited to acid foods, formulated acid food products, acidified food products, or 6
low-acid canned foods, and who has a gross income of no more than sixty thousand 7
dollars ($60,000) annually from the sale of the product; 8
(58) "Certified" means any person or home-based microprocessor who: 9
(a) Has attended the Kentucky Cooperative Extension Service's microprocessing 10
program or pilot microprocessing program and has been identified by the 11
Kentucky Cooperative Extension Service as having satisfactorily completed 12
the prescribed course of instruction; or 13
(b) Has attended some other school pursuant to 21 C.F.R. sec. 114.10; 14
(59) "Farmer" means a person who is a resident of Kentucky and owns or rents 15
agricultural land as defined in[pursuant to subsection (9) of] KRS 132.010 or 16
horticultural land as defined in[pursuant to subsection (10) of] KRS 132.010. For 17
the purposes of KRS 217.136 to 217.139, "farmer" also means any person who is a 18
resident of Kentucky and has grown the primary horticultural and agronomic 19
ingredients used in the home-based microprocessed products which they have 20
produced; and 21
(60) "Farmers market temporary food service establishment" means any temporary food 22
service establishment operated by a farmer who is a member of the market which 23
operates within the confines of a farmers market registered with the Kentucky 24
Department of Agriculture for the direct-to-consumer marketing of Kentucky-25
grown farm products from approved sources for a period of time not to exceed two 26
(2) days per week for any consecutive six (6) months period in a calendar year. 27