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AN ACT relating to regional industrial taxing districts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Board" means the board of trustees of a district; 6
(b) "District" means a regional industrial taxing district established under 7
subsection (2)(a) of this section; 8
(c) "Local government" means the legislative body of a city, county, urban-9
county government, charter county government, consolidated local 10
government, or unified local government located within the 11
Commonwealth; and 12
(d) "Multicounty region" means multiple counties, multiple cities not located 13
in the same county, or a combination of counties and cities with at least two 14
(2) local governments from different counties. 15
(2) (a) Two (2) or more local governments constituting a multicounty region may 16
join together by entering into an interlocal agreement under KRS 65.210 to 17
65.300 to form a regional industrial taxing district to develop real estate as 18
part of a regional economic development project. 19
(b) The regional economic development project shall consist of three hundred 20
(300) or more contiguous acres and result in the creation of at least five 21
hundred (500) new jobs. 22
(3) The district shall constitute a taxing district within the meaning of Section 157 of 23
the Constitution of Kentucky and is authorized to levy a special ad valorem tax on 24
property located within the jurisdictional boundaries of the district. The special 25
ad valorem tax rate shall not exceed ten cents ($0.10) per one hundred dollars 26
($100) of the assessed value of the property. The special ad valorem tax shall be 27 UNOFFICIAL COPY 25 RS BR 1340
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collected in the same manner as other ad valorem taxes. 1
(4) (a) In addition to the special ad valorem tax under subsection (3) of this 2
section, local governments in which the district is located may, with 3
agreement of all local governments participating in the interlocal 4
agreement, impose and collect an occupational license fee on businesses, 5
trades, professions, or occupations performed, rendered, or conducted 6
within the district, at percentage rate of: 7
1. Salaries, wages, commissions, and other compensation earned by 8
persons within the district for work done and services performed or 9
rendered in the district; 10
2. The net profits of self-employed individuals, partnerships, professional 11
associations, or joint ventures resulting from businesses, trades, 12
professions, occupations, or activities conducted in the district; and 13
3. The net profits of corporations resulting from businesses, trades, 14
professions, occupations, or activities conducted in the district. 15
(b) The occupational license fee imposed under this subsection shall be: 16
1. In addition to any other license fee imposed by any entity on 17
businesses, trades, professions, or occupations performed, rendered, 18
or conducted within the district; and 19
2. Assessed in the same manner as other occupational license fees except 20
that the occupational license fees shall not be subject to any maximum 21
rate limits or crediting requirements established under KRS 68.180, 22
68.197, or 91.200. 23
(c) Each local government participating in the interlocal agreement shall 24
receive a portion of the revenues collected from the occupational license fee 25
as specified by the agreement. Each local government may include its 26
portion of the revenues in its general fund to be used as designated by the 27 UNOFFICIAL COPY 25 RS BR 1340
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local government. 1
(5) (a) As part of the interlocal agreement, a board shall be established to control 2
and manage the affairs of the district. 3
(b) The board shall: 4
1. Represent a multicounty region; 5
2. Comply with the provisions of KRS Chapter 65A; 6
3. Agree, in writing, to the collection and distribution of the revenue 7
generated from the levy of any occupational license fee imposed under 8
this section; and 9
4. Operate in accordance with the following: 10
a. The board membership shall consist of one (1) trustee from each 11
local government participating in the interlocal agreement; 12
b. The trustees shall serve staggered terms of four (4) years; 13
c. The chair of the board shall be elected by the trustees from 14
among its membership; 15
d. The board may appoint a secretary, an executive director, and 16
other officials and employees who need not be members of the 17
board; 18
e. Trustees shall not receive compensation for their services, but 19
shall be reimbursed for their actual expenses incurred in the 20
performance of their duties; 21
f. A quorum for the transacting of the business of the board shall 22
consist of a majority of its membership; 23
g. A trustee of the board may be removed as provided by KRS 24
65.007; and 25
h. Vacancies of the board shall be filled in the same manner as the 26
original appointments. 27