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AN ACT relating to property. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 99.727 is amended to read as follows: 3
(1) As used in this section: 4
(a) "Census block" means an area within the jurisdiction of a local government 5
identified by the United States Census Bureau using a unique four (4) digit 6
number; 7
(b) "Certificate of delinquency" has the same meaning as in KRS 134.010; 8
(c) "Diverted tax delinquency purchaser" means a third-party purchaser who 9
is registered under subsection (8) of this section to purchase a certificate of 10
delinquency related to property placed in a tax delinquency diversion 11
program; 12
(d) "Individual parcel" means a parcel of property not located in a priority project 13
area that has been designated by the commission or alternative government 14
entity as blighted, and for which the area in which the property is located: 15
1. Exhibits conditions that are favorable for development; 16
2. Has the resources needed for urban redevelopment; and 17
3. Has characteristics that can be promoted as part of a campaign to retain 18
existing residents and attract new residents to the area;[ and] 19
(e)[(d)] "Priority project area" means a specific group of properties identified by 20
census block, which are located in an area where: 21
1. There are a significant number of blighted properties; 22
2. Existing conditions are favorable for development; 23
3. Existing resources needed for urban redevelopment are present; and 24
4. Existing characteristics of the area can be promoted as part of a 25
campaign to retain existing residents and attract new residents to the 26
area; 27 UNOFFICIAL COPY 25 RS SB 129/EN
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(f) "Third-party purchaser" has the same meaning as in KRS 134.010; and 1
(g) "Vacant and abandoned property" means a residential property that has 2
been continuously vacant for at least one (1) year with repeated housing, 3
building, or nuisance code violations. 4
(2) The legislative body of a consolidated local government may, by ordinance, 5
establish a tax delinquency diversion program for blighted property. 6
(3) The ordinance establishing the program shall designate the commission or an 7
alternative government entity as the body responsible for identifying and certifying 8
priority project areas and individual parcels of property for inclusion in the tax 9
delinquency diversion program. 10
(4) The commission or alternative government entity shall submit recommended 11
priority project areas and qualifying individual parcels of property to the governing 12
body of the consolidated local government for consideration. 13
(5) Except as provided under subsection (7) of this section, certificates of delinquency 14
related to property approved by the governing body of the consolidated local 15
government for inclusion in the tax delinquency diversion program shall not be 16
available for purchase[ by any person] for a period of up to five (5) years following 17
the year in which the property is placed in the tax delinquency diversion program. 18
(6) The commission or alternative government entity shall provide to the county 19
attorney a list of all properties included in the tax delinquency diversion plan, and 20
the county attorney shall place the identified properties on the protected list 21
required under[by] KRS 134.504(10). 22
(7) (a) A diverted tax delinquency purchaser may purchase a certificate of 23
delinquency related to vacant and abandoned property which has been 24
placed in a tax delinquency diversion program. After ninety (90) days from 25
the creation of the certificate of delinquency, a diverted tax delinquency 26
purchaser who is interested in purchasing the certificate of delinquency for 27 UNOFFICIAL COPY 25 RS SB 129/EN
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vacant and abandoned property shall send a notification to the county 1
attorney requesting that the certificate of delinquency be made available for 2
purchase. Within thirty (30) days of receipt of the notification, the county 3
attorney shall: 4
1. Verify with the commission or alternative government entity as 5
designated under subsection (3) of this section that the property in 6
question is vacant and abandoned; 7
2. Remove the certificate of delinquency from the protected list required 8
by KRS 134.504(10); and 9
3. Notify the county clerk and all other diverted tax delinquency 10
purchasers that the certificate of delinquency shall be available for 11
purchase. 12
(b) Once the requirements in paragraph (a) of this subsection are met, the 13
county clerk shall conduct a sale of the certificate of delinquency to diverted 14
tax delinquency purchasers. The sale shall be scheduled within ninety (90) 15
days of the date of the notification sent to the county clerk in paragraph 16
(a)3. of this subsection. 17
(8) (a) To qualify as a diverted tax delinquency purchaser, the third-party 18
purchaser shall register with the Department of Revenue under this 19
subsection and be: 20
1. A political subdivision of the Commonwealth created by the governing 21
body of a consolidated local government or operating within the 22
boundaries of a consolidated local government; 23
2. A state or local agency, board, or commission created by the governing 24
body of a consolidated local government or operating within the 25
boundaries of a consolidated local government; 26
3. A quasi-governmental entity created by the governing body of a 27 UNOFFICIAL COPY 25 RS SB 129/EN
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consolidated local government or operating within the boundaries of a 1
consolidated local government; or 2
4. A nonprofit organization that: 3
a. Is registered with the Kentucky Secretary of State; 4
b. Has been registered with the Kentucky Secretary of State for a 5
minimum of five (5) years; 6
c. Has a principal place of business in Kentucky; 7
d. Includes affordable housing in its stated purpose; and 8
e. Is a tax-exempt organization under Section 501(c)(3) of the 9
Internal Revenue Code. 10
(b) The Department of Revenue shall: 11
1. Decline to issue a certificate of registration to any applicant who does 12
not meet the requirements established under paragraph (a) of this 13
subsection; and 14
2. Maintain a list of the applicants who are issued a certificate of 15
registration. The list shall include the contact information and email 16
address of each applicant. 17
(9) A diverted tax delinquency purchaser shall be subject to the same requirements 18
as a third-party purchaser under KRS Chapter 134. 19
(10) The Department of Revenue shall promulgate administrative regulations to 20
establish a process for the purchase and sale of certificates of delinquency related 21
to property placed in a tax delinquency diversion program. 22
Section 2. KRS 134.128 is amended to read as follows: 23
(1) The sale of certificates of delinquency by county clerks to persons other than those 24
listed in KRS 134.127(1)(a) shall be conducted in accordance with the provisions of 25
this section. 26
(2) The department shall promulgate administrative regulations to establish a process 27 UNOFFICIAL COPY 25 RS SB 129/EN
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for the purchase and sale of certificates of delinquency to third parties. The process 1
developed by the department shall: 2
(a) 1. Establish an annual statewide schedule for the sale of certificates of 3
delinquency in each county. The schedule shall be published on the 4
department's website[Web site] at least ten (10) days prior to the first 5
sale. The sale in each county shall be administered by the county clerk. 6
2. The sale in each county shall be scheduled at least ninety (90) days but 7
not more than one hundred thirty-five (135) days after the unpaid tax 8
claims are filed by the sheriff with the county clerk, unless the 9
provisions of subparagraph 3. of this paragraph apply. The department 10
may stagger the schedule so that sales are conducted on different dates 11
and times in different counties. 12
3. A county clerk who: 13
a. Due to the assessment schedule established by the department, 14
anticipates receiving certificates of delinquency relating to 15
unmined coal, oil, or gas reserves, or any other mineral or energy 16
resources assessed separately from the surface real property 17
pursuant to KRS 132.820 too late to be included in the annual sale 18
scheduled during the timeframes established by subparagraph 2. of 19
this paragraph; and 20
b. Wants to include those certificates in the annual sale for the year in 21
which the certificates of delinquency are created; 22
may submit a request to the department to hold the annual sale for that 23
county up to one hundred ninety-five (195) days after the bulk of the 24
unpaid tax claims are filed by the sheriff with the county clerk in 25
accordance with KRS 134.122; 26
(b) Except as provided in KRS 134.127(1)(a), prohibit the payment of any newly 27 UNOFFICIAL COPY 25 RS SB 129/EN
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filed certificates of delinquency by a third party prior to the scheduled annual 1
sale of certificates of delinquency for that year for that county; 2
(c) Prohibit the payment of any certificates of delinquency: 3
1. Involved in bankruptcy litigation in which the county attorney or 4
department has filed a claim; 5
2. Involved in other litigation initiated by the county attorney or the 6
department, or in which the county attorney or department responds or 7
files a claim; 8
3. Under a payment plan that has been agreed to by the taxpayer and the 9
county attorney or the department, and on which the payment agreement 10
is in good standing; or 11
4. Related to property included in a tax delinquency diversion program 12
established under[pursuant to] KRS 99.727 and on the protected list 13
required under KRS 134.504(10); 14
(d) Establish a process to be used by county clerks in determining the order in 15
which interested third-party purchasers may select and pay available 16
certificates of delinquency at the annual sale. The process shall, at a 17
minimum: 18
1. Be uniform in all counties to the extent practicable; 19
2. Establish a process, if there is more than one (1) purchaser registered to 20
purchase certificates of delinquency at the sale, that allows all interested 21
purchasers an opportunity to purchase certificates of delinquency on an 22
equitable basis. The sale shall not be structured in such a manner to 23
allow one (1) third party to purchase all of the certificates of 24
delinquency if there are other properly registered third parties that are 25
also interested in purchasing certificates of delinquency; 26
3. Establish fairness for all participants by prohibiting the participation of 27 UNOFFICIAL COPY 25 RS SB 129/EN
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multiple related entities, or multiple individuals representing related 1
interests as separate entities in the selection process at an annual sale. 2
The department shall define "related entities" and "related interests" as 3
part of the regulatory process; and 4
4. Establish a process to be used by county clerks in identifying, verifying, 5
and selling priority certificates of delinquency. The process shall: 6
a. Require third-party purchasers to submit a list of priority 7
certificates of delinquency to the county clerk up to ten (10) days 8
before the annual sale so that the clerk may identify and allocate 9
priority certificates of delinquency to third-party purchasers prior 10
to the annual sale; 11
b. Require that all priority certificates of delinquency allocated to a 12
third-party purchaser prior to the annual sale be removed from the 13
annual sale; 14
c. Allow any third-party purchaser holding a certificate of 15
delinquency on a parcel of property from a prior year to submit a 16
priority list and purchase any priority certificates of delinquency to 17
which the third-party purchaser is entitled, notwithstanding that 18
the third-party purchaser may be related to another third-party 19
purchaser participating in the sale; and 20
d. Give priority to the third-party purchaser holding a certificate of 21
delinquency from the most recent tax year if more than one (1) 22
third party holds an outstanding certificate of delinquency on a 23
parcel of property; 24
(e) Require all potential participants in the sale to register at least one (1) week in 25
advance with the county clerk; 26
(f) Require a review of the list of registered participants, either by the county 27 UNOFFICIAL COPY 25 RS SB 129/EN
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clerk or the department, prior to the sale to ensure that: 1
1. All registered participants seeking to pay multiple certificates of 2
delinquency are properly registered with the department as required by 3
KRS 134.129; and 4
2. No registered participants or related entities or related interests 5
prohibited from separate participation in the annual sale pursuant to the 6
provisions of paragraph (d)3. of this subsection and the administrative 7
regulations promulgated thereunder have separately registered to 8
participate in the annual sale; 9
(g) Establish advance deposit requirements for registered participants based upon 10
the maximum amount the registered participant may pay for desired 11
certificates of delinquency; 12
(h) Establish a registration fee to be paid to the clerk. The registration fee paid to 13
each county shall not exceed two hundred fifty dollars ($250) annually and 14
may be tiered; 15
(i) Establish payment requirements, which may include nullification of the 16
payment and forfeiture of the advance deposit if a third-party purchaser fails 17
to produce full payment within the specified time; and 18
(j) Establish payment methods. 19
(3) Any person who, in any calendar year: 20
(a) Pays or plans to pay more than five (5) certificates of delinquency statewide; 21
(b) Pays or plans to pay more than three (3) certificates of delinquency in any 22
county; or 23
(c) Invests or plans to invest more than ten thousand dollars ($10,000) in the 24
payment of certificates of delinquency on a statewide basis in any calendar 25
year; 26
shall register with the department annually as provided in KRS 134.129. 27 UNOFFICIAL COPY 25 RS SB 129/EN
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(4) The department shall be responsible for monitoring the sale of certificates of 1
delinquency. 2
(5) (a) At least thirty (30) but not more than forty-five (45) days before the scheduled 3
sale date, the county clerk shall cause a notice to be published in accordance 4
with the provisions of KRS Chapter 424. The notice shall list by property 5
owner, property address, and if available, parcel number or lot number, all 6
certificates of delinquency available for sale. The notice shall provide the 7
date, time, and location of the sale. In addition, the notice shall list, in a 8
separate section, all personal property certificates of delinquency held by the 9
county clerk. 10
(b) As compensation for advertising the sale, the county clerk shall receive five 11
dollars ($5) for each certificate of delinquency and personal property 12
certificate of delinquency advertised. The fee shall be added to the amount of 13
the certificate of delinquency or personal property certificate of delinquency 14
and shall be paid by the person paying the certificate of delinquency or 15
personal property certificate of delinquency. 16
(c) The cost of placing the advertisement shall be paid by the county. The cost 17
shall be added to the amount of the certificate of delinquency or personal 18
property certificate of delinquency and shall be paid by the person paying the 19
certificate of delinquency or personal property certificate of delinquency. The 20
department shall establish a formula that may be used by counties in 21
allocating the advertising costs among the delinquent tax claims. The formula 22
shall take into account that a percentage of delinquent tax claims remains 23
unpaid. 24
(6) Any certificate of delinquency not paid at the annual sale, not subject to a payment 25
plan with the department or county attorney, and not known to be in litigation may 26
be paid to the county clerk at any time by any person after the sale, provided that: 27 UNOFFICIAL COPY 25 RS SB 129/EN
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(a) Any person required by KRS 134.129 to register with the department shall 1
hold a current certificate of registration at the time of purchase; 2
(b) Any person not previously registered with the county clerk during the 3
calendar year shall register with the county clerk and shall pay the registration 4
fee established by administrative regulation pursuant to subsection (2)(h) of 5
this section; and 6
(c) Any person previously registered with the county clerk during the calendar 7
year who has not paid the maximum registration fee for that year shall pay the 8
appropriate amount for each certificate of delinquency paid, as established by 9
administrative regulation pursuant to subsection (2)(h) of this section, until 10
the maximum registration has been paid. 11
(7) Any certificate of delinquency received by the county clerk too late to be included 12
in the annual sale in any year shall be retained by the clerk until the next scheduled 13
annual sale. During that time period, the clerk may accept payment on the 14
certificate of delinquency only from those individuals and entities listed in KRS 15
134.127(1)(a). 16
SECTION 3. A NEW SECTION OF KRS CHAPTER 100 IS CREATED TO 17
READ AS FOLLOWS: 18
(1) As used in this section, unless the context otherwise requires: 19
(a) "Accessory dwelling unit" means a smaller, secondary dwelling unit located 20
on the same lot as a principal dwelling, which provides complete, 21
independent living facilities; 22
(b) "Density development project" means any proposed residential development 23
project that: 24
1. Contains multifamily housing; and 25
2. If approved would result in an increase in: 26
a. Fire department or emergency medical service response times for 27 UNOFFICIAL COPY 25 RS SB 129/EN
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current residents in the vicinity of the project; or 1
b. Traffic and congestion on roads accessing the development that 2
would reduce the level of service on the most adjacent arterial, 3
collector, or access road a full letter grade, or reduce level of 4
service below grade D on those roads; 5
(c) "Level of service" means a qualitative measurement of traffic conditions 6
graded on an A to F scale as set out in the Highway Capacity Manual as 7
published by the Transportation Research Board; 8
(d) "Multifamily housing" means any residential housing type other than 9
single-family homes and accessory dwelling units; and 10
(e) "Traditional single-family home zone" means a zone that, as of January 1, 11
2025, did not include multifamily homes as a permitted use. 12
(2) In a county containing a consolidated local government, any density development 13
project that is proposed in a traditional single-family home zone shall be treated 14
as if it were an amendment to the zoning map, and shall be subject to the 15
procedures set forth in KRS 100.211, 100.2111, 100.212, 100.213, and 100.214, 16
including approval by the legislative body, except a planning unit shall not use 17
the alternative regulation for zoning map amendment under KRS 100.2111 when 18
considering a density development project. 19
SECTION 4. A NEW SECTION OF KRS CHAPTER 383 IS CREATED TO 20
READ AS FOLLOWS: 21
(1) As used in this section, unless context requires otherwise: 22
(a) "Accessory dwelling unit" means a smaller, secondary dwelling unit located 23
on the same lot as a principal dwelling, which provides complete, 24
independent living facilities; 25
(b) "Multifamily housing" means any residential housing type other than 26
single-family homes and accessory dwelling units; 27 UNOFFICIAL COPY 25 RS SB 129/EN
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(c) "Property owner" or "owner" means: 1
1. If the property is owned by one (1) or more individuals, one (1) or 2
more of those individuals; 3
2. If the property is owned by a trust, one (1) or more of the beneficiaries 4
or trustees; 5
3. If the property is owned by a partnership or limited liability company, 6
one (1) or more of the partners or members; or 7
4. If the property is owned by a corporation, one (1) or more of the 8
shareholders; and 9
(d) "Traditional single-family home zone" means a zone that, as of January 1, 10
2025, did not include multifamily homes as a permitted use. 11
(2) In a county containing a consolidated local government, for new leases initiated 12
after the effective date of this Act, a property owner shall not lease or allow to be 13
occupied any single-family home, multifamily housing unit, or accessory dwelling 14
unit located on a lot that contains a single-family home and that is located in a 15
traditional single-family home zone, unless the owner primarily resides in the 16
single-family home or multifamily housing unit or an accessory dwelling unit on 17
the lot. This restriction shall not apply to a lot that contains only one (1) single-18
family home and does not contain an accessory dwelling unit. 19
Section 5. KRS 154.30-050 is amended to read as follows: 20
(1) The Signature Project Program is hereby established. The purpose of this program 21
is to encourage private investment in the development of major projects that will 22
have a significant impact on the Commonwealth of Kentucky and are judged to be 23
of such a magnitude that the effect upon the location of such project warrants 24
extraordinary public support. 25
(2) There shall be two (2) separate initiatives under this program. The first initiative, 26
the criteria and details of which are set forth in paragraph (a) of this subsection, 27 UNOFFICIAL COPY 25 RS SB 129/EN
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shall apply to qualifying projects that are not the subject of a contract under KRS 1
65.495 in effect on or before the March 23, 2007, but that have a project grant 2
agreement executed pursuant to KRS 154.30-070 prior to January 1, 2008. The 3
second initiative, the criteria and details of which are set forth in paragraph (b) of 4
this subsection, shall apply to projects that meet the specified requirements on or 5
after January 1, 2008. 6
(a) For projects that are not the subject of a contract under KRS 65.495 in effect 7
on or before March 23, 2007, but that have a project grant agreement executed 8
pursuant to the provisions of KRS 154.30-070 prior to January 1, 2008: 9
1. The criteria for qualification shall be as follows: 10
a. The project shall represent new economic activity in the 11
Commonwealth; and 12
b. The project shall result in a minimum capital investment of two 13
hundred million dollars ($200,000,000);[.] 14
2. The following provisions shall apply to projects that meet the criteria 15
established in subparagraph 1. of this paragraph: 16
a. KRS 65.7051 shall not apply to the establishment of a 17
development area; 18
b. The city or county in which the project is located shall adopt an 19
ordinance establishing the development area. The ordinance shall 20
be adopted in accordance with KRS 65.7053(1)(a), (b), (c), (d), 21
(e), (h), (i), (j), (k), (l), and (m); 22
c. KRS 65.7049, 65.7053(2) and (3), 65.7057, 65.7059, 65.7061, 23
65.7063, 65.7065, and 65.7067, relating to local development 24
areas, shall apply; 25
d. An application for state participation shall have been submitted as 26
provided in KRS 154.30-030. The application shall include the 27 UNOFFICIAL COPY 25 RS SB 129/EN
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information required by KRS 154.30-030(2)(a)[ ]1.a. and b.; 1
e. The report provided for in KRS 154.30-030(2)(a)[ ]3.b. shall not 2
be required, and the certification required by KRS 154.30-3
030(6)(b) shall not be required; 4
f. A project grant agreement shall be executed in accordance with 5
KRS 154.30-070; and 6
g. KRS 154.30-080 and 154.30-090 shall apply; and[.] 7
3. Projects that meet the criteria established in subparagraph 1. of this 8
paragraph shall be eligible for the following: 9
a. Up to one hundred percent (100%) of approved public 10
infrastructure costs, excluding any sales and use tax paid, may be 11
recovered; 12
b. Up to one hundred percent (100%) of the financing costs 13
associated with approved public infrastructure costs may be 14
recovered; 15
c. In a county containing a city of the first class, the local 16
participation agreement may provide for the release of up to eighty 17
percent (80%) of the increment from the tax levied under KRS 18
91A.390 derived by the governing body within the project 19
development area. The amount released shall not exceed a base 20
amount of four hundred thousand dollars ($400,000) in the first 21
year of the local participation agreement, which base amount shall 22
be increased in each subsequent year of the grant agreement by 23
four percent (4%); and 24
d. Up to one hundred percent (100%) of approved signature project 25
costs, excluding any sales and use taxes paid, subject to the 26
following: 27 UNOFFICIAL COPY 25 RS SB 129/EN
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i. The authority shall review proposed [ ]expenditures for [1
]inclusion in the tax incentive [ ]agreement. The 2
authority may approve the type [ ]of expenditures it 3
determines are [ ]necessary for completion of the private 4
development; and 5
ii. Approved signature project costs shall be detailed in the tax 6
incentive agreement. 7
(b) Beginning January 1, 2008: 8
1. A project shall meet all of the following criteria to be considered for 9
state participation under this program: 10
a. The project shall represent new economic activity in the 11
Commonwealth; 12
b. The project shall result in a minimum capital investment of two 13
hundred million dollars ($200,000,000); 14
c. The project shall result in a net positive economic impact to the 15
Commonwealth, taking into consideration any substantial adverse 16
impact on existing Commonwealth businesses. The net positive 17
impact shall be certified to the commission as required by KRS 18
154.30-030(6)(b); and 19
d. Not more than twenty percent (20%) of the capital investment or 20
twenty percent (20%) of the finished square footage shall be 21
devoted to the support or development of assets that will be 22
utilized for the retail sale of tangible personal property;[.] 23
2. Projects that meet the criteria established by subparagraph 1. of this 24
paragraph shall comply with all relevant provisions of this subchapter;[.] 25
3. Projects that meet the criteria established by subparagraphs 1. and 2. of 26
this paragraph shall be eligible to recover: 27 UNOFFICIAL COPY 25 RS SB 129/EN
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a. Up to one hundred percent (100%) of approved public 1
infrastructure costs, excluding any sales and use taxes paid; 2
b. Up to one hundred percent (100%) of the financing costs 3
associated with approved public infrastructure costs; and 4
c. Up to one hundred percent (100%) of approved signature project 5
costs, excluding sales and use taxes paid subject to the following: 6
i. The authority shall review proposed expenditures for 7
inclusion in the tax incentive agreement. The authority may 8
approve the type of expenditures it determines are necessary 9
for completion of the private development; and 10
ii. Approved signature project costs shall be detailed in the tax 11
incentive agreement; and 12
4. Notwithstanding any provision of this section to the contrary, if a 13
project has a residential use that comprises at least fifty percent (50%) 14
of the total finished square footage of the proposed project: 15
a. The report required in KRS 154.30-030(2)(a)3.b. shall not be 16
required; and 17
b. The certification required by KRS 154.30-030(6)(b) and 18
subparagraph 1.c. of this paragraph shall not be required. 19
(3) The authority shall review the application, the certification required by KRS 20
154.30-030, if applicable, and supporting information as provided in KRS 154.30-21
030. 22
(4) The authority shall specifically identify the state taxes from which incremental 23
revenues will be pledged. The authority may pledge up to eighty percent (80%) of 24
the incremental revenues from the identified state tax revenues from the footprint, 25
provided that the maximum amount of incremental revenues that may be pledged 26
for a project during the term of the tax incentive agreement from all approved state 27 UNOFFICIAL COPY 25 RS SB 129/EN
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taxes shall not exceed one hundred percent (100%) of approved public 1
infrastructure costs, approved signature project costs, and financing costs. 2
(5) As part of the approval process, the authority shall determine the following: 3
(a) The footprint of the project; 4
(b) The maximum amount of approved public infrastructure costs, approved 5
signature project costs, and financing costs; 6
(c) That the local revenues pledged to support the public infrastructure of the 7
project, and local revenues pledged to support the overall project are of a 8
sufficient amount to warrant participation of the Commonwealth in the 9
project; 10
(d) The termination date of the tax incentive agreement, not to exceed thirty (30) 11
years from the activation date; 12
(e) Any adjustments to be made to old revenues, in determining incremental 13
revenues during each year of the term of the project grant agreement; and 14
(f) Any approved signature project costs; 15
(6) For the purpose of making the determination required by KRS 139.515(2), the 16
authority shall review the projected expenditures for tangible personal property 17
used in the construction of a signature project, as defined in KRS 139.515(1), and 18
shall establish an approximate percentage of the total anticipated expenditures that 19
are not included in the tax incentive agreement as approved public infrastructure 20
costs or approved signature project costs. This percentage shall be communicated 21
by the authority to the Department of Revenue, which shall use the information in 22
administering the sales tax refund permitted by KRS 139.515. 23
(7) If state income taxes or local occupational license taxes are included for a project 24
that includes office space, the authority shall consider the impact of pledging theses 25
taxes on the ability to utilize other economic development projects at a later date. 26
(8) The pledge of state incremental tax revenues of the Commonwealth by the authority 27 UNOFFICIAL COPY 25 RS SB 129/EN
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shall be implemented through the execution of a tax incentive agreement between 1
the Commonwealth and the agency, city, or county in accordance with KRS 2
154.30-070. 3
(9) Notwithstanding the minimum capital investment of two hundred million dollars 4
($200,000,000) required by subsection (2)(b)1.b. of this section, the authority may, 5
upon application of an agency that: 6
(a) Was approved to proceed with a project after January 1, 2008, but before 7
January 1, 2013, that, at the time of approval pledged to make the two 8
hundred million dollars ($200,000,000) investment requirement; and 9
(b) Had a consultant report prepared pursuant to KRS 154.30-030(6); 10
approve a reduction in the required minimum capital investment to an amount not 11
less than one hundred fifty million dollars ($150,000,000), subject to a 12
corresponding adjustment of the maximum incremental revenue available for 13
recovery as appropriate, based upon the recommendation of the consultant who 14
prepared the report pursuant to KRS 154.30-030(6). 15
Section 6. KRS 154.30-060 is amended to read as follows: 16
(1) The Commonwealth Participation Program for Mixed-Use Redevelopment in 17
Blighted Urban Areas is hereby established. 18
(2) State participation under this program shall be limited to the support of approved 19
public infrastructure costs and costs associated with land preparation, demolition, 20
and clearance determined to be necessary to support private investment or private 21
development projects that benefit the public, where project economics are unable to 22
support or secure necessary financing to undertake the public improvements, land 23
preparation, demolition, and clearance. 24
(3) As used in this section: 25
(a) "Mixed-use" means a project: 26
1. That includes at least two (2) qualified uses, each of which comprises at 27 UNOFFICIAL COPY 25 RS SB 129/EN
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least twenty percent (20%) of the total finished square footage of the 1
proposed project or represents at least twenty percent (20%) of the total 2
capital investment; or 3
2. That includes at least three (3) qualified uses: 4
a. One (1) of which comprises at least twenty percent (20%) of the 5
total finished square footage of the proposed project or represents 6
at least twenty percent (20%) of the total capital investment; and 7
b. The remainder of which, when combined, jointly comprise at least 8
twenty percent (20%) of the total finished square footage of the 9
proposed project or represent at least twenty percent (20%) of the 10
total capital investment; 11
(b) "Qualified use" means: 12
1. Retail; 13
2. Residential; 14
3. Office; 15
4. Restaurant; or 16
5. Hospitality; and 17
(c) "Retail" means an establishment predominantly engaged in the sale of 18
tangible personal property subject to the tax imposed by KRS Chapter 139, 19
but shall not include restaurants. 20
(4) To be considered for state participation under this program, a project shall: 21
(a) Be located in an area that has three (3) or more of the conditions listed in KRS 22
65.7049(3)(a), or be a project described in KRS 65.7049(3)(b); 23
(b) Be a mixed-use project; 24
(c) Represent new economic activity in the Commonwealth; 25
(d) Result in a capital investment between twenty million dollars ($20,000,000) 26
and two hundred million dollars ($200,000,000); 27 UNOFFICIAL COPY 25 RS SB 129/EN
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(e) Not include any retail establishment that exceeds twenty thousand (20,000) 1
square feet of finished square footage; 2
(f) Include pedestrian amenities and public space;[ and] 3
(g) Result in a net positive economic impact to the Commonwealth, taking into 4
consideration any substantial adverse impact on existing Commonwealth 5
businesses. The net positive impact shall be certified to the authority as 6
required by KRS 154.30-030(6)(b); and 7
(h) Notwithstanding any provision of this section to the contrary, if a project 8
has a residential use that comprises at least fifty percent (50%) of the total 9
finished square footage of the proposed project: 10
1. The report required in KRS 154.30-030(2)(a)3.b. shall not be required; 11
and 12
2. The certification required by KRS 154.30-030(6)(b) and paragraph (g) 13
of this subsection shall not be required. 14
(5) The following costs may be recovered pursuant to this section: 15
(a) Up to one hundred percent (100%) of approved public infrastructure costs; 16
and 17
(b) Up to one hundred percent (100%) of expenses for land preparation, 18
demolition, and clearance necessary for the development to occur. 19
(6) The commission shall review the application, the certification required by KRS 20
154.30-030, and supporting information as provided in KRS 154.30-030. 21
(7) The authority shall specifically identify the state taxes from which incremental 22
revenues will be pledged. The authority may pledge up to eighty percent (80%) of 23
the incremental revenues from the identified state tax revenues from the footprint of 24
the project, provided that the maximum amount of incremental revenues that may 25
be pledged for a project during the term of the tax incentive agreement from all 26
approved state taxes shall not exceed the costs and expenses determined under 27 UNOFFICIAL COPY 25 RS SB 129/EN
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subsection (5) of this section. 1
(8) As part of the approval process, the authority shall determine the following: 2
(a) The footprint of the project; 3
(b) That the proposed project meets the requirements established by subsection 4
(4) of this section; 5
(c) The maximum amount of approved public infrastructure costs and expenses 6
for land preparation, demolition, and clearance; 7
(d) That the local revenues pledged to support the public infrastructure of the 8
project and local revenues pledged to support the overall project are of a 9
sufficient amount to warrant participation of the Commonwealth in the 10
project; 11
(e) The termination date of the tax incentive agreement; and 12
(f) Any adjustments to be made to old revenues, in determining incremental 13
revenues during each year of the term of the tax incentive agreement. 14
(9) If state income taxes or local occupational licenses taxes are included for a project 15
that includes office space, the authority shall consider the impact of pledging these 16
taxes on the ability to utilize other economic development projects at a later date. 17
(10) The pledge of state incremental tax revenues of the Commonwealth by the authority 18
shall be implemented through the execution of a tax incentive agreement between 19
the Commonwealth and the agency, city, or county in accordance with KRS 20
154.30-070. 21
Section 7. KRS 65.111 is amended to read as follows: 22
(1) As used in this section: 23
(a) "Emergency response" means a response by any first responder to a reported 24
incident that is of such an emergent nature that jeopardizes or could 25
jeopardize personal safety or result in the destruction of property; 26
(b) "Emergency response fee" means any charge or fee, other than a membership 27 UNOFFICIAL COPY 25 RS SB 129/EN
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charge or subscriber fee levied under KRS Chapter 273, imposed by a fire 1
department, whether paid or volunteer, ambulance provider, law enforcement 2
agency, or other organization to cover the costs associated with an emergency 3
response, including but not limited to costs incurred for labor, materials, 4
supplies, or equipment used or provided in the response; and 5
(c) "First responder" means fire, police, and emergency medical personnel. 6
(2) (a) No local government, special district, or other provider of any emergency 7
response service shall submit any demand for payment or require a landlord 8
to pay any emergency response fee if the emergency response: 9
1. Arises out of the actions of a residential tenant or his or her guest; 10
and 11
2. Was not the result of any failure by the landlord to maintain a 12
building in compliance with applicable housing, building, plumbing, 13
electrical, fire, health, or nuisance code requirements[an owner of 14
property occupied by an individual other than the owner to pay any 15
emergency response fee that arises out of the actions of another over 16
which the owner has no control]. 17
(b) Nothing in paragraph (a) of this subsection shall prevent a local 18
government, special district, or other provider of any emergency response 19
service from submitting a demand for payment of an emergency response 20
fee from a responsible party. 21
Section 8. KRS 67C.147 is amended to read as follows: 22
(1) In order to maintain the tax structure, tax rates, or level of services in the area of the 23
consolidated local government formerly comprising the city of the first class, the 24
legislative council of a consolidated local government may provide in the manner 25
described in this chapter for taxes and services within the area comprising the 26
former city of the first class which are different from the taxes and services which 27 UNOFFICIAL COPY 25 RS SB 129/EN
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are applicable in the remainder of the county. These differences may include 1
differences in tax rates upon the class of property which includes the surface of the 2
land, differences in ad valorem tax rates upon personal property, and differences in 3
tax rates upon insurance premiums. 4
(2) Any difference in the ad valorem tax rate on the class of property which includes 5
the surface of the land in the portion of the county formerly comprising the city of 6
the first class and in the portion of the county other than that formerly comprising 7
the city of the first class may be imposed directly by the consolidated local 8
government council. Any change in these ad valorem tax rates shall comply with 9
KRS 68.245, 132.010, 132.017, and 132.027 and shall be used for services as 10
provided by KRS 82.085. 11
(3) If the consolidated local government council determines to provide for tax rates 12
applicable to health insurance premiums and personal property which are different 13
in the area formerly comprising the city of the first class than the rates applicable in 14
the remainder of the county, it shall do so in the following manner. The 15
consolidated local government council shall by ordinance create a tax district to be 16
known as the "urban service tax district" bounded by the former boundaries of the 17
former city of the first class. The ordinance shall designate the number of members 18
of the board of this tax district and the manner in which they shall be appointed. 19
The ordinance shall provide that the board of the tax district shall receive the 20
income derived from the differential tax rate applicable in the area formerly 21
comprising the city of the first class with respect to personal property, health 22
insurance premiums, or both, and shall contract with the consolidated local 23
government to pay all sums collected to the consolidated local government, in 24
return for the provision of services performed by the consolidated local government 25
within the area formerly comprising the city of the first class which services are in 26
addition to services performed by the consolidated local government in the 27 UNOFFICIAL COPY 25 RS SB 129/EN
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remainder of the county. The consolidated local government shall provide at least 1
an annual reporting to the urban service tax district board and the legislative body 2
of the consolidated local government containing but not limited to detailed 3
operating and capital expenditures of each service performed by the consolidated 4
local government. 5
(4) After the initial formation of an urban service tax district in a consolidated local 6
government, the boundaries of the district may be modified in the following 7
manner. The proposal to alter the boundaries of the urban service tax district within 8
a consolidated local government may be initiated by: 9
(a) A resolution enacted by the consolidated local government describing the 10
boundaries of the area to be added to or deleted from the tax district and duly 11
passed and signed by the mayor not less than one hundred twenty (120) days 12
before the next regularly scheduled election day within the county; or 13
(b) A petition signed by a number of qualified voters living within precincts 14
within the area to be added to or deleted from the tax district equal to ten 15
percent (10%) of the votes cast within each precinct in the last general 16
election for President of the United States and delivered to the clerk of the 17
legislative council more than one hundred twenty (120) days next preceding 18
the next regularly scheduled election day within the county. 19
The boundaries so described in either case shall not cross precinct lines. The 20
question of whether the area bounded as described should be added to or deleted 21
from, as the case may be, the urban service tax district shall then be placed upon the 22
ballot in the precincts in the area to be added or deleted at the next regular election 23
and the question stated on the ballot shall be so phrased that a "Yes" vote shall be 24
cast in favor of making the proposed change and a "No" vote shall be cast to oppose 25
the proposed change. If a majority of those voting in those precincts support the 26
change, then the change in the boundaries of the urban service tax district shall be 27 UNOFFICIAL COPY 25 RS SB 129/EN
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implemented. 1
(5) (a) No later than July 1, 2025, the consolidated local government shall reimburse 2
a fire district operating under KRS Chapter 75 for expenses related to each 3
emergency medical response made by the fire district operating under KRS 4
Chapter 75 into the area of the urban service tax district. A fire district so 5
responding shall receive from the consolidated local government three 6
hundred dollars ($300) for transporting a person and one hundred fifty dollars 7
($150) for arriving at person's location when no person is transported. 8
(b) The payment established in paragraph (a) of this subsection shall be in 9
addition to any insurance moneys the fire district may be eligible to receive 10
resulting from the response. 11
(c) The payment established in paragraph (a) of this subsection shall be adjusted 12
on July 1 of each year by the percentage increase in the nonseasonally 13
adjusted annual average Consumer Price Index for All Urban Consumers 14
(CPI-U), U.S. City Average, All Items, between the two (2) most recent 15
calendar years available, as published by the United States Bureau of Labor 16
Statistics. 17
(d) The consolidated local government shall not charge a fire district operating 18
under KRS Chapter 75 for any expenses or services that the consolidated local 19
government was not charging the fire district prior to January 1, 2024. 20
(6) Except for services provided within the central business district as defined by the 21
consolidated local government via ordinance as of April 1, 2024: 22
(a) From July 1, 2025, to June 30, 2028, the differential tax received by the urban 23
service tax district shall fund no less than eighty-five percent (85%) of all 24
costs related to the services provided, including capital expenditures related to 25
the services, within the urban service tax district by the consolidated local 26
government as set out in this section that are in addition to the services 27 UNOFFICIAL COPY 25 RS SB 129/EN
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performed by the consolidated local government in the remainder of the 1
county;[.] 2
(b) From July 1, 2028, to June 30, 2031, the differential tax received by the urban 3
service tax district shall fund no less than ninety percent (90%) of all costs 4
related to the services provided, including capital expenditures related to the 5
services, within the urban service tax district by the consolidated local 6
government as set out in this section that are in addition to the services 7
performed by the consolidated local government in the remainder of the 8
county;[.] 9
(c) From July 1, 2031, to June 30, 2034, the differential tax received by the urban 10
service tax district shall fund no less than ninety-five percent (95%) of all 11
costs related to the services provided, including capital expenditures related to 12
the services, within the urban service tax district by the consolidated local 13
government as set out in this section that are in addition to the services 14
performed by the consolidated local government in the remainder of the 15
county; and[.] 16
(d) After June 30, 2034, the differential tax received by the urban service tax 17
district shall fund no less than one hundred percent (100%) of all costs related 18
to the services provided, including capital expenditures related to the services, 19
within the urban service tax district by the consolidated local government as 20
set out in this section that are in addition to the services performed by the 21
consolidated local government in the remainder of the county. 22
SECTION 9. A NEW SECTION OF KRS 100.401 TO 100.419 IS CREATED 23
TO READ AS FOLLOWS: 24
Notwithstanding any provision of KRS 100.401 to 100.419 to the contrary, a planning 25
commission shall not waive or amend an agreed-upon binding element added by the 26
legislative body without the approval of the legislative body of the local government 27 UNOFFICIAL COPY 25 RS SB 129/EN
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exercising planning authority. 1