KRS 160.470: Tax rate limits -- Hearing -- Levy exceeding four percent increase subject

to recall vote or reconsideration -- Levy of minimum equivalent tax rate.

(1) (a) Notwithstanding any statutory provisions to the contrary, a local board of

education shall not levy a general tax rate which will produce more revenue,

exclusive of revenue from net assessment growth as defined in KRS 132.010,

than would be produced by application of the general tax rate that could have

been levied in the preceding year to the preceding year's assessment, except as

provided in subsections (9) and (10) of this section and KRS 157.440.

(b) If an election is held as provided for in KRS 132.017 and the question should

fail, such failure shall not reduce the "...general tax rate that could have been

levied in the preceding year...," referred to in subsection (1)(a) of this section,

for purposes of computing the general tax rate for succeeding years.

In the event of a merger of school districts, the limitations contained in t his section

shall be based upon the combined revenue of the merging districts, as computed

under the provisions of this section.

(2) A local board of education shall not levy a general tax rate within the limits

imposed in subsection (1) of this section wh ich respectively exceeds the

compensating tax rate defined in KRS 132.010, except as provided in subsections

(9) and (10) of this section and KRS 157.440 and 157.621, until the local board of

education has complied with the provisions of subsection (7) of this section.

(3) Upon receipt of property assessments from the Department of Revenue, the

commissioner of education shall certify the following to each local board of

education:

(a) The general tax rate that a local board of education could levy under the

provisions of subsection (1) of this section, and the amount of revenue

expected to be produced;

(b) The compensating tax rate as defined in KRS 132.010 for a district's general

tax rate the amount of revenue expected to be produced; and

(c) The general t ax rate which will produce, respectively, no more revenue from

real property, exclusive of revenue from new property, than four percent (4%)

over the amount of revenue produced by the compensating tax rate defined in

KRS 132.010, and the amount of revenue expected to be produced.

(4) Upon completion of action on property assessment data, the Department of

Revenue shall submit certified property assessment data as required in KRS

133.125 to the chief state school officer.

(5) Within thirty (30) days after the local board of education ha s received its

assessment data, the rates levied shall be forwarded to the Kentucky Board of

Education for its approval or disapproval. The failure of the local board of

education to furnish the rates within the time prescribed shall not invalidate any

levy made thereafter.

(6) (a) A local board of education proposing to levy a general tax rate shall make the

following information public:

1. The general tax rate levied in the preceding year and the revenue

produced by that rate;

2. The proposed tax rate for the current year and the revenue expected to

be produced by that rate;

3. A clear explanation if the proposed tax rate is expected to produce more

or less revenue generated for the school district than received from the

general tax rate in the preceding year and the general areas to which any

increase in revenue will be allocated;

4. A specific reference to this section and KRS 132.017, along with a

statement as to whether any portion of the proposed tax rate, if adopted,

would be subject to recall; and

5. A statement to the effect that the General Assembly has required

publication of the information contained herein.

(b) To make the information in paragraph (a) of this subsection public, the local

board of education:

1. Shall publish the information for at least two (2) consecutive weeks on

the home page of its website and in the newspaper of largest circulation

in the county in a display type advertisement of not less than twelve (12)

column inches;

2. Shall read the information into the record of the school board meeting in

which the general tax rate is adopted;

3. Shall post the information on its social media platforms; and

4. May issue a notice containing the information to the editor of all print

media.

(7) (a) Except as provided in subsections (9) and (10) of this section and KRS

157.440, a local board of education proposing to levy a general tax rate within

the limits of subsection (1) of this section which exceeds the compensating tax

rate defined in KRS 132.010 shall hold a public hearing to hear co mments

from the public regarding the proposed tax rate. The hearing shall be held in

the principal office of the taxing district or, in the event the taxing district

does not have a suitable office to hold the hearing, the hearing shall be held

in a suitable facility as near as possible to the geographic center of the district.

(b) The local board of education shall include the following information in the

publication required in subsection (6) of this section and advertisement of the

hearing:

1. The compensating general tax rate, and the revenue expected from it;

2. The revenue expected from new property and personal property;

3. A time and place for the public hearing which shall be held not less than

seven (7) days nor more than ten (10) days after the d ay that the second

advertisement is published; and

4. The purpose of the hearing.

(c) In lieu of the two (2) published notices in the newspaper, a single notice

containing the required information required by subsection (6) of this section

and paragraph (b ) of this subsection may be sent by first -class mail to each

person owning real property, addressed to the property owner at his residence

or principal place of business as shown on the current year property tax roll.

(d) The hearing shall be open to the p ublic. All persons desiring to be heard shall

be given an opportunity to present oral testimony. The local board of

education may set reasonable time limits for testimony.

(8) (a) That portion of a general tax rate, except as provided in subsections (9) an d

(10) of this section, KRS 157.440, and KRS 157.621, levied by an action of a

local board of education which will produce, respectively, revenue from real

property, exclusive of revenue from new property, more than four percent

(4%) over the amount of rev enue produced by the compensating tax rate

defined in KRS 132.010, shall be subject to a recall vote or reconsideration by

the local board of education as provided for in KRS 132.017, and shall be

advertised as provided for in subsection (6) of this sectio n and paragraph (b)

of this subsection.

(b) The local board of education shall, within seven (7) days following adoption

of an ordinance, order, resolution, or motion to levy a general tax rate, except

as provided in subsections (9) and (10) of this sectio n and KRS 157.440,

which will produce revenue from real property, exclusive of revenue from

new property as defined in KRS 132.010, more than four percent (4%) over

the amount of revenue produced by the compensating tax rate defined in KRS

132.010, cause the following to be published, on the home page of its website

and in the newspaper of largest circulation in the county, a display type

advertisement of not less than twelve (12) column inches:

1. The fact that the local board of education has adopted such a rate;

2. The fact that the part of the rate which will produce revenue from real

property, exclusive of new property as defined in KRS 132.010, in

excess of four percent (4%) over the amount of revenue produced by the

compensating tax rate defined in KRS 132.010 is subject to recall; and

3. The name, address, and telephone number of the county clerk of the

county or urban -county in which the school district is located, with a

notation to the effect that that official can provide the necessary

information about the petition required to initiate recall of the tax rate.

(9) (a) Notwithstanding any statutory provisions to the contrary, effective for school

years beginning after June 30, 1990, the board of education of each school

district shall levy a minimum equivalent tax rate of thirty cents ($0.30) for

general school purposes. Equivalent tax rate is defined as the rate which

results when the i ncome collected during the prior year from all taxes levied

by the local for school purposes is divided by the total assessed value of

property plus the assessment for motor vehicles certified by the Department of

Revenue. School districts collecting schoo l taxes authorized by KRS 160.593

to 160.597, 160.601 to 160.617, or 160.635 to 160.648 for less than twelve

(12) months during a school year shall have included in income collected

under this section the pro rata tax collection for twelve (12) months.

(b) Failure of a board to comply with paragraph (a) of this subsection may

constitute a forfeiture of office by its members pursuant to KRS 415.050 and

415.060.

(10) A local board of education may levy a general tax rate that will produce revenue

from real pr operty, exclusive of revenue from new property, that is four percent

(4%) over the amount of the revenue produced by the compensating tax rate as

defined in KRS 132.010.