KRS 160.476: School building fund taxes -- Investment -- Expenditures -- Audit.

(1) The board of education of any district may, in addition to other taxes for school

purposes, levy not less than four cents ($0.04) nor more than twenty cents ($0.20)

on each one hundred dollars ($100) valuation of property subject to local taxation,

to provide a special fund for the purchase of sites for school buildings and physical

education and athletic facilities, for the erection and complete equipping of school

buildings and physical education and athletic facilities, and for the major alteration,

enlargement and complete equipping of existing buildings and physical education

and athletic facilities, provided, however, that such tax shall come within the

maximum school tax levy provided by KRS 160.470. In addition to or in lieu of this

special tax, any board of education may pay into this special fund at the close of any

fiscal year the proceeds from the sale of land or property no longer needed for

school purposes and all or any balances remaining in the general fund over and

above the amount necessary for discharging obligations for the fiscal year in full.

(2) The special fund provided for herein shall be kept in a separate account designated

as "school building fund." The fund shall be kept in a depository selected by the

board of education, or invested in bonds of the United States, of this state, or county

or municipality in this state, provided, however, that such investments shall be

approved by the Kentucky Board of Education.

(3) All expenditures from such fund shall be made solely for the purpos es enumerated

herein and shall be made in accordance with the school laws of the state at such

times as the board of education determines. The board of education shall cause to be

made annually an audit of the building fund by a certified public accountant or by

an accountant approved by the State Department of Education.

(4) Notwithstanding the provisions of any other subsection of this section to the

contrary, for the 1966 tax year and for all subsequent years no district board of

education shall levy a t ax at a rate under the provisions of this section which

exceeds the compensating tax rate as defined in KRS 132.010. The chief state

school officer shall certify the compensating tax rate to the district board of

education.