KRS 160.6153: Procedure when allocation on taxpayer's return varies from school

district boundary information provided by superintendents -- Adjustment --

Exceptions -- Reallocation agreement.

(1) If the department determines that the allocation among districts as submitted by the

taxpayer on the return varies from the school district boundary information

submitted to the department pursuant to KRS 160.6152, the department shall:

(a) Make a proposed administrative adjustment to correct the erroneous allocation

going forward;

(b) Determine whether the erroneous allocation was used on prior returns and if it

was, make a proposed administrative adjustment going back a maximum of

one (1) year from the date the erroneous allocation was discovered; and

(c) Retain taxes co llected and still on hand for distribution to the impacted

districts that are related to the erroneous allocation until the proposed

administrative adjustment becomes final.

(2) Within ten (10) days of the discovery of the erroneous allocation, the departm ent

shall notify the taxpayer and the impacted school districts in writing of the

allocation discrepancy, including the dollar amount at issue, the proposed

administrative adjustment to be made, and the process for agreeing to or filing an

exception to the proposed administrative adjustment.

(3) The proposed administrative adjustment shall become final upon the earlier of the

receipt by the department of written acceptance of the administrative adjustment by

all impacted school districts or the expiration o f forty-five (45) days from the date

of the notice with no exception having been filed.

(4) (a) Exceptions to the proposed administrative adjustment shall be filed with the

commissioner of the department, within forty -five (45) days from the date of

the notice, and shall include a supporting statement setting forth the basis of

the exception. A copy of any exception filed shall also be mailed to the

impacted utility services provider and any other impacted school district.

(b) After the exception has been f iled, the impacted school district may request a

conference with the department. The request shall be granted in writing stating

the time and date of the conference. Other impacted school districts and the

impacted utility services provider may also attend any conference. Additional

conferences may be held upon mutual agreement.

(c) After considering the exceptions filed by the impacted school district,

including any information provided during any conferences, a final

administrative ruling shall be issued by the department. The final

administrative ruling shall be mailed to all impacted school districts as well as

the impacted utility services provider.

(d) The impacted school district filing the exception may request in writing a final

ruling at any time a fter filing exceptions and a supporting statement, and the

department shall issue the ruling within thirty (30) days after the request is

received by the department.

(e) After a final ruling has been issued, the school district may appeal to the

Franklin C ircuit Court or to the Circuit Court of the county in which the

school district is located.

(5) The method and timing of the implementation of a final administrative ruling that

requires a reallocation of previously distributed tax receipts shall be determ ined by

agreement of the impacted school districts, provided that any agreement allowing

for adjustments to be made over time in the future shall not extend beyond four (4)

years.

(a) The department shall, upon request of the impacted school districts, assist in

the development of an agreement.

(b) An agreement that requires distribution changes that vary from the district

boundary information shall be provided to the department so that distributions

can be made in accordance with the agreement.

(c) If the impacted school districts fail to reach an agreement regarding the

reallocation of previously distributed tax receipts, the department shall adjust

distributions going forward for four (4) years so that at the expiration of four

(4) years, the district that should have received the original distribution has

recouped all of the funds distributed erroneously, and the district that

erroneously received the funds has repaid all of the funds distributed

erroneously.