KRS 178.200: Tax levy to retire bonds and pay interest.

(1) If bonds are sold to enable the fiscal court to construct roads and bridges, the fiscal

court shall levy a tax of not over twenty cents ($0.20) on the one hundred dollars

($100) of the assessed valuation of the county. The tax shall be collected as other

county taxes and allocated, first, to the payment of the interest on the bonds, and the

balance placed to the credit of a sinking fund for the redemption of the bonds.

(2) Any accumulation in the sinking fund may be loaned by the fiscal court on first

mortgage real estate security, on the basis of fifty percent (50%) of its value, at the

legal rate of interest, which shall accrue to the sinking fund, but before the loan is

made all titles shall be looked up and papers approved by the county attorney.

(3) For the 1966 tax year and for all subsequent years the rate levied by the levying

authority under the provisions of this section for levies which were approved prior

to December 16, 1965, shall be the compensating tax rate as defined in KRS

132.010, except as provided in subsection (4) of this section.

(4) Notwithstanding the limitations contained in subsection (3) of this section no tax

rate shall be set lower than that necessary to provide such funds as are required to

meet principal and interest payments on outstanding bonded indebtedness.