KRS 224A.060: Authority is taxing district -- Power to levy taxes.

The authority is hereby declared to constitute an independent taxing district within the

meaning of the Constitution of the Commonwealth of Kentucky, which authority, as an

independent taxing district, shall encompass the entire geographical area of the

Commonwealth of Kentucky. The General Assembly finds and determines as a legislative

finding of fact that the use of water in any manner tending to contaminate it creates a

pollutant, and that the public health, safety, and welfare of the citizens of Kentuck y will

best be served by the proper disposition thereof according to the highest public health

standards. The carrying out of such objectives serves a statewide public purpose, not

related to any specific area or locality of the state, but affecting the we lfare and health of

all Kentucky citizens and the future of the state, both functionally and economically. The

authority, upon resolution duly adopted by its governing body, as an independent taxing

district within the Commonwealth of Kentucky, may levy an d collect a tax upon every

purchase of water service or sewer service in the Commonwealth of Kentucky, such tax

to be equal to not more than two percent (2%) of the gross amount of each such purchase

of water service or sewer service. All of such utility t ax receipts shall, upon receipt, be

and constitute authority revenues, and may be used, treated and applied by the authority in

common with other authority revenues, to carry out the purposes for which the authority

is created, including payment of princip al and interest on authority revenue bonds;

provided, however, that in connection with the issuance of authority revenue bonds, the

authority may pledge such utility tax receipts for bond amortization purposes only to the

extent same may be actually levied , collected, and received by the authority, and to the

extent same are not otherwise committed or budgeted by the authority during any fiscal

period of the authority, and no covenant shall be made by the authority for the

continuation of such utility tax i n futuro, without the requisite vote required by the

provisions of the Constitution of the Commonwealth of Kentucky.