KRS 224A.200: Assistance agreements may contain provision for reduction of payments

to authority.

The authority, as provided in KRS 224A.060, is created and constituted as an independent

taxing district and taxing authority with the right to levy in its own name a nd for its

proper public and essential governmental purposes a water utility tax on every purchase

of water service in the Commonwealth of Kentucky in an amount equal to not more than

two percent (2%) of the gross amount of each such water bill. Any assist ance agreements

entered into by and between the authority and governmental agencies may provide by

their terms that service charges levied by governmental agencies for payment to the

authority in accordance with this chapter, may be reduced, diminished or extinguished to

the extent that the authority has, during any fiscal period of the authority, levied and

collected water utility taxes pursuant to this chapter, or to the extent that other authority

revenues have been received by the authority, or to maxim ize federal grant participation

in the state, such reduction, diminution or extinguishment of service charges to be based

upon formulas, procedures, and other rules and regulations which shall be prescribed by

the authority from time to time pursuant to it s power to make, promulgate, and enact

rules, regulations and bylaws; provided, however, that such adjustment agreement shall

not void, abate or render nugatory any other provisions of any assistance agreements.