KRS 91.260: Ad valorem taxes -- Taxes based on income, licenses and franchises --

Exemption of manufacturing establishments, including qualified data centers.

(1) Each city of the first class shall raise a revenue from ad valorem taxes and from

taxes based on in come, licenses and franchises. The board of aldermen may each

year, by ordinance, levy an ad valorem tax on all real and personal property subject

to taxation for city purposes, at a rate within the limits prescribed in the

Constitution, and may provide fo r taxation, for city purposes, on personal property

based on income, licenses or franchises in lieu of an ad valorem tax thereon, but

may not omit the imposition of an ad valorem tax on the taxable personal property

of any steam, railroad, street railway, ferry, bridge, gas, water, heating, telephone,

telegraph, electric light or electric power company, and may not levy or collect an

income tax.

(2) The board of aldermen shall provide for the collection of all taxes imposed under

this section.

(3) (a) The b oard of aldermen may by ordinance exempt manufacturing

establishments, including qualified data centers, from city taxation for a

period not exceeding five (5) years, as an inducement to their location within

the city limits.

(b) As used in this subsection:

1. "Data center" means a structure or portion of a structure that is

predominantly used to house and continuously operate computer servers

and associated telecommunications, electronic data processing or

storage, or other similar components;

2. "Overall tier rating" means the overall tier rating of a data center

according to the TIA -942 Telecommunications Infrastructure Standard

for Data Centers established by the Telecommunications Industry

Association and published in April 2005, exclusive of any amendm ents

made subsequent to that date; and

3. "Qualified data center" means a data center having an overall tier rating

of three (3) or four (4) on the assessment date of a given taxable year, as

established by the owner thereof.