KRS 96A.320: Submission of proposal to establish program -- Voters -- Program

financing.

(1) As used in KRS 96A.310 to 96A.370, the term "mass transportation program" shall

mean the provision of necessary funds by public bodies to transit authorities created

pursuant to KRS Chapter 96A with which to acquire, operate, and preserve mass

transportation facilities. A "mass transportation program" may also include a

method for the public body or public bodies to finance principal and interest

payments on any general obligation bonds issued pursuant to KRS 96A.120, or to

finance transportation -related facilities to promote the movement of vehicles and

people. Urban-county governments which initiate a "mass transportation program"

may include in this program the improvement of existing roads and the construction

of new roads.

(2) Public bodies which h ave been parties to the creation and establishment of transit

authorities, or who constitute the membership of such transit authorities, may,

acting either individually or jointly, submit to either the electorates of such public

bodies, or the electorate o f the transit area encompassed by any such transit

authority, but only in the manner and pursuant to the procedures set forth in KRS

96A.310 to 96A.370, one (1) or more proposals for the approval of a mass

transportation program to be financed by additional voted levies of ad valorem taxes

upon all taxable property in such public body or public bodies. Such additional

voted levies of ad valorem taxes upon all taxable property in any such public body

shall never exceed in the aggregate the limits prescribed by the Constitution of

Kentucky for any such public body.

(3) Public bodies which have been parties to the creation and establishment of transit

authorities, or who constitute the membership of such transit authorities, may,

acting either individually or j ointly, submit to either the electorates of such public

bodies, or the electorate of the transit area encompassed by any such transit

authority, but only in the manner and pursuant to the procedures set forth in KRS

96A.310 to 96A.370, one (1) or more prop osals for the approval of a mass

transportation program to be financed by voted levies of occupational license fees.

Such voted levies of occupational license fees shall not exceed one percent (1%) of:

(a) Salaries, wages, commissions, and other compensati on earned by persons for

work done and services performed or rendered; and

(b) The net profits of businesses, trades, professions, or occupations from

activities conducted in the public body, or the transit area, except public

service companies, banks, tru st companies, combined banks and trust

companies, combined trust, banking and title companies, any savings and loan

association whether state or federally chartered, and in all other cases where a

public body is prohibited by law from imposing a license fee.

(4) (a) Public bodies which have been parties to the creation and establishment of

transit authorities, or who constitute the membership of such transit

authorities, may, acting either individually or jointly, submit to either the

electorates of such pu blic bodies, or the electorate of the transit area

encompassed by any such transit authority, but only in the manner and

pursuant to the procedures set forth in KRS 96A.310 to 96A.370, one (1) or

more proposals for the approval of a mass transportation pro gram to be

financed by the voted levy of a sales tax upon all retailers at a rate not to

exceed one -half of one percent (0.5%) of the gross receipts of any retailer

derived from "retail sales" or "sales at retail" made within the public body or

public bodi es, provided, however, that public transit sales tax shall not be

levied on those retail sales which are exempted from the state sales tax by

KRS Chapter 139 on June 19, 1976, or hereafter exempted.

(b) Any sales tax levied for said purpose shall be in add ition to the sales tax

authorized by Chapter 139 of the Kentucky Revised Statutes. Said public

transportation sales tax shall be collected and administered under the

provisions of Chapter 139 of the Kentucky Revised Statutes and the rules and

regulations of the Kentucky Department of Revenue.

(5) The Kentucky Department of Revenue shall refund that portion of the sales tax

collected as a public transportation tax to the public body or bodies imposing said

tax.

(6) Notwithstanding any other provision contrary hereto, a mass transportation program

financed by a public body or public bodies from said sales tax shall be restricted by

the following order of priorities, to wit:

(a) First, the annual payment of principal, interest, and sinking fund requirements

on any general obligation bonds issued pursuant to KRS 96A.120;

(b) Second, appropriations to the transit authority to provide local matching funds

for any available federal or state capital, operating, or planning and

demonstration grant projects in accordan ce with the annual approved budget;

and

(c) Third, any excess funds in the control of each public body receiving said tax

shall be transferred to the general fund of each such public body for public

transportation and traffic improvement projects at any location within a city or

county, in any manner which said public body or public bodies determine will

improve transportation, road or traffic conditions, or in general will promote

the movement of people and vehicles.