{"data":{"id":"us-ky/krs-134.452","jurisdiction":"us-ky","citation":"KRS 134.452","heading":"Third-party purchaser  of certificate of delinquency  -- Fees  --","body":"Reasonable  attorneys' litigation fees -- Collection limitations -- Notice to\nproper owner -- Legislative findings.\n(1) Notwithstanding any other provisions of this chapter, a third-party purchaser of\na  certificate of delinquency shall be entitled to collect only the following\nprelitigation fees:\n(a) The amount actually paid for the certificate of delinquency;\n(b) Interest as provided in KRS  134.125, calculated on the amount actually\npaid to the county clerk from the date the certificate of delinquency was\npurchased until paid; and\n(c) 1. Prelitigation attorneys' fees, which may include amounts incurred for\ncollection efforts and  costs related to notification, processing,\nresearch, communication, compliance, legal costs, documentation,\nand  similar expenses, from the date the third-party purchaser\npurchases the certificate of delinquency from the county clerk, to the\ndate on which the notice required by KRS  134.490(2) is mailed by\nthe third-party purchaser.\n2. The  amount that may be collected by the third-party purchaser as\nprelitigation attorneys' fees shall be  subject to the following\nlimitations:\na. i. If the amount  paid for a certificate of delinquency is\nbetween  five dollars ($5) and three hundred fifty dollars\n($350), actual reasonable fees incurred up  to one\nhundred percent (100%) of the amount of the certificate of\ndelinquency, not to exceed three hundred fifty dollars\n($350);\nii. If the amount  paid for a certificate of delinquency is\nbetween three hundred fifty-one dollars ($351) and seven\nhundred dollars ($700), actual reasonable fees incurred\nup to eighty percent (80%) of the amount of the certificate\nof delinquency, not to exceed five hundred sixty dollars\n($560); and\niii. If the amount  paid for a certificate of delinquency is\nabove  seven  hundred  one  dollars ($701), actual\nreasonable fees incurred up to seventy percent (70%) of\nthe  amount  of the certificate of delinquency, not to\nexceed seven hundred dollars ($700); and\nb. If a third-party purchaser is the owner of more than one (1)\ncertificate of delinquency against the same  taxpayer, actual\nand reasonable prelitigation attorneys' fees for all certificates of\ndelinquency against the same  taxpayer shall not exceed one\nand  one-half (1.5) times the maximum  amount permitted in\nsubdivision a. of this subparagraph for the largest tax bill owed\nby the taxpayer.\n3. The amounts allowed by subparagraph 2. of this paragraph shall not\naccrue to the account of the delinquent taxpayer, nor be charged by\nthe third-party purchaser against the delinquent taxpayer all at one\n(1) time unless the amount  of certificate of delinquency is one\nhundred  seventy-five dollars ($175) or less. The  third-party\npurchaser may  accrue to the account of the delinquent taxpayer,\nand charge the delinquent taxpayer an amount equal to the lesser of\nprelitigation attorney's fees incurred by the third-party purchaser\nsince the prior notice was sent or one hundred seventy-five dollars\n($175), for each notice sent to the delinquent taxpayer, provided\nthat:\na. The total aggregate amount of prelitigation attorneys' fees that\nmay  accrue to the account of the delinquent taxpayer and be\ncharged by the third-party purchaser against the delinquent\ntaxpayer shall not exceed  the limitations established by\nsubparagraph 2.a. of this paragraph; and\nb. Additional fees shall not accrue to the account of the\ndelinquent taxpayer or be charged by the third-party purchaser\nagainst the delinquent taxpayer more frequently than every\nninety (90) days, regardless of how  many  notices the\nthird-party purchaser may send.\n(2) If the delinquent taxpayer and the third-party purchaser enter into a payment\nagreement, the third-party purchaser may  collect the installment payment\nprocessing fee authorized by KRS 134.490(5).\n(3) (a) In addition to the fees established by subsections (1), (2), and (4) of this\nsection, a third-party purchaser may collect actual, reasonable attorneys'\nfees and costs that arise due to the prosecution of collection remedies or\nthe protection of a certificate of delinquency that is involved in litigation.\nFees  and costs permitted under this subsection include fees and costs\nincurred from the first day after the notice required by KRS  134.490(2) is\nsent through the day any litigation is finally concluded.\n(b) For purposes of this subsection:\n1. Actual attorneys' litigation fees up to two thousand dollars ($2,000)\nmay  be reasonable if the fees are based upon documented work\nperformed at a rate commensurate  with hourly rates customarily\ncharged by private attorneys in that jurisdiction for similar services.\nA  flat rate, without hours documented for work performed, may be\nreasonable if the flat fee is determined to be discounted from the\nusual and customary rates for comparable work; and\n2. Any  attorneys' litigation fee in excess of two thousand dollars\n($2,000) shall be allowed if authorized by the court upon a finding\nthat the third-party purchaser incurred actual attorneys' litigation fees\nin excess of two thousand dollars ($2,000) and that those attorneys'\nlitigation fees were warranted based upon the complexity of the\nissues presented in the litigation.\n(4) The  third-party purchaser may  collect administrative fees incurred for\npreparing, recording, and  releasing an  assignment of the certificate of\ndelinquency in the county clerk's office, not to exceed one hundred fifteen\ndollars ($115).\n(5) The  General Assembly  recognizes that third-party purchasers play an\nimportant role in the delinquent tax collection system, allowing taxing districts to\nreceive needed funds on a timely basis. The General Assembly has carefully\nconsidered the fees and  charges authorized by  this section, and  has\ndetermined that the amounts established are reasonable based on the costs of\ncollection and fees and charges incurred in litigation.\n(6) A certificate of delinquency owned by a third-party purchaser shall be deemed\na general intangible for the purposes of Article 9 of KRS Chapter 355.","path":["KRS Chapter 134"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47033","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:26Z","sha256":"0282d9d2c37f3b12d4bd5eb4f7dc2e9a9b46c153a81491b022d3722d2e23f0c3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-134.450","next":"us-ky/krs-134.460"},"notice":"GroundRules: Original legal text. Not legal advice."}