{"data":{"id":"us-ky/krs-157.440","jurisdiction":"us-ky","citation":"KRS 157.440","heading":"Levy of an equivalent tax rate -- Participation in Facilities Support","body":"Program -- District may exceed levy authorized by KRS 160.470 if approved\nby voters -- Compensating tax rate.\n(1) (a) Notwithstanding any statutory provisions to the contra ry, effective for school\nyears beginning after July 1, 1990, the board of education of each school\ndistrict may levy an equivalent tax rate as defined in KRS 160.470(9)(a)\nwhich will produce up to fifteen percent (15%) of those revenues guaranteed\nby the program to support education excellence in Kentucky. The levy for the\n1990-91 school year shall be made no later than October 1, 1989, and no later\nthan October 1, 1990, for the 1991 -92 school year, and by October 1 of each\nodd-numbered year thereafter. Eff ective with the 1990 -91 school year,\nrevenue generated by this levy shall be equalized at one hundred fifty percent\n(150%) of the statewide average per pupil assessment.\n(b) To participate in the Facilities Support Program of Kentucky, the board of\neducation of each school district shall commit at least an equivalent tax rate of\nfive cents ($0.05) to debt service, new facilities, or major renovations of\nexisting school facilities, or the purchase of land if approved by the\ncommissioner of education as provi ded in KRS 157.420(4)(b). The five cents\n($0.05) shall be in addition to the thirty cents ($0.30) required by KRS\n160.470(9) and any levy pursuant to paragraph (a) of this subsection. The levy\nshall be made no later than October 1 of each odd -numbered year. Eligibility\nfor equalization funds for the biennium shall be based on the district funds\ncommitted to debt service on that date. The five cents ($0.05) shall be\nequalized at one hundred fifty percent (150%) of the statewide average per\npupil assessment. The equalization funds shall be committed to debt service to\nthe greatest extent possible, but any excess equalization funds not needed for\ndebt service shall be deposited to a restricted building fund account. The\nfunds may be escrowed for future debt ser vice or used to address categorical\npriorities listed in the approved facilities plan pursuant to KRS 157.420.\n(c) The board of education of each school district may contribute the levy\nequivalent tax rate of five cents ($0.05) and equalization funds for e nergy\nconservation measures under guaranteed energy savings contracts pursuant to\nKRS 45A.345, 45A.352, and 45A.353. Use of these funds, as provided under\nKRS 45A.353, 56.774, and 58.600 shall be based on the following guidelines:\n1. Energy conservation measures shall include facility alteration;\n2. Energy conservation measures shall be identified in the district's\napproved facility plan pursuant to KRS 157.420;\n3. The current facility systems are consuming excess maintenance and\noperating costs;\n4. The sav ings generated by the energy conservation measures are\nguaranteed;\n5. The levy equivalent tax rate of five cents ($0.05) and equalization funds\ncontributed to the energy conservation measures shall be defined as\ncapital cost avoidance as provided in KRS 45 A.345(2) and shall be\nsubject to the restrictions on usage as specified in KRS 45A.352(9); and\n6. The equipment that is replaced has exceeded its useful life as\ndetermined by a life cycle cost analysis.\n(d) The rate levied by a local board of education under the provisions of this\nsubsection shall not be subject to the public hearing provisions of KRS\n160.470(7) or to the recall provisions of KRS 160.470(8).\n(e) A school district which is at or above the equivalent tax rates permitted under\nthe provisions of the Kentucky Education Reform Act of 1990, 1990 Ky. Acts\nch. 476, shall not be required to levy an equivalent tax rate which is lower\nthan the rate levied during the 1989-90 school year.\n(2) (a) A district may exceed the maximum provided by KRS 160.470(1) provided\nthat, upon request of the board of education of the school district, the county\nboard o f elections shall submit to the qualified voters of the district, in the\nmanner of submitting and voting as prescribed in paragraph (b) of this\nsubsection, the question whether a rate which would produce revenues in\nexcess of the maximum provided by KRS 16 0.470(1) shall be levied. The rate\nthat may be levied under this section may produce revenue up to no more than\nthirty percent (30%) of the revenue guaranteed by the program to support\neducation excellence in Kentucky plus the revenue produced by the tax\nauthorized by this section. Revenue produced by this levy shall not be\nequalized with state funds. If a majority of those voting on the question favor\nthe increased rate, the tax levying authority shall, when the next tax rate for\nthe district is fixed, levy a rate not to exceed the rate authorized by the voters.\n(b) The election shall be held not less than fifteen (15) or more than thirty (30)\ndays from the time the request of the board is filed with the county clerk, and\nreasonable notice of the election s hall be given. The election shall be\nconducted and carried out in the school district in all respects as required by\nthe general election laws and shall be held by the same officers as required by\nthe general election laws. The expense of the election shal l be borne by the\nschool district.\n(3) For the 1966 tax year and for all subsequent years for levies which were approved\nprior to December 8, 1965, no local board of education shall levy a tax at a rate\nunder the provisions of this section which exceeds th e compensating tax rate as\ndefined in KRS 132.010, except as provided in subsection (4) of this section and\nexcept that a rate which has been approved by the voters under this section but\nwhich was not levied by the local board of education in 1965 may be levied after it\nhas been reduced to the compensating tax rate as defined in KRS 132.010, and\nexcept that in any school district where the rate levied in 1965 was less than the\nmaximum rate which had been approved by the voters, the compensating tax rate\nshall be computed and may be levied as though the maximum approved rate had\nbeen levied in 1965 and the amount of revenue which would have been produced\nfrom such maximum levy had been derived therefrom.\n(4) Notwithstanding the limitations contained in subse ction (3) of this section, no tax\nrate shall be set lower than that necessary to provide such funds as are required to\nmeet principal and interest payments on outstanding bonded indebtedness and\npayments of rentals in connection with any outstanding school  revenue bonds\nissued under the provisions of KRS Chapter 162.\n(5) The chief state school officer shall certify the compensating tax rate to the levying\nauthorities.","path":["KRS Chapter 157"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57650","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:02Z","sha256":"8401df85f98906d15e9ae9e7600963565a8cc09c026f4ddcb549f9f295b932a6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-157.430","next":"us-ky/krs-157.442"},"notice":"GroundRules: Original legal text. Not legal advice."}