{"data":{"id":"us-ky/krs-65.302","jurisdiction":"us-ky","citation":"KRS 65.302","heading":"Regional economic development projects -- Interlocal agreements --","body":"Creation of taxing district -- Special ad valorem tax, occupational license fee,\nand wage assessment.\n(1) (a) 1. After providing notice in accordance with KRS 65.306, two ( 2) or more\ngoverning bodies of local governments constituting a multicounty\nregion may join together by entering into an interlocal agreement under\nKRS 65.210 to 65.300 to develop real estate as part of a regional\neconomic development project. The interloc al agreement shall specify\nthe investment dollars contributed to the regional economic\ndevelopment project by each local government, the use of those\ninvestment dollars for the project, and the provision of services provided\nby each local government.\n2. The regional economic development project shall:\na. Consist of three hundred (300) or more contiguous acres located in\nthe jurisdiction of a local government that is a party to the\ninterlocal agreement; and\nb. Result in the creation of at least five hundred (500) new jobs.\n(b) 1. The territory that will be used in a regional economic development\nproject may be organized into a taxing district for the purpose of levying\ntaxes to:\na. Provide for the establishment, operation, and maintenance of the\ndistrict and governmental services for the district;\nb. Pay the debt service on bonds issued to finance the cost of\ninfrastructure development in the district;\nc. Pay the Commonwealth for funds appropriated for the\ndevelopment of the district; and\nd. Invest in future regional economic development projects located in\nthe jurisdiction of any local government that is a party to the\ninterlocal agreement.\n2. A taxing dis trict created under this paragraph shall comply with KRS\n65.182 to 65.190, including the petition requirements, but not the\npercentage of registered voter signature requirements under KRS\n65.182(1)(a).\n(2) (a) Once created, the district shall constitute a taxing district within the meaning\nof Section 157 of the Constitution of Kentucky and is authorized to levy a\nspecial ad valorem tax on property located within the jurisdictional boundaries\nof the district.\n(b) The special ad valorem tax rate shall not exc eed ten cents ($0.10) per one\nhundred dollars ($100) of the assessed value of the property.\n(c) The special ad valorem tax shall be:\n1. In addition to all other ad valorem taxes; and\n2. Administered and collected in the same manner as the county ad\nvalorem taxes, except the revenues shall be turned over to the board.\n(3) (a) In addition to the special ad valorem tax levied under subsection (2) of this\nsection, the governing body of a local government in which the district is\nlocated may, with agreement of t he governing bodies of all of the local\ngovernments that are a party to the interlocal agreement, impose and collect\nan occupational license fee on businesses, trades, professions, or occupations\nperformed, rendered, or conducted within the district, at a percentage rate not\nto exceed three percent (3%) of:\n1. Salaries, wages, commissions, and other compensation earned by\npersons within the district for work done and services performed,\nrendered, or conducted within the district;\n2. The net profits of self -employed individuals, partnerships, professional\nassociations, or joint ventures resulting from businesses, trades,\nprofessions, occupations, or activities conducted in the district; and\n3. The net profits of corporations resulting from businesses, trades,\nprofessions, occupations, or activities conducted in the district.\n(b) Once an occupational license fee is imposed under this subsection, the rate of\nthe occupational license fee shall never increase.\n(c) The occupational license fee shall not apply to bu sinesses, trades, professions,\nor occupations exempt under KRS 68.180, 68.197, or 91.200.\n(d) Each local government that is a party to the interlocal agreement shall receive\na portion of the revenues collected from the occupational license fee as\nspecified by the agreement. The revenues may be deposited into the general\nfund of the local government pursuant to the interlocal agreement.\n(4) (a) If a district is located within the jurisdiction of a city, the city may impose a\nlicense fee. The city shall not i mpose an occupational license fee until all\ncities that are a party to the interlocal agreement approve of the imposition of\nthe occupational license fee and the rate that is to be imposed.\n(b) Persons who pay a county license fee and a license fee to a ci ty under\nparagraph (a) of this subsection shall be allowed to credit their city license fee\nagainst their county license fee in accordance with KRS 68.197.\n(5) Wage assessments may be imposed upon salaries, wages, commissions, and other\ncompensation earned  by persons within the district for work done and services\nperformed, rendered, or conducted within the district. Any wage assessments\nimposed within the district shall expire and no longer be imposed upon the earlier\nof:\n(a) Twenty (20) years after the date of imposition;\n(b) The date bonds for the district supported by the wage assessments are retired;\nor\n(c) All financial assistance received from the Commonwealth for infrastructure\nare repaid.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57922","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:21Z","sha256":"d448e10aa2a3754a83d28bc1800aa60f9c913261361cdb1c013cf7d621d17631","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.301","next":"us-ky/krs-65.304"},"notice":"GroundRules: Original legal text. Not legal advice."}