{"data":{"id":"us-ky/krs-65.680","jurisdiction":"us-ky","citation":"KRS 65.680","heading":"Definitions for KRS 65.680 to 65.699.","body":"As used in KRS 65.680 to 65.699:\n(1) \"Activation date\" means the date established in the grant contract at any time in a\ntwo (2) year period after the date of approval of the grant contract by the economic\ndevelopment authority or the tourism development authority, as appropriate. The\neconomic development authority or tourism development authority, as appropriate,\nmay extend this two (2) year period to no more than four (4) years upon written\napplication of the agency requesting the extension. To implement the activation\ndate, the agency who i s a party to the grant contract shall notify the economic\ndevelopment authority or the tourism development authority, as appropriate, the\nDepartment of Revenue, and other taxing districts that are parties to the grant\ncontract when the implementation of th e increment authorized in the grant contract\nshall occur;\n(2) \"Agency\" means an urban renewal and community development agency established\nunder KRS Chapter 99; a development authority established under KRS Chapter 99;\na nonprofit corporation established u nder KRS Chapter 58; an air board established\nunder KRS 183.132 to 183.160; a local industrial development authority established\nunder KRS 154.50 -301 to 154.50-346; a riverport authority established under KRS\n65.510 to 65.650; or a designated department, division, or office of a city or county;\n(3) \"Assessment\" means the job development assessment fee authorized by KRS\n65.6851, which the governing body may elect to impose throughout the\ndevelopment area;\n(4) \"Brownfield site\" means real property, the expans ion, redevelopment, or reuse of\nwhich may be complicated by the presence or potential presence of a hazardous\nsubstance, pollutant, or contaminant;\n(5) \"City\" means any city, consolidated local government, or urban-county;\n(6) \"Commencement date\" means the  date a development area is established, as\nprovided in the ordinance creating the development area;\n(7) \"Commonwealth\" means the Commonwealth of Kentucky;\n(8) \"County\" means any county, consolidated local government, or charter county;\n(9) \"CPI\" means the  nonseasonally adjusted Consumer Price Index for all urban\nconsumers, all items (base year computed for 1982 to 1984 equals one hundred\n(100)), published by the United States Department of Labor, Bureau of Labor\nStatistics;\n(10) \"Debt charges\" means the principal, including any mandatory sinking fund deposits,\ninterest, and any redemption premium, payable on increment bonds as the payments\ncome due and are payable and any charges related to the payment of the foregoing;\n(11) \"Development area\" means a contiguous geographic area, which may be within one\n(1) or more cities or counties, defined and created for economic development\npurposes by an ordinance of a city or county in which one (1) or more projects are\nproposed to be located, except that for any devel opment area for which increments\nare to include revenues from the Commonwealth, the contiguous geographic area\nshall satisfy the requirements of KRS 65.6971 or 65.6972;\n(12) \"Economic development authority\" means the Kentucky Economic Development\nFinance Authority as created in KRS 154.20-010;\n(13) \"Enterprise Zone\" means an area that had been designated by the Enterprise Zone\nAuthority of Kentucky to be eligible for the benefits of Subchapter 45 of KRS\nChapter 154 before January 1, 2005;\n(14) \"Governing body\" means the body possessing legislative authority in a city or\ncounty;\n(15) \"Grant contract\" means:\n(a) That agreement with respect to a development area established under KRS\n65.686, by and among an agency and one (1) or more taxing distric ts other\nthan the Commonwealth, by which a taxing district permits the payment to an\nagency of an amount equal to a portion of increments other than revenues\nfrom the Commonwealth received by it in return for the benefits accruing to\nthe taxing district by reason of one (1) or more projects in a development area;\nor\n(b) That agreement, including with respect to a development area satisfying the\nrequirements of KRS 65.6971 or 65.6972, a master agreement and addenda to\nthe master agreement, by and among an ag ency, one (1) or more taxing\ndistricts, and the economic development authority or the tourism development\nauthority, as appropriate, by which a taxing district permits the payment to an\nagency of an amount equal to a portion of increments received by it in  return\nfor the benefits accruing to the taxing district by reason of one (1) or more\nprojects in a development area;\n(16) \"Increment bonds\" means bonds and notes issued for the purpose of paying the costs\nof one (1) or more projects in a development area,  the payment of which is secured\nsolely by a pledge of increments or by a pledge of increments and other sources of\npayment that are otherwise permitted by law to be pledged or used as a source of\npayment of the bonds or notes;\n(17) \"Increments\" means the amount of revenues received by any taxing district,\ndetermined by subtracting the amount of old revenues from the amount of new\nrevenues in the calendar year with respect to a development area and for which the\ntaxing district or districts and the agency h ave agreed upon under the terms of a\ngrant contract;\n(18) \"Infrastructure development\" means the acquisition of real estate within a\ndevelopment area meeting the requirements of KRS 65.6971 and the construction or\nimprovement, within a development area mee ting the requirements of KRS\n65.6971, of roads and facilities necessary or desirable for improvements of the real\nestate, including surveys; site tests and inspections; environmental remediation;\nsubsurface site work; excavation; removal of structures, roa dways, cemeteries, and\nother underground and surface obstructions; filling, grading, and provision of\ndrainage, storm water retention, installation of utilities such as water, sewer, sewage\ntreatment, gas, and electricity, communications, and similar facil ities; and utility\nextensions to the boundaries of the development area meeting the requirements of\nKRS 65.6971;\n(19) \"Issuer\" means a city, county, or an agency issuing increment bonds;\n(20) \"New revenues\" means the amount of revenues received with respec t to a\ndevelopment area in any calendar year after the activation date for a development\narea:\n(a) Established under KRS 65.686, the ad valorem taxes other than the school and\nfire district portions of the ad valorem taxes received from real property\ngenerated from the development area and properties sold within the\ndevelopment area, and occupational license fees not otherwise used as a credit\nagainst an assessment, and all or a portion of assessments as determined by\nthe governing body; or\n(b) Satisfying the requirements of KRS 65.6971, the ad valorem taxes other than\nthe school and fire district portions of the ad valorem taxes received from real\nproperty generated from the development area and properties sold within the\ndevelopment area; or\n(c) Satisfying the requirements of KRS 65.6972, the ad valorem taxes, other than\nthe school and fire district portions of the ad valorem taxes, received from real\nproperty, Kentucky individual income tax, Kentucky sales and use taxes, local\ninsurance premium taxes, occu pational license fees, or other such state taxes\nas may be determined by the Department of Revenue to be applicable to the\nproject and specified in the grant contract, generated from the primary project\nentity within the development area minus relocation revenue;\n(21) \"Old revenues\" means the amount of revenues received with respect to a\ndevelopment area:\n(a) Established under KRS 65.686, in the last calendar year prior to the\ncommencement date for the development area, revenues which constitute ad\nvalorem taxes other than the school and fire district portions of ad valorem\ntaxes received from real property in the development area and occupational\nlicense fees generated from the development area; or\n(b) Satisfying the requirements of KRS 65.6971, in the last  calendar year prior to\nthe commencement date for the development area, revenues which constitute\nad valorem taxes other than the school and fire district portions of ad valorem\ntaxes received from real property in the development area; or\n(c) Satisfying the requirements of KRS 65.6972, in the period of no longer than\nthree (3) calendar years prior to the commencement date, the average as\ndetermined by the Department of Revenue to be a fair representation of\nrevenues derived from ad valorem taxes, other than the school and fire district\nportions of ad valorem taxes, from real property in the development area, and\nKentucky individual income tax, Kentucky sales and use taxes, local\ninsurance premium taxes, occupational license fees, and other such state taxes\nas may be determined by the Department of Revenue as specified in the grant\ncontract generated from the development area. With respect to this paragraph,\nif the development area was within an active enterprise zone for the period\nused by the Department of Revenue for measuring old revenues, then the\ncalculation of old revenues shall include the amounts of ad valorem taxes,\nother than the school and fire district portions of ad valorem taxes, that would\nhave been generated from real property, Kentucky indivi dual income tax,\nKentucky sales and use taxes, local insurance premium taxes, occupational\nlicense fees, and other such state taxes as may be determined by the\nDepartment of Revenue as specified in the grant contract, were the\ndevelopment area not within a n active enterprise zone. With respect to this\nparagraph, if the primary project entity generated old revenue prior to the\ncommencement date in the development area or revenues were derived from\nthe development area prior to the commencement date of the de velopment\narea, then revenues shall increase each calendar year by the percentage\nincrease of the consumer price index, if any;\n(22) \"Outstanding\" means increment bonds that have been issued, delivered, and paid\nfor, except any of the following:\n(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon\npayment or redemption;\n(b) Increment bonds in replacement of which or in exchange for which other\nbonds have been issued; or\n(c) Increment bonds for the payment, or redemption or purchase fo r cancellation\nprior to maturity, of which sufficient moneys or investments, in accordance\nwith the ordinance or other proceedings or any applicable law, by mandatory\nsinking fund redemption requirements, or otherwise, have been deposited, and\ncredited in a sinking fund or with a trustee or paying or escrow agent, whether\nat or prior to their maturity or redemption, and, in the case of increment bonds\nto be redeemed prior to their stated maturity, notice of redemption has been\ngiven or satisfactory arrangem ents have been made for giving notice of that\nredemption, or waiver of that notice by or on behalf of the affected bond\nholders has been filed with the issuer or its agent;\n(23) \"Primary project entity\" means the entity responsible for control, ownership, and\noperation of the project within a development area satisfying the requirements of\nKRS 65.6972 which generates the greatest amount of new revenues or, in the case\nof a proposed development area satisfying the requirements of KRS 65.6972, is\nexpected to generate the greatest amount of new revenues;\n(24) \"Project\" means, for purposes of a development area:\n(a) Established under KRS 65.686, any property, asset, or improvement certified\nby the governing body, which certification is conclusive as:\n1. Being for a public purpose;\n2. Being for the development of facilities for residential, commercial,\nindustrial, public, recreational, or other uses, or for open space, or any\ncombination thereof, which is determined by the governing body\nestablishing the developme nt areas as contributing to economic\ndevelopment;\n3. Being in or related to a development area; and\n4. Having an estimated life or period of usefulness of one (1) year or more,\nincluding but not limited to real estate, buildings, personal property,\nequipment, furnishings, and site improvements and reconstruction,\nrehabilitation, renovation, installation, improvement, enlargement, and\nextension of property, assets, or improvements so certified as having an\nestimated life or period of usefulness of one (1) year or more;\n(b) Satisfying the requirements of KRS 65.6971; an economic development\nproject defined under KRS 154.22 -010, 154.24 -010, or 154.28 -010; or a\ntourism attraction project defined under KRS 148.851; or\n(c) Satisfying the requirements of KRS 65.6972, the development of facilities for:\n1. The transportation of goods or persons by air, ground, water, or rail;\n2. The transmission or utilization of information through fiber -optic cable\nor other advanced means;\n3. Commercial, industrial, recreational, tourism attraction, or educational\nuses; or\n4. Any combination thereof;\n(25) \"Relocation revenue\" means the ad valorem taxes, other than the school and fire\ndistrict portions of ad valorem taxes, from real property, K entucky individual\nincome tax, Kentucky sales and use taxes, local insurance premium taxes,\noccupational license fees, and other such state taxes as specified in the grant\ncontract, received by a taxing district attributable to that portion of the existing\noperations of the primary project entity located in the Commonwealth and\nrelocating to the development area satisfying the requirements of KRS 65.6972;\n(26) \"Special fund\" means a special fund created in accordance with KRS 65.688 into\nwhich increments are to be deposited;\n(27) \"Taxing district\" means a city, county, or other taxing district that encompasses all\nor part of a development area, or the Commonwealth, but does not mean a school\ndistrict or fire district;\n(28) \"Termination date\" means the date o n which a development area shall cease to\nexist, which for purposes of a development area:\n(a) Established under KRS 65.686, shall be:\n1. For a period of no longer than twenty (20) years from the\ncommencement date and set forth in the grant contract; or\n2. For a period as determined under KRS 65.687.\nIncrement bonds shall not mature on a date beyond the termination date\nestablished by this paragraph; or\n(b) Satisfying the requirements of KRS 65.6971, shall be for a period of no longer\nthan twenty (20) years from the commencement date and set forth in the grant\ncontract constituting a master agreement, except that for an addendum added\nto the master agreement for each project in the development area, the\ntermination date may be extended to no longer than twenty (20) years from the\ndate of each addendum; or\n(c) Satisfying the requirements of KRS 65.6972, shall be for a period of no longer\nthan twenty (20) years from the activation date of the grant contract.\nIncrement bonds shall not mature on a date beyond th e termination date\nestablished by this subsection;\n(29) \"Tourism development authority\" means the Tourism Development Finance\nAuthority as created in KRS 148.850; and\n(30) \"Project costs\" mean the total private and public capital costs of a project.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23448","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:22Z","sha256":"ea3fc81dd0f641a8f35a9e35543513f0832aa5ff62914dda21c50258e5e18784","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.679","next":"us-ky/krs-65.682"},"notice":"GroundRules: Original legal text. Not legal advice."}