{"data":{"id":"us-ky/krs-65.6971","jurisdiction":"us-ky","citation":"KRS 65.6971","heading":"Development area for infrastructure development -- Application --","body":"Approval -- Ordinance creating area -- Increment amounts -- Grant contracts -\n- Portion of increment due from each taxing district -- Financing account --\nReports -- Operating procedures -- Obligation of Department of Revenue and\nagency.\n(1) A city, county, or agency shall submit an application to the Cabinet for Economic\nDevelopment for approval of a development area for infrastructure development\nwhich includes revenues from the Commonw ealth, the standards for which the\nCabinet for Economic Development and the Tourism, Arts and Heritage Cabinet\nshall establish through their operating procedures or by the promulgation of\nadministrative regulations in accordance with KRS Chapter 13A. The C abinet for\nEconomic Development shall determine whether the development area described in\nthe application constitutes a project of the type described in this section. The\nCabinet for Economic Development, upon its determination, shall assign the\napplication to the economic development authority or the tourism development\nauthority, as appropriate, for further consideration and approval.\n(2) A development area for purposes of infrastructure development shall:\n(a) 1. Consist of at least fifty (50) acres of un developed land, unless approved\notherwise by the economic development authority or the tourism\ndevelopment authority in consideration of the geography of the area; or\n2. Consist of at least one (1) acre constituting a brownfield site; and\n(b) 1. In the case of an economic development project, be under the control of,\nowned by, and operated by an agency at the commencement date; or\n2. In the case of a tourism attraction project, be under the control of, leased\nby, owned by, or operated by an agency at the commencement date.\n(3) With respect to each city, county, or agency that applies to the economic\ndevelopment authority or the tourism development authority for approval of a\ndevelopment area for infrastructure development, the economic development\nauthority or the tourism development authority shall request materials and make all\ninquiries concerning the application the economic development authority or the\ntourism development authority deems necessary. Upon review of the application\nand requested materials, and completion of inquiries, the economic development\nauthority or the tourism development authority may grant approval for:\n(a) The development area for infrastructure development;\n(b) Each project for which an application has been submitted to be located  in the\ndevelopment area for infrastructure development, provided that each project\napproved for location in the development area for infrastructure development\nmeets the criteria necessary in order to qualify for inducements under\nsubchapters 22, 24, or 28 of KRS Chapter 154, or satisfies the requirements of\na tourism development attraction defined under KRS 148.851;\n(c) The percentage of the Commonwealth's portion of the increment that the\nCommonwealth agrees to distribute to the agency each year during the term of\nthe grant contract;\n(d) The maximum amount of costs for infrastructure development for which the\nincrement may be distributed to the agency; and\n(e) The master agreement constituting a grant contract and any addendum for\neach project approved for location in the development area for infrastructure\ndevelopment.\n(4) Prior to any approval by the economic development authority or the tourism\ndevelopment au thority, the economic development authority or the tourism\ndevelopment authority shall have received an ordinance adopted by the city or\ncounty creating the development area and establishing the percentage of increment\nthat the city and county are distribu ting each year to the agency for use in the\ninfrastructure development of the development area for which economic\ndevelopment authority or the tourism development authority approval is sought. The\neconomic development authority or the tourism development a uthority shall not\napprove a percentage of the Commonwealth's portion of the increment to be\ndistributed to the agency each calendar year with respect to a development area for\ninfrastructure development greater than the percentage approved by the city or\ncounty creating the development area.\n(5) The maximum amount of increment available for development areas for\ninfrastructure development is one hundred percent (100%).\n(6) The terms and conditions of each grant contract, including the master agreement\nconstituting a grant contract and any addenda, are subject to negotiations between\nthe economic development authority or the tourism development authority and the\nother parties to the grant contract. The grant contract shall include but not be limited\nto the f ollowing provisions: the activation date, the taxes to be included in the\ncalculation of the increment, the percentage increment to be contributed by each\ntaxing district, the maximum amount of infrastructure development costs, a\ndescription of the develop ment area, the termination date, subject to extension\nthrough each addendum, and the requirement of the agency to annually certify to the\neconomic development authority or the tourism development authority as to the use\nof the increment for payment of infrastructure development costs.\n(7) (a) Any agency that enters into a grant contract for the release of any increments\nthat may arise during the period of a grant contract shall, after each calendar\nyear a grant contract is in effect, notify each taxing district obligated under the\ngrant contract that an increment is due, and, in consultation with each taxing\ndistrict, determine the respective portion of the total increment due from each\ntaxing district. The agency shall then present the total increment due f rom the\nCommonwealth under the grant contract to the Department of Revenue for\ncertification.\n1. Upon notice from the agency, each taxing district obligated under the\ngrant contract, other than the Commonwealth, shall release to the agency\nthe respective portion of the total increment due under the grant contract.\nThe agency shall certify to the Department of Revenue on a calendar\nyear basis the amount of the increment collected.\n2. Upon certification of the total increment due from the Commonwealth\nby the Department of Revenue, the department is authorized and\ndirected to transfer the increment to a tax increment financing account\nestablished and administered by the Finance and Administration Cabinet\nfor payment of the Commonwealth's portion of the incremen t. Prior to\ndisbursement by the Finance and Administration Cabinet of the funds\nfrom the tax increment financing account, the economic development\nauthority or the tourism development authority shall notify the Finance\nand Administration Cabinet that the a gency is in compliance with the\nterms of the grant contract. Upon notification, the Finance and\nAdministration Cabinet is authorized and directed to release to the\nagency the Commonwealth's portion of the total increment due under the\ngrant contract.\n(b) The Department of Revenue shall report to the economic development\nauthority or the tourism development authority on a calendar year basis the\namount of the total increment released to an agency.\n(8) The Department of Revenue shall have the authority to est ablish operating\nprocedures for the administration and determination of the Commonwealth's\nincrement.\n(9) The Department of Revenue or agency shall have no obligation to refund or\notherwise return any of the increment to the taxpayer from whom the incremen t\narose or is attributable. Further, no additional increment resulting from audit,\namended returns or other activity for any period shall be transferred to the tax\nincrement financing account after the initial release to the agency of the\nCommonwealth's increment for that period.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23462","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:22Z","sha256":"44605011f3e34e251b8cc78519019398092e3f650262a4b7a3c7de0a92fab098","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.696","next":"us-ky/krs-65.6972"},"notice":"GroundRules: Original legal text. Not legal advice."}