{"data":{"id":"us-ky/krs-65a.110","jurisdiction":"us-ky","citation":"KRS 65A.110","heading":"Fees and ad valorem taxes levied by special purpose governmental entities","body":"-- Reporting to governing body of city or county -- Reporting exceptions.\n(1) This section applies to any ad valorem tax or fee levied by a special purpose\ngovernmental entity that is not otherwise required by statute or ordinance to be\nadopted or approved through an official act of an establishing entity.\n(2) This section does not apply to:\n(a) An air board established or operating under KRS 183.132 to 183.160;\n(b) A fire protection district established or operating under KRS Chapter 75; or\n(c) An ambulance taxing district established or operating under KRS 108.090 to\n108.180.\n(3) As used in this section, \"compensating tax rate\" has the same meaning as in KRS\n132.010 and applies to all special purpose governmental entities with the authority\nto levy ad valorem taxes, regardless of whether the special purpose governmental\nentity is subject to KRS 132.023 or any other provision of the Kentucky Revised\nStatutes that requires advertisement or allows for voter recall.\n(4) (a) Notwithstanding any other provision of the Kentucky Revised Statutes, any\nspecial purpose governmental entity, other than the special purpose\ngovernmental entities described in subsection (2) of this secti on, proposing to\nlevy:\n1. An ad valorem tax rate for the upcoming year that is projected to\ngenerate more revenue than would be generated by the levy of the\ncompensating tax rate; or\n2. An ad valorem tax for the first time;\nshall submit in writing the pro posed rate to the establishing entity. If the\nestablishing entity includes more than one (1) city or county, or if there is no\nestablishing entity, the rate shall be submitted to the governing body of the\ncity or county in which the largest number of citiz ens served by the special\npurpose governmental entity reside. If the special purpose governmental entity\nserves only the residents of a city, the notice shall be provided to the\ngoverning body of that city. The rate shall be submitted no later than seven (7)\ndays after the adoption of the ordinance, order, resolution, or motion to levy a\ntax rate that exceeds the compensating tax rate, or to levy a new ad valorem\ntax.\n(b) The governing body of the city or county to which the rate was submitted shall\nhave thirty (30) days from the date of submission to:\n1. Approve or fail to act on the proposed rate, in which case the proposed\nrate may be implemented by the special purpose governmental entity\nafter all other statutory requirements for levying the rate are met;\n2. a. Approve a rate that is less than the proposed rate but greater than\nthe compensating tax rate when the sp ecial purpose governmental\nentity is proposing the levy of a rate that is projected to generate\nmore revenue than would be generated by the levy of the\ncompensating tax rate; or\nb. Approve a rate that is less than the proposed rate when the special\npurpose governmental entity is proposing the levy of an ad\nvalorem tax for the first time.\nIf the governing body approves a rate under subdivision a. or b. of this\nsubparagraph, the approved amount of the rate may be implemented by\nthe special purpose government al entity after all other statutory\nrequirements for levying the rate are met; or\n3. Disapprove the entire proposed rate by a majority vote of the governing\nbody, in which case subdivisions a. and b. of this subparagraph shall\napply:\na. If the special purpose governmental entity levied an ad valorem tax\nduring the current year, the special purpose governmental entity\nmay levy a rate for the upcoming year that does not exceed the\ncompensating tax rate; and\nb. If the special purpose governmental entity is pro posing an initial\nlevy, the levy shall not be imposed, and the special purpose\ngovernmental entity shall wait at least one (1) year before\nproposing another ad valorem tax levy.\n(c) Upon request of a special purpose governmental entity, the DLG shall\ncalculate rates on behalf of the special purpose governmental entity.\n(5) (a) Notwithstanding any other provision of the Kentucky Revised Statutes, any\nspecial purpose governmental entity, other than the special purpose\ngovernmental entities described in subsection (2) of this section, proposing the\nimposition of a new fee, or a fee which is expected to produce increased\nrevenue as compared to revenue generated during the prior fiscal year, and\nthat is not subject to an approval process for the proposed fee unde r another\nprovision of the Kentucky Revised Statutes or administrative regulations\npromulgated pursuant thereto, shall submit the proposed fee to the\nestablishing entity. If the establishing entity includes more than one (1) city or\ncounty, or if there is no establishing entity, the fee shall be submitted to the\ngoverning body of the city or county in which the largest number of citizens\nserved by the special purpose governmental entity reside, except as provided\nin subsection (6) of this section. If the sp ecial purpose governmental entity\nserves only the residents of a city, the notice shall be provided to the\ngoverning body of that city. The proposed fee shall be submitted to the\nrelevant city or county no later than forty-five (45) days prior to the scheduled\nimplementation of the fee.\n(b) The governing body of the city or county shall have thirty (30) days from the\ndate of submission to:\n1. Approve or fail to act on the proposed fee, in which case the proposed\nfee may be implemented by the special purpose  governmental entity\nafter all other statutory requirements for levying the fee are met;\n2. Approve a fee in an amount less than the amount of the proposed fee, in\nwhich case the approved fee amount may be implemented by the special\npurpose governmental en tity after all other statutory requirements for\nlevying the fee are met; or\n3. Disapprove the entire proposed fee by a majority vote of the governing\nbody, in which case subdivisions a. and b. of this subparagraph shall\napply:\na. If a proposed increase of an existing fee is disapproved, any fee\nthen in existence shall remain unchanged, and the special purpose\ngovernmental entity shall not seek to increase the fee again for at\nleast one (1) year from the date of the submission of the\ndisapproved fee increase; and\nb. If a proposed initial fee is disapproved, the special purpose\ngovernmental entity shall not seek to impose the fee again for at\nleast one (1) year from the date of the submission of the\ndisapproved initial fee.\n(6) The requirements established by subsection (5) of this section shall not apply to the\nfollowing provisions of this subsection:\n(a) Rental fees;\n(b) Fees established by contractual arrangement;\n(c) Admission fees;\n(d) Fees or charges to recover costs incurred by a special purpose governme ntal\nentity for the connection, restoration, relocation, or discontinuation of any\nservice requested by any person;\n(e) Any penalty, interest, sanction, or other fee or charge imposed by a special\npurpose governmental entity for a failure to pay a charge o r fee, or for the\nviolation or breach of or failure to pay or perform as agreed pursuant to a\ncontractual agreement or as reflected in a published schedule;\n(f) Amounts charged to customers or contractual partners for nonessential\nservices provided on a voluntary basis;\n(g) Fees or charges authorized under federal law that pursuant to federal law may\nnot be regulated by the Commonwealth or local governments within the\nCommonwealth;\n(h) Purchased water or sewage treatment adjustments, as authorized by KRS\n278.015, made by a special purpose governmental entity as a direct result of a\nrate increase by its wholesale water supplier or wholesale sewage treatment\nprovider;\n(i) Any new fee or fee increase for which a special purpose governmental entity\nmust obtain prior approval from the Public Service Commission pursuant to\nKRS Chapter 278;\n(j) Other charges or fees imposed by a special purpose governmental entity for\nthe provision of any service that is also available on the open market; or\n(k) Fees or char ges imposed by municipal utilities for the provision of power,\nwater, wastewater, natural gas, or telecommunications services, unless\nsubmission is otherwise required by statute or an ordinance adopted by the\nestablishing entity.\n(7) (a) Subsections (4) an d (5) of this section shall not be interpreted as transferring\nany tax -levying or fee -levying authority granted to a special purpose\ngovernmental entity under any other provision of the Kentucky Revised\nStatutes to cities and counties charged with reviewin g tax and fee increases\nunder this section.\n(b) This section shall not be interpreted to grant tax -levying or fee -levying\nauthority on behalf of special purpose governmental entities to any city or\ncounty reviewing tax rates or fees proposed by a special purpose governmental\nentity and subject to review under this section.\n(8) This section shall apply independently of and in addition to any other statutory\nrequirements and provisions relating to the levy of ad valorem taxes or fees by\nspecial purpose governmental entities, other than the special purpose governmental\nentities described in subsection (2) of this section, including statutory rate limits,\npublic hearing requirements, and recall provisions, and shall not be interpreted to\ncircumvent, supplant, or otherwise replace those requirements and provisions.\n(9) The provisions of this section shall not be interpreted as limiting the ability of any\ncity, county, or other establishing entity to impose reporting or submission\nrequirements that are more stringent than those established in this section.","path":["KRS Chapter 65A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50515","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:23Z","sha256":"c5e73756b55673a4b5d9eeab029f911ec5c25a3a6f933d9d104a0eeae1829ccd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65a.100","next":"us-ky/krs-66.010"},"notice":"GroundRules: Original legal text. Not legal advice."}