2011 Kentucky Revised Statutes CHAPTER 65 GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.680 Definitions for KRS 65.680 to 65.699.
KY Rev Stat § 65.680 (1996 through Reg Sess) What's This?
65.680 Definitions for KRS 65.680 to 65.699.
As used in KRS 65.680 to 65.699:
(1) "Activation date" means the date established in the grant contract at any time in a
two (2) year period after the date of approval of the grant contract by the economic
development authority or the tourism development authority, as appropriate. The
economic development authority or tourism development authority, as appropriate,
may extend this two (2) year period to no more than four (4) years upon written
application of the agency requesting the extension. To implement the activation
date, the agency who is a party to the grant contract shall notify the economic
development authority or the tourism development authority, as appropriate, the
Department of Revenue, and other taxing districts that are parties to the grant
contract when the implementation of the increment authorized in the grant contract
shall occur;
(2) "Agency" means an urban renewal and community development agency established
under KRS Chapter 99; a development authority established under KRS Chapter 99;
a nonprofit corporation established under KRS Chapter 58; an air board established
under KRS 183.132 to 183.160; a local industrial development authority established
under KRS 154.50-301 to 154.50-346; a riverport authority established under KRS
65.510 to 65.650; or a designated department, division, or office of a city or county;
(3) "Assessment" means the job development assessment fee authorized by KRS
65.6851, which the governing body may elect to impose throughout the
development area;
(4) "Brownfield site" means real property, the expansion, redevelopment, or reuse of
which may be complicated by the presence or potential presence of a hazardous
substance, pollutant, or contaminant;
(5) "City" means any city, consolidated local government, or urban-county;
(6) "Commencement date" means the date a development area is established, as
provided in the ordinance creating the development area;
(7) "Commonwealth" means the Commonwealth of Kentucky;
(8) "County" means any county, consolidated local government, or charter county;
(9) "CPI" means the nonseasonally adjusted Consumer Price Index for all urban
consumers, all items (base year computed for 1982 to 1984 equals one hundred
(100)), published by the United States Department of Labor, Bureau of Labor
Statistics;
(10) "Debt charges" means the principal, including any mandatory sinking fund deposits,
interest, and any redemption premium, payable on increment bonds as the payments
come due and are payable and any charges related to the payment of the foregoing;
(11) "Development area" means a contiguous geographic area, which may be within one
(1) or more cities or counties, defined and created for economic development
purposes by an ordinance of a city or county in which one (1) or more projects are
proposed to be located, except that for any development area for which increments
are to include revenues from the Commonwealth, the contiguous geographic area
shall satisfy the requirements of KRS 65.6971 or 65.6972;
(12) "Economic development authority" means the Kentucky Economic Development
Finance Authority as created in KRS 154.20-010;
(13) "Enterprise Zone" means an area that had been designated by the Enterprise Zone
Authority of Kentucky to be eligible for the benefits of Subchapter 45 of KRS
Chapter 154 before January 1, 2005;
(14) "Governing body" means the body possessing legislative authority in a city or
county;
(15) "Grant contract" means:
(a) That agreement with respect to a development area established under KRS
65.686, by and among an agency and one (1) or more taxing districts other
than the Commonwealth, by which a taxing district permits the payment to an
agency of an amount equal to a portion of increments other than revenues
from the Commonwealth received by it in return for the benefits accruing to
the taxing district by reason of one (1) or more projects in a development area;
or
(b) That agreement, including with respect to a development area satisfying the
requirements of KRS 65.6971 or 65.6972, a master agreement and addenda to
the master agreement, by and among an agency, one (1) or more taxing
districts, and the economic development authority or the tourism development
authority, as appropriate, by which a taxing district permits the payment to an
agency of an amount equal to a portion of increments received by it in return
for the benefits accruing to the taxing district by reason of one (1) or more
projects in a development area;
(16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs
of one (1) or more projects in a development area, the payment of which is secured
solely by a pledge of increments or by a pledge of increments and other sources of
payment that are otherwise permitted by law to be pledged or used as a source of
payment of the bonds or notes;
(17) "Increments" means the amount of revenues received by any taxing district,
determined by subtracting the amount of old revenues from the amount of new
revenues in the calendar year with respect to a development area and for which the
taxing district or districts and the agency have agreed upon under the terms of a
grant contract;
(18) "Infrastructure development" means the acquisition of real estate within a
development area meeting the requirements of KRS 65.6971 and the construction or
improvement, within a development area meeting the requirements of KRS
65.6971, of roads and facilities necessary or desirable for improvements of the real
estate, including surveys; site tests and inspections; environmental remediation;
subsurface site work; excavation; removal of structures, roadways, cemeteries, and
other underground and surface obstructions; filling, grading, and provision of
drainage, storm water retention, installation of utilities such as water, sewer, sewage
treatment, gas, and electricity, communications, and similar facilities; and utility
extensions to the boundaries of the development area meeting the requirements of
KRS 65.6971;
(19) "Issuer" means a city, county, or an agency issuing increment bonds;
(20) "New revenues" means the amount of revenues received with respect to a
development area in any calendar year after the activation date for a development
area:
(a) Established under KRS 65.686, the ad valorem taxes other than the school and
fire district portions of the ad valorem taxes received from real property
generated from the development area and properties sold within the
development area, and occupational license fees not otherwise used as a credit
against an assessment, and all or a portion of assessments as determined by
the governing body; or
(b) Satisfying the requirements of KRS 65.6971, the ad valorem taxes other than
the school and fire district portions of the ad valorem taxes received from real
property generated from the development area and properties sold within the
development area; or
(c) Satisfying the requirements of KRS 65.6972, the ad valorem taxes, other than
the school and fire district portions of the ad valorem taxes, received from real
property, Kentucky individual income tax, Kentucky sales and use taxes, local
insurance premium taxes, occupational license fees, or other such state taxes
as may be determined by the Department of Revenue to be applicable to the
project and specified in the grant contract, generated from the primary project
entity within the development area minus relocation revenue;
(21) "Old revenues" means the amount of revenues received with respect to a
development area:
(a) Established under KRS 65.686, in the last calendar year prior to the
commencement date for the development area, revenues which constitute ad
valorem taxes other than the school and fire district portions of ad valorem
taxes received from real property in the development area and occupational
license fees generated from the development area; or
(b) Satisfying the requirements of KRS 65.6971, in the last calendar year prior to
the commencement date for the development area, revenues which constitute
ad valorem taxes other than the school and fire district portions of ad valorem
taxes received from real property in the development area; or
(c) Satisfying the requirements of KRS 65.6972, in the period of no longer than
three (3) calendar years prior to the commencement date, the average as
determined by the Department of Revenue to be a fair representation of
revenues derived from ad valorem taxes, other than the school and fire district
portions of ad valorem taxes, from real property in the development area, and
Kentucky individual income tax, Kentucky sales and use taxes, local
insurance premium taxes, occupational license fees, and other such state taxes
as may be determined by the Department of Revenue as specified in the grant
contract generated from the development area. With respect to this paragraph,
if the development area was within an active enterprise zone for the period
used by the Department of Revenue for measuring old revenues, then the
calculation of old revenues shall include the amounts of ad valorem taxes,
other than the school and fire district portions of ad valorem taxes, that would
have been generated from real property, Kentucky individual income tax,
Kentucky sales and use taxes, local insurance premium taxes, occupational
license fees, and other such state taxes as may be determined by the
Department of Revenue as specified in the grant contract, were the
development area not within an active enterprise zone. With respect to this
paragraph, if the primary project entity generated old revenue prior to the
commencement date in the development area or revenues were derived from
the development area prior to the commencement date of the development
area, then revenues shall increase each calendar year by the percentage
increase of the consumer price index, if any;
(22) "Outstanding" means increment bonds that have been issued, delivered, and paid
for, except any of the following:
(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon
payment or redemption;
(b) Increment bonds in replacement of which or in exchange for which other
bonds have been issued; or
(c) Increment bonds for the payment, or redemption or purchase for cancellation
prior to maturity, of which sufficient moneys or investments, in accordance
with the ordinance or other proceedings or any applicable law, by mandatory
sinking fund redemption requirements, or otherwise, have been deposited, and
credited in a sinking fund or with a trustee or paying or escrow agent, whether
at or prior to their maturity or redemption, and, in the case of increment bonds
to be redeemed prior to their stated maturity, notice of redemption has been
given or satisfactory arrangements have been made for giving notice of that
redemption, or waiver of that notice by or on behalf of the affected bond
holders has been filed with the issuer or its agent;
(23) "Primary project entity" means the entity responsible for control, ownership, and
operation of the project within a development area satisfying the requirements of
KRS 65.6972 which generates the greatest amount of new revenues or, in the case
of a proposed development area satisfying the requirements of KRS 65.6972, is
expected to generate the greatest amount of new revenues;
(24) "Project" means, for purposes of a development area:
(a) Established under KRS 65.686, any property, asset, or improvement certified
by the governing body, which certification is conclusive as:
1.
Being for a public purpose;
2.
Being for the development of facilities for residential, commercial,
industrial, public, recreational, or other uses, or for open space, or any
combination thereof, which is determined by the governing body
establishing the development areas as contributing to economic
development;
3.
Being in or related to a development area; and
4.
(25)
(26)
(27)
(28)
Having an estimated life or period of usefulness of one (1) year or more,
including but not limited to real estate, buildings, personal property,
equipment, furnishings, and site improvements and reconstruction,
rehabilitation, renovation, installation, improvement, enlargement, and
extension of property, assets, or improvements so certified as having an
estimated life or period of usefulness of one (1) year or more;
(b) Satisfying the requirements of KRS 65.6971; an economic development
project defined under KRS 154.22-010, 154.24-010, or 154.28-010; or a
tourism attraction project defined under KRS 148.851; or
(c) Satisfying the requirements of KRS 65.6972, the development of facilities for:
1.
The transportation of goods or persons by air, ground, water, or rail;
2.
The transmission or utilization of information through fiber-optic cable
or other advanced means;
3.
Commercial, industrial, recreational, tourism attraction, or educational
uses; or
4.
Any combination thereof;
"Relocation revenue" means the ad valorem taxes, other than the school and fire
district portions of ad valorem taxes, from real property, Kentucky individual
income tax, Kentucky sales and use taxes, local insurance premium taxes,
occupational license fees, and other such state taxes as specified in the grant
contract, received by a taxing district attributable to that portion of the existing
operations of the primary project entity located in the Commonwealth and
relocating to the development area satisfying the requirements of KRS 65.6972;
"Special fund" means a special fund created in accordance with KRS 65.688 into
which increments are to be deposited;
"Taxing district" means a city, county, or other taxing district that encompasses all
or part of a development area, or the Commonwealth, but does not mean a school
district or fire district;
"Termination date" means the date on which a development area shall cease to
exist, which for purposes of a development area:
(a) Established under KRS 65.686, shall be:
1.
For a period of no longer than twenty (20) years from the
commencement date and set forth in the grant contract; or
2.
For a period as determined under KRS 65.687.
Increment bonds shall not mature on a date beyond the termination date
established by this paragraph; or
(b) Satisfying the requirements of KRS 65.6971, shall be for a period of no longer
than twenty (20) years from the commencement date and set forth in the grant
contract constituting a master agreement, except that for an addendum added
to the master agreement for each project in the development area, the
termination date may be extended to no longer than twenty (20) years from the
date of each addendum; or
(c)
Satisfying the requirements of KRS 65.6972, shall be for a period of no longer
than twenty (20) years from the activation date of the grant contract.
Increment bonds shall not mature on a date beyond the termination date
established by this subsection;
(29) "Tourism development authority" means the Tourism Development Finance
Authority as created in KRS 148.850; and
(30) "Project costs" mean the total private and public capital costs of a project.
Effective: June 26, 2009
History: Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 60, effective June 26,
2009. -- Amended 2005 Ky. Acts ch. 85, sec. 89, effective June 20, 2005; and
ch. 168, sec. 45, effective March 18, 2005. -- Amended 2002 Ky. Acts ch. 338,
sec. 3, effective July 15, 2002; and ch. 346, sec. 34, effective July 15, 2002. -Amended 2001 Ky. Acts ch. 133, sec. 5, effective June 21, 2001. -- Created 2000 Ky.
Acts ch. 358, sec. 1, effective July 14, 2000.
Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165,
provides that this section shall apply to tax years beginning on or after January 1,
2005.
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