KRS 136.654 — Determination of distributions -- State baseline and local growth fund

(1) On or before December 1, 2005, and every January 31 thereafter, each participating
political subdivision shall certify to the department its total tax receipts for the prior
fiscal year. This amount shall be used to calculate the percentage of each politi cal
subdivision's portion of the account labeled under its county's name within the state
baseline and local growth fund as described in subsection (3)(b) of this section.
"Total tax receipts" shall not include revenue from nontax sources, such as
intergovernmental revenues, charges for services, tuition, interfund transfers,
interest and investment income, rental income, income from asset sales, beginning
balances, or revenue from licenses and permits. "Total tax receipts" shall include
the following:
(a) Real estate and tangible personal property taxes, including delinquent tax
receipts;
(b) Franchise fees or taxes on utilities, other than multichannel video
programming service and communications service utilities;
(c) Occupational and business license fee s or taxes, including insurance premium
taxes, net profits taxes, gross receipts taxes, payroll taxes, transient room
taxes, restaurant taxes, and bank deposit taxes;
(d) Telephone emergency surcharge fees;
(e) Gross revenues tax hold-harmless and growth fund receipts; and
(f) Payments in lieu of taxes.
(2) On or before every January 31, each participating school district and special district
shall certify to the department the amount of its prior year tax assessments under
KRS Chapter 132 on companies' pro viding of multichannel video programming
service and communications service. This amount shall be used to calculate the
percentage of each school district's and special district's portion of the account
labeled under its county's name within the state base line and local growth fund as
described in subsection (3)(b) of this section. For tax years with no assessments
under KRS Chapter 132, the local historical percentage as defined in KRS 136.650
shall be used.
(3) Each political subdivision's, school distric t's, and special district's monthly portion
of the state baseline and local growth fund shall be computed as follows:
(a) A "local growth portion" shall be determined as an amount of money that
when added to the hold -harmless amount identified in KRS 136.6 50(2)(c)
equals fifteen and six -tenths percent (15.6%) of the total amount deposited in
the gross revenues and excise tax fund, minus the amount of distributions
made under KRS 136.652(1) and (3).
(b) The local growth portion shall be accounted for by coun ty within the state
baseline and local growth fund based on the ratio of the gross revenues tax
collected on multichannel video programming services and communications
services provided in each county to the total statewide collections of the gross
revenues tax. The county -by-county allotment of the local growth portion
shall be known as the "county growth portion."
(c) The county growth portion shall be further segregated into the political
subdivision allotment, the school district allotment, and the spec ial district
allotment based upon the ratio of each allotment category's total historical
collections as calculated under KRS 136.650(2) to the total overall county
historical collections as calculated from the certified collections under KRS
136.650(1).
(d) On or before April 25, 2006, each political subdivision's share of the political
subdivision allotment shall be determined by multiplying the political
subdivision allotment of the local growth portion as determined in paragraph
(b) of this subsection b y the percentage calculated in subsection (1) of this
section.
(e) On or before April 25, 2006, each school district's share of the school district
allotment shall be determined by multiplying the school district allotment as
determined in paragraph (c) of this subsection by the percentage calculated in
subsection (2) of this section.
(f) On or before April 25, 2006, each special district's share of the specia l district
allotment shall be determined by multiplying the special district allotment as
determined in paragraph (c) of this subsection by the percentage calculated in
subsection (2) of this section.
(g) The respective allotment share for each participati ng political subdivision,
school district, and special district shall be adjusted every July 1 following the
year 2006, to account for any change in its percentages based on annual
certifications required in subsections (1) and (2) of this section.
(h) Notwithstanding the annual certifications required in subsection (1) of this
section, following the year 2006, political subdivisions may choose to
determine their respective shares of the political subdivision allotment
pursuant to an interlocal agreement as authorized under KRS 65.240.
Activation or termination of an interlocal agreement shall comply with the
notification requirements of subsection (1) of this section and shall become
effective the following July 1. The terms of a timely interlocal agreement
governing the distribution of a political subdivision allotment shall remain in
effect until its timely termination by one of the participating political
subdivisions.