Kentucky Statutes 154.30-040 – Commonwealth Participation Program for State Real Property Ad Valorem Tax Revenues — Criteria for state participation — Qualifying expenditures — Pledge limitations — Authority review — Required determinations by t…
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(1) The Commonwealth Participation Program for State Real Property Ad Valorem Tax
Revenues is hereby established.
(2) State participation under this program shall be limited to the support of approved public infrastructure costs determined to be necessary to support private investment or private development projects that benefit the public, where project economics are unable to support or secure necessary financing to undertake the public improvements.
(3) A project shall meet all of the following criteria to be considered for state participation under this program:
(a) The project shall represent new economic activity in the Commonwealth;
(b) The project shall result in a minimum capital investment of ten million dollars
($10,000,000); and
(c) Not more than twenty percent (20%) of the capital investment or twenty percent (20%) of the finished square footage shall be devoted to the support or development of assets that will be utilized for the retail sale of tangible personal property.
(4) The authority shall review the application and supporting information as provided in KRS § 154.30-030.
(5) The authority may pledge up to one hundred percent (100%) of the Commonwealth’s state real property ad valorem tax incremental revenue from the footprint of a project, provided that the maximum amount of incremental revenues that may be pledged during the term of the state participation agreement for a project shall not exceed one hundred percent (100%) of approved public infrastructure costs.
(6) As part of the approval process, the authority shall determine the following: (a) The footprint of the project;
(b) The maximum amount of approved public infrastructure costs;
(c) That the local revenues pledged to support the public infrastructure of the project, and local revenues pledged to support the overall project are of a sufficient amount to warrant participation of the Commonwealth in the project;
(d) The termination date of the project grant agreement, not to exceed twenty (20)
years from the activation date; and
(e) Any adjustments to be made to old revenues in determining incremental revenues during each year of the term of the project grant agreement.
(7) The pledge of incremental state real property ad valorem tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or
county, in accordance with KRS § 154.30-070.
Effective: July 15, 2008
History: Repealed, reenacted, and amended 2008 Ky. Acts ch. 178, sec. 17, effective
July 15, 2008. — Created 2007 Ky. Acts ch. 95, sec. 17, effective March 23, 2007.
Formerly codified as KRS § 65.7073.
Revenues is hereby established.
Terms Used In Kentucky Statutes 154.30-040
- Activation date: means :
(a) For all projects except those described in paragraph (b) of this subsection, the date established any time within a two (2) year period after the commencement date. See Kentucky Statutes 154.30-010 - Agency: means :
(a) An urban renewal and community development agency established under
KRS Chapter 99. See Kentucky Statutes 154.30-010 - Approved public infrastructure costs: includes but is not limited to costs incurred for the following:
(a) Land preparation, including demolition and clearance work. See Kentucky Statutes 154.30-010 - Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Authority: means the Kentucky Economic Development Finance Authority, consisting of a committee as set forth in KRS §. See Kentucky Statutes 154.1-010
- Capital investment: means :
(a) Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, equipping, and rehabilitation of a project. See Kentucky Statutes 154.30-010 - City: includes town. See Kentucky Statutes 446.010
- Commonwealth: means the Commonwealth of Kentucky. See Kentucky Statutes 154.30-010
- Footprint: means the actual perimeter of a discrete, identified project within a development area. See Kentucky Statutes 154.30-010
- Incremental revenues: means :
(a) The amount of revenues received by a taxing district, as determined by subtracting old revenues from new revenues in a calendar year with respect to a development area, or a project within a development area. See Kentucky Statutes 154.30-010 - Personal property: All property that is not real property.
- Project: means any property, asset, or improvement located in a development area and certified by the governing body as:
(a) Being for a public purpose. See Kentucky Statutes 154.30-010 - Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: means the Commonwealth of Kentucky. See Kentucky Statutes 154.1-010
- Termination date: means :
(a) For a tax incentive agreement satisfying the requirements of KRS §. See Kentucky Statutes 154.30-010 - Year: means calendar year. See Kentucky Statutes 446.010
(2) State participation under this program shall be limited to the support of approved public infrastructure costs determined to be necessary to support private investment or private development projects that benefit the public, where project economics are unable to support or secure necessary financing to undertake the public improvements.
(3) A project shall meet all of the following criteria to be considered for state participation under this program:
(a) The project shall represent new economic activity in the Commonwealth;
(b) The project shall result in a minimum capital investment of ten million dollars
($10,000,000); and
(c) Not more than twenty percent (20%) of the capital investment or twenty percent (20%) of the finished square footage shall be devoted to the support or development of assets that will be utilized for the retail sale of tangible personal property.
(4) The authority shall review the application and supporting information as provided in KRS § 154.30-030.
(5) The authority may pledge up to one hundred percent (100%) of the Commonwealth’s state real property ad valorem tax incremental revenue from the footprint of a project, provided that the maximum amount of incremental revenues that may be pledged during the term of the state participation agreement for a project shall not exceed one hundred percent (100%) of approved public infrastructure costs.
(6) As part of the approval process, the authority shall determine the following: (a) The footprint of the project;
(b) The maximum amount of approved public infrastructure costs;
(c) That the local revenues pledged to support the public infrastructure of the project, and local revenues pledged to support the overall project are of a sufficient amount to warrant participation of the Commonwealth in the project;
(d) The termination date of the project grant agreement, not to exceed twenty (20)
years from the activation date; and
(e) Any adjustments to be made to old revenues in determining incremental revenues during each year of the term of the project grant agreement.
(7) The pledge of incremental state real property ad valorem tax revenues of the Commonwealth by the authority shall be implemented through the execution of a tax incentive agreement between the Commonwealth and the agency, city, or
county, in accordance with KRS § 154.30-070.
Effective: July 15, 2008
History: Repealed, reenacted, and amended 2008 Ky. Acts ch. 178, sec. 17, effective
July 15, 2008. — Created 2007 Ky. Acts ch. 95, sec. 17, effective March 23, 2007.
Formerly codified as KRS § 65.7073.