Request By:
Ruben Watts
Sheriff of Letcher County
Whitesburg, Kentucky 41858
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: William S. Riley, Assistant Attorney General
In your recent letter to the Attorney General, it is stated that on February 25, 1975 the Letcher County Fiscal Court passed a resolution imposing a 3% tax on all motels in Letcher County. You have collected to date $4,875.00 on this tax which is on deposit in a local bank.
The resolution does not set out instructions as to how to collect this or penalties for failure to pay the tax.
On September 29, 1977, the Letcher County Tax Board was formed. The Tax Board has ordered you to turn over the money collected to the Board.
The question is what procedure is to be followed in the disposition of funds collected under this tax.
KRS 83.350 as amended by the 1974 General Assembly provides for the room tax in question upon the establishment of a tourist and convention commission. See KRS 83.340. The Fiscal Court then can provide for the levying of a 3% room or transient tax. KRS 83.350(1) states that provisions shall be made for the collection and enforcement of the tax measure enacted. It is therefore up to the Letcher County Fiscal Court to make the necessary provisions for the collection and enforcement of the tax.
KRS 83.350(2) provides that a portion of the money collected from the imposition of this tax, as determined by the tax levying body, may be used to finance the cost of acquisition, construction, operation and maintenance of facilities useful in the attraction and promotion of tourist and convention business and shall include athletic stadiums. The balance of the money is to be used for the purposes set forth in KRS 83.340. The purposes set forth in that statute are to promote recreational and tourist activities.
It would appear that the creation of the Letcher County Tax Board is in compliance with the statutes and the money collected should therefore be turned over to such Board as provided for by the Letcher County Fiscal Court.