Request By:
Mr. Gene Lucas
Chairman
Recreational, Tourist and
Convention Commission
Courthouse
Georgetown, Kentucky 40324
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
The Georgetown-Scott County Tourist and Convention Commission seeks our opinion as to whether the commission has any responsibility in the collection of delinquent transient room taxes. Yes, it has the primary responsibility.
Under KRS 83.350 the city of Georgetown and Scott County, as the bodies which established the commission, are authorized to budget and appropriate their monies for the upkeep of the commission's work. In addition, such governing bodies may impose a transient room tax, not to exceed three percent (3%) of the rent for occupancy of rooms in motels, hotels, etc. Subsection (1) of the statute provides that "provision shall be made for the collection of the tax and the enforcement of the tax measure enacted."
A portion of the tax revenues may, as determined by the tax levying body, be used to finance the cost of facilities useful in promoting the tourist and convention business. The rest of it must be used to promote the tourist and convention activity in the county and city. KRS 83.350 and 83.340.
The central function of the commission is, as an agency of the county-city, to promote the tourist and convention activity in the county and city. It has the authority to prepare a budget and use funds appropriated by the county-city and revenues derived from the room tax for the stated statutory purposes.
Under KRS 83.345(4), the commission may employ such contracts as are necessary to effectively carry out the purpose of KRS 83.340 to 83.350. Certain kinds of contracts are mentioned, but are stated to not be limited to those enumerated.
After reconsideration of this matter, it is our opinion that KRS 83.345(4) gives the commission explicit authority to employ an attorney to collect such delinquent taxes. In the absence of any statutory provision placing such responsibility primarily upon the city and county attorney, the immediate responsibility for collecting such delinquent taxes rests squarely upon the shoulders of the commission. The commission should, in preparing its annual budget, insert an item providing for paying special counsel to collect such delinquent taxes.
Under the ordinary meaning of the language "commission may employ such personnel and make such contracts as are necessary to effectively carry out the purpose of KRS 83.340 to 83.350", it is our view that the statute clearly authorizes the commission to employ special counsel to collect delinquent taxes. (Emphasis added). See
Clay v. Board of Regents, 255 Ky. 846, 75 S.W.2d 550 (1934), holding that words in a statute should be given their ordinary meaning unless the context indicates a different meaning. Here, the employment contract of special counsel is "necessary to effectively carry out the purpose of KRS 83.340 to 83.350."
While the tax levying authority has at least implied authority to collect such taxes, it is our opinion that KRS 83.345(4) was designed to put the primary burden of such tax collection on the commission, which work is to be funded out of the commission's budget, not the county's nor city's budget. See
Second Street Prop. v. Fiscal Court of Jefferson Cy., Ky., 445 S.W.2d 709 (1969) 712; and § 181, Kentucky Constitution.
OAG 78-488 is modified accordingly.