Request By:
Mr. C. S. Wagers
Clerk of Madison County Court
Richmond, Kentucky 40475
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 the Madison County Health Department District has for several years had a tax levy of 2 on each $100.00 of assessed valuation of property in the county and the Madison County Extension Service District has a tax levy of 1.5 on each $100.00 of assessed valuation in the county.
In 1979 both districts appeared before the Madison County Fiscal Court and received approval of the same rates for the 1979 tax year. The rates were approved before the provisions of House Bill 44 passed by the 1979 Extraordinary Session of the General Assembly were understood and what had to be done by the taxing districts to implement the provisions of the bill.
Five questions asked concerning the application of this act to the above districts are as follows:
(1) Will it be necessary for the Madison County Health Department and the Madison County Extension Service to request tax rates for 1979 that are in compliance with House Bill 44?
Answer: If the health district is one created under fisc court, as provided in the provisions of KRS 212.720, the fiscal court, as provided in KRS 212.725, levies the health district tax. In the case of an agricultural extension district, the extension district board levies the district tax. See copy of OAG 79-273 attached to this letter which points out that an agricultural extension district is a separate taxing district and is a governmental subdivision of the Commonwealth and a public body corporate whose affairs are managed by the extension district board.
(2) If so, whose responsibility is it to notify these districts of the tax rates they may levy?
Answer: In the case of a county extension district, the extension board is, of course, the sole authority for levying the tax rate. In the case of a county health district, it is the fiscal court.
(3) If the districts present the fiscal court with a request for a tax rate in compliance with House Bill 44, can it be assumed that the districts have conducted the necessary hearings or is it the fiscal court's responsibility to see that the public hearings are held?
Answer: In the case of the Madison County Extension District, it is the responsibility of the board of directors of such district to hold hearings. In the case of a county health district, it is the fiscal court's responsibility to see that public hearings are held. See KRS 132.017 and KRS 132.023.
(4) If the districts do not request rates in compliance with House Bill 44, is it the fiscal court's duty or responsibility to set tax rates that are in compliance with the law?
Answer: In the case of a county extension district the responsibility to set tax rates in compliance with the law is that of the board of directors of the district. In the case of a county health district, it is the fiscal court's responsibility. See KRS 132.023(3)(a) which provides that a taxing district proposing to levy a tax rate which exceeds the compensating tax rate defined in KRS 132.010 must hold a public hearing to hear comments from the public regarding the proposed tax rate.
(5) What is the county clerk's responsibilities and liabilities in setting such rates?
(a) If no requests or rates are approved that are in compliance with the law, should the clerk prepare tax bills showing the rates which are not in compliance or prepare no bills at all?
Answer: The clerk has nothing to do with the determination of tax rates. He must prepare tax bills using the rates submitted to him.
(b) If the clerk prepares tax bills with incorrect rates or no tax bills for these districts, and new tax bills have to be made at a later date, whose expense are these tax bills prepared?
Answer: The additional expense should be borne by the district.