Request By:
Mr. Wilburn J. Pratt
Commissioner
Department for Local Government
Capital Plaza Tower
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
In 1970, in Logan County a three percent (3%) utility gross receipts license tax for schools was adopted (KRS 160.613). The Fiscal Court of Logan County authorized the county treasurer to collect the tax. The money is placed in the county treasury and disbursed directly to the city and county schools. Since this money goes into the county treasury, you say it must be included in the county budget, resulting in an overstatement of county money available to the county.
Question No. 1:
"Can the Fiscal Court discontinue the collection of the tax, requiring the schools to collect the tax themselves?"
The answer is "yes". Pursuant to KRS 160.593(1), the applicable board or boards of education must levy the school tax, not fiscal court. See 1976 Amendment of KRS 160.593, Section 8, Chapter 127, which deleted the fiscal court's levying responsibility. The statute [KRS 160.593], as presently drawn, expressly requires the receipts from such tax to be held in a common fund and disbursed therefrom to each district, etc. The fiscal court has nothing to do with the levying and collecting of this tax. The fiscal court should see to it that such funds are turned over to the school boards involved immediately.
Question No. 2:
"If the county is required to collect the tax, is it entitled to compensation under KRS 160.637 or any other authorization?"
We have answered that above. The fiscal court has no responsibility of any kind as relates to the tax, except that it must deliver the tax money now illegally held in the county treasury to the school boards affected.