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Request By:

Mr. Bob Buchanan, Superintendent
Ballard County Schools
Route 1
Barlow, Kentucky 42024

Opinion

Opinion By: Steven L. Beshear, Attorney General; By Alex W. Rose, Assistant Attorney General

In your recent letter you asked whether a city may exempt an industry from ad valorem taxation and, if so, whether the exemption includes the school tax, and also for how long may the exemption be granted.

Section 170 of the Kentucky Constitution provides that the General Assembly may authorize incorporated cities or towns to exempt manufacturing establishments from municipal taxation, for a period not exceeding five (5) years, as an inducement to locating in the community. The General Assembly has so authorized cities of the second through sixth classes to grant this exemption in KRS 92.280 through 92.300. As stated above, this exemption cannot be for a period longer than five (5) years in duration. See

Department of Revenue v. Spalding Laundry & Dry Cleaning Company, Ky., 436 S.W.2d 522 (1969). Also, please note that this exemption applies only to manufacturing industries.

The city, however, may not exempt the manufacturing establishment from school or other taxes. See

Disclaimer:
The Sunshine Law Library is not exhaustive and may contain errors from source documents or the import process. Nothing on this website should be taken as legal advice. It is always best to consult with primary sources and appropriate counsel before taking any action.
Type:
Opinion
Lexis Citation:
1981 Ky. AG LEXIS 114
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