Request By:
Mr. Gary W. Gillis
Secretary of the Revenue Cabinet
Capitol Annex
Frankfort, Kentucky 40620
Opinion
Opinion By: David L. Armstrong
A question has recently arisen in your office concerning the applicability of certain provisions of Chapter 405 of the 1984 Acts to the delinquent tax collector contracts authorized under KRS 134.370 and 103 KAR 5:020.
Section 2 of Chapter 405 creates KRS 45.717, which reads:
"The department of revenue shall not enter into any personal service contract for the collection of revenue for the state or for the prosecution of any action or proceeding for the collection of delinquent taxes owed by a resident and the assessment of omitted property owned by a resident. "
On the other hand, you point out that:
"Under KRS 134.370, county fiscal courts are permitted to contract with delinquent tax collectors for the collection of delinquent personal property tax claims. Those contracts must be approved by the Secretary of Revenue. The delinquent personal property tax bills will normally include county taxes, school district taxes, and state taxes and may include several other local taxing districts."
The regulation, 103 KAR 5:020, sets out a general form for the delinquent tax collector's contract. Under KRS 134.370 no arrangement for the collection of tax bills involving taxes due the state shall be valid without the approval of the Secretary of Revenue.
Section 1 of Chapter 405 amends KRS 12.210 and adds this:
"An attorney hired for the collection of revenue owed to the state by a resident shall not be hired by personal service contract. "
You request our opinion as to the impact, if any, of the amendment of KRS 12.210 on the use of attorneys as delinquent tax collectors by fiscal courts. You ask this, since you feel that it is possible that some of the proposed tax collectors are attorneys.
It is our opinion that an arrangement made by a fiscal court with attorneys, pursuant to KRS 134.370, for the collection of taxes, does not make it a contract of employment by the state, even though you, as Secretary, approve the employment as relates to state taxes. Thus such county contracts of employment would in no way violate the letter or spirit of KRS 45.717 and 12.210(1). KRS 12.210 relates strictly to state contracts involving the hiring of attorneys to collect state revenue. Personal service contracts for that purpose are prohibited. Here no state personal service contracts will be involved. KRS 45.717 strictly prohibits the Department of Revenue from entering into personal service contracts for state revenue collection.
Our analysis and construction are based simply on the ordinary meaning of the above statutes and their literal meaning. Young v. Bd. of Educ. of Graves County, Ky.App., 661 S.W.2d 787 (1983) 789; and Bailey v. Reeves, Ky., 662 S.W.2d 832 (1984) 834.