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PART XXIV
TOURISM DEVELOPMENT
Notwithstanding KRS 48.310, the following statutes are amended to read as follows and shall have permanent effect, subject to future actions by the General Assembly:
Section 1. KRS 139.536 is amended to read as follows:
(1) In consideration of the execution of the agreement as defined in KRS 148.851 and notwithstanding any provision of KRS 139.770 to the contrary, the approved company as defined in KRS 148.851 excluding its lessees, may be granted a sales tax refund from the Kentucky sales tax imposed by KRS 139.200 on the sales generated by or arising at the tourism attraction project as defined in KRS 148.851. The approved company shall have no obligation to refund or otherwise return any amount of this sales tax refund to the persons from whom the sales tax was collected. The term of the agreement granting the sales tax refund shall be ten (10) years, and this time period shall commence on the later of:
(a) The final approval for purposes of the inducements; or
(b) The completion date specified in the agreement.
(2) Any sales tax collected by an approved company as defined in KRS 148.851 on sales transacted after final approval but prior to the commencement of the term of the agreement, including any approved company that has received final approval prior to July 15, 2000, shall be refundable as if collected after the commencement of the term and applied to the approved company's first fiscal year's refund after activation of the term and without changing the term.
(3) The total sales tax refund allowed to the approved company over the term of the agreement in subsection (1) of this section shall be equal to the lesser of the total amount of the sales tax liability of the approved company and its lessees or twenty-five percent (25%) of the approved costs. The sales tax refund shall accrue over the term of the agreement in an annual amount equal to two and one-half percent (2.5%) of the approved cost. Notwithstanding the foregoing two and one-half percent (2.5%) limitation, any unused inducements as set forth in KRS 148.851(9) from a previous year may be carried forward to any succeeding year during the term of the agreement until the entire twenty-five percent (25%) of the approved costs have been received through sales tax refunds.
(4) Notwithstanding subsection (3) of this section, to the extent that the tourism attraction defined in KRS 148.851 includes a lodging facility located on recreational property owned or leased by the Commonwealth or federal government and the facilities have received prior approval from the appropriate state or federal agency, the total sales tax refund allowed to the approved company over the term of the agreement shall be the lesser of the total amount of sales tax liability or fifty percent (50%) of the approved costs. The sales tax refund shall accrue over the term of the agreement in an annual amount equal to five percent (5%) of the approved cost. Notwithstanding the foregoing five percent (5%) limitation, any unused inducements as set forth in KRS 148.851(9) from a previous year may be carried forward to any succeeding year during the term of the agreement until the entire fifty percent (50%) of the approved costs have been received through the sales tax refunds.
(5) By October 1 of each year the Revenue Cabinet shall certify to the authority and the secretary of the Tourism Development Cabinet for the preceding fiscal year for all approved companies for which sales tax returns were filed with respect to a tourism attraction project, the sales tax liability of the approved companies receiving inducements under this section and KRS 148.851 to 148.860, and their lessees, and the amount of the sales tax refunds issued pursuant to subsections[subsection] (1) and (4) of this section.
By October 1 of each year the Revenue Cabinet shall certify to the authority and the secretary of the Tourism Development Cabinet for the preceding fiscal year for all approved companies for which sales tax returns were filed with respect to a tourism attraction project, the sales tax liability of the approved companies receiving inducements under this section and KRS 148.851 to 148.860, and their lessees, and the amount of the sales tax refunds issued pursuant to (1) of this section.
(6)[(4)] Interest shall not be allowed or paid on any refund made under the provisions of this section.
Interest shall not be allowed or paid on any refund made under the provisions of this section.
(7)[(5)] The Revenue Cabinet may promulgate administrative regulations and require the filing of forms designed by the Revenue Cabinet to reflect the intent of this section and KRS 148.851 to 148.860.
The Revenue Cabinet may promulgate administrative regulations and require the filing of forms designed by the Revenue Cabinet to reflect the intent of this section and KRS 148.851 to 148.860.
Section 2. KRS 148.859 is amended to read as follows:
(1) The authority, upon adoption of its final approval, may enter into with any approved company an agreement with respect to its tourism attraction project. The terms and provisions of each agreement shall include, but not be limited to:
(a) The amount of approved costs, which shall be determined by negotiations between the authority and the approved company. Any increase in approved costs incurred by the approved company and agreed to by the authority shall apply retroactively for purposes of calculating the carry forward for unused inducements as set forth in KRS 139.536(3) and (4) for tax years commencing on or after July 1, 2004;
(b) A date certain by which the approved company shall have completed the tourism attraction project. Upon request from any approved company that has received final approval prior to or after July 15, 2000, the authority shall grant an extension or change, which in no event shall exceed three (3) years from the date of final approval, to the completion date as specified in the agreement of an approved company. Within three (3) months of the completion date, the approved company shall document the actual cost of the project through a certification of the costs to be provided by an independent certified public accountant acceptable to the authority;
(c) The following provisions:
1. The term shall be ten (10) years from the later of:
a. The date of the final approval of the project; or
b. The original completion date specified in the agreement, if this completion date is within three (3) years of the date of the final approval of the project. An extension of the original completion date shall not alter the commencement date of the term;
2. Within forty-five (45) days after the end of each fiscal year of the approved company, during the term of the agreement, the approved company shall supply the authority with such reports and certifications as the authority may request demonstrating to the satisfaction of the authority that the approved company is in compliance with the provisions of KRS 139.536 and KRS 148.851 to 148.860. Based upon a review of these materials and other documents that may be made available, the authority shall then certify to the Revenue Cabinet that the approved company is in compliance with this section; and
3. The approved company shall not receive a sales tax refund as prescribed by KRS 139.536 with respect to any fiscal year if:
a. In any year following the fourth year of the agreement, the tourism attraction project fails to attract at least twenty-five percent (25%) of its visitors from among persons who are not residents of the Commonwealth, except for a theme restaurant destination attraction, which shall attract a minimum of fifty percent (50%) of its visitors from among persons who are not residents of the Commonwealth; or
b. In any year following the first year of the agreement, the tourism attraction project is not operating and open to the public for at least one hundred (100) days; and
(d) Upon request from an approved company that has completed at least fifty percent (50%) of an entertainment destination center, the authority shall grant an extension of up to three (3) years to the completion date specified in the agreement of the approved company, in addition to the extension provided for in paragraph (b) of this subsection. In no event shall the completion date be more than six (6) years from the date of final approval. The extension provided for in this paragraph shall be subject to the following conditions:
1. The approved company shall have spent or have contractually obligated to spend an amount equal to or greater than the amount of approved costs set forth in the initial agreement;
2. The term of the agreement shall not be extended; and
3. The scope of the entertainment destination center, as set forth in the initial agreement, shall not be altered to include new or additional entertainment and leisure options.
(2) The agreement shall not be transferable or assignable by the approved company without the written consent of the authority.
(3) In consideration of the execution of the agreement as defined in KRS 148.851 and notwithstanding any provision of KRS 139.770 to the contrary, the approved company as defined in KRS 148.851 excluding its lessees, may be granted a sales tax refund under KRS 139.536 from the Kentucky sales tax imposed by KRS 139.200 on the sales generated by or arising at the tourism attraction project as defined in KRS 148.851.
148.850 Tourism Development Finance Authority created -- Members -- Terms --
Conflicts of interest -- Powers.
(1) The Tourism Development Finance Authority is created within the Tourism
Development Cabinet. The authority shall consist of seven (7) members appointed
by the Governor. The members of the authority shall serve without compensation
but shall be entitled to reimbursement for their necessary expenses incurred in
performing their duties. Of the members initially appointed to the authority, two (2)
members shall be appointed for terms of one (1) year, three (3) members shall be
appointed for terms of two (2) years, and two (2) members shall be appointed for
terms of three (3) years. Thereafter, the members of the authority shall be appointed
for terms of four (4) years.
(2) The Governor shall appoint one (1) member as chairperson of the Tourism
Development Finance Authority. The members of the authority may elect other
officers as they deem necessary.
(3) No member of the Tourism Development Finance Authority shall either directly or
indirectly be a party to, or be in any manner interested in, any contract or agreement
with the authority for any matter, cause, or thing that creates any liability or
indebtedness against the authority.
(4) The Tourism Development Finance Authority shall have the powers necessary to
carry out the purposes of this section, KRS 139.536, KRS 148.851 to 148.860, and
the Tourism Development Loan Program created by 2000 Ky. Acts ch. 549, Part IX,
Section 47, including, but not limited to, the power to:
(a) Make and condition all loans from the Tourism Development Loan Program;
(b) Employ fiscal consultants, attorneys, appraisers, and other agents on behalf of
the authority whom the authority deems necessary or convenient for the
preparation and administration of agreements and documents necessary or
incidental to any project. The fees for the services provided by persons
employed on behalf of the authority shall be paid by the beneficiary of a loan
under this program directly to the person providing consultation, advisory,
legal, or other services; and
(c) Impose and collect fees and charges in connection with any transaction and
provide for reasonable penalties for delinquent payment of fees and charges.
Effective: June 21, 2001
History: Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.
Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.June 21, 2001Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.
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148.850 Tourism Development Finance Authority created -- Members -- Terms --
Conflicts of interest -- Powers.
(1) The Tourism Development Finance Authority is created within the Tourism
Development Cabinet. The authority shall consist of seven (7) members appointed
by the Governor. The members of the authority shall serve without compensation
but shall be entitled to reimbursement for their necessary expenses incurred in
performing their duties. Of the members initially appointed to the authority, two (2)
members shall be appointed for terms of one (1) year, three (3) members shall be
appointed for terms of two (2) years, and two (2) members shall be appointed for
terms of three (3) years. Thereafter, the members of the authority shall be appointed
for terms of four (4) years.
(2) The Governor shall appoint one (1) member as chairperson of the Tourism
Development Finance Authority. The members of the authority may elect other
officers as they deem necessary.
(3) No member of the Tourism Development Finance Authority shall either directly or
indirectly be a party to, or be in any manner interested in, any contract or agreement
with the authority for any matter, cause, or thing that creates any liability or
indebtedness against the authority.
(4) The Tourism Development Finance Authority shall have the powers necessary to
carry out the purposes of this section, KRS 139.536, KRS 148.851 to 148.860, and
the Tourism Development Loan Program created by 2000 Ky. Acts ch. 549, Part IX,
Section 47, including, but not limited to, the power to:
(a) Make and condition all loans from the Tourism Development Loan Program;
(b) Employ fiscal consultants, attorneys, appraisers, and other agents on behalf of
the authority whom the authority deems necessary or convenient for the
preparation and administration of agreements and documents necessary or
incidental to any project. The fees for the services provided by persons
employed on behalf of the authority shall be paid by the beneficiary of a loan
under this program directly to the person providing consultation, advisory,
legal, or other services; and
(c) Impose and collect fees and charges in connection with any transaction and
provide for reasonable penalties for delinquent payment of fees and charges.
Effective: June 21, 2001
History: Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.
Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.June 21, 2001Created 2001 Ky. Acts ch. 1, sec. 1, effective June 21, 2001.
Page 1 of 1
148.851 Definitions for KRS 139.536 and KRS 148.851 to 148.860.
As used in KRS 139.536 and KRS 148.851 to 148.860, unless the context clearly
indicates otherwise:
(1) "Agreement" means a tourism attraction agreement entered into, pursuant to KRS
148.859, on behalf of the authority and an approved company, with respect to a
tourism attraction project;
(2) "Approved company" means any eligible company approved by the secretary of the
Tourism Development Cabinet and the authority pursuant to KRS 148.859 that is
seeking to undertake a tourism attraction project;
(3) "Approved costs" means:
(a) Obligations incurred for labor and to vendors, contractors, subcontractors,
builders, suppliers, deliverymen, and materialmen in connection with the
acquisition, construction, equipping, and installation of a tourism attraction
project;
(b) The costs of acquiring real property or rights in real property and any costs
incidental thereto;
(c) The cost of contract bonds and of insurance of all kinds that may be required
or necessary during the course of the acquisition, construction, equipping, and
installation of a tourism attraction project which is not paid by the vendor,
supplier, deliveryman, contractor, or otherwise provided;
(d) All costs of architectural and engineering services, including but not limited to:
estimates, plans and specifications, preliminary investigations, and supervision
of construction and installation, as well as for the performance of all the duties
required by or consequent to the acquisition, construction, equipping, and
installation of a tourism attraction project;
(e) All costs required to be paid under the terms of any contract for the
acquisition, construction, equipping, and installation of a tourism attraction
project;
(f) All costs required for the installation of utilities, including but not limited to:
water, sewer, sewer treatment, gas, electricity and communications, and
including off-site construction of the facilities paid for by the approved
company; and
(g) All other costs comparable with those described in this subsection;
(4) "Authority" means the Kentucky Tourism Development Finance Authority as set
forth in KRS 148.850;
(5) "Crafts and products center" means a facility primarily devoted to the display,
promotion, and sale of Kentucky products, and at which a minimum of eighty
percent (80%) of the sales occurring at the facility are of Kentucky arts, crafts, or
agricultural products;
(6) "Eligible company" means any corporation, limited liability company, partnership,
registered limited liability partnership, sole proprietorship, business trust, or any
other entity operating or intending to operate a tourism attraction project, whether
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