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