Request By:
Mr. James Flincheum
Route # 3, Box 100
Clinton, Kentucky 42031
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
You raise three questions about county government.
Question No. 1:
"Can a fiscal court of a county impose a tax on insurance companies or premiums under KRS 92.285?"
KRS 92.285 relates to cities and urban county government. However, KRS 67.083(2) provides that the fiscal court of any county may levy all taxes not in conflict with the constitution and statutes of Kentucky. The court, in
Fiscal Court v. City of Louisville, Ky., 559 S.W.2d 478 (1977) 482, held that the provisions of KRS 67.083(2), as to the fiscal court's levying all taxes not in conflict with the constitution, was sufficiently explicit to implement § 181 of the Kentucky Constitution, which provides that counties may levy an occupational license tax. Thus a fiscal court can levy two kinds of taxes: (1) an ad valorem tax (see § 171, Ky. Const.); and (2) an occupational license tax (see § 181, Ky. Const.). See
Driver v. Sawyer, Ky., 392 S.W.2d 52 (1965); and
Wiedemann Brewing Co. v. City of Newport, Ky., 321 S.W.2d 404 (1959).
It is our opinion that a fiscal court may impose an occupational license tax on insurance companies operating in the county. However, such tax must be fairly and equitably integrated with a general county occupational license tax. Such a general county occupational license tax must be based upon reasonable classifications, must not be discriminatory, and must not be arbitrary nor confiscatory. Such general tax must be uniform as applied to each classification. See § 171,
Kentucky Constitution, and City of Lexington v. Motel Developers, Inc., Ky., 465 S.W.2d 253 (1971) 257. In those counties of 30,000 or more population, the restrictions of KRS 68.197, including a percentage rate of salaries and net profits and a referendum, must be observed. See OAG 79-301, enclosed.
Question No. 2:
"Can a fiscal court of a county impose, under Section 181 of the Kentucky Constitution, a license tax on insurance companies or insurance premiums? "
We have just answered that.
Question No. 3:
"Can a county fiscal court use KRS 92.285 as a vehicle to fund an ambulance service district?"
As we said, KRS 92.285 relates to a city or urban county license tax on insurance companies. So the answer is "no". An ambulance service district created under KRS 108.100, et seq., may be funded by a special ambulance service district tax. See KRS 108.100 and KRS 108.105. In addition, under KRS 67.083(3)(d), a fiscal court may use its occupational license tax revenues, or other available general revenues (where not prohibited by constitution or statute), to fund a county maintained and operated ambulance service or an ambulance service operated for the county under contract pursuant to KRS 65.710.