Request By:
Mr. Earl R. Marshall
Greenup County Sheriff
P.O. Box 318
Greenup, Kentucky 41144
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
In your letter you refer to recent legislation permitting the sheriff to invest tax revenues for the purpose of earning interest. Your question concerns the disposition of such interest earned.
KRS 134.140(3) reads as follows:
"(3)(a) The sheriff, except in urban-county governments, may, and at the direction of the fiscal court shall, invest any tax revenues held in his possession from the time of collection until the time of distribution to the proper taxing authorities pursuant to KRS 134.300, 134.320 and 160.510. Investments by the sheriff shall by restricted to those permitted by KRS 66.480.
"(b) At the time of his monthly distribution of taxes to the district board of education, the sheriff shall pay to the board of education that part of his investment earnings for the month which is attributable to the investment of school taxes, but this subsection shall not be construed to prohibit the sheriff from obtaining his expenses not to exceed the rate of four percent (4%) of the earned monthly investment income for the administration of this investment fund.
"(c) In those counties where the sheriff pays his fees and commissions to the county and the salaries and expenses of his office are paid by the county, the sheriff shall pay to the county treasurer the investment earnings, other than those paid to the board of education in compliance with subsection (3)(b) of this section, at the time of his monthly distribution of taxes to the county.
"(d) In those counties where the office of sheriff is funded in whole or in part by fees and commissions, the sheriff may use investment earnings, other than those which must be paid to the board of education in compliance with subsection (3)(b) of this section, to pay lawful expenses of his office, and the remainder shall be paid to the fiscal court at the time of the sheriff's annual settlement for county and district taxes and excess fees. "
Under KRS 134.140(3)(a), the sheriff in all counties, except presently in Fayette County, may invest any tax revenues held in his possession from the time of collection until the time of distribution to the proper taxing authorities pursuant to KRS 134.300, 134.320 and 160.510. If the fiscal court directs it in such counties (not including in urban county governments), the sheriff must invest any tax revenues held in his possession, as indicated above. The investment of such tax revenue held by the sheriff must be restricted to those investments outlined in KRS 66.480, subject to the overall requirement of the sheriff's turning over such tax revenue to the proper taxing authorities at the precise time required by statute.
You will note that KRS 134.140(3)(b) requires the sheriff, at the time of his monthly distribution of taxes to the district board of education, to pay to the board of education all of that part of his investment earnings for the month which is attributable to the investment of school taxes. However, the sheriff may recover his actual expenses in making the investment of school taxes, not to exceed the rate of four percent (4%) of the earned monthly investment income (interest) for the administration of this investment fund.
Under KRS 134.140(3)(c), in those counties where the sheriff pays his fees and commissions to the county, and the salaries and expenses of his office are paid by the county, the sheriff must pay to the county treasurer the investment earnings, other than those earnings on school taxes paid over to the board of education, at the time of his monthly distribution of taxes to the county.
Pursuant to KRS 134.140(3)(d), in those counties where the office of sheriff is funded in whole or in part by the sheriff's fees and commissions, the sheriff may use investment earnings, other than those which must be paid to the board of education, as described above, to pay lawful expenses of his office. Any remainder shall be paid to the fiscal court at the time of the sheriff's annual settlement for county and district taxes and excess fees. See