House Bill No. 44, enacted in the 1979 Special Session of the Kentucky General Assembly, is designed to limit overall increases in property tax revenue as property values and assessments rise due to inflation.

The bill permits taxing districts to levy a tax rate which will produce up to 4% additional revenue from real property, excluding revenue from new real property in the current year over the preceding year. A public hearing must be held to explain the use of the additional revenue, but the rate is not subject to recall if it does not produce over 4% additional revenue.

*PROCEDURES FOR HOLDING PUBLIC HEARING

Announce that a public hearing will be held by advertising two consecutive weeks in the newspaper of largest circulation in the county.  A display type advertisement of not less than twelve (12) column inches should include the following:

1. The tax rate levied in the preceding year, and the revenue produced by that tax;
2. The tax rate proposed for the current year and the revenue expected to be produced by that rate;
3. The compensating tax rate and the revenue expected from it;
4. The revenue expected from new property and personal property;
5. The general areas to which revenue in excess of the revenue produced in the preceding year is to be allocated;
6. A time and place for the public hearing which shall be held not less than seven (7) days nor more than ten (10) days after the day that the second advertisement is published;
7. The purpose of the hearing; and
8. A statement to the effect that the General Assembly has required publication of this advertisement and the information contained therein.

(See Public Hearing Notice or Advertisement for 4% Increase.)

ADOPTING TAX RATE ABOVE 4%

Any proposed tax rate levy that will produce more than 4% additional revenue from real property, excluding revenue from new real property, is subject to recall vote of the people on the filing of a petition signed by a number of registered voters equal to 10% of those voting in the last Presidential election. The petition must be presented to the county clerk within 45 days of the order adopting the rate.

If the Extension District Board adopts a rate which will bring in additional revenue in excess of 4% the following steps are to be followed:

1. Hold public hearing in same manner as for rate which will allow 4% increase in revenue from real property.
2. Announce within seven (7) days following the hearing that the maximum rate has been set by the board. (See Suggested Notice attached for Rate.) Greater than 4%.
3. Wait forty-five (45) days after the hearing. If no valid petition with required number of registered voters' signatures is presented to county clerk the maximum rate may be entered into the county records and placed on the tax bill.
4. If sufficient qualified names are on the petition as required by HB44 the Extension District Board may take one of two actions:
   1. Referendum, place the question on the ballot for voters to accept or reject the rate. (Referred to as a recall of the tax rate) or
   2. Revert to the rate which will allow 4% increase in revenue. This action must be taken by the board within 15 days after 45-day wait for petition.

*KRS 132.0225 states that if the rate is to be set at more than the compensating rate but not more than 4%, the rate has to be established (presented to the Fiscal Court) within 45 days of the cabinet's certification. Otherwise, the requirement is to take the compensating rate.