HomeMy WebLinkAboutOrdinances Book 16, Page 384, No Resolution Number384 j
A RESOLUTION AUTHORIZING AND DIRECTING THE CITY TREASURER TO
PREPARE AND SUBMIT TO THE ELECTRIC PLANT BOARD OF THE CITY OF PADUCAH
A STATEMENT FOR ITS TAX EQUIVALENT PAYMENT FOR THE YEAR 1967
WHEREAS in 1965 the Kentucky Court of Appeals decided that all
property must be assessed for tax purposes at its fair cash value under
Section 172 of the Kentucky Constitution, and
WHEREAS in an extraordinary legislative session held in 1965,
the General Assembly of Kentucky adopted House Bill No. 1 providing that
tax rates should be rolled back as assessments increased to the extent
that the total property tax revenues should not exceed the approximate
amount of those received by the taxing district in 1965, and
WHEREAS prior to 1965 the Electric Plant Board of the City of
Paducah, Kentucky paid to the City of Paducah and the local school board
a tax equivalent, computed as authorized in KRS 96.820, which was based
on a one hundred percent of book value, and
WHEREAS the Electric Plant Board paid $114,760.75 to the City
and School Board in lieu of taxes in 1965, but would pay approximately
one-third of such amount in 1967, the first year of the full one hundred
percent assessment in cities of the second class, if the same tax rate
that applies to the franchised corporations and public utilities in the
City of Paducah was applied to the property of the Electric Plant Board,
and
WHEREAS the Christian Circuit Court, in Civil Action 5892,
entered its judgment on July 6, 1967, interpreting a similar situation
and the new law and ordering the Electric Plant Board of Hoskinsville,
Kentucky to pay the school board for 1966 an amount equal to the amount
paid in 1965- 1966 being the first year of one hundred percent assessment
for Hopkinsville, a city of the third class, and
WHEREAS notwithstanding there are uncertainties in the law, the
Board believes the overall intent of the Legislature was to maintain
tax payments at approximately the same amount they were prior to the
change to one hundred percent assessments and the lower tax rates, and
WHEREAS the Electric Plant Board of the City of Paducah has
heretofore, by resolution, indicated its desire to pay, subject to
the approval by the Tennessee Valley Authority, and the Board of Com-
missioners of the City of Paducah now desires to accept the tax equivalent
of $114,760.75 paid in 1965 as the full amount due the City of Paducah
and the Paducah School Board for the year 1967.
385
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That the City Treasurer be, and he is hereby,
authorized and directed to prepare and submit to the Electric Plant
Board of the City of Paducah, a statement for the City of Paducah and
the Paducah School Board, requesting a payment of $114,760.75 as the
tax equivalent payment due for the year 1967. The demand for payment
directed herein shall be made subject to approval by the Tennessee
Valley Authority.
SECTION 2. This resolution shall be in full force and effect
from and after its adoption.
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Mayor
Passed by the Board of Commissioners November 28, 1967
Recorded by Sarah Thurman, City Clerk, November 28, 1967.
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