HB 405 — AN ACT relating to occupational license fees levied by a board of education.

Summary

Amend KRS 160.603, relating to occupational license taxes for schools, to require a favorable vote of the local board of education prior to taking any other action to levy or increase the tax; require publication of the meeting in which the vote is expected to occur on the local board of education's website; subject an increase in the tax rate under KRS 160.607 to publication and public hearing requirements; expand the notification requirements for the public hearing; amend KRS 160.607 to require compliance with the publication and public hearing requirements and also a favorable vote by the fiscal court prior to authorizing an increase in a tax rate above the general maximum rate for school districts in counties having 300,000 or more inhabitants; amend KRS 160.484 to require the fiscal court to vote on an increase in a tax rate above the general maximum rate for school districts in counties having 300,000 or more inhabitants; set requirements for the rate based on the outcome of the vote; amend KRS 160.485, relating to recall procedures for proposed license tax levies or rate increases, to conform.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill modifies the procedures for local boards of education to levy and increase school taxes, emphasizing online notice and requiring favorable votes.

• KRS 160.603

  No local board of education shall levy any of the school taxes authorized by KRS 160.593 to 160.597, 160.601 to 160.617, and 160.635 to 160.648, except the levy required by KRS 160.614(3) and (6), until after compliance with the following: → A local board of education shall comply with subsections (2) to (5) of this section prior to:

  The section now specifies that compliance must occur before both levying and increasing school taxes.

• KRS 160.603

  levy any of the school taxes authorized by KRS 160.593 to 160.597, 160.601 to 160.617, and 160.635 to 160.648, except the levy required by KRS 160.614(3) and (6); or, → levying any of the school taxes authorized by KRS 160.593 to 160.597, 160.601 to 160.633, and 160.635 to 160.648, except the levy required by KRS 160.614(3) and (6); or increasing the school tax rate as authorized by subsection (2) of Section 2 of this Act.

  The bill broadens the conditions under which a local board must comply with the requirements, now including school tax rate increases.

• KRS 160.603

  until after compliance with the following: → prior to taking any other action to levy or increase the tax.

  This change makes it clear that compliance steps must be completed before any action is taken regarding tax levies or increases.

• KRS 160.603

  for the purpose of hearing comments and complaints regarding the proposed increase and explaining the reasons for such proposal; → to listen to comments and concerns regarding the proposed school tax levy or school tax rate increase; and for the local board of education to provide information and explain the reasoning for the proposal;

  The phrase clarifies the purpose of the public hearing, ensuring it includes both listening to community input and providing justifications for the proposed financial changes.

• KRS 160.603

  at least one (1) time in a newspaper of general circulation published in the county or by posting at the courthouse door if there be no such newspaper, the fact that such levy is being proposed. → on the home page of the school district's website and in a newspaper of general circulation published in the county or by posting at the courthouse door if there be no such newspaper, the fact that the levy or increase is being proposed.

  This change mandates that notice be prominently displayed on the district's website, enhancing public awareness of proposed tax actions.

• KRS 160.607

  is authorized to increase the school tax rate to exceed the maximum set in subsection (1) of this section by one-quarter of one percent (0.25%) before April 14, 2026. → After complying with Section 1 of this Act and receiving a favorable vote by the fiscal court as required by Section 3 of this Act, any county having three hundred thousand (300,000) or more inhabitants is authorized to increase the school tax rate to exceed the maximum rate set in subsection (1) of this section by one-quarter of one percent (0.25%).

  The amendment adds a requirement for a favorable vote by the fiscal court before any increase in the school tax rate can proceed.

• KRS 160.484

  impose the license fees authorized by KRS 160.482 to 160.488 at a percentage rate, not to exceed one-half of one percent (0.5%), determined by the fiscal court. → impose or not impose the license fees authorized by KRS 160.482 to 160.488 at a percentage rate, not to exceed one-half of one percent (0.5%).

  This change clarifies that the fiscal court has discretion over whether to impose the license fees, enhancing procedural clarity.

Action History

1. January 23, 2026

   to Appropriations & Revenue (H)

2. January 15, 2026

   to Committee on Committees (H)

3. January 15, 2026

   introduced in House

Sponsors

• Adam Moore · Primary
• Adrielle Camuel · Primary
• Lindsey Burke · Primary
• Anne Gay Donworth · Primary

Subjects