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KentuckyHB 6062025 Regular SessionHouseWALLET

AN ACT relating to economic development.

Sponsored By: Wade Williams (Republican)

Signed by Governor

Education, FinanceBonds, PublicReports MandatedFiscal Note

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Added property taxes in development districts

Property inside a regional development district can face an added annual property tax. The rate cannot exceed $0.10 per $100 of assessed value, on top of other property taxes. At that maximum rate, a property assessed at $200,000 owes $200 a year in district tax. The money pays for district services and debt payments on bonds that finance district infrastructure. The tax is collected like county property taxes and sent to the district board.

District workers and businesses face fees

A local government can charge up to 3% on covered pay and business net profits earned within a development district. All governments in the district agreement must agree to impose the fee. Businesses and activities exempt under KRS 68.180, 68.197, or 91.200 do not pay it. It must be the district's only occupational license fee, except for fees under Kentucky's school laws. Once imposed, the rate cannot increase. The fee expires 20 years after the year it is imposed, with no replacement fee allowed under this authority. Revenue is divided among participating governments as their agreement directs and can go into their general funds for allowed uses.

Local governments can build regional projects

Two or more local governments from different counties can form a district for a shared development project. Each project must cover at least 300 connected acres and create at least 500 new jobs. Their agreement must spell out each government's investment, how the money is used, and services provided. A board with representatives from each government manages the district, with staggered four-year trustee terms. All participating governments must consent before district land can be annexed. Districts must follow petition rules, but the specified voter-signature percentage does not apply. Each board must report project details, jobs, contributions, tax rates, revenue, and spending by August 1 each year. The Department for Local Government must send compiled reports to the legislative appropriations and revenue committee by October 1.

Sales tax payments support qualifying attractions

For qualifying attractions held July 1, 2025, through June 30, 2035, the law provides a sales tax incentive. Expanded eligibility covers public property in a consolidated local government or urban-county government. That government or Kentucky must own, operate, or control the property. A qualifying series must offer public, ticketed entertainment for at least two consecutive days and draw at least 60,000 admissions. Its agreement must cover at least one annual series for five consecutive years. The incentive equals 50% of Kentucky sales tax from admissions and on-site sales, including food, drinks, souvenirs, camping, and parking. Half goes to the facility operator for operations and maintenance; half goes to the sponsor. Only one incentive is allowed per attraction each year, reduced by vendor compensation, with no interest paid. Sponsors must apply at least 60 days before the first event; the administering department must approve or deny within 30 days. Denials must explain why. Payment applications open 30 days after the end of the month generating the tax and can combine months. The department verifies eligibility and can waive attendance and duration requirements for weather or extraordinary events beyond the sponsor's control. Payment is due within 45 days after the later receipt of the application or all required supporting information. Public reports are due each November 1 from 2026 through 2035. They identify funded attractions, venues, operators, sponsors, event length, admissions, and payments for the fiscal year ending June 30.

Sponsors & Cosponsors

Sponsor

  • Wade Williams

    Republican • House

Cosponsors

  • Josh Bray

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 250 • No: 17

Senate vote • 3/28/2025

passed

Yes: 37 • No: 0

House vote • 3/28/2025

passed

Yes: 82 • No: 17

Senate vote • 3/12/2025

3rd reading, passed

Yes: 36 • No: 0 • Other: 1

House vote • 2/27/2025

3rd reading, passed

Yes: 95 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 159)

    4/2/2025

  2. delivered to Governor

    3/28/2025

  3. enrolled, signed by President of the Senate

    3/28/2025House

  4. enrolled, signed by Speaker of the House

    3/28/2025House

  5. passed 82-17

    3/28/2025House

  6. Free Conference Committee report adopted in House

    3/28/2025House

  7. posted for passage for consideration of Free Conference Committee Report (1)

    3/28/2025House

  8. taken from Rules

    3/28/2025House

  9. to Rules (H)

    3/28/2025House

  10. received in House

    3/28/2025House

  11. passed 37-0

    3/28/2025Senate

  12. Free Conference Committee report adopted in Senate

    3/28/2025Senate

  13. posted for passage for consideration of Free Conference Report

    3/28/2025Senate

  14. Free Conference Committee report filed in Senate

    3/28/2025Senate

  15. Free Conference Committee report filed in House

    3/27/2025House

  16. Free Conference Committee appointed in House and Senate

    3/27/2025House

  17. Conference Committee report adopted in House and Senate

    3/27/2025House

  18. Conference Committee report (1) filed in House and Senate

    3/27/2025House

  19. Conference Committee appointed in House and Senate

    3/27/2025House

  20. Senate refused to recede from Committee Substitute (1) and Committee Amendment (1-title)

    3/27/2025Senate

  21. posted for passage for receding from Senate Committee Substitute (1) and Committee Amendment (1-title)

    3/27/2025Senate

  22. to Rules (S)

    3/27/2025Senate

  23. received in Senate

    3/27/2025Senate

  24. House refused to concur in Senate Committee Substitute (1) and Committee Amendment (1-title)

    3/27/2025Senate

  25. posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title)

    3/13/2025Senate

Bill Text

  • Current

    3/28/2025

    PDF

  • Introduced

    2/27/2025

    PDF

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