Sunday, May 22, 2016

The unique status of Louisville Metro

 Many of life's little mysteries can be answered by reading the Kentucky Revised Statutes.

Louisville Metro's Occupational payroll license fees are clearly income taxes, even if in order to ignore Kentucky's Constitution it is necessary to pretend they are not. If you work in Jefferson County you have to pay 1.25% of your gross income as a "license fee" for the privilege of working in Jefferson County.

On top of this you have to pay an additional 0.20 % for the transit fund. If you also reside in Jefferson County another 0.75% of your gross pay is deducted from every paycheck to fund the Jefferson County Public School system.

So, if you both live and work in Jefferson County, local payroll deductions add up to 2.20% of gross pay, unless you work in one of the several local small cities that impose their own Occupational License fees.

West Buechel, for example, has its own 1.50% payroll fee for work done within the City. These happy workers have to pay all the above. Both Louisville Metro Occupational fees and West Buechel's fees are payroll deductions.

Prior to the consolidation of Jefferson County and the City of Louisville, people who worked in West Buechel would not have paid Louisville's Occupational fees, because they did not work in Louisville, and they would have received a credit against any Jefferson County Occupational fees if they paid West Buechel's Occupational fee. KRS 68.197.

However, these days KRS 67C.1012(d) provides:
"A consolidated local government is neither a city government nor a county government as those forms of government exist on July 15, 2002, but it is a separate classification of government which possess the greater powers conferred upon, and is subject to the lesser restrictions applicable to, county government and cities of the first class under the Constitution and general laws of the Commonwealth of Kentucky."
The credit provisions of KRS 68.197 do not apply to the Occupational fees of Louisville Metro.

Specifically, KRS 68.197(7) provides, "persons who pay a county license fee and a license fee to a city contained in the county shall be allowed to credit their city license fee against their county license fee."

KRS 68.002 (1) defines a County to include, "a charter county government."

Louisville Metro is not a charter county government and pursuant to KRS 67C.1012(d), Louisville Metro is not a city or a county either. As mentioned, the city-county credit provisions of KRS 68.197 do not apply to the Occupational fees of Louisville Metro.
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Tom Fox, J. D.
Southern Specialty Law Publishing Company
Louisville, Kentucky

A division of Accountable Kentucky Incorporated
a Kentucky Non-profit corporation
AccountableKY.org

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This is not legal advice and I am not a lawyer.

Monday, May 9, 2016

Personal liability for over-budget spending

It's a rare breed of cat who, as a city executive, knowingly spends more than the city's legislative branch authorized in an annual budget. Doing that is unusual because of the personal liability involved.

KRS 91A.030(13) provides, "No city agency, or member, director, officer, or employee of a city agency, may bind the city in any way to any extent beyond the amount of money at that time appropriated for the purpose of the agency. All contracts, agreements, and obligations, express or implied, beyond existing appropriations are void; nor shall any city officer issue any bond, certificate, or warrant for the payment of money by the city in any way to any extent beyond the unexpended balance of any appropriation made for the purpose."

KRS 92.340
" **** Any indebtedness contracted by a city of the home rule class in
violation of this subsection or of KRS 92.330 or 91A.030(13) shall be void, the
contract shall not be enforceable by the person with whom made, the city shall never
assume the same, and money paid under any such contract may be recovered back
by the city."
This is the reason most public officials are careful to not go over budget allocations. The excess spending may come out of the officer's own pockets. Plus, it's likely Official Misconduct in the First Degree, KRS 522.020
--------------------

Tom Fox, J. D.
Southern Specialty Law Publishing Company
Louisville, Kentucky

A division of Accountable Kentucky Incorporated
a Kentucky Non-profit corporation
AccountableKY.org

----------- oOo ----------

Self-help Law Books on Amazon
Subscribe to RSS Post feed

This is not legal advice and I am not a lawyer.