178.200 Tax levy to retire bonds and pay interest.
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<![CDATA[178.200 Tax levy to retire bonds and pay interest. (1) If bonds are sold to enable the fiscal court to construct roads and bridges, the fiscal court shall levy a tax of not over twenty cents ($0.20) on the one hundred dollars <br>($100) of the assessed valuation of the county. The tax shall be collected as other <br>county taxes and allocated, first, to the payment of the interest on the bonds, and the <br>balance placed to the credit of a sinking fund for the redemption of the bonds. (2) Any accumulation in the sinking fund may be loaned by the fiscal court on first mortgage real estate security, on the basis of fifty percent (50%) of its value, at the <br>legal rate of interest, which shall accrue to the sinking fund, but before the loan is <br>made all titles shall be looked up and papers approved by the county attorney. (3) For the 1966 tax year and for all subsequent years the rate levied by the levying authority under the provisions of this section for levies which were approved prior <br>to December 16, 1965, shall be the compensating tax rate as defined in KRS <br>132.010, except as provided in subsection (4) of this section. (4) Notwithstanding the limitations contained in subsection (3) of this section no tax rate shall be set lower than that necessary to provide such funds as are required to <br>meet principal and interest payments on outstanding bonded indebtedness. History: Amended 1965 (1st Extra. Sess.) Ky. Acts ch. 2, sec. 9. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4308. ]]>