KY SB255

Creates the Rural Kentucky Revitalization Opportunity Partnership as a public body corporate to manage economic development in rural counties (defined as USDA Rural-Urban Continuum Codes 4-9), which include approximately 1.85 million residents earning 26% less per capita than urban areas

Establishes a 21-member governing board with representatives from local governments, universities, KCTCS, regional organizations, chambers of commerce, the Federal Reserve Bank of St. Louis, and foundations, plus an 18-member advisory council

Authorizes cities, counties, and the Commonwealth to pledge 85% of incremental tax revenues (property taxes, occupational license taxes, withholding taxes, and sales taxes) to the Partnership for 20 years to fund approved development projects

Creates a refundable income tax credit for residential property owners in project development areas equal to the amount their property taxes exceed the January 1, 2026 assessment level, ending when the property is sold or the 20-year incremental revenue period expires

Requires biennial reporting to the legislature on revenues received, operating expenditures (capped at 5% of gross contributions), projects funded, and bonds issued, with the Department of Revenue tracking tax credit claims by address and income level