Evolution of Legal Process Taxes in County Clerk Offices
Explore the historical progression of legal process taxes related to marriage licenses, property conveyance, and other transactions as mandated by KRS 142.010. Delve into the changes in tax rates and base over time, along with the reliance on these taxes for revenue generation. The receipts of legal process taxes over the past decade provide insights into the financial trends. Discover the role of County Clerks in tax collection and remittance, reflecting the modernization efforts in the legal process tax system.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
History of the Legal Process Tax County Clerk Office Modernization Task Force
Where We Are Today KRS 142.010 The following taxes shall be paid on each: Marriage license - $4.50 Power of attorney to convey property - $4.00 Mortgage or other financing statement and each notation of a security interest on a certificate of title - $4.00 Conveyance of real property - $4.00 Lien or conveyance of coal, oil, gas, or other mineral right or privilege - $4.00 2
KRS 142.010 The County Clerk is required within 10 days to remit these taxes to the Department of Revenue. From each of the amounts of tax, $1.00 is deposited into the Department for Libraries and Archives to be used for preserving and retaining public records. 3
1936 Legal Process Taxes under KRS 142.010 A tax was levied on many more items Verdict of a petit jury in civil cases in circuit court - $4.00 Marriage license - $3.50 Filing or registering a plat and certificate of survey - $2.50 on 10 acres or less and $5.00 for survey in excess of 10 acres An appeal to the court of appeals - $2.00 Deed or power of attorney to convey property - $1.00 Land warrant, for each official certificate with seal affixed - $1.00 Each original action in circuit court - $0.50 The seal of a court - $0.50 Copy of a plat - $0.50 Certain judgements affecting the land office - $0.25 A copy of any writing not specifically provided for - $0.02 for each 20 words 4
Tax Policy Principal Broad Base and Low Rate Over time, for the Legal Process Tax, the base has narrowed and the rate has increased. 5
Reliance on the Legal Process Taxes 1800 1900 2000 - General Fund 1% Fees, Legal 10% 1% 21% 6% Fees, Legal Property Tax 30% 6% Fees, Legal Property Tax License Property Tax License 70% Federal funds 68% Sales 49% 38% Income Inheritance 1850 1950 Fees, Legal Property Tax 2% 6% 6% License 29% 7% Fees, Legal 12% Property Tax Federal funds 10% License Sales & Gross Receipts Income 65% 36% 27% Inheritance 6
Legal Process Tax Receipts Past 10 Years 3,500,000.00 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,000.00 - FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 7
Local Records Grant Program Year-End Balance 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1,400,000.00 1,600,000.00 8
