Boundary Dispute Prompts Suit Against Kentucky Fire District
Property owners in Shepherdsville, Kentucky have filed suit against the Southeast Bullitt Fire Protection District and Department claiming they have wrongfully been taxed on property for which they have been paying taxes to the city of Shepherdsville.
Jamie Weck claims that he and his wife have improperly been taxed by both jurisdictions for the same parcel. Approximately 15 other property owners have filed similar suits for double taxation stemming from a boundary dispute between Southeast Bullitt Fire Protection District and the city of Shepherdsville.
The dispute goes back over 10 years and was supposedly resolved in 2011 by a settlement agreement. However, the fire protection district filed suit in 2013 seeking to challenge the agreement. An appeal in that case is pending before the Kentucky Court of Appeals.
Just a quick question; and also understanding that the answer may be different from state to state, but it is my understanding (In Arizona) that if a fire district existed before a municipality incorporated, the district can continue to collect fire district taxes even if the municipality incorporated at a later date, but the taxes from the municipality cannot be collected for the purposes of funding the fire district since there is a pre-existing taxing agency that was established before incorporation (the fire district). It is Arizona way of preventing the “double dipping” funding source, so to speak.
Is this a similar model for Kentucky? If so, does the municipal taxes from Shepherdsville go towards the district?
I guess that was 2 questions …
Glenn – great question – and something I do not know the answer to.
Here in RI, the state legislature creates and controls all municipal entities, so the problem is avoided. Either you have a fire district (in which case it may tax property) or the municipality provides the fire service either through its own fire department or by subsidizing volunteer fire companies. Its one or the other – but it is decided at the legislative level.
In States where a fire district can be created by voters (no legislative action required) these problems have no way to get ironed out short of going to court. It is plausible that one way of resolving disputes may come from a grandfathering provision… we would have to research the issue before knowing for sure.
I don’t believe that is the problem in the Sheperdsville case (I could be wrong). Rather – it appears there is a boundary dispute. My understanding is the folks who sued own property in a disputed area and were paying taxes to both entities when the should only have been paying taxes to Shepherdsville.