Kentucky Tax Sharing and Disaffiliation Agreement is a legal document that outlines the terms and conditions for the sharing and disaffiliation of tax revenues between entities in the state of Kentucky. This agreement is typically entered into between two or more local governments within the state. The primary purpose of the Kentucky Tax Sharing and Disaffiliation Agreement is to ensure a fair and equitable distribution of tax revenues among the participating entities. It establishes the formula and methodology for calculating the amount of taxes that each entity is entitled to receive. The agreement also specifies the types of taxes that are subject to sharing, such as sales tax, property tax, income tax, or other local taxes. It outlines the specific rules and regulations for the determination, collection, reporting, and remittance of these taxes. There are several types of Kentucky Tax Sharing and Disaffiliation Agreements, each tailored to meet the specific needs and requirements of the participating entities. Some common types include: 1. Revenue Sharing Agreement: This type of agreement focuses on sharing tax revenues between two or more entities. It outlines the percentage or proportion in which tax revenues will be divided among the participating entities. 2. Disaffiliation Agreement: In some cases, a local government entity may want to disaffiliate from an existing tax sharing agreement. A disaffiliation agreement outlines the process and conditions under which a local government can withdraw from the tax sharing arrangement. 3. Modification Agreement: This type of agreement is entered into when there is a need to modify or amend an existing tax sharing agreement. It outlines the specific changes to be made and the procedures for implementing those changes. 4. Annexation Agreement: In cases where a new entity joins an existing tax sharing agreement, an annexation agreement is formulated. This agreement specifies the terms and conditions for the inclusion of the new entity and the allocation of tax revenues. The Kentucky Tax Sharing and Disaffiliation Agreement promotes cooperation and coordination among local government entities in the state. It ensures a fair and efficient distribution of tax revenues, fostering economic development and regional collaboration.