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(A) Except as provided in division (B) of this section, every person or business entity engaged in any business for profit and any person or business entity that makes a filing with the Internal Revenue Service or the Kentucky Revenue Cabinet shall be required to file and pay to the city an annual occupational license tax for the privilege of engaging in such activities within the city.
(1) The occupational license tax shall be measured by one and one-half percent (1.5%) of all wages and compensation paid or payable in the city for work done or services performed or rendered in the city by every resident and nonresident who is an employee;
(2) Effective January 1, 2018, the occupational license tax shall be measured by 0.075% of the gross receipts from business conducted in the city by a resident or nonresident business entity, or a minimum tax of one hundred dollars ($100.00), whichever is greater.
(B) The maximum tax liability under this chapter shall be assessed as follows:
(1) For each employee equal to the maximum established for purposes of the Federal Insurance Contribution Act, FICA. This maximum shall be applied by each employer on salaries, wages, commissions or any other compensation or consideration of monetary value earned by each employee or person in the city and deductions for the license fee shall be made only upon the amount of salaries, wages, commissions or other compensation in consideration of monetary value which does not exceed the FICA maximum established for that year. There shall be no refund given to any employee or person whose salaries, wages, commissions or compensation or consideration of monetary value which exceed the FICA maximum, due to receipts from more than one employer.
(2) For each business entity, the maximum liability for the portion of the occupational license tax that is measured by taxable gross receipts shall be twenty-five thousand dollars ($25,000.00) for the 2018 calendar year and thereafter.
(C) The occupational license tax imposed in this section shall not apply to the following persons or business entities:
(1) Any bank, trust company, combined bank and trust company, or trust, banking and title insurance company organized and doing business in this state, any savings and loan association whether state or federally chartered;
(2) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
(3) Any compensation received by precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections;
(4) Public Service Corporations that pay an ad valorem tax on property valued and assessed by the Kentucky Department of Revenue pursuant to the provisions of KRS 136.120. Licensees whose businesses are predominantly non-public service who are also engaged in public service activity are required to pay a license fee on their gross receipts derived from the non-public service activities apportioned to the city;
(5) Persons or business entities that have been issued a license under KRS Chapter 243 to engage in manufacturing or trafficking in alcoholic beverages. Persons engaged in the business of manufacturing or trafficking in alcoholic beverages are required to file a return, but may exclude the portion of their gross receipts derived from the manufacturing or trafficking in alcoholic beverages;
(6) Insurance companies incorporating under the laws of and doing business in the Commonwealth of Kentucky; and
(7) Persons or business entities that operate a two-dwelling unit rental property, where the owner occupies one dwelling unit and rents the other dwelling unit that is a part thereof.
(Ord. 2004-15, passed 11-18-04; Am. Ord. 2008-04, passed 2-6-08; Am. Ord. 2016-11, passed 10-6-16; Am. Ord. 2018-05, passed 7-5-18) Penalty, see § 117.99