As used in this chapter, the following terms and their derivatives shall have the following meanings unless the context clearly indicates that a different meaning is intended:
“BUSINESS.” Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit. “BUSINESS” shall not include the usual activities of a board of trade, chambers of commerce, trade associations, or unions, or other associations performing services usually performed by trade associations or unions as recognized by the Internal Revenue Service. "Business" shall not include funds, foundations, corporations, or associations organized and operated for the exclusive and sole purpose of religious, charitable, scientific, literary, educational, civic or fraternal purposes, where no part of the earnings, incomes or receipts of such unit, group or association, inures to the benefit of any private shareholder or other person.
“BUSINESS ENTITY.” Each separate corporation, limited liability company, business development corporation, partnership, limited partnership, registered limited liability partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted.
“CITY” or “AUBURN.” The City of Auburn, Kentucky.
“COMPENSATION.” Wages, salaries, commissions, or any other form of remuneration paid or payable by an employer for services performed by an employee, which are required to be reported for federal income tax purposes and adjusted as follows:
(1) Include any amounts contributed by an employee to any retirement, profit sharing, or deferred compensation plan, which are deferred for federal income tax purposes under a salary reduction agreement or similar arrangement, including but not limited to salary reduction arrangements under Section 401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal Revenue Code; and
(2) Include any amounts contributed by an employee to any welfare benefit, fringe benefit, or other benefit plan made by salary reduction or other payment method which permits employees to elect to reduce federal taxable compensation under the Internal Revenue Code, Including but not limited to Sections 125 and 132 of the Internal Revenue Code.
“CONCLUSION OF THE FEDERAL AUDIT.” The date that the adjustments made by the Internal Revenue Service to net income as reported on the business entity's federal income tax return become final and unappealable.
“CRAFT VENDOR.” Any person(s) who operate a booth, stand, table or tent during the annual Auburn Autumn Days Festival and similar one-day community events for the purpose of showing and selling homemade or natural crafts or locally grown agricultural products or other craft items of a similar nature.
“EMPLOYEE.” Any person who renders services to another person or any business entity for compensation, including an officer of a corporation and any officer, employee, or elected official of the United States, a state, or any political subdivision of a state, or any agency of instrumentality of any one (1) or more of the above. A person classified as an independent contractor under the Internal Revenue Code shall not be considered an employee.
“EMPLOYER.” Any individual, person, partnership, association, corporation, governmental body or unit or administrative agency, or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis. Also defined as the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person except that:
(1) If the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term "employer" means the person having control of the payment of such wages; and
(2) In the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United states, the term "employer" means such person;
“FINAL DETERMINATION OF THE FEDERAL AUDIT.” The revenue agents’ report of other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
“FISCAL YEAR.” An accounting period of 12 months ending on the last day of any month other than December.
“GROSS RECEIPTS.” All revenues or proceeds derived from the sale, lease, or rental of goods or services, or property by a business entity reduced by the following:
(1) Sales and excise taxes paid.
(2) Returns and allowances.
“INDEPENDENT CONTRACTOR.” A person who has no payroll taxes withheld and who receives a Federal Form 1099 in lieu of a Federal Form W-2. Compensation may be non-monetary, such as rent-free housing in exchange for services at an apartment building/complex or free food for restaurant workers. Also defined as the individual who is not subject to the direct control of another and may conduct the sale or service as he sees fit and may receive compensation from multiple sources. These individuals are considered self-employed. (Note: Consequences of treating an employee as an independent contractor: If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. See Internal Revenue Code section 3509 for more information. Courts construing this definition should refer to the Restatement (Third) of Agency.)
“INTERNAL REVENUE CODE.” The Internal Revenue Code as defined in KRS 67.750(7).
“PERSON.” Every natural person, whether a resident or non-resident of the city. Whenever the word “PERSON” is used in a clause prescribing and imposing a penalty in the nature of a fine or imprisonment, the word, as applied to a partnership or other form of unincorporated enterprise, shall mean the partners or members thereof, and as applied to corporations, shall mean the officers and directors thereof.
“RETURN.” or “REPORT.” Any properly completed and, if required, signed form, statement, certification, declaration, or any other document permitted or required to be submitted or filed with the city.
“SALES REVENUE.” Receipts from the sale, lease, or rental of goods, services or property.
“STREET VENDOR.” Food vendors or persons selling items purchased or obtained from sources other than themselves, and amusement, arcade and carnival owners/operators operating a booth, stand, table, tent, ride or amusement during the annual Auburn Autumn Days Festival and similar one-day community events.
“TAX DISTRICT.” Any city of the first to fifth class with the authority to levy gross receipts and/or occupational license taxes.
“TAXABLE YEAR.” The calendar year or fiscal year ending during the calendar year, upon the basis of which gross receipts is computed.
“TRANSIENT CONTRACTOR.” means any individual, partnership, or corporation that does not have a permanent location in the city and that does not do business on a repetitive basis within the city limits.
“TRANSIENT INDEPENDENT CONTRACTOR.” Any independent contractor who does not have a permanent business location in the city, and who does not do business on a repetitive basis within the city limits. This person has no payroll taxes withheld and who receives a Federal form 1099 in lieu of a Federal form W-2. Compensation may be non-monetary.
(Ord. 2011-07, passed 11-14-11)