(A) Except as provided in division (C) of this section, every person or business entity engaged in any business for profit and any person or business entity that is required to make a filing with the Internal Revenue Service or the Kentucky Revenue Cabinet shall be required to file and pay to the city an occupational license tax for the privilege of engaging in such activities within the city.
(1) The occupational license tax shall be measured by 1 ½% (one and one-half percent) 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) The occupational license tax shall be measured by .33% (one-third of one percent) of the gross receipts from business conducted in the city by a resident or nonresident business entity, or $5,000.00, whichever is greater.
(B) The maximum tax liability under this ordinance shall be assessed as follows:
(1) For each employee $5,000.00.
(2) For each business entity, there shall be a $5,000.00 maximum liability for the portion of the occupational license tax which is measured by taxable gross receipts.
(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) Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky.
(7) Craft vendors and Street Vendors participating in the Annual Auburn Autumn Days Festival and other similar one-day community events shall not be subject to the occupational license fee, reporting requirements, or for payment of any occupational license taxes.
(Ord. 2011-07, passed 11-14-11)