(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 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. The occupational license tax shall be measured as follows:
(1) One and thirty one hundredths percent (1.30%) 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 or nonresident who is an employee;
(2) One and twenty-five one hundredths percent (1.25%) of the net profit from business conducted in the city by a resident or non-resident business entity or person;
(3) The minimum tax shall be zero (0) as to net profits and zero (0) as to wages and compensation. The maximum tax shall be nine-hundred dollars ($900) as to net profits; there shall be no maximum tax for wages and compensation. All resident or non-resident business entities or persons with business conducted in the city shall be required to submit a minimum of seventy-five dollars ($75) with their application for an occupational license, unless such application/ return is accompanied by an appropriate tax schedule indicating the net profits from such business within in the city would warrant a lower net profits tax, which lower amount of net profits tax will then be due to the city, or that no net profits tax is due the city as a result of a loss, as shown on such tax schedule, in which case, no net profits tax will be due to the city.
(B) The occupational license tax imposed in this section shall not apply to the following persons or business entities, except as noted specifically otherwise in division (B)(4) below:
(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 any state, county, and local primary, regular, and special elections;
(4) Public service corporations that pay an ad valorem tax on property values 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 net profit 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 manufacturing or trafficking in alcoholic beverages are required to file a return, but may exclude the portion of the net profits derived from the manufacturing or trafficking in alcoholic beverages; and
(6) Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky.
(Ord. 2008-08, passed 7-15-08; Am. Ord. 2016-03, passed 4-20-16; Am. Ord. 2019-1, passed 1-16-19; Am. Ord. 2020-3, passed 7-15-20; Am. Ord. 2020-6, passed 11-18-20)