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For the purposes of this chapter, the following words and phrases have the meanings indicated unless the context clearly indicates or requires a different meaning. All definitions are intended to be consistent with KRS 67.750 to 67.790.
“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.
“BUSINESS.” Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit, specifically including any activity within the meaning, scope and context of KRS 92.280, KRS 92.281 and § 181 of the Kentucky Constitution. “BUSINESS” shall also specifically but not exclusively include the rental offering of any property, real or personal, having a site in the city. “BUSINESS” shall not include the usual activities of Boards 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.
“CALENDAR QUARTER.” Any quarter of a calendar year ending on March 31, June 30, September 30 or December 31 thereof.
“CITY.” The City of Bellevue, Kentucky.
“COMPENSATION.” Wages, salaries, commissions, or any other form of remuneration paid or payable by an employer for services preformed by an employee, which are required to be reported for federal income tax purposes and adjusted to include the following:
(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 to salary reduction arrangements under §§ 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 §§ 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.
“EMPLOYEE.” Any person who renders services to another person or any business entity for compensation, including an officer of a corporation any officer, employee, or elected official of the United States, a state, or any political subdivision of a state, of any agency of instrumentality of any one or more of the above. A person classified as an independent contractor under the Internal Revenue Code shall not be considered an “EMPLOYEE.”
“EMPLOYER.” 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 any services does not have control of the payment of the wages for such service, 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 agent’s report or 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 only by the following:
(1) Sales and excise taxes paid;
(2) Returned goods and allowances; and
(3) Exempt licensed sales of alcoholic beverages under the laws of the Commonwealth of Kentucky.
“INTERNAL REVENUE CODE.” The “INTERNAL REVENUE CODE” in effect on December 31 of the year in which the tax is due, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, of the year in which the tax is due, that would otherwise terminate.
“LICENSEE.” Any person required to file a return or to apply for or obtain an occupational license under this chapter.
“PERSON.” Every natural person, whether a resident or non-resident of the city, copartnership, fiduciary, association, or corporation. Whenever the word “PERSON” is used in any 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, as applied to corporations, shall mean the officers and directors thereof.
“REAL PROPERTY.” All types of real estate including commercial property, residential property and farm property.
“REGULATORY BUSINESS LICENSE.” A license required by the City of Bellevue, pursuant to the police power thereof, for the purpose of regulating business activities and operations within the City of Bellevue.
“RETURN” or “REPORT.” Any properly completed and, if required, signed form, statement, certification, declaration or any other document permitting or required to be submitted or filed with the city.
“SALES REVENUE.” Receipts from the sale, lease or rental of goods, services or property.
“TAXABLE GROSS RECEIPTS.” In case of a business entity have payroll or sales revenues only within the city means “GROSS RECEIPTS” as defined above.
“TAXABLE YEAR.” The calendar year or fiscal year ending during the calendar year, upon the basis of which gross receipts are computed.
“TAX DISTRICT.” Any city of the first through fifth class, county, urban county, charter county, consolidated local government, school district, special taxing district or any other statutorily created entity with the authority to levy net profits, gross receipts or occupational license fees to ensure that the applicant is in compliance with all regulatory requirements of the City or other applicable subdivisions of the Commonwealth of Kentucky.
(Ord. 2007-12-01, passed 12-19-07)
The purpose of this chapter is to impose an occupational license fee on those engaged in franchises, trades, occupations, professions and other businesses in the city and provide the necessary ancillary regulations for enforcement and administration.
(Ord. 2007-12-01, passed 12-19-07)
Subject to the provisions of KRS 67.750 and 67.795, and except as otherwise provided herein, an Occupational License Fee is hereby levied and imposed upon all persons and business entities engaged in any franchise, trade, occupation, profession or other businesses in the city, for the privilege of that engagement.
(Ord. 2007-12-01, passed 12-19-07)
(A) Every person and business entity operating or engaged in any business, franchise, trade, occupation, or profession in the city and every employer required by this chapter or statute to withhold the payroll fee specified herein, shall apply for and obtain an occupation license before commencing business or work activity in the city.
(B) Each applicant shall complete the city’s application for an Occupational/Business License and pay the application fee of $60. No application for an occupational license shall be accepted or received by the Clerk/Treasurer without payment of the application fee, and payment of any occupational license fee or business regulatory license fee then or otherwise due from the applicant.
(C) Licensees shall notify the city of any changes in address, cessation of business, or other changes rendering the information previously supplied to the city on the occupational license application inaccurate.
(D) The form and content of the annual Occupational/Business License required by this chapter and the application for it shall be determined by the City Clerk/Treasurer.
(E) All applications for an occupational business license or a regulatory business license shall be reviewed by the City Clerk/Treasurer and may be referred thereby to the City Administrative Officer or other city employees or officers
(Ord. 2007-12-01, passed 12-19-07)
(A) Except as provided in § 110.07, 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 fee for the privilege of engaging in such activities within the city. The occupational license fee shall be measured as follows:
(1) The occupational license fee for employees shall be 2.50% 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 fee on gross receipts shall be as follows: license fees for trades, businesses, and occupations in the city shall be paid based upon the gross receipts of the trade, business or occupation.
(B) Computation shall be made upon forms provided by the City Clerk/Treasurer as follows:
(1) Determine the gross receipts from the preceding calendar year,
(2) (a) For the first $99,999.99 of gross receipts, or portions thereof, the license rate shall be $60.00;
(b) For gross receipts of $100,000.00 to $199,999.99, the license rate shall be $95.00;
(c) For gross receipts of $200,000.00 to $299,999.99, the license rate shall be $195.00;
(d) For gross receipts of $300,000.00 to $399,999.99, the license rate shall be $290.00;
(e) For gross receipts of $400,000.00 to $499,999.99, the license rate shall be $450.00;
(f) For gross receipts of $500,000.00 to $699,999.99, the license rate shall be $755.00;
(g) For gross receipts of $700,000.00 to $999,999.99, the license rate shall be $1,040.00;
(h) For gross receipts of $1,000,000.00 to $2,999,999.99, the license rate shall be $1,925.00;
(i) For gross receipts of $3,000,000.00 to $4,999,999.99, the license rate shall be $3,025.00;
(j) For gross receipts of $5,000,000.00 to $7,499,999.99, the license rate shall be $4,125.00;
(k) For gross receipts of $7,500,000.00 to $9,999,999.99, the license rate shall be $5,225.00;
(l) For gross receipts of $10,000,000.00 and over, the license rate shall be $6,325.00.
(C) The minimum fee liability on gross receipts under this section shall be a minimum of $60. The maximum fee shall be $6,325.
(D) If any business entity dissolves, ceases to operate, or withdraws from the city during any taxable year, or if any business entity in any manner surrenders or loses its charter during any taxable year, the dissolution, cessation of business, withdrawal, or loss or surrender of charter shall not defeat the filing of returns and the assessment and collection of any occupational license fee for the period of that taxable year during which the business entity had business activity in the city.
(Ord. 2007-12-01, passed 12-19-07)
The occupational license fee imposed in this chapter shall not apply to the following persons or business entities:
(A) 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;
(B) Any compensation received by members of the Kentucky National Guard for training, unit training assemblies, annual field training and active duty;
(C) Any compensation received by precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections;
(D) 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;
(E) 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;
(F) Insurance companies incorporated or doing business under the laws of the Commonwealth of Kentucky;
(G) A minister of religion who has been ordained in accordance with the ceremonial ritual or discipline of a recognized church, religious sect, or religious organization, to teach and preach its religious doctrines or to administer its rights in public worship, in the performance of one or more of those duties. However, it is not intended to exempt an ordained minister of religion from the necessity of paying a license fee for work done or services performed in the city in activities not connected with his or her regular duties as a minister of religion.
(H) No church, religious congregation, or religious society of any creed is required to withhold or deduct any sum from the wages, salaries, commissions, or other compensation due by the church, religious congregation, or religious society to its employees as salaries, wages, commissions, or other compensation. However, this failure to so withhold by such employers shall not relieve the employees of the churches, religious congregations, or religious societies from the payment of license fees required by this chapter.
(I) The provisions of this chapter shall not apply to any business, occupation, or profession which is exempt from municipal licensing or license taxes pursuant to state or federal law.
(J) The provisions of this chapter shall not apply to vendors participating in flea market events sponsored by any non-profit, charitable organization with 501(c)(3) tax-exempt status as designated by the Internal Revenue Service, located within the city, where such event is held entirely upon or within property owned or controlled by such non-profit, charitable organization. This exemption shall only apply to one flea market event per year for each non-profit, charitable organization located within the city sponsoring the event. The event shall not exceed one calendar day in duration. The non-profit, charitable organization sponsoring the event shall comply with § 118.02 that requires a yard sale permit.
(K) Any usual activities of Boards of Trade, Chambers of Commerce, trade associations or unions, Community Chest funds or foundations, corporations or associations organized and operated exclusively for religious, charitable, scientific, literary, educational or civic purpose, or for the prevention of cruelty to children or animals; or clubs or fraternal organizations operated exclusively for social, literary, educational or fraternal purposes where no part of the income or receipts of such units, groups, or associations insures to the benefit of any private shareholder or individual. To qualify for this exemption the organization must submit satisfactory proof of their exempt status for federal income tax purposes. If any part of the earnings of such business inures to the benefit of any person, it shall be sufficient to defeat the exemption. If an organization earns “unrelated business income” as defined and administered in § 511 of the Internal Revenue Code, the occupational license fee shall be assessed on the “unrelated business income.”
(Ord. 2007-12-01, passed 12-19-07)
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