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Division 1. General Provisions
As used in this article, 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 board of trade, chambers of commerce, trade associations, or unions, or other associations performing services usually performed by trade associations or unions. "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, income 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." The City of Berea, 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.
"DOMESTIC SERVANT." An individual employed to drive his employee as a chauffeur or employed on the grounds or in the home of his employer, to cook, clean, wash, garden, transport, or otherwise care for or wait upon the employer, the employer’s family and guests or in the care for the person, home, grounds, and/or vehicles of the employer, the employer’s family and guests, including but not limited to maids, butlers, nurses, nursemaids, gardeners, cooks, launderers and chauffeurs engaged to service the employer, the employer’s family and guests but not including such individuals who are employed by a cleaning service, personal nursing service, chauffeuring service or other entity which offers the services of its employees to the public.
"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." 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.
"ENTERTAINER." A person or group of persons who provide entertainment in for an audience, either in a public or private place, by holding the attention of, amusing, diverting, or otherwise giving pleasure to, an audience, including but not limited to signing, dancing, playing musical instruments, storytelling, drama, telling jokes, magic acts, and similar pursuits.
"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 twelve (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, services or property by a business entity reduced by the following:
(1) Sales and excise taxes paid; and
(2) Returns and allowances.
"INTERNAL REVENUE CODE." The Internal Revenue Code in effect on December 31, 2003, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2004, that would otherwise terminate.
"NET PROFIT." Gross income as defined in Section 61 of the Internal Revenue Code minus all the deductions from gross income allowed by Chapter 1 of the Internal Revenue Code, and adjusted as follows:
(1) Include any amount claimed as a deduction for state tax or local tax which is computed, in whole or in part, by reference to gross or net income and which is paid or accrued to any state of the United States, local taxing authority in a state, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country or political subdivision thereof;
(2) Include any amount claimed as a deduction that directly or indirectly is allocable to income which is either exempt from taxation or otherwise not taxed;
(3) Include any amount claimed as a net operating loss carryback or carryforward allowed under Section 172 of the Internal Revenue Code;
(4) Include any amount of income and expenses passed through separately as required by the Internal Revenue Code to an owner of a business entity that is a pass-through entity for federal tax purposes; and
(5) Exclude any amount of income that is exempt from state taxation by the Kentucky Constitution and statutory laws of the United States.
"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.
"TAX DISTRICT." Any city of the first to fifth class with authority to levy net profits, or occupational license taxes.
"TAXABLE NET PROFIT."
(1) In case of a business entity having payroll or sales revenue only within the city means net profit as defined in this section.
(2) In case of a business entity having payroll or sales revenue both within and without the city means net profit as defined in this section, and as apportioned under § 60.101.
"TAXABLE YEAR." The calendar year or fiscal year ending during the calendar year, upon the basis of which net profit is computed.
(Ord. No. 21.90, 10-16-90; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
(A) Power to prescribe regulations. The finance director is hereby charged with the enforcement of provisions of this article, and is hereby empowered to prescribe, adopt and promulgate, and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of the provisions of the article, including, but not limited to, provisions for the reexamination and correction of returns to which an underpayment or overpayment is claimed or found to have been made. The rules and regulations as promulgated by him shall be binding upon the licensee and employers. Provided, however, all such rules, regulations and decisions shall be subject to the consent and approval of the mayor.
(B) Authority to examine finance records. The director, or any agent or employee designated by the finance director in writing, may examine the books, papers, and records of any employer, or supposed employer or of any licensee, or supposed licensee in order to determine the accuracy of any return made, or if no return was made, to ascertain the amount of license fee imposed by the terms of this article as the finance officer may deem reasonably necessary. Each employer or supposed employer or licensee or supposed licensee is hereby directed and required to give to finance director or his or her duly authorized agent or employee the means, facilities and opportunity for the examination and investigation as are hereby authorized. The finance director is hereby authorized to examine any person under oath concerning any wages, salaries, commissions or other compensation or net profits which were or should have been returned; and to this end, he or she may compel the production of books, papers, records including copies of forms and schedules filed with the Internal Revenue Service or the Secretary of the Revenue Cabinet and the attendance of all persons before him or her, whether as parties or witnesses, whom he or she believes to have knowledge of the wages, salaries, commissions or other compensation or net profits, to the extent that any officer empowered to administer oaths in the state is permitted to so order. The finance director may enforce this right by application to the appropriate court having jurisdiction over these matters.
(Ord. No. 21.90, 10-16-90; Amd. Ord. No. 3.93, 3-2-93; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
Division 2. General Business License
(A) Each person, corporation or business engaged in any occupation, trade or profession or other business activity for profit, or anyone required to file a return in the city, except those businesses engaged in those activities shown in § 60.101, or individuals under the age of 18, shall apply for and obtain an occupational license from the city, on forms provided by the city, before the applicant shall be authorized to do business, before the commencement of business, or in the event of a change of business status. A one-time occupational license registration fee of twenty-five dollars ($25.00) shall be made at the time of application. A business changing its name shall notify the Finance Department of the name change, but shall not be required to pay a new occupational license registration fee. Licensees are required to notify the city of any changes in address, the cessation of business, or any other changes which render the information supplied to the city in the license application inaccurate.
(B) Each person, corporation or business engaged in any occupation, trade or profession or other business activity for profit, or anyone required to file a return shall be required to complete a separate application and pay the twenty-five dollar ($25.00) registration fee for each separate business, before the commencement of business, or in the event of a status change other than a change of address.
(C) Nonprofit organizations, as determined by the Internal Revenue Service approval of not-for-profit status, must file an application for occupational license but are exempt from the twenty-five dollar ($25.00) occupational license registration fee of twenty-five dollars ($25.00). Upon the filing of an application by a nonprofit organization and confirmation of its not-for-profit status, the Finance Department will issue an occupational license certificate to this organization.
(D) It shall be unlawful for any person, corporation or business engaged in any occupation, trade or profession or other business activity to engage in any occupation, trade, profession or other activity for profit in the city without first having applied for an paid the occupational license registration fee herein required. If the occupational license registration fee is not paid prior to engaging in any business or activity, a penalty of twenty-five ($25.00) shall be imposed, in addition to any other penalties provided by this chapter for the period during which any unlawful business or activity occurred.
(F) Non-transferable. A license to operate a business, once granted, shall not be transferable by the applicant.
(Ord. No. 21.90, 10-16-90; Amd. Ord. No. 14-03, § 2, 8-19-03; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
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