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§ 60.101 OCCUPATIONS REQUIRING SPECIAL REGULATIONS; LICENSE FEES
   (A)   The city council hereby finds the occupations set forth in § 60.102 are of such a nature as to require special regulation and supervision, and therefore minimum license fees are imposed on every person, corporation, association, occupation, trade, profession, or other activity engaged in business, occupations, calling or profession or using, holding or exhibiting articles named in § 60.102. These businesses shall pay the license fee set forth to the city for each calendar year (or fraction thereof in the case of a new business). The license fee shall be considered as the minimum fee due for the period set forth in the table and shall be paid in advance of engaging in the activity.
   (B)   Single license fee. In the event that a licensee engages in more than one (1) type of activity in one (1) business entity, the highest minimum license fee shall apply.
   (C)   Payment for license fee. In the case of enterprises not operating continuously, payment must be made prior to the beginning of operations.
   (D)   License fee renewal. In any tax year, it shall be unlawful for any person to continue to engage in any occupation, trade, profession or other activity in the city without first having renewed and paid for the minimum license fee herein required. If the minimum license fee is not renewed between January 1 and February 28 of each year, a penalty of one hundred ($100.00) dollars per month or fraction thereof shall be imposed commencing on March 1.
(Ord. 21.90, 10-16-90; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
§ 60.102 SCHEDULE OF SPECIAL LICENSE FEES
   (A)   Billiard, pool rooms
      (1)   A billiard or pool hall shall be a commercial establishment containing two (2) or more billiard or pool tables which are utilized by a customer for a fee.
      (2)   License fee. $200 per year
         Table fee. $ 25 per table per year
      (3)    An application for a billiard room license shall be in the following form and submitted to the city clerk.
   "I, _______________, hereby make an application for licenses to conduct a pool room business in the City of Berea, Kentucky, for and during the year beginning January 1, ____ and ending December 31, ____, or annually thereafter.
   "I propose to use (number of tables) in the operation of business, located at (street and number) in Berea, Kentucky.
   "In consideration of the City of Berea granting this license, I hereby agree that I will not permit any person under the influence of intoxicating liquor or beverage, or any controlled substance not prescribed by a physician, to loaf or loiter in my place of business or premises; I will not permit the sale or drinking of any intoxicating liquor or beverages, or the consumption of any controlled substance not prescribed by a physician, in my place of business or on my premises.
   "I further agree that my place of business or premises may be inspected at any time by any police officer of the City of Berea without a search warrant.
   "This application shall be a part of the license contract, and any violation of any of the provisions herein shall be sufficient cause for revocation of my license."
      (4)   Upon receiving an application for a license to conduct a billiard or pool room, the city shall consider the application. The city may take testimony from persons, including the applicant, who wish to offer evidence concerning the operation of such a business. The city may consider the character of the applicant, the past record of the applicant in operating the same or related businesses, the condition of the premises and the expected effect upon the safety, health and morals of the community at large. The city shall recommend whether the license shall be granted or denied based upon its findings and shall act upon the recommendation.
      (5)   Once granted, a license to operate a billiard or pool room shall not be transferable by the applicant.
      (6)   A license for the operation of a billiard or pool room shall be effective for one year beginning on January 1 and expiring on December 31. The city may, during the effective period of a license granted hereunder, revoke the license for good cause. Upon a proper showing, the city may delegate authority to hold a hearing on whether the license should be revoked. At the hearing, the city shall take testimony from interested persons, including the licensee, and may revoke the license upon a finding of any or all of the following:
         (a)   That the licensee is not complying with any applicable federal, state or local statute or regulation;
         (b)   That the licensee has, in the operation of the business, violated the criminal law in any manner;
         (c)   That the operation of the business constitutes a nuisance under the common law or under the statutes of the Commonwealth of Kentucky or the ordinances of the city; or
         (d)   That the operation of the business is detrimental to the safety, health or morals of the community at large.
   (B)   Carnival and circus
      (1)   License fee   $300 per week
      (2)   The license fee shall be assessed against any carnival or circus within the city limits.
      (3)   Before any license is issued, the applicant shall furnish an affidavit stating that all rides or mechanical devices upon which passengers are carried have been inspected within ninety (90) days of the date of application and found to be safe.
      (4)   Before any license is issued, the applicant shall furnish proof of insurance covering personal injury to any patron of the carnival in an amount not less than one million ($1,000,000) dollars per occurrence.
   (C)   Loan companies involved in note buying, lending money on assignment of salaries, wages due or to become due on chattels, or other notes
      (1)   License Fee   $350.00 per year
      (2)   The license fee established in this subdivision shall not apply to any financial institution which is exempt from city taxation under KRS 92.300(2).
   (D)   Pawnbrokers   
      (1)   Any person within the city who loans money on deposits of personal property or deals in the purchase or possession of personal property on condition of selling the same back to the pledgor or depositor, or who loans or advances money on personal property by taking chattel mortgage security thereon and takes or receives the personal property into his possession, is hereby declared to be a pawnbroker.
      (2)   License Fee   $250.00 per year
   (E)   Peddlers
      (1)   License Fee   $ 25.00 per year
               $ 10.00 per day
      (2)   The license fee provided herein for peddlers may be waived by the mayor, on a written request to the mayor, that an event of charitable, civic, or education significance is occurring and that as a part of the event there will be event-related items and services sold by merchants which are necessary and connected to the event, and upon the mayor's certification of same and that the public interest shall be served by a waiver.
   (F)   Non-resident sales and delivery including parcels, mail, money, etc
      (1)   License Fee   $ 50.00 per year
      (2)   Excluded from payment of the license fee under this subsection is the federal post office and its employees.
      (3)   Any trucks or vehicles exempted by Kentucky Revised Statutes or operated by any farmer for transportation of the products of his farm or land, and/or any licensed business calling or making deliveries to the customers of the licensed business shall be exempt.
   (G)   Solicitors
      (1)   The term solicitor shall be deemed to mean and include any person who goes from house to house or from place to place selling or taking orders for or offering to sell or take orders for books, magazines, cleaning supplies, and the like.
      (2)   License Fee   $100.00 per year
               $ 10.00 per day
   (H)   Vending machines
      (1)   The term vending machines shall apply to any lawful coin or token-operated machine or device which contains no element of chance and which as a result of depositing a coin, token or other object automatically by or through some mechanical operation affords music or amusement of some character with or without vending any merchandise, but in addition to any such merchandise. Such coin-operated amusement and vending machine shall not include any bona fide merchandise vending machine in which there is incorporated no amusement features.
      (2)   License Fee   $ 10.00 per machine per year
      (3)   Vending machines operated by a bona fide non-profit organization shall be exempt from this fee.
(Ord. No. 21.90, 10-16-90; Am. Ord. No. 18-97, 9-16-97; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
Division 3. Occupational Licenses
§ 60.200 OCCUPATIONAL LICENSE TAX PAYMENT REQUIRED
   (A)   Except as provided in subsection (E) 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 of 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 by two percent (2%) of:
      (1)   All wages and compensation paid or payable in the city for work done or service performed or rendered in the city by every resident and nonresident who is an employee;
      (2)   The net profit from business conducted in the city by a resident or nonresident business entity.
      (3)   Minimum fee. In the event the tax payment required under division (2) is less than an amount sufficient to yield an annual license tax calculated at two percent (2%) of net income, equal to or in excess of the minimum license taxes of twenty-five dollars ($25.00), then the minimum license tax of twenty-five dollars ($25.00) shall apply and be charged.
   (B)   All partnerships, S corporations, and all other entitles where income is “passed through” to the owners are subject to this chapter. The occupational license tax imposed in the chapter is assessed against income before it is “passed through” these entities to the owners.
   (C)   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 tax for the period of that taxable year during which the business entity had business activity in the city.
   (D)   If a business entity makes, or is required to make, a federal income tax return, the occupational license tax shall be computed for the purposes of this chapter on the basis of the same calendar or fiscal year required by the federal government, and shall employ the same methods of accounting, and accounting procedures shall be as nearly as practicable identical with those required for federal income tax purposes.
   (E)   The following businesses are exempt and are not required to file occupational license tax on net profits:
      (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)   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. License whose businesses are predominatingly non-public service who are also engaged in public service activity are required to pay a license fee on their net profit denied from the non-public service activities apportioned to the city;
      (3)   Life insurance companies incorporated under laws of and doing business in the Commonwealth of Kentucky.
   (F)   The following businesses are exempt from occupational license tax on net profits, but are required to file a net profit return:
      (1)   Individuals and fiduciaries who receive income from the rental of real property with gross receipts received from the rental of such real property in the city less than ten thousand dollars ($10,000.00) as described in § 60.211.
      (2)   Persons or business entitles that have issued a license under KRS Chapter 243 to engage in manufacturing or trafficking in alcoholic beverages are required to file a return, but may exclude the portion of their net profits derived from the manufacturing or trafficking in alcoholic beverages.
      (3)   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 purposes, 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, group or associations inures 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, a net profit license tax is assessed on the “unrelated business income.”
   (G)   The following persons are exempt from the employee occupational license tax:
      (1)   Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
      (2)   Any compensation received by precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections;
      (3)   Pension, interest, and dividend income. Income from pensions, interest and dividends is not subject to this occupational license fee, within the meaning of this chapter;
      (4)   Compensation received for domestic services rendered by those persons classified as domestic servants as defined by this chapter.
      (5)   Fiduciary. A fiduciary who holds in trust property, monies or properties to which another has a beneficial interest, or who receives or controls income from another person is not subject to the license fee imposed by this chapter, except where the fiduciary operates a business which is subject to a license fee for doing business within the city. The remainder of the trust is hereby exempt from any payment or annual occupational fees;
      (6)   Old age or retirement payment. Periodic payments, commonly recognized as old age or retirement pensions, made to persons retired from service after reaching a specified age or a stated period of employment are not subject to the license fee;
      (7)   Disability and unemployment. Disability, sickness and accident benefits and unemployment compensation, and other insurance payments received for personal injuries or property losses are not subject to the license fee. Payments by an employer to employees under disability, sickness and accident benefit plan are not subject to the license fee. Unemployment compensation payments by the Commonwealth of Kentucky, or any other agent, are not subject to the license fee. Payments received for personal injuries and property losses are not subject to the license fee;
      (8)   Death benefits. Death benefits payable to the beneficiary of an employee or to his estate, whether payable in a single sum or otherwise, are not subject to the license fee;
      (9)   Worker's compensation benefits. Benefits arising under the Worker's Compensation Act as compensation for disabilities sustained during the course of employment, together with any amount of damages received by suit or agreement, on account of such liability are not subject to the license fee;
      (10)   Employee contributions to qualified retirement plans. Employee contributions to retirement plans which are properly qualified and approved by the United States Internal Revenue Service;
      (11)   Entertainers who perform for compensation no more than five (5) times in a calendar month.
(Ord. No. 21.90, 10-16-90; Amd. Ord. 14.91, § 1, 6-4-91; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
§ 60.201 APPORTIONMENT
   (A)   Except as provided in subsection (D) of this section, net profit shall be apportioned as follows:
      (1)   For business entities with both payroll and sales revenue in more than one (1) tax district, by multiplying the net profit by a fraction, the numerator of which is the payroll factor, described in subsection (B) of this section, plus the sales factor, described in subsection (C) of this section, and the denominator of which is two (2); and
      (2)   For business entities with sales revenue in more than one (1) tax district, by multiplying the net profit by the sales factor as set forth in subsection (C) of this section.
   (B)   The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the city during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period. Compensation is paid or payable in the city based on the time the individual's service is performed within the city.
   (C)   The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the city during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
      (1)   The sales, lease, or rental of tangible personal property is in the city if:
         (a)   The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the city regardless of the f.o.b point or other condition of the sale; or
         (b)   The property is shipped from an office, store, warehouse, factory, or other place of storage in the city and the purchaser is the United States government.
      (2)   Sales revenues, other than revenues from the sale, lease or rental of tangible personal property or the lease or rental of real property, are apportioned to the city based upon a fraction, the numerator of which is the time spent in performing such income-producing activity within the city and the denominator of which is the total time spent performing that income- producing activity.
      (3)   Sales revenue from the sale, lease, or rental of real property is allocated to the tax district where the property is located.
   (D)   If the apportionment provisions of this section do not fairly represent the extent of the business entity's activity in the city, the business entity may petition the city or the city may require, in respect to all or any part of the business entity's business activity, if reasonable:
      (1)   Separate accounting;
      (2)   The exclusion of any one (1) or more of the factors;
      (3)   The inclusion of one (1) or more additional factors which will fairly represent the business entity's business activity in the city; or
      (4)   The employment of any other method to effectuate allocation and apportionment of net profit.
   (E)   When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the city. The license tax shall be computed by obtaining the percentage which the compensation for work performed or services rendered within the city bears to the total wages and compensation paid or payable. In order for the city to verify the accuracy of a taxpayer's reported percentages under this subsection, the taxpayer shall maintain adequate records.
(Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
§ 60.202 EMPLOYERS TO WITHHOLD
   (A)   Every employer making payment of compensation to an employee shall deduct and withhold from the compensation upon the payment of the compensation an occupational license tax calculated under § 60.200 of this chapter. Amounts withheld shall be paid to the city in accordance with § 60.202(B) of this chapter.
   (B)   Each employer who employs one (1) or more persons but less than fifty (50) persons within the city shall deduct at least monthly or when the employee is paid, if more often than monthly, the license fee due from each employee measured by the amount of salaries, wages, commissions or compensations due by the employer to the employee. The amount deducted shall be paid by the employer to the city on a quarterly basis the periods ending on the last day of March, June, September, and December of each year. Payment shall be due before the last day of the month next following the quarter of the deduction. Each employer who employs fifty (50) or more persons within the city shall deduct at least monthly or when the employee is paid, if more often than monthly, the license fee due from each employee measured by the amount of salaries, wages, commission or compensations due by the employer to the employee. The amount deducted shall be paid to the city by the employer on a monthly basis. Payment required shall be due on or before the fifteenth day of the month next succeeding the deduction.
   (C)   Every employer who fails to withhold or pay to the city any sums required by this article be withheld and paid shall be personally and individually liable to the city for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
   (D)   The city shall have a lien upon all the property of any employer who fails to withhold or pay over to the city sums required to be withheld under this section. If the employer withholds, but fails to pay the amounts withheld to the city, the lien shall commence as of the date the amounts withheld were required to be paid to the city. If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the city.
   (E)   Every employer required to deduct and withhold tax under this section shall annually on or before February 28 of each year complete and file on a from furnished or approved by the city a reconciliation of the occupational license tax withheld where compensation is paid or payable to employees. Either copies of federal forms W-2 and W-3, transmittal of wage and tax statements, or a detailed employee listing with the required equivalent information, as determined by the city, shall be submitted.
   (F)   Every employer shall furnished each employee a statement on or before January 31 of each year showing the amount of compensation and occupational license tax deducted by the employer from the compensation paid to the employee for payment to the city during the preceding calendar year.
   (G)   An employer shall be liable for the payment of the tax required to be deducted and withheld under this section.
   (H)   The president, vice president, secretary, treasure or any other person holding an equivalent corporate office of any business entity subject to this section shall be personally and individually liable, both jointly and severally, for any tax required to be withheld from compensation paid or payable to one (1) or more employees of the business entity , and neither the corporate dissolution or withdrawal of the business entity from the city, nor the cessation of holding any corporate office, shall discharge that liability; provided that the personal and individual liability shall apply to each and every person holding the corporate office at the time the tax becomes or became obligated. No person shall be personally and individually liable under this subsection unless such person had authority to collect, truthfully account for, or pay over the tax imposed by this article at the time that the taxes imposed by this article become or became due.
   (I)   Not withstanding subsections (G) and (H) of this section, every employee receiving compensation in the city subject to the tax imposed under § 60.100 shall be personally liable for any amount due. In all cases where the employer does not withhold the tax levied under this article from the employee, such employee or employees shall be responsible for filing with the city each quarter in the same manner as if they were the employer. If an employer fails to or is not required to withhold, report, or pay the license tax, it shall become the duty of the employee, to file with the city. The only employer not required to withhold, report, and pay the occupational license tax is the Federal Government including the United States Postal Service. The payment required to be made by an employee can be made quarterly, for the periods ending March 31st, June 30th, September 30th, and December 31st of each year, or at any time the employee wishes to make an estimated payment for the year in which wages are earned. All license taxes must be received by June 30 for the preceding calendar year, together with a copy of the employee’s W-2 form. Employers not required to withhold, report, or pay the license tax must annually during the month of January of each year, make a return to the Occupational Tax Administrator, in which is set forth the name and social security number of each employee of the employer during the preceding calender year, giving the amount of salaries, wages, commissions or other compensation earned during such preceding year by each such employee. This list shall include all current full time employees, part time employees, temporary employees, and terminated employees whether it be voluntary or involuntary.
(Ord. No. 21.90, 10-16-90; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
§ 60.203 RETURNS REQUIRED
   (A)   All business entity returns for the preceding taxable year shall be made by April 15 of each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth (15th) day of the fourth (4th) month following the close of the fiscal year. Blank copies of local forms for returns shall be supplied by the city.
   (B)   Every business entity shall submit a copy of its federal income tax return and all supporting statements and schedules at the time of filing its occupational license tax return with the city. Whenever, in the opinion of the city, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the city may compel the business entity to produce for inspection a copy of any statements and schedules in support thereof that have not previously filed. The city may also require copies of reports of adjustments made by the federal government.
   (C)   Every business entity subject to occupational license tax governed by the provisions of this article shall keep records, render under oath statements, make returns, and comply with rules as the city
from time to time may prescribe. Whenever the city deems it necessary, the city may require a business entity, by notice served to the business entity, to make a return, render statements under oath, or keep records, as the city deems sufficient to determine the tax liability the business entity.
   (D)   The city may require, for the purpose of ascertaining the correctness of any return of for the purposes of making an estimate of the taxable income of any business entity, the attendance of a representative of the business entity or of any other person having knowledge in the premises.
   (E)   The full amount of the unpaid tax payable by any business entity, as appears from the face of the return, shall be paid to the city at the time prescribed for filing the occupational license tax return, determined without regard to any extension of time for filing the return.
   (F)   It shall be the responsibility of persons who made Federal Form 1099 “non-employee compensation” payments to natural persons other than employees for services performed within the city, to maintain records of such payments, and to report such payments to the city. Said payments must be reported on by remitting Federal Form 1099 by February 28 of the year following the close of the calender year in which the non-employee compensation was paid. If a business entity or person is not required to remit Federal Form 1099 to the IRS, including but not limited to those making non-employee payments of less than 600, such entity or person is nevertheless required to remit the equivalent information to the city. The information required to be reported by such entities or persons shall include:
      (1)   Payer’s name, address, social security and/or federal identification number;
      (2)   Recipient’s name and address;
      (3)   Recipient’s social security and/or federal identification number;
      (4)   Amount of non-employee compensation paid in the calender year; and
      (5)   Amount of non-employee compensation earned in the city for the calendar year.
(Ord. No. 21.90, 10-16-90; Amd. Ord. No. 15-08, 7-1-08; Amd. Ord. No. 08-14, § 1, 4-15-14)
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