As used in this Chapter, the following terms and their derivatives shall have the following meanings unless the context clearly indicates that a different meaning is intended:
“Association” shall mean a partnership, limited partnership or any other form of unincorporated enterprise, owned by two (2) or more persons.
“Business” shall mean 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 non- profit organizations, except to the extent that there is unrelated business income from a trade or business regularly carried on that is not substantially related to the charitable, education or other purpose that is the basis of the organization’s exemption.
“Business entity” shall mean 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 of Renting or Leasing Real Estate” shall mean any person or business entity owning or leasing any commercial, industrial, residential, agricultural or other property in the City, whether or not the property is currently leased or occupied.
“Compensation” shall mean 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:
(a) 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,
(b) 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” shall mean the date that the adjustments made by the Internal Revenue Service (IRS) to net income as reported on the person’s or business entity’s federal income tax return become final and unappealable.
“Corporation” shall mean a corporation or joint stock association organized under the laws of the United States, the Commonwealth of Kentucky or any other state, territory or foreign country or dependency.
“Employee” shall mean 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” shall mean the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that:
(a) 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,
(b) 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” shall mean the revenue agent’s report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
“Fiscal Year” shall mean an accounting period of twelve (12) months ending on the last day of any month other than December.
“Individual” shall mean a natural person.
“Internal Revenue Code” shall mean the Internal Revenue Code in effect on December 31 of the year the fee or 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 fee or tax is due, that would otherwise terminate.
“Licensee” shall mean and include any person or business entity required to file a return or to pay an occupational license fee, also referred to as an occupational license tax, under this Chapter.
“Local Business” shall be defined as any person, business or business entity that either: 1) owns its business site in the City; 2) has a valid lease for its business site from the property owner or manager that is for a period over six (6) uninterrupted months; or 3) involves regular or routine visits to an established customer base within the City. A person or business that has regular or routine visits to an established customer base within the City shall be defined as either: 1) a business that has an existing customer base within the City; 2) a business that is working as a subcontractor on a regular or routine basis under a registered local business; or 3) a business that the Chief Financial Officer, or designee, has determined has produced sufficient evidence to show the business’ close proximity to the City would constitute regular visits.
“Net Profit” shall mean 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:
(a) 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;
(b) 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;
(c) Include any amount claimed as a net operating loss carryback or carryforward allowed under Section 172 of the Internal Revenue Code;
(d) 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 with the City following the IRS guidelines related to exempt individuals; and,
(e) Include contributions to KEOGH (HR-10) Retirement Plans, Simplified Employee Pension (SEP) Plans, medical insurance premiums whether paid on behalf of partners, shareholders or individual owners, and any other deductions that benefit non-employee individuals.
(f) Exclude any amount of income that is exempt from state taxation by the Kentucky Constitution, or the Constitution and statutory laws of the United States and exclude any income or deduction as set out in the provisions of this Chapter.
(g) Exclude the amount of foreign dividend gross-up under Section 78 of the Internal Revenue Code.
(h) Exclude the amount of Subpart F income included under Section 951 of the Internal Revenue Code but not actually received.
“Non-profit Organization” shall mean funds, foundations, corporations, associations or other non-profit entities 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 entity inures to the benefit of any private person.
“Nonresident” shall mean an individual, corporation, partnership, fiduciary, association or other entity that is not domiciled or does not have a business situs in the City.
“Occupation, Trade, Profession or Other Activity” shall mean and include the doing of any kind of work, the rendering of any kind of personal service, or the holding of any kind of position or job within the City by any clerk, laborer, tradesman, manager, official or other employee, including any nonresident of the City who is employed by an employer as defined in the Chapter, where the relationship between the individual performing the services and the person for whom such services are rendered, is, as to those services, the legal relationship of employer and employee, including also a partner of the firm or officer who receives a salary for his personal services rendered in the business of such firm or corporation and shall also include (an officer or employee employed) either by election or appointment by the Federal, State, County or City, where the services of such official or employee are rendered within the City.
“Occupational License Fee” shall mean for the purposes of this Chapter, the same meaning as occupational license tax and those terms shall be interchangeable, and shall include net profit license fees, withholdings license fees and transient permits.
“Peddlers” shall mean any person or business entity which passes through the City temporarily for the purpose of conducting a business, trade, occupation or profession for gain or profit which involves the buying, selling or exchanging of goods or services and who is not a contractor as defined in Chapter 6 (Building Regulations) of the City’s Code of Ordinances. These businesses cannot produce a valid lease for a permanent building which is properly zoned for business use or are conducting business on or beside public rights-of-way, sidewalks, parking lots, roadways, vacant lots, tents, other outdoor areas or door to door.
“Person” shall mean any natural person, whether a resident or nonresident 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.
“Rental or Leasing Unit” shall mean any room or rooms connected together or other structures or portions thereof constituting a separate, independent establishment or premises for rent, lease or sublease to the occupant thereof.
“Return” or “Report” shall mean 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” shall mean receipts from the sale, licensing, royalties, lease, or rental of goods, services or property.
“Sales Within the City” shall mean sales, licensing, royalties, rental or lease of merchandise delivered to a customer or deemed to have risen from the licensees activities within the City or services performed within the City for a customer.
“Tax District” shall mean any city or other government entity with the authority to levy taxes or occupational license fees.
“Tax Exempt Organization” shall mean funds, foundations, corporations, associations or other tax exempt organizations recognized as tax exempt by the Internal Revenue Service that are organized and operated for purposes of religious, charitable, scientific, literary, educational, civic or fraternal purposes with no part of the earnings, incomes or receipts of such entity inuring to the benefit of any private person.
“Taxable Net Profit,” in case of a person or business entity having payroll or sales revenue only within the City, shall mean net profit as defined above. “Taxable net profit,” in case of a person or business entity having payroll or sales revenue both within and without the City, shall mean net profit as defined above and as apportioned according to the provisions of this Subchapter.
“Taxable year” shall mean the calendar year or fiscal year ending during the calendar year, upon the basis of which net profit is computed.
“Temporarily” shall mean not of a permanent nature or stay and not involving regular or routine visits to an established customer base within the City.
“Transient Business” shall mean any person or business entity which passes through the City temporarily for the purpose of conducting a business, trade, occupation or profession for gain or profit which involves the buying, selling or exchanging of goods or services and which is not a contractor as defined in Chapter 6 (Building Regulations) of the City’s Code of Ordinances. Transient businesses must possess a valid lease for their business site in the City in a permanent building properly zoned for business use that is for a period of six (6) months or less, or the activity of the business must not involve regular or routine visits to an established customer base within the City.
“Transient Contractors” shall mean any person or business entity which passes through the City temporarily conducting a business, trade, occupation or profession for gain or profit and is defined as a “specialty contractor” in Chapter 6 (Building Regulations) of the City’s Code of Ordinances.
“Transient Professional Services” shall mean any person or business entity that passes through the City temporarily for the purpose of conducting a business, trade, occupation or profession for gain or profit and which is not a transient contractor or peddler as herein defined. Transient Professional Services do not possess a valid lease for their business site in the City and do not involve regular or routine visits to an established customer base with the City, but do possess a contract or a legal agreement to provide a service to a registered local business.
(Ord. BG2020-23, 9/1/2020)