(A) Definitions. For the purpose of this section the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CITY. City of Cadiz, Kentucky.
RESTAURANT. Any fixed or mobile business or portion thereof that engages in the preparation and serving of ready-to-eat food or beverage to a consumer. This term includes, but is not limited to, any restaurant, coffee shop, cafe, tea room, sandwich shop, street vendor that prepares and serves ready-to-eat food, peddler, itinerant merchant, or solicitor that prepares and serves ready-to-eat food, or portion of grocery store, convenience store, or other business that prepares and serves ready-to-eat food. This term does not include any school cafeteria or temporary food service operation operated by a nonprofit organization.
TOURIST AND CONVENTION COMMISSION. The Cadiz-Trigg County Tourist and Convention Commission.
(B) Levy, collection, and remittance of restaurant tax.
(1) A restaurant tax in the amount of 3% of the retail sales by all restaurants doing business in the city is hereby levied.
(2) Every restaurant doing business in the city and having purchased an annual business license from the city shall:
(a) Collect the restaurant tax levied pursuant to this section at the time of sale of ready-to-eat food or beverage to a consumer; and
(b) By day 15 of every month remit to the City Clerk all restaurant tax collected pursuant to this section during the preceding calendar month along with a completed restaurant tax return on a form obtained from the City Clerk.
(3) Every restaurant doing business in the city and purchasing an itinerant merchant, peddler, or solicitor license shall at the time of purchasing the license estimate all of its retail sales to be made in the city during the term of the license, complete a restaurant tax return on a form obtained from the City Clerk, and pay to the City Clerk all restaurant tax that will be owed pursuant to this section.
(C) All restaurant tax moneys to be turned over to Tourist and Convention Commission pursuant to KRS 91A.400. Pursuant to KRS 91A.400, all moneys collected from the tax authorized by this section shall be turned over by the City Clerk to the Tourist and Convention Commission.
(D) Investigative powers of City Clerk. To determine the accuracy of any return filed or, if no return was filed when due, to determine the amount of tax due pursuant to this section, the City Clerk or his or her designee shall be permitted to examine the books, papers, and records of any restaurant doing business in the city. The City Clerk may compel the production of any restaurant's books, papers, records, and vendors' contact information. Any restaurant shall, upon receipt of a written request from the City Clerk or his or her designee, authorize its vendors to disclose to the City Clerk or his or her designee the goods and services, including the quantity and price thereof, furnished to the restaurant. In the event an investigation is conducted and it is determined this section has been violated, the violator shall be responsible for all costs of the investigation and collection in addition to any tax, interest, or penalties otherwise owed.
(E) Information to remain confidential. No present or former employee of the city shall intentionally and without authorization inspect or divulge any information acquired by him or her of the affairs of any restaurant, information regarding the tax returns or remittances required to be filed with or remitted to the city, or any information produced by a hearing or investigation insofar as the information may have to do with the affairs of the restaurant's business. This prohibition does not extend to information required in prosecutions for making false reports or returns for taxation or any other infraction of the tax laws or in any way made a matter of public record. Furthermore, this prohibition does not preclude furnishing any restaurant or the restaurant's properly authorized agent with information respecting its own return. Furthermore, this prohibition does not preclude any employee of the city from testifying in any court or from introducing as evidence returns or reports filed with the city in any action for violation of a city tax law or in any action challenging a city tax law.
(F) Penalties.
(1) Any restaurant that fails to file a restaurant tax return or remit the required restaurant tax when due shall be subject to a penalty equal to 5% of the restaurant tax due. The total penalty levied pursuant to this section shall not be less than $25.
(2) In addition to the penalties prescribed in this section, an amount equal to 12% per annum simple interest shall accrue on any delinquent restaurant tax. A fraction of a month is counted as an entire month.
(3) The city shall be entitled to recover from the violating restaurant all costs and reasonable attorney's fees incurred by the city in enforcing any provision of this section.
(4) Pursuant to KRS 83A.065(2), a violation of division (E) of this section is expressly made a Class A misdemeanor subjecting the offender to imprisonment for a term not to exceed 12 months and a criminal fine not to exceed $500.
(G) Tourist and Convention Commission to provide annual budget to City Council. The Tourist and Convention Commission shall each year within 30 days of adopting its annual budget provide a copy of its budget to the City Council.
(Ord. 13-08, passed 5-7-13)