§ 110.03 PAYMENT OF TAX REQUIRED.

   (A)   Except as provided in division (A)(2) of this section, every person or business entity engaged in any business for profit and any person or business entity that makes a filing with the Internal Revenue Service or the Kentucky Revenue Cabinet shall be required to file and pay to the county an annual occupational license tax for the privilege of engaging in such activities within the county . The occupational license tax, shall be measured by 0.05% of:

      (1)   All wages and compensation paid or payable in the county for work done or services performed or rendered in the county by every resident and nonresident who is an employee ;

      (2)   The net profits from business conducted in the county by a resident or nonresident business entity , or $3.57, whichever is greater, subject to the maximum tax liability listed in division (A)(3)(b) of this section. This division shall be effective beginning with tax years ending on December 31, 2023.

      (3)   The maximum tax liability under this chapter shall be assessed as follows:

         (a)   For each employee shall be $25 or 0.05% of the amount of all wages and compensation paid or payable in the county for work done or services performed or rendered in the county by every resident and nonresident who is an employee up to 100% of the maximum taxable earnings applicable to the federal social security program (Old Age, Survivors and Disability Insurance (OASDI)) as adjusted annually, whichever amount is less. This division shall be effective January 1, 2024.

         (b)   For each business entity , there shall be a $3.57 maximum liability for the portion of the occupational license tax that is measured by taxable net profits not exceeding $7,143 (0.05% of $7,143). This division shall be effective beginning with tax years ending on December 31, 2023.

      (4)   The occupational license tax imposed in this section 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 , or any savings and loan association whether state or federally chartered;

         (b)   Any compensation received by members of the state national guard for active duty training, unit training assemblies, and annual field training;

         (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 state 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 tax on their net profit derived from the non-public service activities apportioned to the county ;

         (e)   Persons or business entities whose sole business activity is the manufacture of and/or sale of alcoholic beverages. Persons or business entities engaged in the business of manufacturing and/or selling alcoholic beverages are required to file a return but may exclude the portion of their net profit derived from such manufacturing and/or sale of alcoholic beverages;

         (f)   Insurance companies incorporating under the laws of and doing business in the Commonwealth except as provided for under KRS 91A.080.

         (g)   Persons or business entities that operate a two-dwelling unit rental property, where the owner occupies one dwelling unit and rents the other dwelling unit that is a part thereof.

      (5)   In order to reduce administrative costs and to minimize paperwork for employers , employees , and businesses :

         (a)   Any person  may elect to pay an annual fixed amount license tax as set forth in division (A)(2) of this section or as adjusted in accordance with division (A)(6) of this section, payable quarterly, in lieu of reporting and paying the percentage rate on salaries, wages, commissions, and other compensation earned within the county for work done or services performed or rendered in the county . The election shall be made on forms available from the License Inspector , and a copy thereof shall be given to the employer for withholding purposes; and

         (b)   Any individual, partnership, professional association, joint venture, or corporation may elect to pay an annual fixed amount license tax as set forth in division (A)(2) of this section or as adjusted in accordance with division (A)(6) of this section, payable in advance in lieu of reporting and paying the percentage rate as provided above on net profits of business , trades, professions, or occupations from activities conducted in the county . The election shall be made on forms available from the License Inspector . Beginning January 1, 2000 and annually thereafter, a person electing to pay the annual fixed amount license tax in advance shall do so prior to April 15 of each year .

(Ord. O-5-87, passed 3-4-87; Am. Ord. O-28-99, passed 12-1-99; Am. Ord. O-21-2000, passed 11-15-00; Am. Ord. O-5-2002, passed 3-20-02; Am. Ord. O-24-04, passed 11-17-04; Am. Ord. O-15-05, passed 11-16-05; Am. Ord. O-01-08, passed 1-23-08; Am. Ord. O-07-23, passed 6-21-23; Am. Ord. O-11-23, passed 9-6-23) Penalty, see § 110.99