For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ASSOCIATION. A partnership or any other form of unincorporated enterprise owned or operated by two or more persons.
BUSINESS. Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit. BUSINESS shall not include a board of trade, chambers of commerce, trade associations or unions or other associations performing services usually performed by trade associations or unions as recognized by the Internal Revenue Service. 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, incomes 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. Campbellsville, 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 I.R.C. §§ 401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h) or 457; 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 I.R.C. §§ 125 and 132.
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.
CORPORATION. A corporation of joint stock company including S corporations organized under the laws of the United States, Kentucky, another state, territory or foreign country or a dependency thereof, to otherwise existing under color of law as a corporation including a nonprofit corporation and a joint stock company and recognized as such for federal income tax purposes.
DOMESTIC SERVANT. An individual employed to drive his employer as a chauffeur or employed on the grounds or in the home of his or her employer, to cook, clean, wash, garden, transport or otherwise care for or wait upon the employer, the employer's family and guests or to 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 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 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 that 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 the services, the term
EMPLOYER means the person having control of the payment of the 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 that person.
FEDERAL INCOME TAX RETURN. All forms filed for federal income tax purposes including all schedules.
FIDUCIARY. A guardian, trustee, executor, administrator, receiver, conservator or any individual or corporation acting in a fiduciary capacity for any other person. This includes all persons required to file under KRS 141.190.
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. Fiscal year as defined in I.R.C. § 7701(a)(24).
INTERNAL REVENUE CODE. The Internal Revenue Code in effect on December 31, of the year in which the 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 tax is due, that would otherwise terminate.
ITINERANT MERCHANT. An individual who does not have a permanent business location in the city and who sells items of merchandise.
KENTUCKY STATE INCOME TAX RETURN. All forms filed for state income tax purposes including all schedules.
LICENSE FEE. A tax imposed on:
(1) Salaries, wages, commissions and other compensation earned by persons within the city for work done and services performed or rendered in the city; and
(2) The net profits of self-employed persons, corporations, S corporations, associations, partnerships, limited liability companies, joint ventures, fiduciaries, itinerant merchants or any other entity resulting from businesses, trades, occupations, professions or activities conducted in the city.
LICENSEE. Any person required to file a separate return or to pay a license fee thereon under this chapter.
LIMITED LIABILITY COMPANY. An unincorporated association formed under KRS Chapter 275, or similar statute of another state.
NET PROFIT. Gross income as defined in I.R.C. § 61, minus all the deductions from gross income allowed by I.R.C. Chapter 1, 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 I.R.C. § 172;
(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, or the Constitution and statutory laws of the United States.
NEXUS. A minimum connection between a person/business entity and the taxing jurisdiction brought about when the person/business entity purposefully avails itself of the privileges and protection of the jurisdiction while engaging in business or practicing a trade, occupation or profession, without excluding by implication other activities which may create a nexus.
OCCUPATION TAX ADMINISTRATOR. The official collector and administrator of the occupational tax, to be appointed by the city.
PARTNERSHIP. The relationship between two or more who join together to carry on a trade or business. Each partner contributes money, property, labor or skills, and each expects to share in the profits and losses. A partner can be an individual person, corporation, trust, estate or another partnership.
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.
QUESTIONNAIRE. The registration form required by the occupational tax office to be completed before the commencement of business within city.
RENTAL UNIT. Any room or rooms connected or other structure or portion thereof constituting a separate, independent establishment of premises for rent, lease or sublease to the occupant 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.
SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION. When applied to a person employed by others shall have the same meaning and shall include the gross amount of all salaries, wages, commissions, fees (including director fees), bonuses or any other money payments of any kind, or other considerations having a monetary value, which a person receives or becomes entitled to, or is given credit for by an employer, without deducting for withholding taxes, social security benefits, any form of insurance or retirement benefits, or other deductions made by an employer in calculating "take home-pay".
SALES REVENUE. Receipts from the sale, lease or rental of goods, services or property.
SOLE PROPRIETOR. A natural person engaged in any business, profession or occupation, but not as an employee.
TAX DISTRICT. Any city or city with the authority to levy net profits or occupational license taxes.
TAXABLE NET PROFIT. In case of a business entity having payroll or sales revenue only within the city, means net profit as defined in this section.
TAXABLE NET PROFIT. 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 § 111.04 below.
TAXABLE YEAR. The calendar year or fiscal year ending during the calendar year, upon the basis of which net income is computed.
TAXPAYER. Any person or business made liable for taxation or for the payment of amounts withheld from employees under the terms of this chapter.
TRADE, OCCUPATION or PROFESSION. Include any and all activities and the rendering of any and all services of all kinds for net profit or gain of any kind when applied to persons so engaged for themselves whether the person be a resident of city or not.
(Ord. 09-03, passed 6-13-2009)