(A) Except as provided in § 110.04 of this chapter, every person or business entity engaged in any business, trade, occupation or profession and any person or business entity that makes a filing with the Internal Revenue Service or the state’s Revenue Cabinet shall be required to file and pay to the city an annual occupational license tax for the privilege of engaging in such activities within the city. The occupational license tax shall be measured by:
(1) 2.45% of all compensation paid or payable in the city for work done or services performed or rendered in the city by every resident and non-resident who is an employee; and
(2) 2.5% of the net profits from business conducted in the city by a resident or non-resident business entity, or $100, whichever is greater.
(B) The maximum tax liability under this chapter shall be assessed as follows:
(1) For each employee, an amount equal to the maximum established for FICA purposes (“the FICA cap”). The FICA cap shall be applied by each employer on the compensation of each employee and deductions shall be applied by each employer only upon the gross amount of compensation that does not exceed the FICA maximum established for that year; and
(2)
For each business entity, there shall be a $80,000 maximum liability for the portion of the occupational license tax which is measured by taxable net profits.
(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) The Finance Director or his or her designee shall review the occupational license tax thresholds provided in this section every five years.
(1984 Code, § 110.03) (Ord. O-65-04, passed 12-7-2004; Ord. O-52-08, passed 12-2-2008; Ord. O-47-12, passed 12-4-2012; Ord. O-18-19, passed 6-24-2019; Ord. O-09-23, passed 6-27-2023) Penalty, see § 110.99