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As used in this article, the following terms and their derivatives shall have the following meanings unless the context clearly indicates that a different meaning is intended.
Business means any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit. Business shall not include the usual activities of boards 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 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 means 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 means the City of Danville, Kentucky. Where the context requires, city shall also mean the city's authorized agent for billing and collection of the occupational license tax and enforcement of this article.
Compensation means 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 amount 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 sections 401(a). 401(k), 402(e). 403(a), 403(b), 408. 414(h), or 457 of the Internal Revenue Code; 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, sections 125 and 132.
Conclusion of the federal audit means 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.
Domestic servant means an individual employed to drive his or her 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 such 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 means 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 means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such 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 such services, the term employer means the person having control of the payment of such 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 such person.
Final determination of the federal audit means the revenue agent's report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
Fiscal year means fiscal year as defined in section 7701(a)(24) of the Internal Revenue Code.
Internal Revenue Code means 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, 2004, that would otherwise terminate.
Net profit means 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:
(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 section 172 of the Internal Revenue Code;
(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.
Person shall mean 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.
Rental unit shall mean 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 means 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 means receipts from the sale, lease or rental of goods, services or property.
Tax district means any city of the first to fifth class with the authority to levy net profits or occupational license taxes.
Taxable net profit.
(1) In case of a business entity having payroll or sales revenue only within the city, means net profit as defined above in this section.
(2) In case of a business entity having payroll or sales revenue both within and without the city, means net profit as defined above in this section, and as apportioned under section 16-19 of this article.
Taxable year means the calendar year or fiscal year ending during the calendar year, upon the basis of which net profit is computed.
(Ord. No. 1687, 9-26-05)