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(a) Except as provided in subsection (f) of this section, every person or business entity engaged in any business for profit, and any person or business entity that is required to make a filing with the Internal Revenue Service or the Kentucky Revenue Cabinet shall be required to file and pay to the city an occupational license tax for the privilege of engaging in such activities within the city. The city shall have the right, by interlocal agreement, to delegate the billing, collection and enforcement of the tax to the county or to such other agent as the city shall designate. In the case where the city has designated an agent for billing, collection or enforcement, and to the extent the interlocal agreement so provides, the returns and payments required under this article shall be made to such agent, and the agent shall have the same powers of enforcement as the city. The designation of an agent for billing, collection or enforcement shall in no way restrict the rights of the city under this article, and the primary obligation of persons and business entities under this article shall be to the city.
(b) The occupational license tax shall be measured by:
(1) One and ninety hundredths (1.90%) of all wages and compensation paid or payable in the city, for work done or services performed or rendered in the city, by every resident and nonresident who is an employee; and
(2) One and seventy-five hundredths percent (1.75%) of the net profit from business conducted in the city by a resident or nonresident business entity.
(c) All partnerships, corporations, and all other entities where income is passed through to the owners are subject to this article. The occupational license tax imposed in this article is assessed against income before it is passed through these entities to the owners.
(d) 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.
(e) If a business entity makes, or is required to make, a federal income tax return, the occupational license tax shall be computed for the purposes of this article on the basis of the same calendar or fiscal year required by the federal government, and shall employ the same methods of accounting required for federal income tax purposes.
(f) The occupational license tax imposed in this section shall not apply to the following persons or business entities:
(1) Any bank, trust company, combined bank and trust company, or trust, banking and title insurance company, organized and doing business in this state; any savings and loan association, whether state or federally chartered;
(2) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
(3) Any compensation received by precinct workers for election training or work at election booths in state, county and local primary, regular or special elections;
(4) Public service corporations that pay an ad valorem tax on property valued and assessed by the Kentucky 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 fee on their net profit derived from the non-public service activities apportioned to the city;
(5) Persons or business entities that have been issued a license under KRS Chapter 243 to engage in manufacturing or trafficking in alcoholic beverages. Persons engaged in the business of manufacturing or trafficking in alcoholic beverages are required to file a return, but may exclude the portion of their net profits derived from the manufacturing or trafficking in alcoholic beverages;
(6) Insurance companies incorporated under the laws of, and doing business in the state, except as provided in KRS 91A.080.
(7) Any profits, earnings, distributions of an investment fund which would qualify under KRS 154.20-250 through 154.20-284, to the extent any profits, earnings or distributions would not be taxable to an individual investor;
(8) Compensation received for domestic services rendered by those persons classified as domestic servants, as defined in section 16-16;
(9) A person engaged in agriculture business (raising crops and livestock), who employs less than five (5) employees on a regular time basis (four hundred fifty (450) hours during a quarter), may file a return and pay the withholding tax at the end of the taxable year. Any monies reported on Federal Schedule F as labor hired, contract labor, miscellaneous labor or any other form of labor is considered as labor and shall be paid upon. If contract labor or any other labor was paid upon and treated as 1099 labor, then a copy of the Federal Form1099 for such labor shall be submitted to the city. If the amount is less than that required by the Internal Revenue Service, then a listing as set forth in section 16-21(f) can be used in lieu of 1099s.
(10) Compensation received for the renting or leasing of one (1) residential rental unit, as defined above in section 16-16.
(11) Any person, firm, business entity, nonprofit organization or corporation engaging in the business of promoting, operating, or otherwise conducting a temporary event such as a festival or special event defined in Section 14-102 that leases, rents or otherwise provides the use of temporary booths, stalls or other like spaces to any person, firm, business entity, organization, corporation or combination thereof, unless otherwise subject to occupational license taxation in the city outside of the special event permitted period and location, but shall be required to pay a special event permit fee of twenty-five dollars ($25.00) per booth/stall/space leased, rented or otherwise provided, and such permit shall be valid for a period not to exceed five (5) days and shall be valid only for operations at the permitted location. The following regulations shall also apply:
a. Any person, firm, business entity, nonprofit organization or corporation under Section 16-18(f)(11) above required to pay a special event permit fee to the City shall, prior to engaging in such activity, be required to place a deposit with the city in an amount equal to the number of booths/stalls/spaces available for lease, rent or otherwise provided, multiplied by the special event permit fee of twenty-five dollars ($25.00) per booth/stall/space.
b. The special event permit fee deposit shall be forfeited in full, unless within twenty (20) days following the conclusion date of the event, the permittee requests and applies for a reconciliation of the actual permit fee due to the city, in which case the amount of additional fees or the amount of refund due shall be determined and paid. The city shall also have the right to request a reconciliation from the permittee within twenty (20) days following the conclusion date of the event to verify the number of booths/stalls/spaces leased, rented or otherwise provided in order to confirm that the correct number of permits were paid for and whether additional permit fees need to be collected or refunded.
c. This required special event permit fee shall not be required of any person, firm, or business entity already possessing or otherwise required to possess an occupational license outside of the permitted period and location. This required special event permit fee shall also not be required of any association or corporation 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.
(Ord. No. 1687, 9-26-05; Ord. No. 1718, § 1, 8-2-07; Ord. No. 1863, § 2, 6-18-15; Ord. 1882, § 1, 5-23-16; Ord. 1894, § 1, - -)