(A) Except as provided in division (B) below, 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 State 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 occupational license tax shall be measured by 1.5% of: the first $50,000; 1% of $50,000 through $500,000; and 0.5% over $500,000, with a minimum of $50:
(1) 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 non-resident who is an employee;
(2) The net profit from business conducted in the city by a resident or non-resident business entity; and
(3) Each person, association, corporation or other business engaged in any occupation, trade, profession or other business activity in the city shall pay a minimum license fee of $50 payable in advance, to the city for each tax year (or fraction thereof in the case of a new business). Said minimum fee shall be a credit on the net profit license fee as otherwise provided in this chapter only for the tax year which said minimum fee covers and shall not be a credit for any subsequent year.
(B) 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 the 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 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 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 Ch. 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) Life insurance companies incorporated under the laws of and doing business in the commonwealth; and
(7) Net income received from the leasing or rental of less than four residential rental units per year.
(C) The following occupations are of such a nature as to require special regulation and supervision, and therefore the following minimum license fees are imposed on every person engaged in the business, occupation, call or profession, or using, holding or exhibiting articles named in this section who shall pay in advance to the city for each calendar year or fiscal year, or fraction thereof, in accordance with the yearly basis the licensee uses in making a return under the terms of this chapter, the license fee or fees herein set forth, which payment shall be a credit on the license fee as otherwise provided in this chapter; however, where minimum fees are set forth in the following table for periods less than one year, the same shall be considered the minimum fee due for the period as set forth in such table and shall be paid in advance of engaging in such activity.
Subject Fee | Minimum Fee | Date Due |
Dance halls (any place of business help open to the general public where patrons are permitted to dance) | $50 a dance or $200 yearly | Yearly |
Entertainment exhibitions, ride concessions, carnivals or circuses regardless of sponsorship, per day | $35 | Before showing or operation |
Fortune telling | $120 | Yearly |
Wholesale oil company, wholesale distilled spirits, malt beverage distributor’s license | $100 | Yearly |
Trucks or delivery vehicle | $25 | Yearly |
(1) All persons, firms, corporations or associations who are not liable for a city license under the provisions of this section and doing business in the city and whose business requires the operation of any type of motor vehicle for the purpose of delivering merchandise, and whose motor vehicles use the streets of the city for the foregoing purposes, shall be required to purchase a motor vehicle license for this privilege.
(2) This section shall not apply to any person, firm, corporation or association whose motor vehicles operate under the authority of a certificate or permit issued by the Department of Motor Transportation. However, evidence of such permit must be prominently displayed on the vehicle.
(D) Transient-itinerant merchants or businesses.
(1) Definitions. For the purpose of this division (D), the following definitions shall apply unless the context clearly indicates or requires a different meaning.
TEMPORARILY. Not of a permanent nature or stay or involving regular or routine visits to the city.
TRANSIENT-ITINERANT MERCHANT OR BUSINESS. Includes any person, partnership, corporation or other entity not specifically provided for in this chapter which passes through the city temporarily for the purpose of conducting a trade, occupation, profession in general for gain or profit which involves buying, selling or exchanging of goods or services.
(2) Permit required. It shall be unlawful for any transient-itinerant business or representative thereof to engage in any activity in the city without the representatives thereof having first obtained a permit to do so as provided herein and having otherwise complied with the terms and provisions of this section.
(3) Fees. Those subject to this division (D) relating to transient-itinerant businesses shall pay to the city a fee of $50 prior to the issuance of a permit and prior to engaging in business in the city. Said fee shall be payable in advance and valid for the remainder of the tax year (or fraction thereof), which tax year is to be for the period commencing on May 11, and ending on May 10 of each year.
(Prior Code, § 111.03) (Ord. 07-08, passed 9-16-2008) Penalty, see § 111.99