Section
110.01 Definitions
110.02 Occupational license required
110.03 Business license fee required
110.04 Apportionment
110.05 Employers to withhold
110.06 Returns required
110.07 Extensions
110.08 Refunds
110.09 Federal audit provisions
110.10 Payment of tax not delayed; claims for refund or credit
110.11 Information to remain confidential
110.12 Use of occupational license tax
110.99 Penalty
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
“BUSINESS ENTITY.” Each separate corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted.
“CITY.” The City of Dayton, 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 Section 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 of the Internal Revenue Code.
“FISCAL YEAR.” As defined in Section 7701(a)(24) of the Internal Revenue Code.
“EMPLOYEE.” Any person who renders services to another person or 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 or 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.” As defined in Section 3401(d) of the Internal Revenue Code.
“GROSS RECEIPTS.” All revenues or proceeds derived from the sale, lease, or rental of goods, services, or property by a business entity reduced by the following:
(1) Sales and excise taxes paid; and
(2) Returns and allowances.
“INTERNAL REVENUE CODE.” The Internal Revenue Code in effect on December 31,2008, as amended.
“NET PROFIT.” 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.
“SALES REVENUE.” Receipts from the sale, lease, or rental of goods, services, or property.
“TAX DISTRICT.” The City of Dayton, Kentucky.
“TAXABLE GROSS RECEIPTS.” In case of a business entity having payroll or sales revenues both within and without a tax district, means gross receipts as defined in this section, as apportioned under KRS 67.753.
“TAXABLE GROSS RECEIPTS.” In case of a business entity having payroll or sales revenue only in one tax district, means gross receipts as defined in this section.
“TAXABLE NET PROFIT.” In case of a business entity having payroll or sales revenue only in one tax district, 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 a tax district, means net profit as defined in this section, as apportioned under KRS 67.753.
“TAXABLE YEAR.” The calendar year or fiscal year ending during the calendar year, upon the basis of which net income or gross receipts is computed.
(Ord. 2017-21, passed 12-5-17)
Every person and business entity engaged in any business and every employer in the city shall be required to apply for and obtain an occupational license from the city before the commencement of business or in the event of a change of business status. Licensees are required to notify the city of any change in address, the cessation of business or any other changes that render the information supplied to the city in the license application inaccurate.
(Ord. 2017-21, passed 12-5-17)
Every person or business entity engaged in any business for profit and any person or business entity that makes a filing with the Internal Revenue Service or the Kentucky 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 unless exempt by KRS 92.281 or other applicable statutes. The amount of the annual occupational license tax shall be in both of the following amounts:
(A) Based on the gross receipts of all businesses, trades, professions, or occupations from activities conducted within the city, the amount as outlined in the following table except as excluded herein:
Total Gross Receipts (Dollars) | Amount of Tax (Dollars) |
Total Gross Receipts (Dollars) | Amount of Tax (Dollars) |
§ 0 - 500 | § 25.00 |
501 - 5,000 | 70.00 |
5,001 - 10,000 | 100.00 |
10,001 - 25,000 | 140.00 |
25,001 - 50,000 | 170.00 |
50,001-100,000 | 200.00 |
100,001 - 200,000 | 270.00 |
200,001 - 300,000 | 400.00 |
300,001 - 400,000 | 540.00 |
400,001 - 500,000 | 680.00 |
500,001 - 600,000 | 810.00 |
600,001 - 700,000 | 945.00 |
700,001 - 800,000 | 1,080.00 |
800,001 - 900,000 | 1,220.00 |
900,001 - 1,000,000 | 1,350.00 |
1,000,001 - 2,000,000 | 1,490.00 |
2,000,001 - 3,000,000 | 1,620.00 |
3,000,001 - 4,000,000 | 1,750.00 |
4,000,001 - 5,000,000 | 1,890.00 |
5,000,001 - and over | 2,030.00 |
(1) Every person having coin-operated amusement and vending machines, as defined in this section, on his or her premises shall pay an annual license tax to the city in the amount of ten dollars ($10.00) per machine instead of the amounts listed in the table above.
(2) Every person engaged in the business of leasing or renting real property or portions thereof shall pay an annual license tax to the city in the amount of .01 times his or her gross receipts but not less than the amount of one hundred dollars ($100.00) instead of the amounts listed in the table above.
(3) Every person engaged as a vendor of fruit, ice cream, sherbet, peanuts, popcorn, candy, and other articles upon the street, shall pay a license tax as described in (E) below, but not less than the amount of fifty dollars ($50.00) per year or ten dollars ($10.00) per day instead of the amounts listed in the table above.
(4) Every person engaged in the business of selling fireworks shall pay an annual license tax to the city in the amount of one thousand dollars ($1,000.00) instead of the amounts listed in the table above.
(B) Based on the 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 in amount of two and one-half percent (.025) of said wages and compensation.
(Ord. 2017-21, passed 12-5-17; Am. Ord. 2022-11, passed 5-3-22)
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