For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUSINESS. Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit. BUSINESS shall not include a board of trade, chambers of commerce, trade associations or unions, or other associations performing services usually performed by trade associations or unions as recognized by the Internal Revenue Service. BUSINESS shall not include funds, foundations, corporation 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 shareholders or other person.
BUSINESS ENTITY. 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. The City of Elizabethtown, 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 I.R.C. §§ 401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h) or 457; 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, I.R.C. §§ 125 and 132.
CONCLUSION OF THE FEDERAL AUDIT. 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.
FINAL DETERMINATION OF THE FEDERAL AUDIT. The revenue agent’s report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
FISCAL YEAR. As defined in I.R.C. § 7701(a)(24).
EMPLOYEE. 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 or more of the above. A person classified as an independent contractor under the Internal Revenue Code shall not be considered an EMPLOYEE.
INTERNAL REVENUE CODE. The Internal Revenue Code, as defined in KRS 67.750(7) and also being Title 26 of the U.S. Code.
MOBILE FOOD VENDOR. Any individual or entity that only operates a food establishment which is on wheels and mobile in which both prepared and pre-packaged food is sold (examples are food truck, trailer or cart). A mobile food unit that is associated with a restaurant, as defined in this chapter, is not considered a MOBILE FOOD VENDOR under the definition of this chapter and all food sales from such units shall be reported with the overall sales of the restaurant and pay all applicable taxes as required by KRS 91A.400.
NET PROFIT. Gross income as defined in I.R.C. § 61, minus all the deductions from gross income allowed by I.R.C. Ch. 1, 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 I.R.C. § 172;
(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. 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.
RESTAURANT. Any fixed commercial establishment with a permanent physical location that engages in the preparation and serving of ready-to-eat foods in portions to the consumer, including, but not limited to: restaurants; coffee shops; cafeterias; short-order cafés; luncheonettes; grilles; tea rooms; sandwich shops; soda fountains; roadside stands; catering kitchens; delicatessen; or similar places in which food is prepared for sale for consumption on the premises or elsewhere. Not included in the definition of a RESTAURANT for purposes of this chapter are school cafeterias which are operated by the school system, food vending machines, hospital cafeterias owned by a governmental entity and cafeterias that are located inside industrial factories in which services are limited to employees only.
RETURN or REPORT. 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. Receipts from the sale, lease or rental of goods services or property.
TAX DISTRICT. Any county or city with the authority to levy net profits or occupational license taxes.
TAXABLE NET PROFIT. In case of a business entity having payroll or sales revenue only with the city means net profit, as defined herein.
TAXABLE NET PROFIT. In case of a business entity having payroll or sales revenue both within and without the city means net profit, as defined herein, and as apportioned under § 110.04 of this chapter.
TAXABLE YEAR. The calendar year or fiscal year ending during the calendar year, upon the basis of which net income is computed.
(Prior Code, § 110.01) (Ord. 09-2006, passed 5-8-2006; Ord. 25-2019, passed 11-4-2019)