Loading...
§ 110.07 EXTENSIONS.
   (A)   The city may grant any business entity an extension of not more than six months, unless a longer extension has been granted by the Internal Revenue Service or is agreed to by the city and the business entity, for filing its return, if the business entity, on or before the date prescribed for payment of the occupational license tax, requests the extension and pays the amount properly estimated as its tax.
   (B)   If the time for filing a return is extended, the business entity shall pay, as part of the tax, an amount equal to 12% per annum simple interest on the tax shown due on the return, but not been previously paid, from the time the tax was due until the return is actually filed and the tax paid to the city. A fraction of a month is counted as an entire month.
(Prior Code, § 110.07) (Ord. 09-2006, passed 5-8-2006)
§ 110.08 REFUNDS.
   (A)   Where there has been an overpayment of tax under § 110.05 of this chapter, a refund or credit shall be made to the employer only to the extent that the amount of the overpayment was not deducted and withheld under § 110.05 of this chapter by the employer.
   (B)   Unless written application for refund or credit is received by the city from the employer within two years from the date the overpayment was made, no refund or credit shall be allowed.
   (C)   (1)   An employee who has compensation attributable to activities performed outside the city, based on time spent outside the city, whose employer has withheld and remitted to the city, the occupational license tax on the compensation attributable to activities performed outside the city, may file for a refund within two years of the date prescribed by law for the filing of a return.
      (2)   The employee shall provide a schedule and computation sufficient to verify the refund claim and the city may confirm with the employer the percentage of time spent outside the city and the amount of compensation attributable to activities performed outside the city prior to approval of the refund.
(Prior Code, § 110.08) (Ord. 09-2006, passed 5-8-2006)
§ 110.09 FEDERAL AUDIT PROVISIONS.
   (A)   (1)   As soon as practicable after each return is received, the city may examine and audit the return. If the amount of tax computed by the city is greater than the amount returned by the business entity, the additional tax shall be assessed and a notice of assessment mailed to the business entity by the city within five years from the date the return was filed, except as otherwise provided in this section.
         (a)   In the case of a failure to file a return or of a fraudulent return, the additional tax may be assessed at any time.
         (b)   In the case of a return where a business entity understates net profit, or omits an amount properly includable in net profits, or both, which understatement or omission, or both, is in excess of 25% of the amount of net profit stated in the return, the additional tax may be assessed at any time within six years after the return was filed.
         (c)   In the case of an assessment of additional tax relating directly to adjustments resulting from a final determination of a federal audit, the additional tax may be assessed before the expiration of the times provided in this division (A)(1), or six months from the date the city receives the final determination of the federal audit form the business entity, whichever is later.
      (2)   The times provided in this division (A) may be extended by agreement between the business entity and the city. For the purposes of this division (A), a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day. Any extensions granted for filing the return shall also be considered as extending the last day prescribed by law for filing the return.
   (B)   Every business entity shall submit a copy of the final determination of the federal audit within 30 days of the conclusion of the federal audit.
   (C)   The city may initiate a civil action for the collection of any additional tax within the times prescribed in division (A) above.
(Prior Code, § 110.09) (Ord. 09-2006, passed 5-8-2006)
§ 110.10 ADMINISTRATIVE PROVISIONS.
   (A)   No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by this chapter.
   (B)   (1)   Any tax collected pursuant to the provisions of this chapter may be refunded or credited within two years of the date prescribed by law for filing of a return or the date the money was paid to the city, whichever is the later; except that:
         (a)   In any case where the assessment period contained in § 110.09 of this chapter has been extended by an agreement between the business entity and the city, the limitation contained in this division (B) shall be extended accordingly; or
         (b)   If the claim for refund or credit relates directly to adjustments resulting from a federal audit, the business entity shall file a claim for refund or credit within the time provided for in this division (B) or six months from the conclusion of the federal audit, whichever is later.
      (2)   For the purpose of this division (B) and division (C) below, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day.
   (C)   The authority to refund or credit overpayments of taxes collected pursuant to this chapter is vested exclusively in the city.
(Prior Code, § 110.10) (Ord. 09-2006, passed 5-8-2006)
§ 110.11 INFORMATION TO REMAIN CONFIDENTIAL.
   (A)   (1)   No present or former employee of the city shall intentionally and without authorization inspect or divulge any information acquired by him or her of the affairs of any person, or information regarding the tax schedules, returns or reports required to be filed with the city or other proper officer, or any information produced by a hearing or investigation, insofar as the information may have to with the affairs of the person’s business.
      (2)   This prohibition does not extend to information required in prosecutions for making false reports or returns for taxation, or any other infraction of the tax laws, or in any way made a matter of public record, nor does it preclude furnishing any taxpayer or the taxpayer’s properly authorized agent with information respecting his or her own return. Further, this prohibition does not preclude any employee of the city from testifying in any court, or from introducing as evidence returns or reports filed with the city, in an action for violation of the city tax laws or in any action challenging the city laws.
   (B)   The city reserves the right to disclose to the Commissioner of Revenue of the commonwealth or his or her duly authorized agent all such information and rights to inspect any of the books and records of the city if the Commissioner of Revenue of the commonwealth grants to the city the reciprocal right to obtain information from the files and records of the state’s Department of Revenue and maintains the privileged character of the information so furnished; provided, further, that, the city may publish statistics based on such information in such a manner as not to reveal data respecting net profits or compensation of any person or business entity.
   (C)   In addition, the city is empowered to execute similar reciprocity agreements as described in division (B) above with any other taxing entity, should there be a need for exchange of information in order to effect diligent enforcement of this chapter.
(Prior Code, § 110.11) (Ord. 09-2006, passed 5-8-2006)
§ 110.12 PENALTIES AND FAILURES.
   (A)   A business entity subject to tax on net profits may be subject to a penalty equal to 5% of the tax due for each calendar month or fraction thereof if the business entity:
      (1)   Fails to file any return or report on or before the due date prescribed for filing or as extended by the city; or
      (2)   Fails to pay the tax computed on the return or report on or before the due date prescribed for payment.
   (B)   Every employer who fails to file a return or pay the tax on or before the date prescribed under § 110.05 of this chapter may be subject to a penalty in an amount equal to 5% of the tax due for each calendar month or fraction thereof.
   (C)   In addition to the penalties prescribed in this section, any business entity or employer shall pay, as part of the tax, an amount equal to 12% per annum simple interest on the tax shown due, but not previously paid, from the time the tax was due until the tax is paid to the city. A fraction of a month is counted as an entire month.
   (D)   Every tax imposed by this chapter, and all increases, interest and penalties thereon, shall become, from the time the tax is due and payable, a personal debt of the taxpayer to the city.
   (E)   (1)   The city may enforce the collection of the occupational tax due under § 110.03 of this chapter and any fees, penalties and interest as provided in divisions (A), (B), (C) and (D) above by civil action in a court of appropriate jurisdiction.
      (2)   To the extent authorized by law, the city shall be entitled to recover all court costs and reasonable attorney fees incurred by it in enforcing any provision of this chapter.
(Prior Code, § 110.12) (Ord. 09-2006, passed 5-8-2006) Penalty, see § 110.99
§ 110.13 DUTIES OF FINANCE DIRECTOR.
   (A)   The Director of Finance is required:
      (1)   To collect the license fee imposed under this chapter;
      (2)   To adopt and promulgate and to enforce rules and regulations relating to any matter of filings pertaining to the administration and enforcement of the provisions of this chapter including provisions for the reexamination and correction of returns and payments, but not limited thereto. The rules and regulations as promulgated by him shall be binding upon the licensee and employers;
      (3)   To receive the license fee imposed under this chapter; and
      (4)   To keep an accurate record showing the amount received by him or her from each licensee and withholding employer and the date of such receipts.
   (B)   (1)   When the Director of Finance questions the accuracy of any return made, he or she is authorized and empowered to request from any licensee a certified audit prepared by the licensee’s accountants for the purpose of verifying the accuracy of any return made, and said licensee shall file said audit with the Director of Finance within 30 days after such request.
      (2)   Upon the failure of the licensee to file an audit with the Director of Finance when requested, the Director of Finance personally, or his or her agents or employees, is authorized and empowered to examine the books, papers and records of any employer, or supposed employer, or of any licensee, or supposed licensee, in order to verify the accuracy of any return made, or in the event no return was made, to a certain the license fee imposed by this chapter. The Director may enforce this right by application to the appropriate court having jurisdiction over these matters.
      (3)   Every employer or supposed employer, and every licensee or supposed licensee is required to furnish to the Director of Finance, or his or her duly authorized agent or employees, the means, facilities and opportunity for such examinations, investigations and audits as are authorized in and by this chapter.
      (4)   The Director of Finance is further authorized to examine under oath any person concerning any income which was or should have been reported for license fee and to this end the Director of Finance has the right and power to compel the production of books, papers and records, and the attendance of all persons before him or her, whether as parties or witnesses, whom he or she believes to have knowledge of such income.
      (5)   Refusal of any such examination of any employer or person subject to the license fee or presumed to be such employer or person so subject, constitutes a misdemeanor punishable by fine.
      (6)   Agents and employees charged with duty of inspection or auditing of records of employers and licensees will carry proper identification, which shall be subject to examination by any person whose records are sought to be examined.
      (7)   The above powers in divisions (B)(1) through (B)(7) above shall not be exercised unless the Director of Finance is notified by the commonwealth’s Department of Revenue or the U.S. Internal Revenue Service, that the particular taxpayer’s figures should be audited.
   (C)   The Director of Finance and/or any of his or her deputies may choose to enforce the provisions of this chapter through the Elizabethtown Code Enforcement Board after proper notice to any business entity of any violation.
   (D)   If the Finance Department pursues enforcement through the code enforcement citation procedures against a mobile food vendor and the vendor is located at the same property location for more than two violation occurrences, then a citation may also be issued against the property owner.
(Prior Code, § 110.13) (Ord. 09-2006, passed 5-8-2006; Ord. 25-2019, passed 11-4-2019)
§ 110.14 MINIMUM AND MAXIMUM LIABILITY.
   Pursuant to KRS 67.773, a minimum tax of $25 is assessed on all net profits per year and is due annually with the application.
(Prior Code, § 110.15) (Ord. 09-2006, passed 5-8-2006)
§ 110.99 PENALTY.
   (A)   In addition to the penalties prescribed in § 110.12 of this chapter, any person, business entity or employer who willfully fails to make a return, willfully makes a false return or who willingly fails to pay taxes owing or collected, with the intent to evade payment of the tax or amount collected, or any part thereof, shall be guilty of a Class A misdemeanor.
   (B)   Any person who willfully aids or assists in, or procures, counsels or advises the preparation or presentation under, or in connection with, any matter arising under this chapter of a return, affidavit, claim or other document, which is fraudulent or is false as to any material matter, whether or not the falsity of fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim or document shall be guilty of a Class A misdemeanor.
   (C)   A RETURN, for the purpose of this section, shall mean and include any return, declaration or form prescribed by the city and required to be filed with the city by the provisions of this chapter, or by the rules of the city or by written request for information to the business entity by the city.
   (D)   Any person violating the provisions of § 110.11 of this chapter by intentionally inspecting confidential taxpayer information without authorization, shall be fined no more than $500 or imprisoned for not longer than six months, or both.
   (E)   Any person violating the provision of § 110.11 of this chapter by divulging confidential taxpayer information shall be fined not more than $1,000 or imprisoned for not more than one year, or both.
(Prior Code, § 110.12) (Ord. 09-2006, passed 5-8-2006)