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RESTAURANT TAX
For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
COMMISSION. The Elizabethtown Tourism and Convention Bureau.
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 subchapter, is not considered a MOBILE FOOD VENDOR under the definition of this subchapter 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.
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 subchapter 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.
(Prior Code, § 126.01) (Ord. 22-2007, passed 4-23-2007; Ord. 25-2019, passed 11-4-2019)
(A) On and after 7-1-2007, there is hereby levied upon the retail sale of all food and beverages by a restaurant located within the municipal limits of the city a tax equal to 2% of the gross amount of each sale (excluding any other tax). This tax may or may not be passed on to the ultimate customer/consumer at the discretion of the restaurant.
(B) (1) Effective 1-1-2020, all mobile food vendors are required to pay on a calendar year basis, an annual business license fee of $250. The mobile food vendor will not be required to file a monthly restaurant tax return. All licenses expire December 31 each year.
(2) This fee does not apply to any restaurant business that has a permanent physical location inside the city limits and also operates a mobile food unit. Any such business shall be required to file monthly restaurant tax returns, obtain an annual business license, remit any occupational withholdings due, and file an annual net profits license fee return as required by city ordinance.
(C) Any mobile food vendor that only participates in city sponsored events or festivals shall be exempted from this license, however, they shall be required to pay the applicable vendor set-up fee associated with each city event or festival.
(Prior Code, § 126.02) (Ord. 22-2007, passed 4-23-2007; Ord. 23-2007, passed 5-21-2007; Ord. 25-2019, passed 11-4-2019)
(A) The funds collected from this tax shall be maintained by the city’s Director of Finance in a special fund and disbursed to the Commission monthly. All such money shall be used solely for the purpose of promoting recreational, convention and tourist activity in the city, as set out in KRS 91A.390, and shall not be used to provide a subsidy in any form to any motel, hotel or restaurant.
(B) The Commission must obtain approval from the City Council prior to using any revenues from the restaurant tax for the purposed of capital improvements including the purchase or acquisition of land. In the event that an approved capital project must be debt serviced by bonds or bonded by either the city or the city’s Elizabethtown Public Properties Holding Company LLC, the Commission will pledge amounts agreed upon by the Commission and City Council necessary to satisfy principal and interest payments of the bond issue.
(C) The Commission is strongly encouraged to obtain approval from the City Council for any projects that are estimated at a cost of $10,000 or more. In obtaining the approval, the Commission must provide the City Council a complete copy of any and all plans, data, research, appraisals, blueprints and the like regarding the project.
(D) The Commission will continue to tender its annual budget to the City Council for approval as required by KRS 91A.390.
(E) The Commission shall provide a monthly written report to the City Council which includes all income, expenditures, disbursements and request pertaining to restaurant tax funds.
(Prior Code, § 126.03) (Ord. 22-2007, passed 4-23-2007; Ord. 16-2009, passed 9-8-2009)
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