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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)
On or before the twentieth day of each calendar month, each restaurant owner and/or operator shall report to the city’s Director of Finance on forms provided by the city the gross amount of sales of the restaurant from food and beverages for the preceding calendar month, and calculation of the tax due for that month by computing 2% of its gross sales from food and beverages. The owner/operator of the restaurant shall remit with the form the tax due to the city’s Director of Finance.
(Prior Code, § 126.04) (Ord. 22-2007, passed 4-23-2007)
On or before the last day of each calendar month, the city’s Director of Finance shall transfer to the city’s Tourism and Convention Bureau the gross of moneys collected from the restaurant tax collected as of the twenty-fifth of the current month. The city’s Tourism and Convention Bureau shall reimburse the city 5% of the tax collected as reimbursement for the costs of collections, including, but not limited to, the cost of reporting forms, postage, court cost, attorney’s fees and all other expenses incurred in collection of this tax by the fifth day following the monthly transfer of funds.
(Prior Code, § 126.05) (Ord. 22-2007, passed 4-23-2007; Ord. 16-2009, passed 9-8-2009)
(A) It shall be the duty of the city’s Director of Finance to collect and receive the restaurant tax imposed by this subchapter.
(B) The city’s Director of Finance shall keep records showing the amount paid by each restaurant owner and/or operator and the date of such receipt.
(C) The city’s Director of Finance is hereby charged with the enforcement of provisions of this subchapter, and is hereby empowered to prescribe, adopt and promulgate, and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of the provisions of the ordinance, including, but not limited to, provisions of the reexamination and correction of returns to which and underpayment or overpayment is claimed or found to have been made, and the rules and regulations as promulgated by him or her shall be binding upon the taxpayer; provided, however, all such rules, regulations and decisions shall be subject to the consent and approval of the Mayor and City Council.
(D) The city’s Director of Finance, or any agent or employee designated by him or her in writing, may examine the books, papers and records of any restaurant in order to determine the accuracy of any return made, or if no return was made, to ascertain the amount of restaurant tax imposed by the terms of this subchapter as he or she may deem is reasonably necessary for the purpose incident to the performance of his or her duties hereunder. The city’s Director of Finance may enforce this right by application to the appropriate court having jurisdiction over these matters.
(E) The city’s Director of Finance may dispense with examination of the books, papers and records of any taxpayer in any case where the city’s Director of Finance is furnished with a certificate of a qualified certified public accountant, or the sworn statement of any other reputable accountant or bookkeeper stating that the amount of restaurant tax reported conforms to the state or federal income tax return filed for the applicable period.
(F) A restaurant owner and/or operator who collects the restaurant tax from one or more persons and who fails to file a return and make payments therewith shall in addition to the penalties prescribed herein upon conviction be subject to a fine of not less than $50, nor more than $500, or imprisonment for not more than 30 days, or both such fine and imprisonment, for each offense. Such criminal penalties shall be in addition to the penalties imposed within this subchapter.
(Prior Code, § 126.06) (Ord. 22-2007, passed 4-23-2007)
(A) Any person who fails to file any return required within the afore stated time due to who fails to pay such restaurant tax when same shall become due, shall be charged a penalty of 5% of the amount of the unpaid restaurant tax for each month such return remains un-filed or tax unpaid, not exceeding a penalty of 25% in the aggregate.
(B) All restaurant taxes imposed by this subchapter which remain unpaid after they become due shall bear interest at the rate of 0.5% per month (or part thereof).
(C) Any person who shall fail, neglect or refuse to make any return or pay any tax due required by this subchapter, or to pay the city those so withheld under the terms of this subchapter, or any person who shall refuse to permit the city’s Director of Finance or any agent or employee designated by him or her in writing, to examine books, records and papers pertaining to information required under this subchapter, or who shall knowingly make any incomplete, false or fraudulent return, or who shall attempt to do anything whatsoever to avoid the full disclosure of the amount of gross receipts in order to avoid the payment of the whole or any part of the restaurant license tax, shall become liable to the city for such tax as well as the interest and penalty thereon, and shall in addition, be subject to a fine of not less than $50, or more than $500, or imprisonment for not less than 30 days, each day of non-filing constituting a separate offense. Such criminal penalties shall be in addition to the penalties imposed above.
(Prior Code, § 126.07) (Ord. 22-2007, passed 4-23-2007)
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