This provision is intended to exercise the taxing authority authorized by KRS 92.280(2). Provided, however, exempted herefrom are those entities exempted under KRS 92.281 and other applicable statutes.
(A) Except as provided in divisions (B) and (E) of this section, every person or business entity engaged in any business for profit and any person or business entity that is required to make a filing with the Internal Revenue Service or the Kentucky Revenue Cabinet shall be required to file and pay to the city an occupational license tax for the privilege of engaging in such activities within the city. The occupational license tax shall be measured by .75% of:
(1) All 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;
(2) The net profit from business conducted in the city by a resident or nonresident business entity. The minimum tax for any business shall be one hundred dollars ($100.00) per year which is due January 31 of each year regardless of fiscal year end. Provided, any flat fee paid pursuant to this chapter may be pro-rated on a quarterly basis if purchased after March 31.
(3) The maximum annual net profits tax shall be three thousand dollars ($3,000.00).
(B) All partnerships, S corporations, and all other entities where income is “passed through” to the owners are subject to this chapter. The occupational license tax imposed in this chapter is assessed against income before it is “passed through” these entities to the owners.
(C) If any business entity dissolves, ceases to operate, or withdraws from the city during any taxable year, or if any business entity in any manner surrenders or loses its charter during any taxable year, the dissolution, cessation of business, withdrawal, or loss or surrender of charter shall not defeat the filing of returns and the assessment and collection of any occupational license tax for the period of that taxable year during which the business entity had business activity in the city.
(D) If a business entity makes, or is required to make, a federal income tax return, the occupational license tax shall be computed for the purposes of this chapter on the basis of the same calendar or fiscal year required by the federal government, and shall employ the same methods of accounting required for federal income tax purposes.
(E) The occupational license tax imposed in this section shall not apply to the following persons or business entities:
(1) Any bank, trust company, combined bank and trust company, combined trust, banking and title business organized and doing business in this state, any savings and loan association whether state or federally chartered (provided, this exemption does not extend to the employees of such entities or to the requirement that such employers withhold on employees);
(2) Any compensation received by members of the Kentucky national guard for active duty training, unit training assemblies and annual field training;
(3) Any compensation received by precinct workers for election training or work at election booths in state, city, and local primary, regular, or special elections;
(4) Public Service Corporations that pay an ad valorem tax on property valued and assessed by the Kentucky Department of Revenue pursuant to the provisions of KRS 136.120. Licensees whose businesses are predominantly non-public service who are also engaged in public service activity are required to pay a license fee on their net profit derived from the non-public service activities apportioned to the city;
(5) Persons or business entities that have been issued a license under KRS Chapter 243 to engage in manufacturing or trafficking in alcoholic beverages. Persons engaged in the business of manufacturing or trafficking in alcoholic beverages are required to file a return, but may exclude the portion of their net profits derived from the manufacturing or trafficking in alcoholic beverages; The exemption of this section does not relieve such business or person from properly imposed fees or taxes under any other city ordinance. (Provided, this exemption does not extend to the employees of such entities or to the requirement that such employers withhold on employees);
(6) Insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky except as provided in KRS 91A.080 (this exemption does not apply to insurance agents or agencies);
(7) Any profits, earnings, distributions of an investment fund which would qualify under KRS 154.20-250 through 154.20-284 to the extent any profits, earnings, or distributions would not be taxable to an individual investor;
(8) Yard sale. Provided, however, this exemption shall only apply to a maximum of six cumulative days of yard sale per location during any calendar year. Appropriate zone classification and tax return shall be required for all sales in excess thereof. Further, there shall be a fee of twenty- five dollars ($25.00) per day for each day a yard sale is conducted in excess of six (6).
(9) Peddlers, canvassers, solicitors and transient merchants shall pay twenty-five dollars ($25.00) per day per person.
(10) Vendors at events shall pay twenty-five dollars ($25.00) per event. Provided, however, when such entities have a fixed location during an event with multiple vendors, the event sponsor may pay a flat fee of one thousand two hundred dollars ($1,200.00) in satisfaction of the responsibilities of the vendors at said event for the duration of that event. Such blanket licensures shall cover any events occurring during that calendar year. City sponsored events shall be exempt.
(11) Circuses which shall pay seventy-five dollars ($75.00) per day.
(12) Farmers markets.
(13) Special events which shall pay twenty-five dollars ($25.00) per day. Special events shall include, but not be limited to: dances, shopping center or retail merchant association events involving persons other than the regular merchants, auctions of real or personal property by persons who do not otherwise hold an occupational license.
(F) Should the amount due under this chapter be less than five dollars ($5.00), then no return shall be required.
(Ord. 2007-016, passed 12-10-07)
Statutory reference:
Occupational license tax, see KRS 67.765
Regulations for closed business, see KRS 67.763