Loading...
The city authorizes a credit of its occupational license tax pursuant to the Kentucky Jobs Development Act (KRS 154.24.010 - 154.24.160, KRS 141.120, 141.350 and KRS 141.407) for and throughout a ten-year period (beginning and ending as stipulated in the service and technology agreement executed between the Kentucky Jobs Development Authority and the and the approved company and tentatively scheduled to begin in September, 2008 through September, 2018) and equal to 1% on the wages of the new Perot Systems Corporation Kentucky-resident employees created as part of this Economic Development Project.
(Ord. O-13-04, passed 5-25-04; Am. Ord. O-12-07, passed 6-26-07)
As used in this chapter, unless the context requires otherwise:
"BUSINESS ENTITY." Each separate corporation, limited liability company, business development corporation, partnership, limited partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted.
"COMPENSATION." Wages, salaries, commission, 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 section 401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal Revenue Code; 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 sections 125 and 132 of the Internal Revenue Code.
"EMPLOYEE." Any person who renders services to another person or 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 or 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.
"EMPLOYER." Employer as defined in section 3401(d) of the Internal Revenue Code.
"FISCAL YEAR." Fiscal year as defined in section 7701 (a)(24) of the Internal Revenue Code.
"GROSS RECEIPTS." All revenues or proceeds derived from the sale, lease, or rental of goods, services, or property by a business entity reduced by the following:
(1) Sales and excise taxes paid; and
(2) Returns and allowances.
"INTERNAL REVENUE CODE." The Internal Revenue Code in effect on December 31, 2004, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2005, that would otherwise terminate.
"SALES REVENUE." Receipts from the sale, lease, or rental of goods, services, or property.
"TAX," as used in this chapter and "LICENSE FEE", "LICENSE TAX" and "OCCUPATIONAL LICENSE FEE" as used in other city ordinances dealing with the occupational license tax or fee of the city, shall have the same meaning as is afforded to the term "tax" in KRS 67.750 to 67.790.
"TAX DISTRICT." The city, any other city of the first to fifth class, county, urban-county, charter county, consolidated local government, school district, special taxing district, or any other statutorily created entity with the authority to levy net profits, gross receipts, or occupational license taxes.
"TAXABLE GROSS RECEIPTS." In case of a business entity having payroll or sales revenue both within and without the city means gross receipts as defined in this section, as apportioned under KRS 67.753.
"TAXABLE GROSS RECEIPTS." In case of a business entity having payroll or sales revenue only in the city means gross receipts as defined in this section.
"TAXABLE YEAR." The calendar year or fiscal year ending during the calendar year, upon the basis of which gross receipts is computed.
(Ord. O-27-07, passed 12-11-07)
(A) Except as provided in division (D) of this section, gross receipts shall be apportioned as follows:
(1) For business entities with both payroll and sales revenue in more than one tax district, by multiplying the gross receipts by a fraction, the numerator of which is the payroll factor, described in division (B) of this section, plus the sales factor, described in division (C) of this section, and the denominator of which is two; and
(2) For business entities with sales revenue in more than one tax district, by multiplying the gross receipts by the sales factor as set forth in division (C) of this section.
(B) The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the city during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period. Compensation is paid or payable in the city based on the time the individual's service is performed within the city.
(C) The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the city during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
(1) The sale, lease, or rental of tangible personal property is in the city if:
(a) The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the city regardless of the f.o.b. point or other conditions of the sale; or
(b) The property is shipped from an office, store, warehouse, factory, or other place of storage in the city and the purchaser is the United States government.
(2) Sales revenues, other than revenue from the sale, lease, or rental of tangible personal property or the lease or rental of real property, are apportioned to the city based upon a fraction, the numerator of which is the time spent in performing such income-producing activity within the city and the denominator of which is the total time spent performing that income-producing activity.
(3) Sales revenue from the lease or rental of real property is allocated to the tax district where the property is located.
(D) If the apportionment provisions of this section do not fairly represent the extent of the business entity's activity in the city, the business entity may petition the city or the city may require, in respect to all or any part of the business entity's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more of the factors;
(3) The inclusion of one or more additional factors which will fairly represent the business entity's business activity in the city; or
(4) The employment of any other method to effectuate an equitable allocation and apportionment of gross receipts.
(Ord. O-27-07, passed 12-11-07)
(A) For purposes of this chapter, computations of gross income and deductions therefrom, gross receipts or sales, and deductions therefrom, accounting methods, and accounting procedures shall be as nearly as practicable identical with those required for federal income tax purposes.
(B) Every business entity subject to an occupational license tax governed by the provisions of this chapter shall keep records, render under oath statements, make returns, and comply with rules as the city from time to time may prescribe. Whenever the city deems it necessary, the city may require a business entity, by notice served to the business entity, to make a return, render statements under oath, or keep records, as the city deems sufficient to determine the tax liability of the business entity.
(C) The city may require, for the purpose of ascertaining the correctness of any return or for the purposes of noting an estimate of the taxable income of any business entity, the attendance of a representative of the business entity or of any other person having knowledge in the premises.
(Ord. O-27-07, passed 12-11-07)
If any business entity dissolves 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, withdrawal, or loss or surrender of charter shall not defeat the filing of returns and the assessment and collection of gross receipts taxes or tax withheld for the period of that taxable year during which the business entity had gross receipts or tax withheld in the city.
(Ord. O-27-07, passed 12-11-07)
If a business entity makes, or is required to make, a federal income tax return, the gross receipts 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.
(Ord. O-27-07, passed 12-11-07)
(A) All business entities' returns for the preceding taxable year shall be made by April 15 in each year, except returns made on the basis of a fiscal year, which shall me made by the fifteenth day of the fourth month following the close of the fiscal year. Blank forms for returns shall be supplied by the city.
(B) Every business entity shall submit a copy of its federal income tax return at the time of filing its return with the city. Whenever, in the opinion of the city, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the city may compel the business entity to produce for inspection a copy of all statements and schedules in support thereof. The city may also require copies of reports of adjustments made by the federal government.
(Ord. O-27-07, passed 12-11-07)
Loading...