(A) Except as provided in divisions (C) and (F) of this section, there is hereby levied and imposed an annual license tax upon all persons, associations, corporations or other activity in the city, for the privilege of engaging in such occupation, trade, profession or other activity. The occupational license tax shall be measured by and be equal to 1.75% of:
(1) The gross salaries, wages, commissions and other compensation earned by such persons for work done or services performed or rendered in the city on and after July 1, 1966; and
(2) The net profit of all businesses, professions or occupations from activities conducted in the city on and after July 1, 1966.
(B) Where such salaries, wages, commissions, other compensation and net profits are earned for work done or services performed or rendered both within and without the city, the license taxes shall be measured by such part of the salaries, wages, commissions, other compensation and net profits as is earned as a result of work done or services performed or rendered in the city. Such license taxes shall be computed by obtaining the percentage which the compensation or net profits for work performed or services rendered within the city bears to the total compensation or net profits earned.
(C) 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.
(D) 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.
(E) 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.
(F) 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;
(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;
(6) Insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky except as provided in KRS 91A.080;
(7) Any profits, earnings, distributions of an investment fund which would qualify under KRS 154.20-250 to 154.20-284 to the extent any profits, earnings, or distributions would not be taxable to an individual investor;
(8) Domestic servants employed in private homes;
(9) Persons engaged in the selling of agricultural products grown in Barren County; and
(10) Any person or entity organizing or participating in any recognized community event, including, but not limited to, the annual arts and crafts show, concert of the square, and global fest.
(Ord. 2607, passed 12-10-2007; Am. Ord. 2018-2911, passed 1-22-2018; Am. Ord. 2020-2970, passed 9-14-2020)