As used in this subchapter, the following terms and their derivatives shall have the following meanings unless the context clearly indicates a different meaning is intended:
AGRICULTURAL PRODUCTS PRODUCER. A person engaged in the growing of crops or the raising of livestock within or without the city who sells the crops or livestock to a business within the city other than at a local produce and vegetable market as described herein.
ASSOCIATION. A partnership, limited partnership, limited liability company, registered limited liability partnership, joint venture or any other form of unincorporated enterprise, owned or engaged in by two or more persons.
BUSINESS. Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit. BUSINESS shall not include the usual activities of board trade, chambers of commerce, insurance companies, agricultural products producers, transient businesses, trade associations or unions, or other associations performing services usually performed by trade associations or unions. BUSINESS shall not include funds, foundations, corporations or associations organized and operated for the exclusive and sole purpose of religious, charitable, scientific, literary, educational, civic or fraternal purposes, where no part of the earnings, incomes or receipts of the unit, group, or association, inures to the benefit of any private shareholder or other person.
BUSINESS ENTITY. Each separate corporation, limited liability company, business development corporation, partnership, limited partnership, registered limited liability partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization or other legal entity through which business is conducted.
CITY. The City of Hopkinsville, Kentucky.
COMPENSATION. Wages, salaries, commissions 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 §§ 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 §§ 125 and 132 of the Internal Revenue Code.
CONCLUSION OF THE FEDERAL AUDIT. The date adjustments made by the Internal Revenue Service to net income as reported on the business entity's federal income tax return become final and unappealable.
CORPORATION. A corporation or joint stock association organized under the laws of the United States, the State of Kentucky or any other state, territory or foreign country or dependency.
EMPLOYEE. Any person who renders services to another person or any 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 of 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. The person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that:
(1) If the person for whom the individual performs or performed the services does not have control of the payment of the wages for the services, the term
EMPLOYER means the person having control of the payment of the wages; and
(2) In the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term
EMPLOYER means such person.
EVENT. A publicized, organized occasion, such as a celebration, festival, benefit, contest or game. An EVENT is a distinct happening, customarily of short duration, dedicated to a specific purpose. As defined herein, an EVENT is limited to one occasion per year of no more than 14 consecutive calendar days.
FARMERS MARKET. The Farmers Market pavilion located on Ninth and Main Street, Hopkinsville, Kentucky.
FINAL DETERMINATION OF THE FEDERAL AUDIT. The revenue agent's report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service.
FISCAL YEAR. An accounting period of 12 months ending on the last day of any month other than December.
GROSS RECEIPTS. All revenue or proceeds derived from the sale of goods or services or lease or rental of property by a business entity, reduced by sales and excise taxes paid and returns and allowances.
INTERNAL REVENUE CODE. The Internal Revenue Code in effect on the date as specified in KRS 67.750.
LICENSE FEE. License tax and the two terms shall be interchangeable as used in this subchapter.
LICENSEE. Any person required to file a return or to pay a license fee under this subchapter.
LOCAL BUSINESS. Any business that either:
(1) Owns their business site in the city;
(2) Has a valid lease for their business site from the property owner or manager that is for a period over six uninterrupted months; or
(3) Involves regular or routine visits to an established customer base within the city. The business site, as used above, must be a permanent building which is properly zoned for business use.
NET PROFIT. Gross income as defined in § 61 of the Internal Revenue Code minus all deductions from gross income allowed by Chapter 1 of the Internal Revenue Code, and adjusted as follows:
(1) Include any amount claimed as a deduction for state tax or local tax which is computed, in whole or in part, by reference to gross or net income and which is paid or accrued to any state of the United States, local taxing authority in a state, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country or political subdivision thereof;
(2) Include any amount claimed as a deduction that directly or indirectly is allocable to income which is either exempt from taxation or otherwise not taxed;
(3) Include any amount claimed as a net loss from capital assets, any amount claimed as an ordinary loss and any amount claimed as a net operating loss carry back or carry forward allowed under § 172 of the Internal Revenue Code;
(4) Include any amount of income and expenses passed through separately as required by the Internal Revenue Code to an owner of a business entity that is a pass through entity for federal tax purposes; and
(5) The following items shall be deductible: interest and dividend income, net gain from capital assets and ordinary gains under federal income tax laws. Also excluded is any amount of income exempt from state taxation by the Kentucky Constitution or the Constitution and statutory laws of the United States.
OPEN TO THE PUBLIC. Any retail, wholesale or service business which maintains an office or storefront within the city.
PERSON. Every natural person, whether a resident or non-resident of the city. Whenever the word PERSON is used in a clause prescribing and imposing a penalty in the nature of a fine or imprisonment, the word, as applied to a partnership or other form of unincorporated enterprise, shall mean the partners or members thereof, and as applied to corporations, shall mean the officers and directors thereof.
RETURN or REPORT. Any properly completed and, if required, signed form, statement, certification, declaration or any other document permitted or required to be submitted or filed with the city.
SALES REVENUE. Receipts from the sale, lease or rental of goods, services or property.
TAX DISTRICT. Any 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 NET PROFIT. In case of a business entity having payroll or sales revenue only within the city, NET PROFIT as defined herein.
TAXABLE NET PROFIT. In case of a business entity having payroll or sales revenue both within and without the city, NET PROFIT as defined herein, and as apportioned hereunder.
TAXABLE YEAR. The calendar year or fiscal year ending during the calendar year upon the basis of which net income is computed.
TEMPORARILY. Not of a permanent nature or stay and not involving regular or routine visits to an established customer base within the city.
TRANSIENT BUSINESS. Any person which passes through the city temporarily for the purpose of conducting a business which involves the buying, selling or exchanging of goods or services. The activity of a TRANSIENT BUSINESS must not involve regular or routine visits to an established customer base within the city.
(Ord. 16-2007, passed 6-19-2007)