(A) Except as provided in division (B) of this section, every person or business entity engaged in any business for profit and any person or business entity 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:
(1) One point ninety-five hundredths percent of 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; and
(2) One and one-half percent of the net profits from business conducted in the city by a resident or nonresident business entity, or $250, whichever is greater, subject to the following conditions:
(a) No occupational license tax under this division shall be required for any person or business whose gross receipts, as defined in § 110.01 are $25,000 or less, regardless of whether the gross receipts are derived from within or without the city. However, if the person or business operates a business which is open to the public, the person or business is still required to complete the application and pay the registration fee as required by § 110.03; and
(b) No occupational license tax under this subchapter shall apply to persons paid wages or compensation for the performance of duties for which he or she is employed or contracted entirely outside the city, or who spends four hours or less per week within the city for purposes of reporting, receiving instructions and/or meeting which are incidental to his or her duties outside the city.
(B) 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 insurance company 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, county 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 profits 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 gross receipts derived from the manufacturing or trafficking in alcoholic beverages;
(6) Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky;
(7) Trust estates are not subject to the license fee imposed by this subchapter upon the income of the trust estate, except where the trust operates a business which is subject to a license fee for doing business within the city. The remainder of the trust estate is hereby exempt from any payment of annual occupational license fees;
(8) A fiduciary who holds in trust property, moneys or properties to which another has a beneficial interest, or who receives or controls income for another person is not subject to the license fee imposed by this subchapter, except where the fiduciary operates a business which is subject to a license fee for doing business within the city. The remainder of the trust is hereby exempt from any payment of annual occupational fees;
(9) Any domestic servants employed in private homes. License fees shall be required for businesses conducting cleaning services. For purposes of this section, a
DOMESTIC SERVANT shall be defined as an individual employed in a private home to drive his or her employer as a chauffeur or employed on the grounds or in the home of his or her employer to cook, clean, wash, garden or transport or otherwise care for the person, home, grounds and/or vehicles of the employer, the employer's guests, including, but not limited to, maids, butlers, nurses, nursemaids, gardeners, cooks, launderers and chauffeurs engaged to serve the employer's family and guests, but not including the individuals who are employed by a cleaning service, personal nursing service, chauffeuring service or other entity which offers the service of its employees to the public; and
(10) Any person specifically exempted from the payment of license fees under Kentucky law.
(C) The following business activities are specifically subject to the license:
(1) The operation of warehouses, apartments, hotels, motels, hotel buildings, office buildings and similar structures;
(2) Income or rentals of real estate located within the city;
(3) A trust estate engaged in any enterprise, activity or business, which produces income specifically including the rental of real estate located within the city. However, income from interest and dividends from investment and dividends from investment activities of a trust estate are exempt;
(4) An independent contractor engaged in business. An independent contractor is a person, who while performing services for another, is not under the direction and control of such other person as to the results to be accomplished;
(5) Property owners, corporations, or any type of partnership receiving rental income from real property. The fact the business owners, partners or corporations are also the property owners does not negate the fact the rental of commercial property is a separate business in terms of this subchapter;
(6) Event sponsors where any of the vendors are from the private sector of the business community and profits adhere to any individual shareholder, individual or private business. Licenses are not required for charitable, religious or governmental vendors where no profits adhere to an individual shareholder, individual or private business concern. This section does not apply to parades; and
(7) Any business engaged in buying, selling or dealing in securities, stocks or bonds with the general public.
(Ord. 16-2007, passed 6-19-2007; Ord. 02-2009, passed 3-24-2009; Ord. 25-2010, passed 9-21-2010; Ord. 24-2022, passed 11-15-2022)