(A) (1) Pursuant to the authority of KRS 67.753(4), it is hereby determined that the apportionment provisions of KRS 67.753 do not fairly represent the extent of the engagement in the county of those, other than an employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the payroll factor and the sales factor provided in KRS 67.753 for the apportionment of the net profits of those, other than employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the county.
(2) The property factor is a fraction, the numerator of which is the average value of the taxpayers real and tangible personal property owned or rented and used in the county during the computation period, and denominator of which is the average value of all of the taxpayer’s real and tangible personal property owned or rented and used anywhere during the computation period. In the determination of the property factor:
(a) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate which is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals.
(b) The average value of property shall be determined by averaging the values at the beginning and ending of the computation period, but the County Administrative Officer may require the averaging of monthly values during the computation period if reasonably required to reflect properly the average value of the taxpayer’s property.
(B) The proportion of the total net profits everywhere of those, other than employee, who are engaged in any franchise, trade, occupation, profession or other business both within and outside of the county that are subject to the occupational license fee established by this chapter, shall be determined by multiplying the total net profits thereof everywhere by the quotient of the total of the payroll factor and the sales factor described in KRS 67.753(2) and (3), and the property factor described in division (A)(2) of this section, that the franchise, trade, occupation, profession or other business had in the occupation, profession, or other business had in the County during the tax period will always be either 1,2, or 3. For example if the franchise, trade, occupation, profession or other business:
(1) Had only the sales revenue factor in the county, during the tax period, without either the property factor or the payroll factor in the county, the total business had in the county during the tax period would be 1; or
(2) Had both the sales revenue factor and the payroll factor in the county, during the tax period, without the property factor in the county, the total number of those factors that the franchise, trade, occupation, profession or other business had in the county during the tax period would be 2; or
(3) Had the sales revenue factor, the payroll factor, and the property factor in the county, during the tax period, the total number of those factors that the franchise, trade, occupation, profession or other business had in the county during the tax period would be 3.
(C) When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the county, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the county. The license tax shall be computed by obtaining the percentage which the compensation for work perform or services rendered with the county bears to the total wages and compensation, paid or payable. In order for the county to verify the accuracy of a taxpayer’s reported percentages under this subsection, the taxpayer shall maintain adequate records.
(D) If any business entity dissolves, ceases to operate, or withdraws from the county 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 occupation license tax for the period of that taxable year during which the business entity had business activity in the county.
(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.
(Ord. 225.48, passed 12-27-07; Am. Ord. 225.50, passed 2-16-08)