(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 that is 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 one and two-tenths percent (1.2%) of:
(1) 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;
(2) The net profits from business conducted in the city by a resident or nonresident business entity.
(B) The occupational license tax imposed in this section shall not apply to:
(1) Banks, or title insurance companies organized and doing business in this state or any savings and loan association nor to compensation received by members of the Kentucky National Guard for duty training or unit training nor to precinct workers for election training or work at election booths.
(2) 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 predominately 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.
(3) Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky nor any profits, earnings, or 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.
(4) Vendors who only participate in festivals or fairs sponsored by non-profit organizations where said events do not exceed five (5) days.
(5) All rental income of any type or source is fully taxable for all forms of ownership, except for an individual or single member LLC who owns two (2) or less residential rental housing units; they are exempt from the requirements of this chapter. A housing unit is defined as a single living quarters (duplex = 2, apartment unit = 1). With ownership of three (3) or more residential rental units inside the city limits, an individual or single member LLC is presumed to be an operating business and is subject to this chapter and all net profits are fully taxable.
(C) If not employed by another, the minimum sum of fifty dollars ($50.00) shall be paid in advance as a license fee, the said sum to be credited against any additional license fee due under the provisions of this chapter, said minimum fee is to be paid no later than January 31 of each year and submitted along with a business license application.
(Ord. 2007-11, passed 12-3-07; Am. Ord. 2010-02, passed 2-1-10; Am. Ord. 2019-03, passed 2-18-19) Penalty, see § 111.99