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The following words, when used in this chapter, shall have the meanings ascribed to them in this section except where the context clearly indicates or requires a different meaning:
(1) Alarm administrator: The person designated by the urban county government to administer, control and review the urban county government's alarm system ordinances, regulations and procedures. The chief of the division of police or his designee shall be the alarm administrator.
(2) Alarm advisory board: The five (5) member board created by section 13-73.5 of the Code.
(3) Alarm business: The activity of any individual, partnership, corporation or other entity involving the sale, lease, maintenance, service, repair, alteration, monitoring, movement or installation of any alarm device within or on any building, structure or facility. This definition does not include a business that engages in the manufacture or sale of an alarm system from a fixed location and does not visit the location where the alarm system is to be installed, nor designs the scheme for physical location and installation of the alarm system in a specific location.
(4) Alarm business license: A license issued to an alarm company to sell, lease, install, monitor, maintain, repair, or replace alarm systems in the urban county.
(5) Alarm company: A person or business entity involved in selling, leasing, maintaining, servicing, repairing, altering, replacing, moving, installing or monitoring an alarm system.
(6) Alarm dispatch request: A notification to a law enforcement agency that an alarm, either manual or automatic, has been activated at a particular alarm site.
(7) Alarm registration: The notification by an alarm company or an alarm user to the alarm administrator that an alarm system has been installed and is in use.
(8) Alarm site: A single fixed premises or location serviced by an alarm system or systems. If served by a separate alarm system, each unit in a multi-unit building or structure shall be considered a separate alarm site.
(9) Alarm system: Any mechanical or electrical device or series of devices, designed or used for the detection of an unauthorized entry into a building, structure or facility, or for alerting others of the commission of an unlawful act within a building, structure or facility, or both; and which emit a sound or transmit a remote or local audible, visual or electronic signal or message when activated. Alarm systems include, but are not limited to, systems interconnected with a radio frequency method such as cellular or private radio signals, direct-dial telephone devices, audible alarms and proprietor alarms. Devices which are not designed or used to register alarms that are audible, visible or perceptible outside of the protected buildings, structure or facility are not included within this definition, nor are auxiliary devices installed by the telephone company to protect telephone company systems which might be damaged or disrupted by the use of an alarm system. "Alarm system" does not include audible alarms affixed to automobiles or on someone's person.
(10) Alarm user: Any person or business entity who uses or is in control of an alarm system located on that person's or entity's premises or who has contracted for monitoring, repair or maintenance service from an alarm company for an alarm system.
(11) Alarm user awareness class: A class conducted for the purpose of educating alarm users about the responsible use, operation, and maintenance of alarm systems and the problems created by false alarms.
(12) Amusement: Athletic contest or entertainment not a part of a duly licensed business or not held in a regularly licensed theater or in a publicly owned, religious or educational building, and not sponsored by a bona fide civic, patriotic, religious or educational organization.
(13) Arming station: A device that allows control of an alarm system.
(14) Association: A partnership, limited partnership or any other form of unincorporated enterprise, owned by two (2) or more persons.
(15) Automatic voice dialer: Any electrical, electronic, mechanical, or other device capable of being programmed to send a prerecorded voice message, when activated, over a telephone line, radio or other communication system, to a law, public safety or emergency service provider requesting dispatch.
(16) Bazaar: A group of individuals selling merchandise at one (1) location which is not a permanent place of business for any one (1) of the individuals, and sponsored by a person or promoter who assumes the responsibility for the license fee.
(17) Business: An enterprise, activity, profession or undertaking of any nature conducted for gain or profit, whether conducted by an individual, copartnership, association or any other entity, but shall not include the usual activities of boards of trade, chambers of commerce, trade associations or unions (or other associations performing the services usually performed by trade associations or unions); community chest funds or foundations; corporations or associations organized and operated exclusively for religious, charitable, scientific, literary, educational or civic purposes, or the prevention of cruelty to children or animals; or clubs or fraternal organizations operated exclusively for social, literary, educational or fraternal purposes, where no part of the earnings of income or receipts of such units, groups or associations inures to the benefit of any private shareholder or individual.
(18) 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.
(19) Cancellation or alarm dispatch cancellation: The process by which an alarm company providing monitoring services verifies with the alarm user or responsible party that a false dispatch has occurred and communicates the verification to the responding law enforcement agency confirming that there is not an existing situation at the alarm site requiring law enforcement response.
(20) Commissioner of finance: The commissioner of finance of the urban county government.
(21) Common cause: A common technical difficulty or malfunction which causes an alarm system to generate a series of false alarms, all of which occur within a twenty-four-hour period. The series of false alarms shall be counted as one (1) false alarm only if the cause of the series of false alarms is repaired before it generates additional false alarms, documentation of the repair is provided to the alarm administrator, and during the seven-day period following the repair the alarm system generates no additional false alarms from the documented cause.
(22) 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:
(a) 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 Section 401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal Revenue Code; and
(b) 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 Sections 125 and 132 of the Internal Revenue Code.
(23) Conversion: The transaction or process by which one (1) alarm company begins servicing, maintaining or monitoring of a previously unmonitored alarm system or an alarm system previously serviced or monitored by another alarm company.
(24) Corporation: A corporation or joint stock association organized under the laws of the United States, the Commonwealth of Kentucky, or any other state, territory or foreign country or dependency.
(25) Direct line: A telephone line leading directly from a location to the communication center of the division of police, where said line is used only to report emergency signals.
(26) Division of revenue: The division created by the Charter of the Lexington-Fayette Urban County Government and charged with the collection of all income, revenues and monies due the urban county government.
(27) Duress alarm: A silent alarm system signal generated by the manual activation of a device intended to signal a life threatening situation or a crime in progress requiring law enforcement response. A duress alarm signal is generally not verified.
(28) Emergency ambulance service: Any person or business operating or maintaining vehicles for the health, care and transportation of persons who are sick, injured or otherwise incapacitated in emergency situations pursuant to chapter 18C of the Lexington-Fayette Urban County Government Code of Ordinances.
(29) 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 (1) or more of the above. A person classified as an independent contractor under the Internal Revenue Code shall not be considered an employee.
(30) Employer: An individual, partnership, association, corporation, governmental body or unit or administration or agency, or any other entity, who or that employs one (1) or more persons on a salary, wage, commission or other compensation basis, regardless of whether such employer is engaged in business as above defined, or is excluded by the terms of such definition.
(31) False alarm: An alarm dispatch request to a law enforcement agency, when the responding officer finds no evidence of a criminal offense or attempted criminal offense after having completed an investigation of the alarm site.
(32) Fiduciary: A person or other entity who holds in trust property, monies or other assets, to which another has a beneficial title or interest, or who receives and controls income for another person or persons.
(33) Fiscal year: An accounting period of twelve (12) months.
(34) Gross receipts: The total income, revenue, sales or fees of a business activity.
(35) Holdup alarm: A silent alarm signal generated by the manual activation of a device intended to signal a robbery in progress. A holdup alarm is generally not verified.
(36) Household worker: An individual employed to drive his employer in the capacity of a chauffeur or employed on the grounds or in the home of his employer in activities to care for or wait upon the employer, the employer's family or guests, or to care for the home, grounds and/or vehicle of the employer or the employer's family or guests, not including such individuals who are employed by a cleaning service, personal nursing service, chauffeuring service or other entity which offers the services of its employees to the public.
(37) Independent contractor: A person who is subject to the control and direction of another only as to the result of his work, and not as to means, and who is therefore not an employee, as further defined by United States official treasury regulations.
(38) Internal Revenue Code: With respect to occupational license fees shall mean the Internal Revenue Code as defined by KRS 67.750.
(39) Itinerant merchant: An individual who does not have a permanent business location in Fayette County and who sells items of merchandise by means other than peddling.
(40) Licensee: Any person, whether an individual, partnership, association, corporation or other legal entity, required to file an occupational license fee return or pay occupational license fees on net profits or wages or withhold an occupational license fee on employee wages to the urban county government under this chapter.
(41) Limited liability company: An entity organized under KRS Chapter 275 or comparable laws of the United States or any other state, territory or foreign country or dependency. For purposes of this chapter, a limited liability company shall have the same entity classification as that elected for IRS federal income tax filings and shall be assessed occupational license fees accordingly under this chapter and all regulations promulgated hereunder.
(42) Local alarm system: Any alarm system that annunciates an alarm only by a local or external audio device.
(43) Monitoring: The process by which an alarm company receives signals from an alarm system and relays an alarm dispatch request to the responding local law enforcement agency for the purpose of summoning law enforcement personnel to the alarm site.
(44) Net profit: Gross income as defined in Section 61 of the Internal Revenue Code minus all the deductions from gross income allowed by Chapter 1 of the Internal Revenue Code, and adjusted as follows:
(a) 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;
(b) 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;
(c) Include any amount claimed as a net operating loss carryback or carryforward allowed under Section 172 of the Internal Revenue Code;
(d) 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
(e) Exclude any amount of income that is exempt from state taxation by the Kentucky Constitution, or the Constitution and statutory laws of the United States.
(45) Nonresident: An individual, corporation, partnership, fiduciary, association or other entity that is not domiciled or does not have a business situs in Fayette County.
(46) Occupational license fee: For purposes of this chapter, this term shall have the same meaning as occupational license tax and those terms shall be interchangeable.
(47) One plus duress alarm: The manual activation of a silent alarm signal by entering at an arming station a code that adds one (1) digit to the last digit of the normal arm/disarm code (for example, if the normal code is 1234, the One Plus Duress Code is 1235).
(48) Panic alarm: An audible alarm system signal generated by the manual activation of a device intended to signal a life threatening or emergency situation requiring law enforcement response. A panic alarm is generally not verified.
(49) Partnership: Any unincorporated enterprise of two (2) or more persons engaged in any business, profession or occupation recognized as a partnership for federal income tax purpose.
(50) Peddler: An individual who carries his merchandise with him while traversing the streets, sidewalks or alleys of Fayette County for the purpose of exhibiting and selling such merchandise.
(51) Person: Every natural person, sole proprietorship, partnership, fiduciary, association or corporation. Whenever the term "person" is used in any clause prescribing and imposing a penalty in the nature of a fine or imprisonment, the word, as applied to associations, shall mean the partners or members thereof and as applied to corporations, the officers and directors.
(52) Place of business: Any bona fide office (other than a mere statutory office), factory, warehouse, or other space which is occupied and used by the licensee in carrying on any business activity, individually or through one (1) or more of his employees regularly in attendance.
(53) Precious metals dealer: Any business, excluding banking institutions, licensed to do business in the commonwealth, and broker-dealers licensed with the department of securities of the commonwealth, making any secondhand purchase of gold, silver or platinum, whether in the form of bulk metal, coins, watches, jewelry or any other form. The term "secondhand purchase" shall not include any purchase made by a retailer or wholesaler from a bona fide manufacturer.
(54) Proprietor alarm: An alarm system which is not serviced by an alarm business.
(55) Resident: An individual, partnership, association, corporation or other entity domiciled or having a business situs in Fayette County.
(56) Sales revenue: Receipts from the sale, lease, or rental of goods, services, or property;
(57) Sales within the urban county: Includes the following:
(a) Sales, lease, or rental of merchandise delivered to a customer or deemed to have risen from the licensee's activity within Fayette County, or
(b) Sales, lease, or rental of services performed within Fayette County for a customer.
(58) Sole proprietor: A natural person engaged in any business, profession or occupation, but not as an employee.
(59) Tax year: The calendar year or the fiscal year used by the licensee for calculation of annual net profits.
(60) Taxable net profit only within the urban county government: In case of a business entity having payroll or sales revenue only within the urban county government, net profit as defined in subsection (27) of this section;
(61) Taxable net profit both within and without the urban county government: In case of a business entity having payroll or sales revenue both within and without the urban county government, net profit as defined in subsection (27) of this section, and as apportioned under section 13-4.
(62) Temporary mall merchant: An individual who does not have a permanent location in Fayette County, who sells a service or items of merchandise from within an enclosed mall.
(63) Transfer or takeover: The transaction or process by which an alarm user takes over control of an existing alarm system previously controlled by another alarm user.
(64) Transportation ambulance service: Any person or business operating or maintaining vehicles for health care transportation for patients with stable conditions or for individuals whose impaired health condition does not indicate a need for emergency medical treatment during transit.
(65) Urban county: Fayette County.
(66) Urban county government: Lexington-Fayette Urban County Government.
(67) Verify: With reference to the monitoring of an alarm system, means a minimum of two (2) attempts by the alarm company, or its representative, to contact the alarm site of the alarm user by telephonic or other electronic means, whether actual contact with a person is made, before requesting law enforcement assistance or dispatch, in an attempt to avoid false alarms. Telephone verification shall require, as a minimum, that a second call be made to a different number if the first attempt fails to reach an alarm user who can properly identify themselves to determine whether an alarm signal is valid before requesting law enforcement assistance or dispatch.
(68) Zones: Subdivisions into which an alarm system is divided to indicate the general location from which an alarm system signal is transmitted.
(Ord. No. 19-81, § 1, 2-5-81; Ord. No. 53-81, § 1, 3-19-81; Ord. No. 52-83, § 1, 4-7-83; Ord. No. 143-83, § 1, 8-25-83; Ord. No. 209-85, § 1, 10-17-85; Ord. No. 18-86, § 1, 2-20-86; Ord. No. 147-90, § 1, 7-5-90; Ord. No. 207-91, § 1, 10-8-91; Ord. No. 78-94, § 1, 5-19-94; Ord. No. 225-97, § 1, 10-30-97; Ord. No. 175-99, § 1, 6-29-99; Ord. No. 311-99, §§ 1—3, 11-4-99; Ord. No. 60-2000, §§ 1, 2, 3-9-00; Ord. No. 335-2000, § 1, 11-9-00; Ord. No. 246-2004, §§ 1, 2, 9-28-04; Ord. No. 56-2005, § 1, 3-10-05; Ord. No. 267-2007, § 1, 12-6-07)
(a) The commissioner of finance is hereby charged with the enforcement of the provisions of this article and is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including, but not limited to, provisions for the reexamination and correction of returns as to which an overpayment or underpayment is claimed or found to have been made; and the rules and regulations promulgated by him shall be binding upon the licensee and the employers.
(b) The commissioner of finance or any agent or employee designated in writing by him is hereby authorized to examine and copy the books, papers and records of any employer or supposed employer or of any licensee or supposed licensee in order to determine the accuracy of any return made, or if no return was made, to ascertain the amount of license fee imposed by the terms of this article. Each such employer or supposed employer or licensee or supposed licensee is hereby directed and required to give to the commissioner of finance or his duly authorized agent or employee the means, facilities and opportunity for such examination and investigation as are hereby authorized. The commissioner of finance is hereby authorized to examine any person under oath concerning any wages, salaries, commissions or other compensation or net profits which were or should have been reported; and to this end he may compel the production of books, papers, records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such wages, salaries, commissions or other compensation or net profits, to the extent that any officer empowered to administer oaths in this state is permitted to so order.
(c) Every business entity subject to an occupational license tax governed by the provisions of this ordinance shall keep records, render under oath statements, make returns, and comply with rules as the urban county government from time to time may prescribe. Whenever the urban county government deems it necessary, the urban county government may require a business entity, by notice served to the business entity, to make a return, render statements under oath, or keep records, as the urban county government deems sufficient to determine the tax liability the business entity.
(d) The urban county government may require, for the purpose of ascertaining the correctness of any return or for the purposes of making an estimate of the taxable income of any business entity, the attendance of a representative of the business entity or of any other person having knowledge in the premises.
(Ord. No. 147-0, § 1, 7-5-90; Ord. No. 225-97, § 2, 10-30-97; Ord. No. 267-2007, § 2, 12-6-07)
(1) It shall be unlawful for any person to operate a business in the urban county without a license issued pursuant to section 13-9.
(2) It is not the intention of the urban county government or of this article to impose and require an occupational license fee prohibited by the law.
(Ord. No. 147-90, § 1, 7-5-90; Ord. No. 243-91, § 1, 11-21-91)
(a) Except as provided in section 13-6, 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 urban county government an occupational license tax for the privilege of engaging in such activities within the urban county government. The occupational license tax shall be measured by two and one-quarter (2.25) percent of:
(1) All wages and compensation paid or payable in the urban county government for work done or services performed or rendered in the urban county government by every resident and nonresident who is an employee; and
(2) The net profit from business conducted in the urban county government by a resident or nonresident business entity.
(b) Where salaries, wages, commissions and other trade compensations are paid under subsection (a)(1) above for any business, trade, occupation, profession or other activity in the urban county, such license fee shall be computed by obtaining the percentage which the compensation for any business, trade, occupation, profession or other activity in the urban county bears to the total compensation.
(c) The net profits of businesses, trades, occupations, professions and other activities conducted in the urban county under subsection (a)(2) above shall be computed as follows:
(1) Except as provided in subsection (c)(4) of this section, net profit shall be apportioned as follows:
(a) For business entities with both payroll and sales revenue in more than one (1) tax district, by multiplying the net profit by a fraction, the numerator of which is the payroll factor, described in subsection (c)(2) of this section, plus the sales factor, described in subsection (c)(3) of this section, and the denominator of which is two (2); and
(b) For business entities with sales revenue in more than one (1) tax district, by multiplying the net profit by the sales factor as set forth in subsection (c)(3) of this section.
(2) The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the urban county government during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period. Compensation is paid or payable in the urban county government based on the time the individual's service is performed within the urban county government.
(3) The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the urban county government during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
(a) The sale, lease, or rental of tangible personal property is in the urban county government if:
1. The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the urban county government regardless of the f.o.b. point or other conditions of the sale; or
2. The property is shipped from an office, store, warehouse, factory, or other place of storage in the urban county government and the purchaser is the United States government.
(b) Sales revenues, other than revenues from the sale, lease or rental of tangible personal property or the lease or rental of real property, are apportioned to the urban county government based upon a fraction, the numerator of which is the time spent in performing such income-producing activity within the urban county government and the denominator of which is the total time spent performing that income-producing activity.
(c) Sales revenue from the sale, lease, or rental of real property is allocated to the tax district where the property is located.
(4) If the apportionment provisions of this section do not fairly represent the extent of the business entity's activity in the urban county government, the business entity may petition the urban county government or the urban county government may require, in respect to all or any part of the business entity's business activity, if reasonable:
(a) Separate accounting;
(b) The exclusion of any one (1) or more of the factors;
(c) The inclusion of one (1) or more additional factors which will fairly represent the business entity's business activity in the urban county government; or
(d) The employment of any other method to effectuate an equitable allocation and apportionment of net profit.
(5) When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the urban county government, 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 urban county government. The license tax shall be computed by obtaining the percentage which the compensation for work performed or services rendered within the urban county government bears to the total wages and compensation paid or payable. In order for the urban county government to verify the accuracy of a taxpayer's reported percentages under this subsection, the taxpayer shall maintain adequate records.
(6) All partnerships, S corporations, and all other entities where income is "passed through" to the owners are subject to this ordinance. The occupational license tax imposed in this ordinance is assessed against income before it is "passed through" these entities to the owners.
(7) If any business entity dissolves, ceases to operate, or withdraws from the urban county government 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 urban county government.
(8) 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 ordinance 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.
(9) All business entity returns for the preceding taxable year shall be made by April 15 of each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the fiscal year. Blank forms for returns shall be supplied by the urban county government.
(10) Every business entity shall submit a copy of its federal income tax return and all supporting statements and schedules at the time of filing its occupational license tax return with the urban county government. Whenever, in the opinion of the urban county government, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the urban county government may compel the business entity to produce for inspection a copy of any statements and schedules in support thereof that have not been previously filed. The urban county government may also require copies of reports of adjustments made by the federal government.
(11) The full amount of the unpaid tax payable by any business entity, as appears from the face of the return, shall be paid to the urban county government at the time prescribed for filing the occupational license tax return, determined without regard to any extension of time for filing the return.
(Ord. No. 3583, § 1, 12-27-56; Ord. No. 99-72, § 1, 5-25-72; Ord. No. 164-83, § 2, 9-22-83; Ord. No. 147-90, § 1, 7-5-90; Ord. No. 236-93, § 2, 12-9-93; Ord. No. 182-95, § 1, 8-31-95; Ord. No. 128-2000, § 1, 5-4-00; Ord. No. 336-2000, § 1, 11-9-00; Ord. No. 79-2006, § 1, 4-13-06; Ord. No. 267-2007, § 3, 12-6-07)
(a) Every person and business entity engaged in any business in the urban county shall be required to apply for and obtain an initial occupational license from the urban county government before the commencement of business or in the event of a change of business status, and annually thereafter if otherwise required. Licensees are required to notify the urban county government of any changes in address, the cessation of business, or any other changes which render the information supplied to the urban county government in the license application inaccurate.
(b) All licenses now or hereafter issued pursuant to ordinances of the urban county government requiring a license for any business, profession, trade or occupation shall authorize the conducting of business at no more than one (1) place; and a separate license must be procured annually for each place from which business is conducted unless the ordinance providing for the license shall specifically provide otherwise; however, the place at which the business is conducted may, with the consent of the director, division of revenue, unless otherwise provided, be changed during the license period.
(c) The foregoing provisions regarding the requirement of an additional license for each additional place of business conducted by any licensee shall be applied in the construction of all license ordinances of the urban county government.
(Ord. No. 147-90, § 1, 7-5-90; Ord. No. 267-2007, § 4, 12-6-07; Ord. No. 160-2008, § 1, 6-26-08; Ord. No. 170-2010, § 1, 10-14-10)
Cross reference(s)—Transfer of alcoholic beverage license, § 3-8.
(a) No license under this article shall be required of nonresidents who sell farm products, other than trees, shrubs, or ornamental plants, in the urban county; or nonresident owners who sell livestock in the urban county or who board their livestock in the urban county for breeding purposes. The activities described in this subsection shall not constitute being engaged in any occupation, trade, profession or other activity as defined in section 13-4 of this article.
(b) Natural persons of the age of sixty-five (65) and older shall be exempt from the provisions of the occupational license fee as to the first three thousand dollars ($3,000.00) of salaries, wages, commissions or other compensation earned by such persons in the urban county for work done or services performed or rendered in the urban county, and the first three thousand dollars ($3,000.00) of net profits of any business, profession or occupation conducted in the urban county.
(c) No license under this article shall be required of any person authorized by the Lexington-Fayette Urban County Government to demonstrate, sell or offer for sale any goods, wares or merchandise at any festival or special event sponsored by the urban county government or its departments.
(d) No license under this article shall be required of precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections within the urban county.
(e) No license under this article is required where expressly exempted elsewhere by ordinance, federal or state law.
(f) Any bank, trust company, combined bank and trust company, or trust, banking and title insurance company organized and doing business in this state, any savings and loan association whether state or federally chartered.
(g) 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 urban county government.
(h) 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.
(i) Insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky, except as provided in KRS 91A.080.
(j) Any compensation received by members of the Kentucky national guard for active duty training, unit training assemblies and annual field training.
(k) Funds received from the state as a share of the tobacco settlement funds to be paid to farmers is exempt from inclusion in net profits for the purpose of calculating the net profits which are subject to this occupational license fee as follows:
(1) Any amount received by a producer of tobacco or a tobacco quota owner from the multi-state settlement with the tobacco industry, known as the Master Settlement Agreement, signed on November 22, 1998;
(2) Any amount received from the secondary settlement fund, referred to as "Phase II", established by tobacco companies to compensate tobacco farmers and quota owners for anticipated financial losses caused by the national tobacco settlement;
(3) Any amount received from funds of the Commodity Credit Corporation for the Tobacco Loss Assistance Program as a result of a reduction in the quantity of the tobacco quota allotted from the 1998 to the 1999 calendar year as provided under Public Law 106-78 Title 8 sec. 803; and
(4) Any amount received as a result of a tobacco buydown program that all quota owners and growers are eligible to participate in.
(l) Individuals and sole proprietorships who file a return as prescribed by section 13-8 which reports gross receipts of four thousand four hundred dollars ($4,400.00) or less for a tax year shall not be required to pay the annual minimum license fee provided in section 13-9 after initial licensure of that business, or the net profit occupational license fees for that tax year.
(Ord. No. 123-74, § 1, 7-18-74; Ord. No. 63-77, § 1, 3-8-77; Ord. No. 158-79, § 1, 6-28-79; Ord. No. 70-83, § 1, 5-5-83; Ord. No. 169-88, § 3, 7-14-88; Ord. No. 147-90, § 1, 7-5-90; Ord. No. 105-94, § 1, 6-16-94; Ord. No. 225-97, § 3, 10-30-97; Ord. No. 238-99, § 1, 8-26-99; Ord. No. 79-2006, § 2, 4-13-06; Ord. No. 267-2007, § 5, 12-6-07; Ord. No. 170-2010, § 2, 10-14-10; Ord. No. 080-2024, § 7, 7-9-24)
(a) Every employer making payment of compensation to an employee shall deduct and withhold from the compensation an occupational license tax calculated under subsection 13-4(a).
(b) The payment required to be made on account of deductions by employers shall be made quarterly to the urban county government, for the quarterly periods ending the thirty-first day of March, the thirtieth day of June, the thirtieth day of September, and the thirty-first day of December, on or before the last day of the month following the quarter of such deduction; however, any employer withholding three hundred dollars ($300.00) or more license fee during any quarter shall file a return and pay the license fee withheld monthly. The return for the first two (2) months of the quarter shall be filed on forms provided by the urban county government within fifteen (15) days following the close of the month. The return of the third month of the quarter shall be filed by the end of the month following the close of the quarter. The employer may be permitted or required to report within a reasonable time after some other period as determined by the urban county government.
(c) Every employer who fails to withhold or pay to the urban county government any sums required by this ordinance to be withheld and paid shall be personally and individually liable to the urban county government for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
(d) The urban county government shall have a lien upon all the property of any employer who fails to withhold or pay over to the urban county government sums required to be withheld under this section. If the employer withholds, but fails to pay the amounts withheld to the urban county government, the lien shall commence as of the date the amounts withheld were required to be paid to the urban county government. If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the urban county government.
(e) Every employer required to deduct and withhold tax under this section shall annually on or before February 28 of each year complete and file on a form furnished or approved by the urban county government a reconciliation of the occupational license tax withheld where compensation is paid or payable to employees. Either copies of federal forms W-2 and W-3, transmittal of wage and tax statements, or a detailed employee listing with the required equivalent information, as determined by the urban county government, shall be submitted.
(f) Every employer shall furnish each employee a statement on or before January 31 of each year showing the amount of compensation and occupational license tax deducted by the employer from the compensation paid to the employee for payment to the urban county government during the preceding calendar year.
(g) An employer shall be liable for the payment of the tax required to be deducted and withheld under this section.
(h) The president, vice president, secretary, treasurer or any other person holding an equivalent corporate office of any business entity subject to this section shall be personally and individually liable, both jointly and severally, for any tax required to be withheld from compensation paid or payable to one or more employees of the business entity, and neither the corporate dissolution or withdrawal of the business entity from the urban county government, nor the cessation of holding any corporate office, shall discharge that liability; provided that the personal and individual liability shall apply to each and every person holding the corporate office at the time the tax becomes or became obligated. No person shall be personally and individually liable under this subsection unless such person had authority to collect, truthfully account for, or pay over the tax imposed by this article at the time that the taxes imposed by this article become or became due.
(i) Not withstanding subsections (a) and (g) of this section, every employee receiving compensation in the urban county government subject to the tax imposed under section 13-4 of this ordinance shall be personally liable for any amount due. In all cases where the employer does not withhold the tax levied under this article from the employee, such employee or employees shall be responsible for filing with the urban county government each quarter in the same manner as if they were the employer.
(Ord. No. 100-71, § 1, 6-24-71; Ord. No. 147-90, § 1, 7-5-90; Ord. No. 108-94, §§ 1, 2, 6-16-94; Ord. No. 267-2007, § 6, 12-6-07)
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