For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ADMINISTRATOR. An official administrator of the occupational tax, to be appointed by the Fiscal Court.
COUNTY. Lincoln County, Kentucky.
GROSS RECEIPTS or COMPENSATION. When applied to a person employed by others, the gross amount of all salaries, wages, commissions, bonuses or other money payments of any kind, or other considerations having a monetary value, which a person receives or becomes entitled to, or is given credit for by an employer, without deduction for withholding taxes, Social Security benefits, any form of insurance or retirement benefits or other deductions made by all employers in calculating “take home pay.” Any traveling expenses actually incurred and paid by the employer and gratuities such as “tips” paid by someone other than the employer shall be exempt from the operation of this chapter.
LICENSE FEE. A tax imposed for the privilege of exercising the right to engage in trade, occupation or profession for compensation paid by others or the right to engage in trade, occupation or profession for oneself, for profit or gain, within the county.
NET PROFIT. Gross receipts less ordinary business deductions, recognized as such, and allowed by the laws of the state, in computing tax liability, but without deductions for taxes based on income.
PERSON. All natural partnerships, firms, associations, governmental bodies and agencies, and corporations and whenever used in any interpretation.
TRADE, OCCUPATION or PROFESSION. Any and all activities and the rendering of any and all services of all kinds or other remuneration, or net profit or gain of any kind when applied to persons so engaged for themselves whether the person be a resident of the county or not.
(2001 Code, § 110.01) (Ord. passed 6-8-1999)
(A) All persons engaged in any trade, occupation or profession within the county, when employed by another, shall pay a license fee measured by and equal to 1% of gross receipts paid for the service.
(B) (1) All persons engaged in any trade, occupation or profession within the county, for themselves, for profit or gain, shall pay a license fee measured by and equal to 1% of the net profit realized from the activity.
(2) It shall be unlawful for any person to engage in any trade, occupation or profession within the county, without withholding, reporting and paying the license fees herein provided and required. Portions of the order prescribing a penalty in the form of fine or imprisonment shall mean and include the individual members of a firm, partnership or association and the officers of any governmental body or agency or any corporation.
(2001 Code, § 110.02) (Ord. passed 6-8-1999) Penalty, see § 110.99
It shall be the duty of the Administrator to collect all license fees and deposit the same in the county’s General Fund, to be used to defray the general expenses of the county government. The Administrator shall have the power and it shall be his or her duty to enforce the rules and regulations adopted by the Fiscal Court, as may be necessary to administer this chapter, and to provide printed forms, as may be required for reporting, paying and receipting for all license fees and for all other requirements in the proper and efficient administration of this chapter.
(2001 Code, § 110.03) (Ord. passed 6-8-1999)
(A) It shall be the duty of every person engaged in any trade, occupation or profession, within the county, who employs or engages the services of others in connection therewith, to withhold from the compensation of the employee, the license fees herein provided, at the time the compensation is paid or credited. The person shall report and pay the same to the Administrator on or before April 30, July 31, October 31 and January 31 of each year, for the license fees accrued during the preceding three months, except as provided in divisions (B) and (C) below. Failure on the part of the employer to withhold, report and pay the license fees shall not relieve the employee from the liability therefor.
(B) A person engaged in agriculture business (raising crops and livestock) who employs less than five employees on a regular time basis, 450 hours during a quarter, or a federal employee or postal worker, may file a return and pay the withholding tax at the end of the taxable year.
(C) Any person may elect to estimate and pay in advance, the withholding tax that may become due from compensation to be paid employees for a taxable year. This procedure shall exempt the person from filing quarterly returns. The penalty for underpayment shall be as provided in division (D) below.
(D) All license fees not paid when due shall draw interest at the rate of 6% per annum from due date until paid, and upon failure to pay any license fee when due, a penalty of 10% is hereby imposed which penalty shall draw interest from due date.
(2001 Code, § 110.04) (Ord. passed 6-8-1999)
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