(A) Every natural person and business entity engaged in any business, trade, occupation, profession, or other activity for profit in Louisville Metro shall pay to the Commission, as collecting agent for Metro Government, an annual occupational license tax for the privilege of engaging in these activities. The occupational license tax shall be measured by:
(1) One and one-fourth percent of all wages and compensation paid or payable to every resident or non-resident employee for work done or services performed or rendered in Louisville Metro; and
(2) One and one-fourth percent of the net profit from business activities conducted in Louisville Metro by a business entity.
(B) Transit tax. In addition to the occupational license taxes required in subsection (A), every person and business entity engaged in any business, trade, occupation, profession, or other activity for profit in Louisville Metro shall pay to the Commission, an occupational license tax for the privilege of engaging in these activities. This additional occupational license tax shall be measured by:
(1) One fifth of one percent of all wages and compensation paid or payable to every resident or non-resident employee for work done or services performed or rendered in Louisville Metro; and
(2) One fifth of one percent of the net profit from business activities conducted in Louisville Metro by a business entity.
(C) All occupational license taxes, plus any applicable interest and penalties, received by the Commission pursuant to subsection (B) above, less a fixed charge for services rendered in the amount of 1.35% of the net receipts thereof, shall be paid over monthly into, and pending disbursement be held in, a separate and special trust fund identified as the Mass Transit Trust Fund to be used solely for purposes of the Mass Transportation Program approved by the electorate of Jefferson County, November 5, 1974, and as provided in KRS Chapter 96A.
(D) All partnerships, S corporations, limited liability companies, limited liability partnerships, limited partnerships, or similar entities where income, deductions, gains, losses, credits or any other similar attributes are passed through to the partners, members, shareholders or owners are subject to this chapter, including contributions to Keogh (HR-10) Retirement Plans, contributions to a Simplified Employee Pension Plan as defined in Section 408(k) of the Internal Revenue Code, contributions to any other self-employment retirement plan, and other deductions that benefit non-employee individuals. The occupational license taxes imposed in this chapter are assessed against business income at the entity level and before it is passed through to the partners, members, shareholders or owners.
(E) If any business entity dissolves, ceases to operate or withdraws from the Louisville Metro area 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 Louisville Metro area.
(F) If a business entity makes, or is required to make, a federal income tax return, the net profit shall be computed for the purposes of this article 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.
(1994 Jeff. Code, §110.02) (Jeff. Ord. 10-1986, adopted and effective 6-24-1986; Jeff. Am.Ord. 13-1989, adopted and effective 6-28-1989; Jeff. Am. Ord. 30-1993, adopted and effective 9-28-1993; Jeff. Am. Ord. 1-1994, adopted and effective 1-4-1994; Jeff. Am. Ord. 41-1999, adopted and effective 11-9-1999; Lou. Metro Am. Ord. No. 218-2007, approved 10-15-2007; Lou. Metro Am. Ord. No. 110-2008, approved 6-30-2008) Penalty, see § 110.99
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