Section
110.01 Definitions
110.02 License required; fees
110.03 Payment of fee
110.04 Filing employer returns
110.05 Credits for license payments
110.06 Exemptions
110.07 Injunctive relief
110.08 Refund or overpayment application
110.09 Revocation of license
110.10 Authority of Finance Officer
110.11 Confidential information
110.12 Schedule of license fees
110.99 Penalty
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ASSOCIATION. A membership, limited partnership, or joint venture of any other form of unincorporated enterprise, owned or engaged in by two or more people.
BUSINESS. An enterprise, activity, or undertaking of any nature conducted for gain or profit, or conducted by an individual, partnership, association, or any other entity, but shall not include:
(1) The usual activities of boards of trade, chambers of commerce, trade associations, or unions (or other association performing the services usually performed by trade associations or unions);
(2) Community chest funds or foundations; or
(3) Corporations or associations organized and operated exclusively for religious, charitable, scientific, or cruelty to children or animals, or not-for-profit 501(c)(3) agencies, or clubs or fraternal organizations operated exclusively for social, literary, education, or fraternal purposes, where no part of the earnings or income or receipts for such units, groups, or association inures to the benefit of any private shareholders or individual.
CITY CLERK/TREASURER. The Clerk/Treasurer of the city.
COMPENSATION. The amount paid to any natural person for services rendered, in money or money’s worth, regardless of the form or method of payment. It includes the receipt (actual or constructive) by an individual of the earnings of an individual business enterprise, or of a partnership.
CORPORATION. A corporation or joint stock association organized under the laws of the United States, the commonwealth of the state, or any other state, territory, or foreign country or dependency.
EMPLOYEE. Includes any person engaging in or following any trade, occupation, profession, or activity as defined herein.
EMPLOYER. Includes any individual, person, partnership, association, corporation, governmental body, or unit, administration, or agency, or any other activity or any other entity, who or that employs one or more person on a salary, wage, commission, or other compensation basis.
FINANCE OFFICER. The person appointed by the city to enforce rules and regulations related to occupational and business licenses.
LICENSEE. Includes any person required to file a return or to pay a license fee under this chapter.
NET PROFIT. The income from the operation of a business or enterprise after providing for all costs and expenses incurred in the conduct thereof shall be the same as reported for state income tax purposes, excluding items exempted under this chapter, but without deduction of taxes based on income.
NON-RESIDENT. An individual, corporation, fiduciary, or association, or other entity domiciled outside the city.
OCCUPATION, TRADE, PROFESSION, or OTHER ACTIVITY.
(1) Includes the doing of any kind of work, the rendering of any kind of personal service, or the holding of any kind of position or job within the city, by any clerk, laborer, tradesman, manager, official, or other employee, including any non-resident of the city who is employed by an employer as defined in this chapter, where the relationship between the individual performing the services, and the person for whom such services are rendered, is, as to those services, the legal relationship of employer and employees.
(2) Includes also a partner of the firm or officer who receives a salary for his or her personal services rendered in the business of such firm or corporation.
(3) Includes an officer or employee employed either by election or appointment, by the federal, state, county, or city, where the services of such official or employee are rendered within the city.
PERSON. Any natural person, fiduciary, association, or corporation. Whenever the word PERSON is used in any clause prescribing and imposing a penalty in the nature of a fine or imprisonment, the word, as applied to a partnership or other form or unincorporated enterprise, means the partners or members thereof, and as applied to corporations, means the officers and directors thereof.
RESIDENT. Any individual, association, corporation, or other entity domiciled or having a business situs in the city.
SALARIES, WAGES, COMMISSIONS, or OTHER COMPENSATIONS.
(1) Includes the total gross amount of all salaries, wages, tips, gratuities, commissions, bonuses, share of net partnership receipts or withdrawals, corporate dividend paid in lieu of salaries or wages, and any and all other payments or other considerations which a person receives from, or is entitled to, for any work done or personal services rendered, in any trade, occupation or profession, or any other activity, including all deductions, whether for tax, insurance, or other.
(2) Amounts paid to traveling salesperson or other workers as allowance or reimbursement for travel or other expenses incurred in the business of the employer, except to the extent of the excess of such amounts over such expenses actually incurred and accounted for by the employee to his or her employer are excluded from the foregoing definition.
SALES. Net sales of merchandise or of services, or both, computed by whatever method of accounting is authorized for federal income tax purposes.
TAXPAYER. Any person or business made liable for taxation or for the payment of amounts withheld from employees under the terms of this chapter.
YEAR or TAX YEAR. The calendar year or the fiscal year (employed by a business subject to the license tax imposed by this chapter) if the taxpayer reports for federal income tax purposes on the basis of a period other than a calendar year. If, under any of the provisions of this chapter, a period of less than a full year is involved, the full-year basis of computation shall be employed and the fraction of a year allocated by employing the ratio of the number of full months of tax liability to 12 (the number of months in a year).
(Ord. 01-07, passed 1-31-2007)
(A) Annual license fee. Every person or other entity engaged in any occupation, trade, profession, or other activity in the city shall pay to the city an annual license fee for the privilege of engaging in such activities in the city.
(B) License fee calculation. The license fee shall be measured by 1% of all salaries, wages, commissions, and other compensations earned by every person in the city for work done, or services performed or rendered, in the city.
(C) Services rendered within and outside of the city. Where salaries, wages, commissions, and other compensations and net profits are earned for work performed, or service rendered, both within and outside the city, the license fees shall be measured by the part of the salaries, wages, commissions, and other compensations and net profits as is earned as a result of work performed or services rendered in the city. The license fees shall be computed by obtaining the percentage which the compensation or net profits for worked performed, or services rendered within the city bears to the total compensation earned or net profits generated.
(D) Income not subject to license fee.
(1) Pension, interest, and dividend income. Income from pensions, interest, and dividends is not subject to this occupational license fee, within the meaning of this chapter.
(2) Domestic servants. No license fee under this chapter shall be required of domestic servants employed in private homes.
(3) Fiduciary. A fiduciary who holds in trust property, monies, or properties to which another has a beneficial interest, or who receives or controls income from another person is not subject to the license fee imposed by this chapter, except where the fiduciary operates a business which is subject to a license fee for doing business within the city. The remainder of the trust is hereby exempt from any payment or annual occupational fees.
(4) Limited rental income. Income derived from rental of one apartment or one house only shall be exempt from the license fee.
(Ord. 01-07, passed 1-31-2007)
(A) Quarterly payment of license fee.
(1) Each employer who employs one or more persons, but less than 50 persons, within the city shall deduct at least monthly (or when the employee is paid, if more often than monthly), the license fee due from each employee measured by the amount of salaries, wages, commissions, or compensations due by the employer to the employee.
(2) The amount deducted shall be paid by the employer to the city on a quarterly basis the periods ending on the last day of March, June, September, and December of each year. Payment shall be due before the last day of the month next following the quarter of the deduction.
(B) Monthly payment of license fee. Each employer who employs 50 or more persons within the city shall deduct at least monthly (or when the employee is paid, if more often than monthly), the license fee due from each employee measured by the amount of salaries, wages, commission, or compensations due by the employer to the employee. The amount deducted shall be paid to the city by the employer on a monthly basis. Payment required shall be due on or before the fifteenth day of the month next succeeding the deduction.
(C) License record requirements.
(1) Employer record requirement. During the month of January of each year, the employer shall make a return to the Finance Officer which contains the name and Social Security number (or other federal identification number) of each employee of the employer during the preceding calendar year and sets forth the amount of salaries, wages, commissions, or other compensations earned during the preceding calendar year by each employee.
(2) Employee record requirement. Each employer who has deducted the license fee from the wages, salaries, commissions, or other compensation referred to above shall furnish to the employee a statement showing the amount of salary earned and license fee deducted and paid by the employer during the preceding calendar year on or before the last day of January of each year.
(3) Failure to withhold taxes. The failure or omission of any employer to deduct the license fee shall not relieve the employee from the payment of the license fee in compliance with this regulation. In which case, the filing of returns and payment thereof may be fixed in this chapter or established by the Finance Officer.
(4) Contract labor. Any employer who employs contract labor and does not withhold license fees must furnish a copy of Form Schedule 1099-Misc (miscellaneous income) to the Finance Officer by February 28 of each year.
(D) Withholding requirements of governmental employers.
(1) Fifty or more employees. Government agencies, postal service, and forest service are not required to withhold license fees unless 50 or more employees are employed.
(2) Payment required on quarterly basis. Employees of government agencies within the city must pay the license fee on a quarterly basis. Failure to receive a quarterly notice from the city does not relieve the employee from the payment of the license fee. The forms can be obtained from the Finance Officer.
(E) Contractors bond or deposit. Contractors not previously established with the city and who are not city residents must furnish a bond or cash deposit with the city of 1.5% of total expected payroll before any activity or the issuance of any building permit.
(F) Failure to file penalty. An employer who deducts and withholds the city occupational license fee from one or more persons under his or her employ and who fails to file a return and make payment therewith shall, upon conviction thereof, and in addition to the penalties prescribed herein, be guilty of a misdemeanor.
(G) Lien. Any amount owed under the provisions of this chapter shall constitute a lien against the property of the liable taxpayer.
(Ord. 01-07, passed 1-31-2007) Penalty, see § 110.99
(A) Designating fiscal year. Where the fiscal year of the business, profession, or other activity differs from the calendar year (and licensee files state income tax return for such other fiscal period), the license fee shall be measured by the net profits of that fiscal year.
(B) Return due date. Where the return is made for a fiscal year or any other period different from the calendar year, the return shall be made on or before the fifteenth day of the fourth month following the end of this fiscal year or other period. The license return shall also show the amount of license fee imposed by this chapter. The first return shall show only compensation and net profits earned to the close of the calendar or fiscal period.
(C) Deduction of license fee. At the time of filing, the person making the return shall pay to the city the amount of license fees shown as due. Where any portion of the license fee has been paid, credit for the amount shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of the filing of the return. Credit balance due to the deduction of initial license fee is not refundable, nor can it be used for any subsequent year.
(D) Filing extensions.
(1) The Finance Officer shall have the authority to extend the time of filing the net profits license fee return. The extension shall be upon the written request of the licensee and shall be received by the Finance Officer prior to the due date of the net profit license fee return.
(2) When applying for an extension, a written request shall be accompanied by a copy of the appropriate state and/or federal applications for extension. Regardless of the number of extensions approved, all license fees remaining unpaid after they have become due shall bear interest at the rate of 18% per annum until paid.
(Ord. 01-07, passed 1-31-2007) Penalty, see § 110.99
(A) Conflicts with former ordinances. Any licensee under former ordinances who, because of the enactment of this chapter, is, or will be, prevented from the use of the license for the term for which it was issued may apply in writing for credit for that portion of the annual license fees to be paid which is applicable proportionately to the unexpired portion of the license fee. He or she may then credit the amount of money representative to the unexpired portion of the license fee to any fees due under this section.
(B) Requirement to pay fee. Nothing in this section is intended to relieve any licensee of any fee, or portion of a fee, which he or she may have accrued under existing ordinances prior to their repeal. Nothing contained in this chapter applies to or affects any franchise, permit, or contract which has been granted by the city for a period of longer than one year.
(Ord. 01-07, passed 1-31-2007) Penalty, see § 110.99
(A) Old age or retirement payment. Periodic payments, commonly recognized as old age or retirement pensions, made to persons retired from service after reaching a specified age or a stated period of employment are not subject to the license fee.
(B) Disability and unemployment.
(1) Disability, sickness, and accident benefits and unemployment compensation, and other insurance payments received for personal injuries or property losses, are not subject to the license fee.
(2) Payments by an employer to employees under disability, sickness, and accident benefit plans are not subject to the license fee. Payments received for personal injuries and property losses are not subject to the license fee.
(3) Unemployment compensation payments by the commonwealth, or any other agent, are not subject to the license fee.
(C) Death benefits. Death benefits payable to the beneficiary of an employee or to his or her estate, whether payable in a single sum or otherwise, are not subject to the license fee.
(D) Worker’s compensation benefits. Benefits arising under the Worker’s Compensation Act, being KRS Chapter 342, as compensation for disabilities sustained during the course of employment, together with any amount of damages received by suit or agreement, on account of such liability, are not subject to the license fee.
(E) Employee contributions to § 401(K) plans. Employee contributions to § 401(K) plans which are properly qualified and approved by the United States Internal Revenue Service.
(Ord. 01-07, passed 1-31-2007)
Loading...