(A) Except as provided in divisions (B), (E) and (F) below, every person or business entity engage in any business for profit and any person or business entity that is required to make a filing with the Internal Revenue or the Kentucky Revenue Cabinet shall be required to pay to the county an occupational license tax for the privilege of engaging in such activities within the county. The occupational license tax shall be measured by 1% of:
(1) All wages and compensation paid or payable in the county for work done or services performed or rendered in the county by every resident and non-resident who is an employee; [reserved] non-resident business entity.
(B) All owners, members or partners of partnerships, LLCs, LLPs or S-Corporations shall have the right to elect to pay the occupational license tax as a business entity or individually as a person. If all the owners, members or partners elect to report and pay the occupational license tax as a business entity, then only the partnership, LLC, LLP or S-Corporation shall report and pay the occupational license tax under this subchapter. All guaranteed payments made by a partnership or LLC must be added to the partnership’s or LLC’s net profit before calculating the occupational tax due. If all the owners, members or partners elect to pay the occupational license tax individually, then it shall be the duty of each and every owner, member or partner to report and pay as a person any occupational license tax due. If all owners, members or partners elect to pay the occupational license tax individually as a person rather than as a business entity, then the business entity must notify the Occupational Tax Administrator.
(C) If any business entity dissolves, ceases to operate or withdraws from the county 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 county.
(D) If a business entity makes, or is required to make, a federal income tax return, tine occupational license tax shall be computed for the purposes of this subchapter 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.
(E) The occupational license tax imposed in this section shall not apply to the following persons or business entities:
(1) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
(2) Any compensation received by precinct workers for election training or work at election booths in state, county and local primary, regular or special elections;
(3) Domestic housekeepers employed in a private residence;
(4) Any person or business that pays a franchise tax;
(5) Insurance companies incorporated under the laws of and doing business in the commonwealth, except as provided in KRS 91A.080;
(6) Any profits, earnings, 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;
(7) Death benefits paid to the beneficiary of an employee or to his or her estate;
(8) Accident and dismemberment insurance benefits;
(9) Disability or Workers’ Compensation Act, being KRS 342.001 et seq., benefits paid for disabilities sustained during the course of employment, together with any amount of damages received by suit or agreement because of such disability;
(10) Sickness or otherwise medical insurance benefits;
(11) Unemployment compensation paid by the state or any other agent;
(12) 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 or clubs organized and operated exclusively for religious, charitable, scientific, literary, education, civic, fraternal or humanitarian purposes where no part of the earnings or income or receipts for such units, groups or associations inures to the benefit of any private shareholder; and
(13) “Gross receipts” and “compensation”, when generally taken to mean gratuity such as tips paid by someone other than their employer, shall be exempt, but only with respect to an employee- employer relationship and such shall be paid by employee.
(F) In no event shall any employee engaged in any trade, occupation or profession within the county, or any business, shareholder of any partnership or corporation or person engage in business for oneself be liable for an occupational license tax in excess of $750.
(Ord. 20.220.7, passed 12-22-2020; Ord. 21-220.7A, passed 2-25-2021)