(A) Except as provided in division (B) of this section, 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 city an occupational license tax for the privilege of engaging in such activities within the city. The occupational license tax shall be measured by one and one-half percent (1.5%) of:
(1) All wages and compensation paid or payable in the city for work done or service performed or rendered in the city by every resident and nonresident who is an employee; and
(2) The net profits from business conducted in the city by a resident or nonresident business entity.
(B) The Occupational License Tax imposed in this section shall not apply to the following persons or business entities:
(1) 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. These entities are exempt pursuant to the franchise and local deposit tax. Wages and compensation of all employees are subject to the tax;
(2) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training; assemblies and annual field training;
(3) Any compensation received by precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections;
(4) 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 profits derived from the non-public service activities apportioned to the city;
(5) 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; and
(6) Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky;
(7) Domestic servants employed in private homes; and
(8) Full-time elementary, secondary, or undergraduate students who are regularly employed for fifteen (15) hours or less by all his or her employers. Full-time student as contemplated by this chapter means as follows:
(a) Enrollment in the spring semester and anticipation of enrollment in the fall semester shall constitute full-time enrollment. If a student does not enroll for the fall semester, then his or her exemption is deemed to have ended at the close of his or her spring semester, and the student will be held accountable for the tax which should have been withheld from his or her paycheck;
(b) In the case of elementary or secondary students, any student who can furnish to the city a notarized statement by the principal of the school that the student is enrolled in a full-time course of study;
(c) In the case of undergraduate college or university students, any student who can furnish to the city a notarized statement by the registrar of his/her college or university that he/she is enrolled for a minimum of twelve (12) semester hours or its equivalent;
(d) Any full-time student who is employed for a maximum of fifteen (15) hours a week by Morehead State University under any of its workship-type programs is automatically exempt from the tax and does not require a notarized statement.
(Ord. 38:2007, passed 12-10-07; Am. Ord. 10:2008, passed 4-14-08; Am. Ord. 11:2011, passed 4-11-11; Am. Ord. 11:2016, passed 6-13-16)