As used in this chapter, the following terms and their derivatives shall have the following meanings unless the context clearly indicates that a different meaning is intended:
“BUSINESS ENTITY.” Each separate corporation, limited liability company, business development corporation, partnership, limited partnership, registered limited liability partnership, sole proprietorship, association, joint stock company, receivership, trust, professional service organization, or other legal entity through which business is conducted, regardless of whether said entity is in “good” standing or not;
“BUSINESS.” Any activity, trade, occupation, profession, rendering of services or undertaking of any nature conducted for gain or profit. “BUSINESS” shall not include a board of trade, chambers of commerce, trade associations, or unions, or other associations performing services usually performed by trade associations or unions as recognized by the Internal Revenue Service. “BUSINESS” shall not include hinds, foundations, corporations, or associations organized and operated for the exclusive and sole purpose of religious, charitable, scientific, literary, educational, civic or fraternal purposes, where no part of the earnings, incomes or receipts of such unit, group, or association, inures to the benefit of any private shareholder or other person and where the Internal Revenue Service has designated the “BUSINESS” as such.
“CITY.”The City of Morgantown, Kentucky.
“COMPENSATION.” Any consideration, including wages, salaries, commissions, or any other form of remuneration, paid or payable by an employer for services performed by an employee, which are required to be reported for federal income tax purposes and adjusted as follows:
(1) Include any amounts contributed by an employee to any retirement, profit sharing, or deferred compensation plan, which are deferred for federal income tax purposes under a salary reduction agreement or similar arrangement, including but not limited to salary reduction arrangements under Section 401(a), 401 (k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal Revenue Code; and
(2) Include any amounts contributed by an employee to any welfare benefit, fringe benefit, or other benefit plan made by salary reduction or other payment method which permits employees to elect to reduce federal taxable compensation under the Internal Revenue Code, including but not limited to Sections 125 and 132 of the Internal Revenue Code;
“CONCLUSION OF THE FEDERAL AUDIT.” The date that the adjustments made by the Internal Revenue Service to net income as reported on the business entity's federal income tax return become final and unappealable;
“FINAL DETERMINATION OF THE FEDERAL AUDIT.” The revenue agent's report or other documents reflecting the final and unappealable adjustments made by the Internal Revenue Service;
“FISCAL YEAR.” As defined by Section 7701 (a)(24) of the Internal Revenue Code;
“EMPLOYEE.” Any person who renders services to another person or any business entity for compensation, including an officer of a corporation and any officer, employee, or elected official of die United States, a state, or any political subdivision of a state, or any agency of instrumentality of any one (1) or more of the above. A person classified as an independent contractor under the Internal Revenue Code shall not be considered an employee.
“EMPLOYER.” The person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that:
(1) If the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term “EMPLOYER” means the person having control of the payment of such wages; and
(2) In the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United State, the term “employer” means such person.
“INTERNAL REVENUE CODE.” The Internal Revenue Code in effect on December 31 of the year in which the tax is due, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect of December 31 of the year in which the tax is due, that would otherwise terminate.
“MANUFACTURING OPERATION.” Any operation executing the manufacturing of goods in an industrial type setting located on an industrial-zoned lot as determined by the City of Morgantown Planning and Zoning regulations.
“NET PROFIT.” Gross income as defined in Section 61 of the Internal Revenue Code minus all the deductions from gross income allowed by Chapter 1 of the Internal Revenue Code, and adjusted as follows:
(1) Include any amount claimed as a deduction for state tax or local tax which is computed, in whole or in part, by reference to gross or net income and which is paid or accrued to any state of the United States, local taxing authority in a state, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any foreign country or political subdivision thereof;
(2) Include any amount claimed as a deduction that directly or indirectly is allocable to income which is either exempt from taxation or otherwise not taxed;
(3) Include any amount claimed as a net operating loss carryback or carryforward allowed under Section 172 of the Internal Revenue Code;
(4) Include any amount of income and expenses passed through separately as required by the Internal Revenue Code to an owner of a business entity that is a pass-through entity for federal tax purposes; and
(5) Exclude any amount of income that is exempt from state taxation by the Kentucky Constitution, or the Constitution and statutory laws of the United States.
“PERSON.” Every natural person, whether a resident or non-resident of the city. Whenever the word “person” is used in a clause prescribing and imposing a penalty in the nature of a fine or imprisonment, the word, as applied to a partnership or other form of unincorporated enterprise, shall mean the partners or members thereof, and as applied to corporations, shall mean the officers and directors thereof.
“RETURN” or “REPORT.” Any properly completed and, if required, signed form, statement, certification, declaration, or any other document permitted or required to be submitted or filed with the city.
“SALES REVENUE.” Receipts from the sale, lease, or rental of goods, services, or property.
“TAX DISTRICT.” Any county or city with the authority to levy net profits or occupational license taxes.
“TAXABLE NET PROFIT.” In case of a business entity having payroll or sales revenue only within the city means net profit as defined in this section.
“TAXABLE NET PROFIT.” In case of business entity having payroll or sales revenue both within and without the city means net profit as defined in this section, and as apportioned under § 60.004.
“TAXABLE YEAR.” The calendar year or fiscal year ending during the calendar year, upon the basis of which net income is computed.
(Ord. 2008-05, passed 6-12-08; Am. Ord. 2019-13, passed - -)