(A) (1) Except as provided in division (A)(2) and (A)(3) 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 two (2%) percent of:
(a) All wages and compensation paid or payable in the city for work done or services performed or rendered in the city by every resident and nonresident who is an employee;
(b) The net profits from business conducted in the city by a resident or nonresident business entity.
(2) The occupational license tax imposed in this section shall not apply to the following person or business entities:
(a) Any bank, trust company, combined bank and trust company, combined trust, banking and title business organized and doing business in this state, any savings and loan association whether state or federally chartered;
(b) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
(c) Any compensation received by precinct workers for election training or work at election booths in state, county and local primary, regular, or special elections;
(d) 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 profit derived from the non-public service activities apportioned to the {county or city};
(e) Persons or business entities that have been issued a license under KRS Chapter 243 to engage in manufacturing or trafficking of alcoholic beverages. Persons engaged in the business of manufacturing or trafficking of 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;
(f) Insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky except as provided in KRS 91A.080;
(g) Multi-channel video programming services or communications services as to the extent provided in KRS 92.300(3);
(3) Manufacturing operations employing in excess of fifty (50) full-time, non-temporary employees shall be exempt from the payment of the net profits license fee. Such business shall, however, be responsible for the employer's duty to withhold, report and remit the occupational tax of its employees as set forth hereafter.
(B) The legislative body of the city hereby finds that the following occupations are of such a nature as to require a special regulation and supervision and therefore the following minimum license fees are imposed on every person, corporation, association, and the like, engaged in the business, occupation, calling or profession, or using, holding or exhibiting articles named in this section who shall pay in advance to the city for each calendar year (or fraction thereof in the case of new business) the license fee or fees herein set forth, which payment shall become a credit on the license fee as otherwise provided in this chapter.
(1) In the event that a licensee is engaged in more than one type of activity in one business entity, the highest minimum license fee shall apply. The initial fee must be paid before any business activity is begun. Annual fees shall be due on or before the first day of January and shall be for the ensuing year ending December 31. In no event shall any minimum fee set forth under this section be reduced due to the business or activity having been commenced subsequent to the first day of January of the tax year.
(2) Peddlers (produce grown or produced in Butler County) are exempt.
(C) If any business entity dissolves, ceases to operate, or withdraws from the city 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 city.
(D) If a business entity makes, or is required to make, a federal income tax return, the occupational license tax shall be computed for the purposes of this chapter 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.
(Ord. 2008-05, passed 6-12-08; Am. Ord. 2012-03, passed 3-8-12; Am. Ord. 2019-13, passed --)