(A) Definitions. For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
“RESTAURANT.” A facility which serves to the public food and beverages, either of which requires on-site preparation or heating.
(B) Levy of tax. Pursuant to KRS 91A.400, there is levied upon the retail sale of all food and beverages by restaurants in the city, a tax of 3% of the gross amount of such sales. This money shall be considered tax revenue. The purpose of this restaurant tax shall be to provide funding for the City of Munford Tourism and Convention Commission (TCC) and it shall be expended only for this purpose (KRS 68.100 and KRS 92.330).
(C) Due date. On or before the 20th day of each calendar month, each restaurant operator shall report to the City Clerk on a form prescribed by the city, the gross sales of that restaurant from food and beverages for the preceding calendar month by computing 3% of its gross sales from food and beverages, and the operator shall remit with the form the tax due to the city. Any taxes collected in excess of the computation herein shall be retained by the restaurant operator as a collection fee. All money collected from this restaurant tax must be kept in a separate account from which the city shall turn over all money collected to the TCC.
(D) Delinquency. For each day the report and tax, or either, is past due, there shall be added a penalty of 1% of the tax due. In addition, applicable city licenses to include a city occupational license shall be deemed suspended with the same effect as if no license was in place. No further rights to operate will be permitted until the status changes from past due to cured. Title XI: Business Regulations of the City Code of Ordinances shall govern cases where the past-due restaurant operator continues to operate notwithstanding being in a suspended status.
(E) Audit.
(1) The City Clerk shall have the right, on behalf of the city, to audit the books and records of any taxpayer or restaurant operator under this section to determine if there have been complete and accurate reporting of gross receipts, and to determine if a proper and accurate payment of the taxes due has been made. The City Clerk may use the services of an accounting professional to perform the audit or assist in the performance of the audit.
(2) The City Clerk shall notify the taxpayer in writing, at the address shown on the application for a city occupational license, at least three calendar days in advance that an audit is to be conducted on the premises of the taxpayer, the date and time the audit is to commence, and the documents and records that shall be made available by the taxpayer to perform the audit.
(F) (1) On or about the 10th day of each calendar month, the City Clerk shall transfer to the Tourism and Convention Commission all monies collected from the restaurant tax for the previous month. The Tourism and Convention Commission in turn will pay the city a fee of $500 to be deposited to the General Fund of the city to compensate the city for collection expenses.
(2) The Tourism and Convention Commission shall only expend the money transferred to it within the guidelines of the Kentucky Revised Statutes.
(Ord. 003-01, passed 4-2-01; Am. Ord. 01-010, passed 3-1-10; Am. Ord. 2018-009, passed 6-7-18)
_______________
Cross-reference:
Business licenses, see Ch. 110
Tourism and Convention Commission, see §§ 35.35 et seq.