CHAPTER 60:  OCCUPATIONAL LICENSES*
Section
   60.001   Definitions
   60.002   License application required
   60.003   Occupational license tax payment required
   60.004   Apportionment
   60.005   Employers to withhold
   60.006   Returns required
   60.007   Extensions
   60.008   Refunds
   60.009   Federal audit provisions
   60.010   Administrative provisions
   60.011   Information to remain confidential
   60.012   Use of occupational license tax
   60.013   Terms and conditions for denial or revocation of a business license
   60.014   Delinquent taxes, fees and liens due the city
 
   60.999   Penalty
_________________
*Cross references:
   Administration, see Ch. 20
   Adoption of tax assessments, see § 23.500
   Alcoholic beverage licenses, see Ch. 62
   Farmer’s Market, participation in exempt from fees, see § 64.002
   Insurance licenses, see Ch. 61
   Peddlers and solicitors, see Ch. 63
   Transient room tax, see Ch. 67
§ 60.001  DEFINITIONS
   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.
   “BUSINESS.” Any enterprise, activity, trade, occupation, profession or undertaking of any nature conducted for gain or profit.  “Business” shall not include the usual activities of board trade, chambers of commerce, trade associations, or unions, or other associations performing services usually performed by trade associations or unions.  “BUSINESS” shall not include funds, 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. 
   “CITY.” The City of Paris, Kentucky.
   “COMPENSATION.” 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.” An accounting period of twelve (12) months ending on the last day of any month other than December;
   “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 the 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 States, the term “EMPLOYER” means such person.
   “INTERNAL REVENUE CODE.” The Internal Revenue Code in effect on December 31, 2006, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2006, that would otherwise terminate.
   “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 city of the first to fifth class, county, urban county, charter county, consolidated local government, school district, special taxing district, or any other statutorily created entity with the authority to levy net profits, gross receipts, 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 a business entity having payroll or sales revenue both within and without a 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. 2007-27, passed 11-13-07)
§ 60.002  LICENSE APPLICATION REQUIRED
   (A)   Every person and business entity engaged in any business in the city shall be required to apply for and obtain a occupational license from the city before the commencement of business or in the event of a change of business status.  Licensees are required to notify the city of any changes in address, the cessation of business, or any other changes, which render the information supplied to the city in the license application inaccurate.
   (B)   Prohibitions.  No person or business entity, other than those who are only engaged as employees within the city, shall conspire, cause, permit, promote, allow, aid, assist, encourage or engage in any franchise, trade, occupation, profession or other business within the city for which the annual occupational license required hereby has not been issued.
(Ord. 2007-27, passed 11-13-07; Am. Ord. 2010-4, passed 3-9-10)
§ 60.003  OCCUPATIONAL LICENSE TAX PAYMENT REQUIRED
   (A)   Except as provided in division (B), 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 (1.5%) percent of:
      (1)   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;
      (2)    The net profits from business conducted in the city by a resident or nonresident business entity, or seventy-five ($75.00) dollars, whichever is greater.
   (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, combined trust, banking and title insurance company organized and doing business in this state, any savings and loan association whether state or federally chartered;
      (2)   Any compensation received by members of the Kentucky National Guard for active duty training, unit 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 gross receipts derived from the manufacturing or trafficking in alcoholic beverages;
      (6)   Life insurance companies incorporated under the laws of and doing business in the Commonwealth of Kentucky.
      (7)   Any profits, earnings, or 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.
      (8)   Any company providing multichannel video programming services or communications services as defined in KRS 136.602. If only a portion of an entity's business is providing multichannel video programming services or communications services including products or services that are related to and provided in support of the multichannel video programming services or communications services, this exclusion applies only to that portion of the business that provides multichannel video programming services or communications services including products or services that are related to and provided in support of the multichannel video programming services or communications services.
(Ord. 2007-27, passed 11-13-07; Am. Ord. 2014-19, passed 12-9-14)
§ 60.004  APPORTIONMENT
   (A)     Except as provided in subsection (D) of this section, net profits shall be apportioned as follows:
      (1)   For business entities with both payroll and sales revenue in more than one (1) tax district, by multiplying the net profits by a fraction, the numerator of which is the payroll factor, described in subsection (B), plus the sales factor, described in subsection (C) of this section, and the denominator of which is two (2); and
      (2)   For business entities with sales revenue in more than one (1) tax district, by multiplying the net profits by the sales factor as set forth in subsection (C) of this section. 
   (B)   The payroll factor is a fraction, the numerator of which is the total amount  paid or payable in the city during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period.  Compensation is paid or payable in the city based on the time the individual's service is performed within the city.
   (C)    The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the city during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
      (1)   The sales, lease, or rental of tangible personal property is in the city if:
         (a)   The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the city regardless of the f.o.b. point or other conditions of the sale; or
         (b)   The property is shipped from an office, store, warehouse, factory, or other place of storage in the city and the purchaser is the United States government.
      (2)   Sales revenues, other than revenues from the sale, lease or rental of tangible personal property or the lease or rental of real property, are apportioned to the city based upon a fraction, the numerator of which is the time spent in performing such income producing activity within the city and the denominator of which is the total time spent performing that income producing activity.
      (3)   Sales revenue from the sale, lease, or rental of real property is allocated to the tax district where the property is located.
   (D)   If the apportionment provisions of this section do not fairly represent the extent of the business entity's activity in the city, the business entity may petition the city or the city may require, in respect to all or any part of the business entity's business activity, if reasonable:
      (1)    Separate accounting;
      (2)    The exclusion of any one (1) or more of the factors;
      (3)     The inclusion of one (1) or more additional factors which will fairly represent the business entity's business activity in the city; or
      (4)     The employment of any other method to effectuate an equitable allocation and apportionment of gross receipts.
   (E)   When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the city.  The license tax shall be computed by obtaining the percentage which the compensation for work performed or services rendered within the city bears to the total wages and compensation paid or payable.  In order for the city to verify the accuracy of a taxpayer's reported percentages under this subsection, the taxpayer shall maintain adequate records. 
   (F)   All partnerships, S corporations, and all other entities where income is “passed through” to the owners are subject to this chapter.  The occupational license tax imposed in this chapter is assessed against income before it is “passed through” these entities to the owners.
   (G)   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.
   (H)   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. 2007-27, passed 11-13-07)
§ 60.005  EMPLOYERS TO WITHHOLD
   (A)     Every employer making payment of compensation to an employee shall deduct and withhold from the compensation an occupational license tax calculated under § 60.003. Amounts withheld shall be paid to the city in accordance with this section.
   (B)     Every employer required to deduct and withhold tax under this section shall, for the quarter ending after January 1 and for each quarter ending thereafter, on or before the end of the month following the close of each quarter, make a return and report to the city, and pay to the city, the tax required to be withheld under this section, unless the employer is permitted or required to report within a reasonable time after some other period as determined by the city.
   (C)   Every employer who fails to withhold or pay to the city any sums required by this chapter to be withheld and paid shall be personally and individually liable to the city for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
   (D)   The city shall have a lien upon all the property of any employer who fails to withhold or pay over to the city sums required to be withheld under this section.  If the employer withholds, but fails to pay the amounts withheld to the city, the lien shall commence as of the date the amounts withheld were required to be paid to the city.  If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the city.
   (E)   Every employer required to deduct and withhold tax under this section shall annually on or before February 28 of each year complete and file on a form furnished or approved by the city a reconciliation of the occupational license tax withheld where compensation is paid or payable to employees.  Either copies of federal forms W 2 and W 3, transmittal of wage and tax statements, or a detailed employee listing with the required equivalent information, as determined by the city, shall be submitted.
   (F)   Every employer shall furnish each employee a statement on or before January 31 of each year showing the amount of compensation and occupational license tax deducted by the employer from the compensation paid to the employee for payment to the city during the preceding calendar year.
   (G)   An employer shall be liable for the payment of the tax required to be deducted and withheld under this section.
   (H)   The president, vice president, secretary, treasurer or any other person holding an equivalent corporate office of any business entity subject to this section shall be personally and individually liable, both jointly and severally, for any tax required to be withheld from compensation paid or payable to one or more employees of the business entity, and neither the corporate dissolution or withdrawal of the business entity from the city, nor the cessation of holding any corporate office, shall discharge that liability;  provided that the personal and individual liability shall apply to each and every person holding the corporate office at the time the tax becomes or became obligated.  No person shall be personally and individually liable under this subsection unless such person had authority to collect, truthfully account for, or pay over the tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due.
   (I)   Not withstanding divisions (G) and (H) of this section, every employee receiving compensation in the city subject to the tax imposed under § 60.003 shall be personally liable for any amount due. In all cases where the employer does not withhold the tax levied under this chapter from the employee, such employee or employees shall be responsible for filing with the city each quarter in the same manner as if they were the employer.
(Ord. 2007-27, passed 11-13-07)
§ 60.006  RETURNS REQUIRED
   (A)     All business entity returns for the preceding taxable year shall be made by April 15 of each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the fiscal year.  Blank forms for returns shall be supplied by the city.
   (B)     Every business entity shall submit a copy of its federal income tax return and all supporting statements and schedules at the time of filing its occupational license tax return with the city.  Whenever, in the opinion of the city, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the city may compel the business entity to produce for inspection a copy of any statements and schedules in support thereof that have not been previously filed.  The city may also require copies of reports of adjustments made by the federal government.
   (C)     Every business entity subject to a occupational license tax governed by the provisions of this chapter shall keep records, render under oath statements, make returns, and comply with rules as the city from time to time may prescribe.  Whenever the city deems it necessary, the city may require a business entity, by notice served to the business entity, to make a return, render statements under oath, or keep records, as the city deems sufficient to determine the tax liability the business entity.
   (D)   The city may require, for the purpose of ascertaining the correctness of any return or for the purposes of making an estimate of the taxable income of any business entity, the attendance of a representative of the business entity or of any other person having knowledge in the premises.
   (E)   The full amount of the unpaid tax payable by any business entity, as appears from the face of the return, shall be paid to the city at the time prescribed for filing the occupational license tax return, determined without regard to any extension of time for filing the return.
   (F)   Every business entity making payments of six hundred dollars ($600.00) or more to persons other than employees for services performed within the city are responsible for maintaining the records of those payments and for completing IRS Form 1099 on or before February 28 of the year following the close of the calendar year in which such compensation was paid, and shall submit a copy of each 1099 with its Federal Income Tax Return as required in division (B) above. 
   (G)   Persons or business entities not required to prepare and remit a Form 1099 remain liable to the city to remit equivalent information for any compensation paid to persons or business entities that are not employees. 
(Ord. 2007-27, passed 11-13-07)
§ 60.007  EXTENSIONS
   (A)     The city may grant any business entity an extension of not more than six (6) months, unless a longer extension has been granted by the Internal Revenue Service or is agreed to by the city and the business entity, for filing its return, if the business entity, on or before the date prescribed for payment of the occupational license tax, requests the extension and pays the amount properly estimated as its tax.
   (B)     If the time for filing a return is extended, the business shall pay, as part of the tax, an amount equal to twelve percent (12%) per annum simple interest on the tax shown due on the return, but not been previously paid, from the time the tax was due until the return is actually filed and the tax paid to the city.  A fraction of a month is counted as an entire month.
(Ord. 2007-27, passed 11-13-07)
§ 60.008  REFUNDS
   (A)   Where there has been an overpayment of tax under § 60.005, a refund or credit shall be made to the employer to the extent of overpayment only if a written application for refund or credit is received by the city from the employer within two (2) years from the date the overpayment was made. 
   (B)   An employee who has compensation attributable to activities performed outside the city, based on time spent outside the city, whose employer has withheld and remitted to this city, the occupational license tax on the compensation attributable to activities performed outside the city, may file for a refund within two (2) years of the date prescribed by law for the filing of a return.  The employee shall provide a schedule and computation sufficient to verify the refund claim and the city may confirm with the employer the percentage of time spent outside the city and the amount of compensation attributable to activities performed outside the city prior to approval of the refund.
   (C)   Where there has been an overpayment of net profits tax upon business levied under § 60.003, a refund or credit shall be made to any person or business entity to the extent of overpayment only upon a written application for refund or credit to the city within two (2) years from the date that overpayment was made. 
(Ord. 2007-27, passed 11-13-07)
§ 60.009  FEDERAL AUDIT PROVISIONS
   (A)     As soon as practicable after each return is received, the city may examine and audit the return.  If the amount of tax computed by the city is greater than the amount returned by the business entity, the additional tax shall be assessed and a notice of assessment mailed to the business entity by the city within five (5) years from the date the return was filed, except as otherwise provided in this subsection.
      (1)     In the case of a failure to file a return or of a fraudulent return the additional tax may be assessed at any time.
      (2)     In the case of a return where a business entity understates net profit, or omits an amount properly includable in net profits, or both, which understatement or omission, or both, is in excess of twenty-five percent (25%) of the amount of net profit stated in the return, the additional tax may be assessed at any time within six (6) years after the return was filed.
      (3)     In the case of an assessment of additional tax relating directly to adjustments resulting from a final determination of a federal audit, the additional tax may be assessed before the expiration of the times provided in this subsection, or six (6) months from the date the city receives the final determination of the federal audit from the business entity, whichever is later.
      (4)   The times provided in this subsection may be extended by agreement between the business entity and the city.  For the purposes of this section, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day.  Any extension granted for filing the return shall also be considered as extending the last day prescribed by law for filing the return.
   (B)     Every business entity shall submit a copy of the final determination of the federal audit within thirty (30) days of the conclusion of the federal audit.
   (C)     The city may initiate a civil action for the collection of any additional tax within the times prescribed in division (A).
(Ord. 2007-27, passed 11-13-07)
§ 60.010  ADMINISTRATIVE PROVISIONS
   (A)     No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by this chapter.
   (B)     Any tax collected pursuant to the provisions of this chapter may be refunded or credited within two (2) years of the date prescribed by law for the filing of a return or the date the money was paid to the city, whichever is the later, except that:
      (1)   In any case where the assessment period contained in § 60.009 has been extended by an agreement between the business entity and the city, the limitation contained in this subsection shall be extended accordingly.
      (2)   If the claim for refund or credit relates directly to adjustments resulting from a federal audit, the business entity shall file a claim for refund or credit within the time provided for in this subsection or six (6) months from the conclusion of the federal audit, whichever is later.  For the purposes of this division, a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day.
   (C)   The authority to refund or credit overpayments of taxes collected pursuant to this chapter is vested exclusively in the city.
(Ord. 2007-27, passed 11-13-07)
§ 60.011  INFORMATION TO REMAIN CONFIDENTIAL
   (A)    No present or former employee of the city shall intentionally and without authorization inspect or divulge any information acquired by him or her of the affairs of any person, or information regarding the tax schedules, returns, or reports required to be filed with the city or other proper officer, or any information produced by a hearing or investigation, insofar as the information may have to do with the affairs of the person's business.  This prohibition does not extend to information required in prosecutions for making false reports or returns for taxation, or any other infraction of the tax laws, or in any way made a matter of public record, nor does it preclude furnishing any taxpayer or the taxpayer's properly authorized agent with information respecting his or her own return.  Further, this prohibition does not preclude any employee of the city from testifying in any court, or from introducing as evidence returns or reports filed with the city, in an action for violation of the city tax laws or in any action challenging a city tax law.
   (B)   The city reserves the right to disclose to the Commissioner of Revenue of the Commonwealth of Kentucky or his or her duly authorized agent all such information and rights to inspect any of the books and records of the city if the Commissioner of Revenue of the state grants to the city the reciprocal right to obtain information form the files and records of the Kentucky Department of Revenue and maintains the privileged character of the information so furnished. Provided, further, that the city may publish statistics based on such information in such a manner as not to reveal data respecting net profits or compensation of any person.
   (C)    In addition, the city is empowered to execute similar reciprocity agreements as described in division (B) with any other taxing entity, should there be a need for exchange of information in order to effect diligent enforcement of this chapter. 
§ 60.012  USE OF OCCUPATIONAL LICENSE TAX
   All money derived from the license taxes under the provisions of this chapter shall be paid to the city and placed to the credit of the city's general revenue fund. 
(Ord. 2007-27, passed 11-13-07)
§ 60.013  TERMS AND CONDITIONS FOR DENIAL OR REVOCATION OF A BUSINESS LICENSE
   (A)   Signature to application.  Each application for an annual occupational license required hereby shall be signed by the applicant or an authorized representative of the applicant, who shall attest to the truth of the statements therein, with knowledge that any false statements constitute perjury, for which the signatory may be prosecuted and punished according to law; and such signatures shall be notarized according to law.
   (B)   Presentment of application; copy of application to City Clerk; payment of fees. Each application for an annual occupational license required hereby shall be presented to the City Clerk, or any designee thereof, along with both the occupational license fee and any occupational license fee due from the applicant.  No application for an occupational license shall be received by or on behalf of the city without payment of the occupational license fee and any occupational license fee due from the applicant.
   (C)   Review of applications by City Manager.  Each application for an annual occupational license required hereby shall be immediately forwarded to and reviewed by the City Manager according to the following standards within thirty (30) days after actual receipt by the City Clerk:
      (1)   When the applicant, or employees of the applicant, are required to have any license, permit, degree, certification or other similar document pursuant to the provision of any applicable law for the conduct of or employment in the business which is the subject of the application; the license, permit, degree, certification or other similar document shall have been duly issued to the applicant or employees of the applicant prior to the issuance of the occupational license.  The applicant shall provide documentary evidence of the issuance satisfactory to the City Manager.
      (2)   The criminal record of the persons named or identified in the application shall be considered to the extent such record includes conviction of a felony, a misdemeanor for which imprisonment or other confinement was a possible penalty, any other crime in which moral turpitude was involved; or any other crime which was directly related to a business of the type which is the subject of the application. In determining if a conviction was directly related to a business, the City Manager shall consider:
         (a)   The nature and seriousness of the crime for which the person was convicted.
         (b)   The relationship of the crime to the purpose of the regulation of the business.
         (c)   The relationship of the crime to the ability, capacity and fitness required to perform the duties and discharge the responsibilities of the operation of the business.
         (d)   The extent to which the person convicted has been successfully rehabilitated.
      (3)   The City Manager shall consider whether the business is of a type that the operation, unless closely supervised, has a probability of generating or resulting in criminal activity or adversely affecting the health, safety, morals and welfare of occupants or residents of adjoining property, the citizens and residents of the city, or will constitute a nuisance.
      (4)   The City Manager shall consider the business history of the applicant including:
         (a)   Whether the persons named and identified in the application have been denied or had suspended or revoked a similar license by the city or any other city, county or state and the reasons therefore.
         (b)   Whether complaints have been received by the city about the business practices or responsibility of the persons named and identified in the application, and the disposition of those complaints.
      (5)   The City Manager shall consider whether the persons named and identified in the application are indebted to the city for delinquent taxes, assessments, liens, fines, penalties, or similar obligations.
      (6)   The City Manager shall consider whether the business and the proposed location complies with all applicable laws, including, without limitation, land subdivision and use, zoning, building construction and maintenance, and fire prevention and life safety codes and regulations.
   (D)   Notice to the applicant.  Unless the City Manager conditionally approves or disapproves the application for an occupational license within thirty (30) days after the application has been received by or on behalf of the city, the City Clerk, or the designee thereof, shall issue the occupational license that is the subject of the application and mail it to the applicant at the address indicated in the application; and, thereafter, the applicant may engage in the franchise, trade, occupation, profession, or other business described in the application, but only at the address thereof indicated in the application, until that occupational license expires or is suspended or revoked according to the provisions of this chapter.
   (E)   Conditional approval of application.  In the event that the City Manager conditionally approves an application for an occupational license, the City Clerk shall notify the applicant thereof and the reasons therefore by certified mail, return receipt requested, to the address of the applicant indicated in the application, along with, a notice that the license will be issued by the City Clerk only upon receipt by the City Clerk of a written signed acceptance by the applicant of the conditions to be performed prior to the issuance of the license. The notice shall also state that if the City Clerk does not receive the acceptance within such time, the application will thereby be summarily disapproved.
   (F)   Disapproval of application.  In the event that the City Manager disapproves an application for an occupational license required hereby, the City Clerk shall notify the applicant of that denial and the reasons therefore identified by certified mail, return receipt requested, to the address of the applicant indicated in the application, with a refund of any anticipated city occupational license fee paid with the application, and a notice of the procedure established in this chapter for an appeal from the denial of that application.
   (G)   Occupational license revocation or suspension by the City Manager.
      (1)   Any occupational license required hereby may be revoked or suspended by the City Manager for any period of time determined by the City Manager to be reasonable and appropriate for any one (1) or more of the following circumstances:
         (a)   Any false or intentionally misleading statement or information provided in the license application.
         (b)   Any failure or refusal to perform or abide by any of the conditions of a conditional license.
         (c)   The criminal conviction of any person named or identified in the license application of a felony, a misdemeanor for which imprisonment or any other confinement is a possible penalty, any other crime in which moral turpitude is involved, or any other crime which directly relates to a business of the type for which the license was issued. However, the consideration of such a criminal conviction shall include:
            1.   The nature and seriousness of the crime for which the person was convicted.
            2.   The relationship of the crime to the purposes of the regulation of the business.
            3.   The relationship of the crime to the ability, capacity and fitness required to perform the duties and discharge the responsibilities of the operation of the business.
            4.   The extent to which the person has been successfully rehabilitated.
         (d)   The revocation, suspension or expiration without renewal of any license, permit, degree, certification or similar document which is required by any applicable law for the conduct of or employment in the business for which the license was issued.
         (e)   Where the business is a disorderly house, or to permit lewd, indecent or immoral acts to be committed therein, or on the premises adjacent thereto and under the control of the person conducting such business, or to permit on such premises or adjacent premises any lewd, boisterous or obscene conversations, sounds or other noises, or to permit such premises to be used for the purposes of prostitution, assignation or other immoral or illegal purposes or otherwise to become a nuisance.
         (f)   The violation of any applicable law in the conduct of the business by any person engaged therein.
         (g)   Violations of applicable laws by any person within the business premises of the licensee, or under the control thereof.
      (2)   Upon receipt by the City Manager of evidence of any of the circumstances of revocation or suspension described within subsection (a) above with regard to any application for occupational license or anybody mentioned therein, the City Manager or his or her designee shall attempt informally to contact the applicant at either the address set forth within the application or the telephone number set forth therein, and, if the contact attempt is successful: (1) disclose said circumstances to the applicant, (2) indicate to the applicant that if the circumstances are shown to the City Manager to be accurate, then the occupational license may be revoked or suspended by the City Manager, (3) request that the applicant confirm or deny the truth of the circumstances, and (4) obtain any explanation or evidence from the applicant with regard to the presence or absence of the circumstances. One (1) of the attempts to contact the applicant shall consist of a letter of notification sent to the applicant at the address set forth within the application by certified mail, return receipt requested. The City Manager may decide whether or not to revoke or suspend an occupational license after his or her attempts to contact the application are deemed unsuccessful (including the applicant's failure to accept or sign for the certified mail letter of notification), or if no response is received within ten (10) calendar days of the applicant signs for the letter of notification.
      (3)   After considering the evidence of the existence of the circumstances described at subsection (1) above and any matters provided by the applicant pursuant to subsection (2) above, the City Manager may revoke or suspend an occupational license if there is probable cause that any one (1) or more of the circumstances described within subsection (1) exists.
      (4)   The remedy of revocation or suspension of an occupational license under this section shall be in addition to the imposition of any other remedy or penalty prescribed under this chapter or other applicable law.
   (H)   Appeals.
      (1)   Any conditional approval or disapproval of an application for an occupational license required by this chapter, or any suspension or revocation of any such license may be appealed to the City Commission, by filing with the City Clerk, within thirty (30) days after the issuance of the conditional approval, disapproval, revocation or suspension:
         (a)   A written notice of the appeal;
         (b)   A copy of the conditional approval, disapproval, revocation or suspension that is the subject of the appeal;
         (c)   A statement why there should be an approval without conditions, or no disapproval, revocation or suspension; and
         (d)   An appeal fee in the sum of two hundred dollars ($200.00), to provide for the expenses of conducting a hearing with regard thereto.
      (2)   In such an appeal, a de novo, evidentiary, on-the-record hearing with regard to the suspension or revocation shall be conducted by the City Commission. Within ninety (90) days after the date the appeal was filed, the City Commission shall issue a written decision in regard thereto, including findings of fact, conclusions of law and a decision based upon a record of the evidentiary hearing; and the applicant shall be notified thereof by certified mail, return receipt requested, at the address thereof indicated in the application for the license. Unless an appeal from the decision of the City Commission is filed in the court having jurisdiction thereof within thirty (30) days after the issuance of the decision of the City Commission, the decision of the City Commission shall become final.
(Ord. 2010-4, passed 3-9-10)
§ 60.014  DELINQUENT TAXES, FEES AND LIENS DUE THE CITY
   Any person, 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 that is delinquent on property taxes, occupational taxes, net profits taxes, transient room tax, or any other tax, fee, lien or other obligation owed to the city, including but not limited to nuisance abatement charges, are ineligible for the issuance or renewal of any license, permit or other approval issued by the city or its agencies, including the planning commission, which may issue approvals and permits on behalf of the city through the administration of the city's zoning and development regulations.
(Ord. 2010-5, passed 3-9-10)
§ 60.999  PENALTY
   (A)     A business entity subject to tax on gross receipts may be subject to a penalty equal to five percent (5%) of the tax due for each calendar month or fraction thereof if the business entity:
      (1)   Fails to file any return or report on or before the due date prescribed for filing or as extended by the city; or
      (2)   Fails to pay the tax computed on the return or report on or before the due date prescribed for payment.
      (3)   The total penalty levied pursuant to this division shall not exceed twenty  five percent (25%) of the total tax due; however, the penalty shall not be less than twenty five dollars ($25).
   (B)      Every employer who fails to file a return or pay the tax on or before the time prescribed under § 60.005 may be subject to a penalty in amount equal to five percent (5%) of the tax due for each calendar month or fraction thereof.  The total penalty levied pursuant to this subsection shall not exceed twenty five percent (25%) of the total tax due; however, the penalty shall not be less than twenty five dollars ($25.00).
   (C)     In addition to the penalties prescribed in this section, any business entity or employer shall pay, as part of the tax, an amount equal to twelve percent (12%) per annum simple interest on the tax shown due, but not previously paid, from the time the tax was due until the tax is paid to the city.  A fraction of a month is counted as an entire month.
   (D)     Every tax imposed by this chapter, and all increases, interest, and penalties thereon, shall become, from the time the tax is due and payable, a personal debt of the taxpayer to the city.
   (E)   The city may enforce the collection of the occupational tax due under § 60.003 and any fees, penalties, and interest as provided in divisions (A) through (D) by civil action in a court of appropriate jurisdiction.  To the extent authorized by law, the city shall be entitled to recover all court costs and reasonable attorney fees incurred by it in enforcing any provision of this chapter. 
   (F)   In addition to the penalties prescribed in this section, any business entity or employer who willfully fails to make a return or willfully makes a false return, or who willfully fails to pay taxes owing or collected, with the intent to evade payment of the tax or amount collected, or any part thereof, shall be guilty of a Class A misdemeanor.
   (G)    Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with, any matter arising under this chapter of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document, shall be guilty of a Class A misdemeanor.
   (H)   A return for the purpose of this section shall mean and include any return, declaration, or form prescribed by the city and required to be filed with the city by the provisions of this chapter, or by the rules of the city or by written request for information to the business entity by the city.
   (I)   Any person violating the provisions of § 60.011 by intentionally inspecting confidential taxpayer information without authorization, shall be fined not more than five hundred dollars ($500.00) or imprisoned for not longer than six (6) months, or both
   (J)   Any person violating the provisions of § 60.011 by divulging confidential taxpayer information shall be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one (1) year, or both.
(Ord. 2007-27, passed 11-13-07)