(A) Levy and imposition. For the purpose of providing funds for the general operating expenses of the city and the municipal services and functions provided thereby, and subject to the provisions of KRS 67.750 through 67.795, and except as provided in division (D) below, an occupational license fee is hereby levied and imposed upon anybody engaged in any labor, work, services, franchise, trade, occupation, profession, or other businesses in the city or, for the privilege of that engagement.
(B) Occupational license fee rate. Commencing January 1, 2022 and thereafter, the occupational license fee levied and imposed hereby is at the rate of 0.00125% of the taxable gross receipts of everybody, other than employees, who is engaged in any franchise, trade, occupation, profession, or other business in the city, with a minimum of $25 per calendar year with no maximum per calendar year.
(C) Apportionment of gross receipts. Pursuant to KRS 67.753(4), it is hereby determined that the apportionment provisions of KRS 67.753 do not fairly represent the extent of the engagement in the city of those, other than employees, who are engaged in any franchise, trade, occupation, profession, or other business both within and outside of the city; and, accordingly, the following described property factor is hereby added to the payroll factor and the sales factor provided in KRS 67.753 for the apportionment of the gross receipts of those, other than employees, who are engaged in any franchise, trade, occupation, profession, or other business both within and outside of the city.
(1) The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in the city during the computation period, and the denominator of which is the average value of all of the taxpayer’s real and tangible personal property owned or rented and used anywhere during the computation period. In the determination of the property factor:
(a) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate which is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals; and
(b) The average value of property shall be determined by averaging the values at the beginning and ending of the computation period, but the City Clerk/Treasurer may require the averaging of monthly values during the computation period if reasonably required to reflect properly the average value of the taxpayer’s property.
(2) The proportion of the total gross receipts everywhere of those, other than employees, who are engaged in any franchise, trade, occupation, profession, or other business both within and outside of the city that are subject to the occupational license fee established by this subchapter, shall be determined by multiplying the total gross receipts thereof everywhere by the quotient of the total of the payroll factor and the sales factor described in KRS 67.753(2) and (3), and the property factor described in the previous section, that the franchise, trade, occupation, profession, or other business had in the city during the tax period, divided by the total number of those factors that the franchise, trade, occupation, profession, or other business had in the city during the tax period . The total number of those factors that the franchise, trade, occupation, profession, or other business had in the city during the tax period will always be either one, two, or three. For example, if the franchise, trade, occupation, profession, or other business:
(a) Had only the sales revenue factor in the city, during the tax period, without either the property factor or the payroll factor in the city, the total number of those factors that the franchise, trade, occupation, profession, or other business had in the city during the tax period would be one;
(b) Had both the sales revenue factor and the payroll factor in the city, during the tax period, without the property factor in the city, the total number of those factors that the franchise, trade, occupation, profession, or other business had in the city during the tax period would be two; or
(c) Had the sales revenue factor, and the payroll factor, and the property factor in the city, during the tax period, the total number of those factors that the franchise, trade, occupation, profession, or other business had in the city during the tax period would be three.
(D) Exemptions. The following labor, work, services, franchises, trades, occupations, professions, and other businesses are exempted from the occupational license fee levied and imposed in divisions (A) and (B) above:
(1) The employment of domestic servants in private homes;
(2) Ministers of religion who have been ordained in accordance with the ceremonial ritual or discipline of a recognized church, religious sect, or religious organization, to teach and preach its religious doctrines or to administer its rites in public worship, in the performance of one or more of those duties. However, it is not intended to exempt an ordained minister of religion from paying a occupational license fee for labor or work done or services performed in the city with regard to activities not connected with his or her regular duties as a minister of religion; and
(3) Anybody owning a duplex when the owner occupies one of the apartments in said duplex.
(E) Administrative provisions. The provisions of this subchapter shall be administered and enforced by the City Clerk/Treasurer, who is hereby authorized to promulgate any additional regulations in regard thereto which are not inconsistent with any statute, any ordinance of the city, or any executive order of the Mayor.
(F) Purpose of occupational license fee. The purpose of the occupational license fees imposed and levied hereby is to fund the general operating expenses of the city, including, without limitation, police, fire, emergency medical, public works, and administrative services.
(2010 Code, § 110A.04) (Ord. 10, 2013, passed 8-12-2013; Ord. 2021-16, passed 12-13-2021)
Penalty, see § 110.99