§ 110.03  OCCUPATIONAL LICENSE TAX PAYMENT REQUIRED.
   (A)   Except as provided in division (B) below, 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 2% 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 profit from business conducted in the city by a resident or nonresident business entity; provided, however, that the amount of such tax shall never be less than the sum of $25 regardless of net profit.
      (3)   Without limiting the generality of the definition of income subject to the occupational license tax, the following income is specifically determined to be wages and compensation and subject to such tax:
         (a)   Income from the sales of stocks, bonds and other securities or any interest therein by brokers and persons engaged in conducting such business;
         (b)   Income from the operation of warehouses, apartments, hotels, motels, hotel buildings, office buildings, and similar structures;
         (c)   Wages, salaries, commissions, or other income earned, derived, or received on the sales, rental, or leasing of real and personal property;
         (d)   Wages, salaries, other compensation, and any and all income derived from approved leave, including but not limited to vacation pay, sick leave, employer provided and paid disability payments, personal days, holidays, annual leave and other approved leave;
         (e)   Early retirement and similar inducement payments made in consideration for early retirement, or other inducements paid by employers to employees arising from the employee’s service to the employer; and
         (f)   Separation payments, including payments made by an employer to an employee at the time of retirement if such benefits would be subject to the occupational license fee if paid to an active employee, other benefits accrued pursuant to any employment contract or arrangement between the employer and employee, and payments which are made in lieu of any payment which the employer is obligated to make to or on behalf of the employee arising from the employment to the extent that such payments would be subject to the occupational license tax if paid to an active employee.
   (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, or 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 profit 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 net profits 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.
(Ord. 07-40, passed 12-14-07; Am. Ord. 12-30, passed 9-11-12)