(A) Except as provided in division (B) below, every person or business entity engaged in any business for profit and any person of business entity that makes a filing with the Internal Revenue Service of the State Revenue Cabinet shall be required to file and pay to the city an annual occupational license tax for the privilege of engaging in those activities within the city.
(1) The occupational license tax shall be measured by 2.5% of 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 occupational license tax shall be measured from the schedule in Appendix A from business conducted in the city by a resident or nonresident business entity, or a minimum tax of $35.
(B) The maximum tax liability under this chapter shall be assessed as follows:
(1) For each employee, no maximum; and
(2) For each business entity, there shall be a maximum liability of $5,500 for the portion of the occupational license tax that is measured by taxable gross receipts.
(C) 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, and any savings and loan association whether state or federally chartered;
(2) Any compensation received by members of the State 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 State Department of Revenue pursuant to the provisions of KRS 136.120. Licensees whose businesses are predominantly nonpublic service who are also engaged in public service activity are required to pay a license fee on their gross receipts derived from the nonpublic service activities apportioned to the city;
(5) Persons or business entities that have been issued a license under KRS Ch. 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) Insurance companies incorporating under the laws of and doing business in the state; and
(7) Persons or business entities that operate a two-dwelling unit rental property, where the owner occupies one dwelling unit and rents the other dwelling unit that is a part thereof.
(Ord. 04-05, passed 12-1-2004; Ord. 07-04, passed 6-20-2007) Penalty, see § 110.99