Section
110A.01 Definitions
110A.02 Business license required
110A.03 Occupational tax payment required
110A.04 Employers to withhold
110A.05 Refunds
110A.06 Administrative provisions
110A.07 Information to remain confidential
110A.08 Penalties
110A.09 Use of occupational tax and business license fee
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. 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 of 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.
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 LICENSE. A license required by the city, pursuant to the police power thereof, for the purpose of regulating business activities and operations within the city.
CITY. The city of Union, Boone County, Kentucky.
CITY ADMINISTRATIVE OFFICER (CAO). The city’s top, non-political, executive who manages the city’s day-to-day operations.
CITY CLERK. The position of Clerk of the city.
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 Sections 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.
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: 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.
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.
GROSS RECEIPTS. The total amount of considerations received in exchange for property or services sold, leased or rented during a given period before deducting costs or expenses. In general, gross receipts of a business shall encompass all business activities that generate income.
INTERNAL REVENUE CODE. The Internal Revenue Code in effect on December 31, 2003, exclusive of any amendments made subsequent to that date, other than amendments that extend provisions in effect on December 31, 2004, that would otherwise terminate.
PAYROLL. The gross compensation earned by an employee for labor, work or services provided in the city on behalf of any entity doing business in the city.
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. The city, county, urban-county, charter county, consolidated local government, school district, special taxing district, or any other statutorily created entity with the authority to levy gross compensation, payroll, occupation tax or business license fees.
TAXABLE YEAR. The calendar year or fiscal year ending during the calendar year.
(Ord. 2022-09, passed 5-2-22)
(A) Every person and business entity engaged in any business in the city shall be required to apply for and obtain a business license from the city before the commencement of business or in the event of a change of business status each calendar year.
(1) 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.
(2) Business license fee leveed and imposed by this chapter shall be $50.
(B) License applications will be obtainable at the City Building or online on the city’s website. Information collected on the form shall include, but is not limited to: business name, address, contact number, tax identification number, name of the ownership and contact information for the authorized representative who is responsible for the operating and managing the business in the city, emergency contacts, a brief description of the business, date of on which the business will begin and any and all information the city determines is appropriate to collect.
(C) The giving of false or intentionally misleading information on the application shall be grounds for denial of the license applied for or, if a license has been granted, revocation thereof upon discovery.
(D) All applications for licenses hereunder shall be subject to review by the CAO who shall endorse his or her decision for approval or denial. The CAO may refer an application to any other official, employee, or department of the city or cooperating authority, such as the Boone County Sheriff’s Office, as he or she deems appropriate for review. The CAO may require such additional information from the applicant as deemed reasonable in order to make a decision on the application.
(1) After review, the CAO may approve, approve conditionally, or deny the license. If denied, the CAO must provide a written explanation of the grounds of denial. The applicant has the right to appeal to the City Commission, in writing submitted to the city, within thirty (30) days of the denial.
(2) If interested in challenging the denial, written statements shall include the grounds upon which to avoid such decision. The City Commission may consider the appeal at the next regular monthly Commission meeting but must be received five (5) business days prior to. The order of the City Commission on the appeal shall be final.
(3) Revoked business licenses may result in barring the previous license holder for a period of up to two (2) years as determined by the City Commission.
(E) All business licenses expire on December 31 of that calendar year.
(F) Business licenses may be purchased for the next calendar year starting in November of the preceding year.
(G) All vetting guidelines provided in division (D) of this section shall not be needed for renewal of a license unless there is a material change in the ownership, location, or type of business being conducted.
(Ord. 2022-09, passed 5-2-22)
(A) Except as provided in division (B) of this section, 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 tax for the privilege of engaging in such activities within the city. The occupational tax shall be measured by:
(1) Two percent (2%) 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) Zero percent (0%) of the gross receipts from business conducted in the city by a resident or nonresident business entity.
(B) The occupational tax imposed in this section shall not apply to the following persons or business entities:
(1) Any compensation received by members of the Kentucky National Guard for active duty training, unit training assemblies and annual field training;
(2) Any compensation received by precinct workers for election training or work at election booths in state, county, and local primary, regular, or special elections.
(C) When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the 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. Payroll due shall only consider compensation for work performed or services rendered within the city. For the city to verify the accuracy of a taxpayer’s reported percentages under this section, the taxpayer shall maintain adequate records. Such records will be made available by request of the city shall it be deemed necessary.
(D) The maximum annual gross earnings subject to division (A) of this section shall be set at the current Federal Insurance Contributions Act (FICA) rate per calendar year.
(Ord. 2022-09, passed 5-2-22)
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