(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)