(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 § 115.03
(D) of this chapter, an Occupational License Fee is hereby levied and imposed upon everybody engaged in any franchise, trade, occupation, profession or other businesses in the city, for the privilege of that engagement.
(B) Rate. The Occupational License Fee that is levied and imposed by this chapter is at the rate of:
(1) Employees: 2.25% of all compensation earned by an employee for labor, work or services provided in the city. There shall be a maximum liability (gross compensation subject to the license fee) for each employee equal to the maximum established for FICA purposes. This maximum shall be applied by each employer on the salaries, wages, commissions or other compensation earned by each employee, and deductions, shall be made only upon the amount of salaries, wages, commissions or other compensation subject to the license fee, as defined in which does not exceed the FICA maximum established for that year.
(2) Those not employees: 0.075% 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 fifty dollars ($50.00) and a maximum of forty thousand dollars ($40,000.00) per calendar year.
(C) Apportionment of gross receipts. Pursuant to KRS 67.753, apportionment of net profit or gross receipts of business entity to local tax district.
(1) Except as provided in subsection (4) of this section, net profit or gross receipts shall be apportioned as follows:
(a) For business entities with both payroll and sales revenue in more than one (1) tax district, by multiplying the net profit or gross receipts by a fraction, the numerator of which is the payroll factor, described in subsection (2) of this section, plus the sales factor, described in subsection (3) of this section, and the denominator which is two (2); and
(b) For business entities with sales revenue in more than one (1) tax district, by multiplying the net profits or gross receipts by the sales factor as set forth in subsection (3) of this section.
(2) The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the tax district during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period. Compensation is paid or payable in the tax district based on the time the individual’s service is performed within the tax district.
(3) The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the tax district during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
(a) The sale, lease, or rental of tangible personal property is in the tax district if:
1. The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the tax district regardless of the f.o.b. point or other conditions of the sale; or
2. The property is shipped from an office, store, warehouse, factory, or other place of storage in the tax district and the purchaser is the United States government.
(b) Sales revenues, other than revenue from the sale, lease, or rental of tangible personal property or the lease or rental of real property, are apportioned to the tax district based upon a fraction, the numerator of which is the time spent in performing such income-producing activity within the tax district and the denominator of which is the total time spent performing that income-producing activity.
(c) Sales revenue from the lease or rental of real property is allocated to the tax district where the property is located.
(4) If the apportionment provisions of this section do not fairly represent the extent of the business entity’s activity in the tax district, the business entity may petition the tax district or the tax district may require, in respect to all or any part of the business entity’s business activity, if reasonable:
(a) Separate accounting;
(b) The exclusion of any one (1) or more of the factors;
(c) The inclusion of one (1) or more additional factors which will fairly represent the business entity’s business activity in the tax district; or
(d) The employment of any other method to effectuate an equitable allocation and apportionment of net profit or gross receipts.
(Ord. 07-1201, passed 1-18-07; Am. Ord. 17-0402, passed 4-17-17; Am. Ord. 19-1001, passed 10-21-19; Am. Ord. 20-0201, passed 3-2-20; Am. Ord. 23-0602, passed 6-19-23)