HomeMy WebLinkAbout2024-12-8832ORDINANCE NO. 2024-12-8832
AN ORDINANCE AMENDING CHAPTER 106, ARTICLE III, GROSS RECEIPTS
LICENSE TAX, OF THE CODE OF ORDINANCES OF THE CITY OF PADUCAH
WHEREAS, in enacting Chapter 106, Article III of the Paducah Code of Ordinances, the
City's intent was to require all physical locations of businesse"ithin the City's limits to obtain
a business license; and
WHEREAS, at least one business has taken the position that the Ordinance, as it
currently reads, is unclear in that regard; and
WHEREAS, the Board of Commissioners deems it necessary and in the best interest of
the City to amend various provisions of Chapter 106, Article III to ensure the City's intent is
clear; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. That the City of Paducah, Kentucky hereby amends Chapter 106, Article
III, Gross Receipts License Tax, of the Paducah Code of Ordinances by amending the following
sections:
Sec. 106-61. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Agent means and includes a person who provides a service for and on behalf of another
person for a commission under an agreement or arrangement whereby the person receiving the
commission is obligated to pay for such person's own expenses associated with such person's
transaction of business without reimbursement from the other party. Such expenses would
include expenses relating to office rent and maintenance, clerical assistance and support staff,
associates and agents, advertisement, and other expenses which are typically incurred in carrying
on a business. The Finance Director shall be authorized to determine whether a person
constitutes an agent under this article.
Business means and includes the carrying on, transacting or exercise, for gain or economic
benefit, either directly or indirectly, of any business, trade, profession, occupation, vocation,
calling or other type of commercial or mercantile activity of every kind and description, and the
rendering of any type of service associated therewith, which is conducted in the City. The term
"business" shall not include the usual activities of boards of trade, chambers of commerce, trade
associations or unions (or other associations performing the services usually performed by trade
associations or unions), or the United Way; corporations organized and operated exclusively for
religious, charitable, scientific, literary, educational, or civic purposes, or for the prevention of
cruelty to children or animals; or clubs or fraternal organizations operated exclusively for social,
literary, educational or fraternal purposes, where no part of the earnings or income or receipts
from such units, groups, or associations ensures to any private shareholder or individual;
provided, however, that, if any such unit, group, or association shall engage in activities other
than the activities in which such units, groups, or associations usually engage, such other
activities shall be included in the term "business." Activities conducted for gain or profit by any
educational institution, hospital, or any other institution mentioned in this article are included in
the term "business."
Business entity means and includes all individuals, sole proprietorships and associations,
and all legally created entities, including, but not limited to, corporations, limited liability
companies, business development corporations, partnerships, limited partnerships, registered
limited liability partnerships, joint stock companies, receiverships, trusts, professional service
organizations, or any other legal entity or organization through which business is conducted. A
business entity shall also include an agent as that term is defined under this article, and an
independent contractor or other person who is not an employee as that term is defined under
article IV. A business entity shall not include any employee who is required to pay the license
fee on the employee's compensation under article IV.
Business entity location means and includes each physical location of a business entity.
Fiscal year shall have the same meaning as defined in section 7701(a)(24) of the Internal
Revenue Code.
Gross receipts shall be defined in accordance with the following provisions:
(1) The term "gross receipts" means and includes all revenues or receipts of value derived
from the sale, lease, or other disposition of goods, services or property, or the title, use
and possession relating thereto, from any business, of any kind conducted in the City,
in the form of cash, credits, or other value proceeding from or accruing from the sale of
tangible property (real or personal) or the rendering of any services, or both, including
and without any deductions therefrom for interest, rentals, royalties, the cost of
material used, the cost of goods sold, labor costs, taxes, or any other costs, or any other
expenses whatsoever; provided, however, that a deduction from gross receipts shall be
authorized for the following amounts, subject to the condition that such deduction is
made and scheduled on the return and application which reports the gross receipts:
a. The amount of State or Federal excise, sales and use taxes computed on a basis of
the sales prices of commodities sold by a taxpayer.
b. The amount of any refund or credit given on a sale price of property sold and
returned during the period covered by the return. If the total amount received is
refunded or allowed as a credit, the total sales price of the article returned may be
deducted from gross receipts. If a part of the total sales price is refunded or
allowed as a credit, the amount to be deducted from the gross receipts is the
amount refunded or allowed as a credit.
c. The amount of accounts receivable which have been written off during the period
covered by the return, provided that such accounts receivable were reported as
gross receipts under the return.
d. The amount of gross receipts from the sale of alcoholic beverages licensed under
chapter 6 and laws of the state.
(2) The term "gross receipts," when used in connection with, or in respect to, financial
transactions involving the sale of notes, stocks, bonds, or other securities, or the loan,
collection, or advance of money, or the discounting of notes, bills or other evidence of
debt, or the assignment of, or purchase of, municipal, County, or State tax bills, means
the gross interest, gross discount, gross commission, or other gross receipts earned by
means of or resulting from such financial transactions, but the term "gross receipts"
shall not include amounts received as repayment of the principal of debts.
(3) The term "gross receipts," when applied to all principals and agents, includes not only
the amounts actually received by them but also includes all commissions paid by them
or received for them by brokers, commission merchants, attorneys, or agents in such
transactions, as the case may be, and all other expenses and discounts incident thereto.
(4) The term "gross receipts" shall not include the gross receipts from sales made by a
participant in an event relating to a parade or general assembly for which a permit was
issued.
(5) The term "gross receipts" shall not include any gross receipts which are solely
attributable to any activity performed outside of the City which would be defined as an
activity in interstate commerce which would be protected under the Commerce Clause
of the United States Constitution.
(6) The term "gross receipts" as otherwise defined under any classification which is
identified and described under division 2 of this article shall be as defined in
accordance with the specific provisions which are set forth under such classification.
Manufacturing means and includes the process whereby material having no commercial
value for its intended use before processing and which has appreciable commercial value for its
intended use after processing by machinery. The term "manufacturing" shall not include
processing or finishing operations which do not change the general design or form of a product.
The term "manufacturing" shall not include foundries, machine shops or in shops, blacksmiths or
other sheet iron or metal work.
Person means and includes an individual, firm, partnership, joint venture, association,
corporation (domestic and foreign), trust, estate, assignee, receiver, or any other legal entity or
group or combination acting as a unit.
Revenue and receipts of value means and includes any value received from the sale, lease or
other disposition of goods, services or property, or the title, use and possession of same. In
addition to meaning a sale of property for money, the term "revenue and receipts of value" also
includes any transaction, exchange, or barter or disposal or otherwise, for a consideration. The
amount to be reported as receipts from a sale, lease or other disposition in a trade or business is
as follows:
(1) If the sale, lease or other disposition was made for a consideration wholly in cash, the
total cash received constitutes the receipts.
(2) If the sale, lease or other disposition was made for part in cash, the balance to be paid
within a period of time, the amount of cash plus the amount which was to be paid
constitutes the receipts, provided that the subsequent receipt of the deferred payment
does not constitute a receipt under this article.
(3) If the sale or lease or other disposition was made for part in cash and part by note or
other evidence of indebtedness, the amount of cash plus the face value of the note of
indebtedness constitutes the receipt; provided, however, that the subsequent receipt of
payment of such note or evidence of indebtedness does not constitute a receipt within
the meaning of this article.
(4) If a sale, lease or other disposition is made for credit, the amount of such credit
constitutes the receipt; provided, however, that subsequent liquidating of such credit
does not constitute a receipt within the meaning of this article.
(5) If the sale, lease or other disposition is on an installment basis, the total amount of the
installments paid, or to be paid, constitutes the receipts, including any interest or
carrying charges.
(6) If the sale, lease or other disposition is made by exchange of property of any kind, the
fair market value of the property received in exchange constitutes the receipts.
However, where a used article is accepted in part payment of the purchase price of a
new article, such as automobiles, furniture, washing machines, radios, mechanical
refrigerators, and the like, the seller of the new article shall report the sales price of the
new article less any allowance made for the used article. When such used article is
sold, the sales price of the used article shall constitute receipts within the meaning of
this article.
Tax district means and includes a city of the first to fifth class, County, urban -county,
charter county, consolidated local government, school district, special taxing district, or any
other statutorily created entity with the authority to levy net profits, gross receipts, or
occupational license taxes.
Taxable gross receipts means and includes the gross receipts realized by a business entity
from a each physical business located and conducted in the City, or if a business entity realizes
gross receipts from a business located both in the City and another tax district, that portion of the
gross receipts which are taxable in accordance with the apportionment made under the
apportionment provisions of section 106-67.
Wholesale means and includes the sale of something for resale or doing a regular business
of selling large quantities of goods, wares or merchandise to industries, institutions or other
businesses for processing in their operations at markups in prices which are comparable to those
of wholesalers selling to retailers.
[.... ]
Sec. 106-63. License and payment of tax required; exemptions.
(a) It shall be unlawful for any business entity or business entity location to engage in any
business in the City until that business entity has first obtained a separate business license
certificate for that each business entitv location and paid the amount of license tax to the
Finance Director as required under this article; provided, however, that the provisions of
this section and article shall not apply to:
(1) Persons who anticipate and earn less than $600.00 in gross receipts as defined in
section 106-61 from a business located in the City for any calendar or fiscal year.
(2) Business entities which are exempt from having to comply with the provisions of this
article by virtue of Federal or State law.
(b) If any business entity dissolves or withdraws from the City during any reporting period, or
if any business entity surrenders or loses its charter during any reporting period, the
dissolution, withdrawal, or loss or surrender of charter shall not relieve the business entity
from its obligation to file the annual license tax return and pay the annual license tax on its
taxable gross receipts realized during such reporting period as required under this article,
nor shall it be relieved from the liabilities which arise from any failure to perform such
obligations which are prescribed under this article.
Sec. 106-64. New business; business entity to file application for business license for each
separate business entity location; payment of minimum annual license tax;
payment of annual license tax in following year.
(a) In the event a business entity intends to engage in a new business in the City, the business
entity shall first obtain a business license certificate for each such business entice location,
and pay the minimum annual license fee which is defined under division 2 of this article.
(b) To obtain a business license certificate, the business entity shall file an application for a
business license certificate with the Finance Director for each business entity location. The
application shall be made on a form provided by the Finance Director. The business entity
shall report the business entity's legal name, any tradename which will be utilized by the
business entity, each business that the business entity intends to conduct in the City, the
address of the location of cash business, and any other information which is required by the
Finance Director as reflected on the application form. The business entity shall pay the
minimum annual license tax to the Finance Director for each business entity location at the
time that the application is filed.
(c) In the event the Finance Director determines that the business entity has properly filed the
an application and paid the appropriate minimum annual license tax for each business entity
location, the Finance Director shall issue a business license certificate for the each business
location for which the application was made in accordance with the provisions under section
106-69.
(d) In the event any business entity realizes taxable gross receipts from a new business for all or
a part of a reporting period as defined under section 106-65, the business entity shall be
required to file the annual license tax return and business license application(, and pay the
annual license tax for such reporting period, as required under said section.
Sec. 106-65. Annual license tax imposed on business entities at each separate location; filing
of annual license tax return and business license application; payment of annual
license tax; due date for filing and payment of tax.
(a) Each business entity which conducts business in this City shall be required to pay an annual
license tax based upon its taxable gross receipts which are realized by the each business
entity location from such business. The amount of the license tax shall be determined in
accordance with this section, and the provisions which are set forth under division 2 of this
article. The annual license tax imposed under this section shall be for the privilege of doing
business in the City, and is utilized as a measure to raise revenue to help defray the costs
incurred by the City in providing municipal services which support, protect and promote the
business of all business entities.
(b) Each business entity shall be required to prepare and file an "Annual License Tax
Application" for each business location. This return and application shall include the annual
license tax return which is required to be filed under this section, and the annual application
for a business license certificate which is required to be filed under section 106-69.
(c) The business entity shall file the returns and application(s) on or before the due date of
April 15 of each calendar year; provided, however, that if the business entity operates on a
fiscal year which is not based on the calendar year, the business entity shall file the retum(s)
and application(s) on or before the 15th day of the fourth month following the close of the
business entity's fiscal year. The return and application shall be filed with the Finance
Director.
(d) The return and application shall be made on a form provided by the Finance Director. Each
return and application submitted by the business entity shall identify the name and address
of the business entity as reflected on the business entity's State tax return, alone with the
physical address for the business entity location for which the application is submitted, each
kind of business which the business entity location conducted in the City in the reporting
period, the address of eaph l ReatiR4i or lRe tions of each besiness, the gross receipts and
taxable gross receipts which are realized from each the business during the reporting period,
and the annual license tax which is due. The business entity shall attach a copy of its
Federal tax return, together with all supporting statements and schedules, to its return and
application.
(e) The business entity shall make its return based on the preceding calendar year period, and
shall report all taxable gross receipts realized by the applicable business entity location
during such reporting period. Provided, however, that if a business entity makes a Federal
income tax return on a fiscal year basis, the business entity shall make its return based on its
fiscal year period, and shall report all taxable gross receipts realized by the business entity
location during such reporting period.
(f) The business entity shall also report the annual license fee which is to be paid by the
business entity. The annual license fee shall be based on the business entityls, location's
taxable gross receipts realized during the reporting period, and shall be computed in
accordance with the classifications and the schedules as set forth under division 2 of this
article. The business entity shall pay the annual license fee to the Finance Director at the
time that the business entity files Ws a return and application. The annual license tax shall
be paid without regard to any extension of time for filing of the return and application.
Sec. 106-66. Proof of timely filing; weekends and holidays.
(a) Each business entity shall file each required return and application, and pay the annual
license tax, on or before the close of city business on the due date. A business entity shall be
deemed to have complied with this filing requirement if the business entity shall have
tendered the return and application and the payment of the annual license tax to the United
States Post Office for mail delivery service prior to 12:00 midnight of the due date. To
evidence such tender, the business entity shall be required to obtain proof of such timely
tender, which proof may be by postmark or by such other evidence which is acceptable to
the Finance Director. Provided, however, that in the event the payment of the annual
business tax fails for any reason, whether by insufficient funds, lack of proper execution of
form, or other reason, payment of the annual license fee shall be deemed untimely, and shall
subject the business entity to the penalties as set forth under this article.
(b) Whenever the due date for filing a return and application and payment of the annual license
tax falls on a Saturday or Sunday, the business entity shall be given an extension until the
following Monday to file the return and application and pay the license tax. In the event the
following Monday is a city holiday, the business entity shall be given an additional
extension to the City's next business day to file the return and application and pay the
license tax.
(c) Notwithstanding the aforementioned extension, the business entity shall nevertheless
comply with the requirements for a timely filing as defined under this section.
Sec. 106-67. Taxable gross receipts; apportionment.
(a) All gross receipts realized by a business entity from a one or more businesses located in the
City shall be deemed taxable gross receipts, except as otherwise provided under this section
or under any other provision of this article.
(b) Except as otherwise provided in subsection (d) of this section, where the business is located
both in the City and another tax district, gross receipts shall be apportioned as follows:
(1) For business entities with both payroll and sales revenue in more than one (1) tax
district, by multiplying the gross receipts by a fraction, the numerator of which is the
payroll factor, which is described in subsection (c) of this section, plus the sales factor,
which is described in subsection (d) of this section, and the denominator of which is
the number two (2); and
(2) For business entities with sales revenue in more than one (1) tax district, by
multiplying the gross receipts by the sales factor as set forth in subsection (d) of this
section.
(c) The payroll factor is a fraction, the numerator of which is the total amount of compensation
paid or otherwise payable by the business entity location during the reporting period which
is attributable to services performed by the business entity=s location's employees in the
City, and the denominator of which is the total compensation paid or otherwise payable by
the business entity location during the reporting period for all of the services performed by
the business entity=s location's employees wherever located. Compensation attributable to
employees in the City is based on the time that the employees performed services in the
City.
(d) The sales factor is a fraction, the numerator of which is the total sales revenue of the
business entity location in the City during the reporting period, and the denominator of
which is the total sales revenue of the business entity location everywhere during the
reporting period.
(1) The sale, lease, or rental of tangible personal property is in the City if:
a. The property is delivered or shipped to a purchaser, other than the United States
government, or to the designee of the purchaser within the City, regardless of the
f.o.b. (free on board) point or other conditions of the sale;
b. The property is shipped from an office, store, warehouse, factory, or other place
of storage in the City and the purchaser is the United States government;
C. Sales made from a place of business within the City, both to persons within the
City and to persons outside the City, including sales made by contracts entered
into in the City or sales, where deliveries of commodities are made within the
City;
d. In the case of a business entity owning or operating a one or more businesses
located both in and outside of the City for the sale of goods, wares or
merchandise, the sales of goods, wares, or merchandise which are located in the
City at the time of sale or delivery of such goods, wares, or merchandise.
(2) Sales revenues, other than revenues from the sale, lease or rental of tangible personal
property or the lease or rental of real property, are apportioned to the City based upon a
fraction, the numerator of which is the time spent in performing such income-
producing activity within the City and the denominator of which is the total time spent
performing that income-producing activity.
(3) Sales revenues from the lease or rental of real property is allocated to the tax district
where the property is located.
(e) For purposes of this section, the term "sales revenues" shall mean and include receipts from
the sale, lease or rental of goods, services or property, and the term 'compensation" shall
mean and include those amounts which are a part of compensation as that term is defined
under article IV of this chapter.
(f) If the apportionment provisions of this section do not fairly represent the extent of the
business entity's activity in the City, the business entity may petition the Finance Director,
or the Finance Director may require, in respect to all or any part of the business entity's
business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one (1) or more of the factors;
(3) The inclusion of one (1) or more additional factors which will fairly represent the
business entity's business activity in the City; or
(4) The employment of any other method to effectuate an equitable allocation and
apportionment of gross receipts.
(g) In the event a business entity makes a petition with the Finance Director under subsection
(e) of this section, and the Finance Director agrees to accord to the business entity a
reasonable alternate method of apportionment, the Finance Director shall have the authority
to require the business entity to continue the utilization of the alternate method of
apportionment in future returns and applications made by the business entity.
Sec. 106-68. Extension of time for filing return and application.
(a) In the event a business entity is unable to file its final return and application(s) on or before
the due date, the business entity may request the Finance Director for an extension to file its
final return and application(. Provided, however, that to obtain an extension, the business
entity shall have complied with the following filing and payment requirements, all of which
filings and payment shall be made with the Finance Director on or before the due date:
(1) The business entity shall have filed a written request for an extension, identifying all
business entity locations for which the extension is requested;
(2) The business entity shall have filed its estimated return and application(s) on its
estimated taxable gross receipts realized during the reporting period; and
(3) The business entity shall have paid the annual license tax on the estimated taxable
gross receipts for all business entity locations.
(b) The Finance Director shall have the authority to grant a business entity an extension of not
more than six (6) months. In the event the Internal Revenue Service has granted the
business entity an extension period which exceeds six (6) months, the Finance Director shall
accord to the business entity the same extension period, provided that the business entity
shall have complied with the requirements as set forth under subsection (a) of this section.
(c) In the event an extension is granted by the Finance Director, the business entity shall pay
any additional license tax which may be due at the time that the business entity files its
amended return and application. As part of the additional license tax to be paid hereunder,
the business entity shall also be required to pay an amount equal to twelve (12) percent per
annum simple interest on the additional license tax from the time of the original due date for
filing the return and application to the time that the additional annual license tax is actually
paid to the City. A fraction of a month is counted as an entire month.
Sec. 106-69. Business license certificate.
(a) Issuance and contents. Upon a business entity's proper filing of its return and application(s)
and the payment of the proper annual license tax as defined under this article, the Finance
Director shall issue a business license certificate to the business entity for each of its
qualified 1...sine. s&s business entity locations. The license certificate shall be valid from the
date of issuance to the date when the business entity is next required to file its annual return
and application(s) as defined under section 106-65. Each license certificate shall state the
name of the business entity to whom the certificate is issued, the business for which the
certificate is being issued, and the address or location of the place of business being licensed
and the expiration date of the certificate. If a business entity has more than one (1) business
entity locations, ply the business entity shall be required to obtain a separate
license certificate for each lace-a€business entity location.
(b) Refusal. No license certificate shall be issued under this article for any unlawful activity or
for any business that the Finance Director, with the approval of the City Manager, shall
consider to be detrimental to the public welfare or contrary to the public welfare or contrary
to the public interest, but any such decision to refuse to issue a license may be appealed to
the Board of Commissioners in accordance with the provisions of this section.
(c) Display. Each business entity location shall display the license certificate issued under this
article in a conspicuous place_in eaeh licensed place of business.
(d) Revocation or suspension of license certificate.
(1) The license tax imposed under this article is for the privilege of doing business in the
City and to help defray the costs incurred by the City in providing municipal services
to its citizens, including each business entity. By reason of same, each business entity
doing business in the City is presumed to have agreed to fully comply with and satisfy
all of the obligations and duties as prescribed under this article, and all other city
ordinances which regulate or restrict the use and enjoyment of the business entity's
premises which are licensed under this article. Each business entity is further presumed
to have agreed that in the event the business entity or its business entity location fails
to comply with and satisfy any of the obligations prescribed under this article, or with
any other city ordinance which regulates or restricts the use and enjoyment of such
premises, the City shall have the right to revoke or suspend the business entity's license
certificate for those premises.
(2) In the event the Finance Director has probable cause to believe that a business entity
has failed to timely file any application for a business license or any annual return and
application as required under this article, or has intentionally provided false
information on any application or return and application, or has failed to operate the
licensed premises in accordance with any applicable Federal or State law, or in
accordance with any city ordinance, or has authorized or permitted a nuisance to exist
on the licensed premises, the Finance Director shall file written charges against the
business entity with the City Manager. The written charges shall identify the name and
address of the business entity and the charged business entity location, the address of
the licensed premises, a narration of the facts upon which the charges are brought, and
the legal grounds upon which the charges are made.
(3) Upon the City Manager's receipt of the written charges, the City Manager shall review
the written charges, and in the event the City Manager concurs with the Finance
Director's finding of probable cause of the grounds stated in the written charges, the
City Manager shall cause a written notice to be issued to the business entity informing
the business entity of the written charges, and advising the business entity that it has a
period of seven (7) days to cure and resolve the grounds which are stated in the written
charges. The City Manager shall attach a copy of the written charges to the notice. In
the event the business entity fails to cure and resolve the grounds as stated in the
written charges within the seven (7) day period, the City Manager shall then file the
written charges with the City Clerk, and thereafter, the matter shall be referred to the
City Commission for hearing.
(4) Upon the City Clerk's receipt of said written charges, the City Clerk shall schedule a
hearing on the charges before the City Commission. The City Clerk shall cause a
notice of the charges and the date of the hearing to be served upon the business entity,
together with a copy of the written charges which were filed by the Finance Director,
to be served on the business entity by certified mail or by service made by any city
police officer. Any service made upon the president of the business entity, or the
registered agent of the business entity, or the manager of the lieensed premises
business entity location shall be deemed proper and adequate service upon the business
entity.
(5) The City Commission shall conduct a hearing on the charges within thirty (30) days
following the date that the written charges were filed with the City Clerk; provided,
however, that the business entity has been served with the notice and the written
charges at least ten (10) days before the hearing date. At the hearing, the Finance
Director and the business entity shall have the right to legal counsel, the right to
present witnesses and evidence, and the right to cross examine witnesses and rebut
evidence. The hearing shall be transcribed in verifiable form.
(6) At the conclusion of the hearing, the City Commission shall deliberate in closed
session, and thereafter, shall enter its findings and decision on the written charges into
the record. The City Commission shall render its decision based upon the
preponderance of the evidence. In the event that the City Commission determines that
the business entity has failed to comply with and satisfy its obligations as imposed
under this article, or has authorized or permitted a nuisance or a violation of law to
exist on the any of its licensed premises, the City Commission shall have the right to
suspend or revoke the business entity's license certificate for the licensed
business entity's location for a period not to exceed one (1) year. In the event the
business entity's license certificate is revoked by reason of the business entity's failure
to comply with or satisfy any of the business entity's obligations under this article, the
City Commission shall have the right to reinstate the business entity's license
certificate for the reons�ses business entity's location within a defined period
of time following the business entity's full compliance with or satisfaction of the
obligations which gave rise to the written charges. In the event the City Commission
suspends or revokes a business entity's license certificate for a li ,ensiles
business entity location, the business entity shall immediately cease and desist from
operating any business at or on such lieens�i business entity location.
(7) The business entity shall have the right to appeal the decision of the City Commission
to the McCracken Circuit Court. Such appeal shall be made within thirty (30) days
following the entry of the City Commission's decision. In the event of a timely appeal,
the City Clerk shall deliver the written charges and a transcript of the hearing together
with all exhibits which were presented at the hearing to the Clerk of the Court. The
Court shall decide the matter on the record, unless the Court shall order otherwise.
(8) Notwithstanding the provisions of this section, the City shall have all other rights and
remedies as provided by law, including the right to enforce the provisions of this article
through any legal or equitable proceedings with a court of competent jurisdiction,
including injunctive relief, and the right to refer this matter to the County attorney for
prosecution. The remedies provided under this section are in addition to all other
remedies which the City may have under law.
Sec. 106-78. Penalty and interest for late payment.
(a) In addition to the annual license tax imposed upon a business entity under this article, a
business entity shall also pay a penalty equal to five percent of the annual license tax due for
each calendar month or fraction thereof in the event that the business entity:
(1) Fails to file any return and application on or before the due date for filing the return
and application, or if extended by agreement approved by the Finance Director, fails to
file the return and application on or before the due date under the extension agreement;
or
(2) Fails to pay the annual license tax reflected on the return and application on or before
the due date prescribed for the payment of the license tax;
Provided, however, the total penalty imposed under this section shall not exceed twenty-five (25)
percent of the total annual license tax due nor shall it be less than $25.00.
(b) In addition to the penalties prescribed in this section, such business entity shall also pay, as
part of the license tax, an amount equal to twelve (12) percent per annum simple interest on
any unpaid annual license tax which was due and payable to the City under this article from
the time that the license tax was due until the license tax is finally paid to the City. A
fraction of a month is counted as an entire month.
(c) The annual license tax imposed on a business entity under this article, together with any
penalties and interest which are imposed on a business entity under this section, shall be
deemed the personal debt and liability of the business entity. The City shall have the right to
enforce the collection of the annual license tax imposed under this article, and the penalties
and interest imposed under this section, by civil action in a court of competent jurisdiction.
To the extent authorized by law, the City shall be also entitled to recover all court costs and
reasonable attorney fees incurred by it in enforcing any provision of this article.
(d) Any person who willfully fails to make a return and application or who willfully makes a
false return and application, or who willfully fails to pay the annual license tax imposed
under this article, with the intent to evade payment of the annual license tax or any part
thereof, shall be guilty of a Class A misdemeanor, and shall be subject to a fine of up to
$500.00 or imprisonment of not more than thirty (30) days, or both.
(e) Any person who willfully aids or assists in, or procures, counsels, or advises the preparation
or presentation under, or in connection with, any matter arising under this article of a return,
affidavit, claim, or other document, which is fraudulent or is false as to any material nature,
whether or not the falsity or fraud is with the knowledge or consent of the person authorized
or required to present the return, affidavit, claim, or document, shall be guilty of a Class A
misdemeanor, and shall be subject to a fine of up to $500.00 or imprisonment of up to thirty
(30) days, or both.
(f) Any person who willfully operates a business in the City without first obtaining a license
certificate as required under this article, or who willfully operates a business at a lieensed
premises business entity location following the revocation or suspension of the license
certificate for these that location, shall be guilty of a Class A misdemeanor, and
shall be subject to a fine of up to $500.00 or imprisonment of up to thirty (30) days, or both.
(g) Any person who violates the provisions under section 106-77 by intentionally inspecting
confidential information of a business entity as defined under said section without proper
authorization shall be guilty of a Class A Misdemeanor, and shall be subject to a fine of up
to $500.00 or imprisonment of up to thirty (30) days, or both.
(h) Any person who violates the provisions under section 106-77 by intentionally divulging
confidential information of a business entity as defined under said section without proper
authorization shall be guilty of a Class A misdemeanor, and shall be subject to a fine of not
more than $500.00 or imprisonment up to thirty (30) days, or both.
I .... I
Sec. 106-101. General license tax schedule; minimum annual license tax.
(a) A business entity shall pay an annual license tax for each business entity location according
to the classifications that apply to the business which the business entity conducts in the
City at each business entity location, subject to the minimum annual license tax as defined
in subsection (b) of this section. A description of each classification under this article is set
forth in the following sections. The annual license tax which is to be paid under each
classification shall be computed in accordance with the rate schedule which is referenced in
the classification, unless otherwise specified in the classification. The rate schedules which
are to be utilized in computing the annual license tax under this article are as follows:
(1) The amount of tax payable under Schedule A shall be determined by multiplying the
business entity location's taxable gross receipts up to $3,500,000.00 times 0.00045 and
multiplying all gross receipts in excess of $3,500,000.00 times 0.00005.
(2) The amount of tax payable under Schedule B shall be determined by multiplying the
business entity location's taxable gross receipts up to $3,500,000.00 times 0.00075 and
multiplying all gross receipts in excess of $3,500,000.00 times 0.00005.
(3) The amount of tax payable under Schedule C shall be determined by multiplying the
business entity location's taxable gross receipts up to $3,500,000.00 times 0.0015 and
multiplying all gross receipts in excess of $3,500,000.00 times 0.00005.
(4) The amount of tax payable under Schedule D shall be determined by multiplying the
business entity location's taxable gross receipts up to $3,500,000.00 times 0.003 and
multiplying all gross receipts in excess of $3,500,000.00 times 0.00005.
(5) The amount of tax payable under Schedule E shall be determined by multiplying the
business entity location's taxable gross receipts up to $3,500,000.00 times 0.0045 and
multiplying all gross receipts in excess of $3,500,000.00 times 0.00005.
(b) The minimum annual license tax for cash classification shall be $35.00, except as otherwise
provided in the classifications as hereinafter defined. Any minimum annual license tax that
is paid by a business entity for any reporting period shall be allowed as a credit against the
annual license tax which the business entity is required to pay for that reporting period as
required under this article.
SECTION 2. This Ordinance shall be read on two sepayAe days and become effective
upon summary publication pursuant to KRS Chapter
George Bray,
ATTE T:
n
Lindsay Parish, ity Clerk
Introduced by the Board of Commissioners, November 27, 2024
Adopted by the Board of Commissioners, December 10, 2024
Recorded by Lindsay Parish, City Clerk, December 10, 2024
Published by The Paducah Sun, December 13, 2024
ORD\106 —Business License Gross receipts amendment 2024 KKHB