As used in this article, 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 a board of trade, chambers of commerce, trade associations,
or unions, or other associations performing services usually performed
by trade associations or unions as recognized by the Internal Revenue
Service. "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.
COMPENSATION
Pursuant to KRS 67.750, means 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.
COUNTY
The County of Henderson, Kentucky.
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 or more of the above. A person classified
as an independent contractor under the Internal Revenue Code shall
not be considered an employee.
EMPLOYER
Employer as defined in Section 3401(d) of the Internal Revenue
Code.
FISCAL YEAR
Fiscal year as defined in Section 7701(a)(24) of the Internal
Revenue Code.
NET PROFIT
Pursuant to KRS 67.750, means gross income as defined in Section 61 of the Internal Revenue Code minus all the deductions from gross income allowed by Chapter
1 of the Internal Revenue Code, and adjusted as follows:
(1)
Include any amount claimed as a deduction for state tax or local
tax which is computed, in whole or in part, by reference to gross
or net income and which is paid or accrued to any state of the United
States, local taxing authority in a state, the District of Columbia,
the Commonwealth of Puerto Rico, any territory or possession of the
United States, or any foreign country or political subdivision thereof;
(2)
Include any amount claimed as a deduction that directly or indirectly
is allocable to income which is either exempt from taxation or otherwise
not taxed;
(3)
Include any amount claimed as a net operating loss carryback
or carryforward allowed under Section 172 of the Internal Revenue
Code;
(4)
Include any amount of income and expenses passed through separately
as required by the Internal Revenue Code to an owner of a business
entity that is a pass-through entity for federal tax purposes; and
(5)
Exclude any amount of income that is exempt from state taxation
by the Kentucky Constitution, or the Constitution and statutory laws
of the United States.
PERSON
Every natural person, whether a resident or nonresident of
the County. 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 County.
SALES REVENUE
Receipts from the sale, lease, or rental of goods, services,
or property.
TAX DISTRICT
Any County or city with the authority to levy net profits
or occupational license taxes.
TAXABLE NET PROFIT
(1)
In case of a business entity having payroll or sales revenue
only within the County, means net profit as defined in this section.
(2)
In case of a business entity having payroll or sales revenue both within and without the County, means net profit as defined in this section, and as apportioned under §
220-23 of this article; and KRS 67.750.
TAXABLE YEAR
The calendar year or fiscal year ending during the calendar
year, upon the basis of which net income is computed.