68.197 License fees in counties of 30,000 or more -- Exemptions from local fees and

1,545 words·~7 min read·/ky/68-197

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

taxes -- Regulation of ministers.

(1)The fiscal court of each county having a population of thirty thousand (30,000) or

more may by ordinance impose license fees on franchises, provide for licensing any

business, trade, occupation, or profession, and the using, holding, or exhibiting of

any animal, article, or other thing.

(2)License fees on business, trade, occupation, or profession for revenue purposes,

except those of the common schools, may be imposed at a percentage rate not to

exceed one percent (1%) of:

(a)Salaries, wages, commissions, and other compensation earned by persons

within the county for work done and services performed or rendered in the

county;

(b)The net profits of self-employed individuals, partnerships, professional

associations, or joint ventures resulting from trades, professions, occupations,

businesses, or activities conducted in the county; and

(c)The net profits of corporations resulting from trades, professions, occupations,

businesses, or activities conducted in the county.

(3)In order to reduce administrative costs and minimize paperwork for employers,

employees, and businesses, the fiscal court may provide:

(a)For an annual fixed amount license fee which a person may elect to pay in

lieu of reporting and paying the percentage rate as provided in this subsection

on salaries, wages, commissions, and other compensation earned within the

county for work done and services performed or rendered in the county; and

(b)For an annual fixed amount license fee which an individual, partnership,

professional association, joint venture, or corporation may elect to pay in lieu

of reporting and paying the percentage rate as provided in this subsection on

net profits of businesses, trades, professions, or occupations from activities

conducted in the county.

(a)Licenses imposed for regulatory purposes are not subject to limitations as to

form and amount.

(b)No public service company that pays an ad valorem tax is required to pay a

license tax.

local license fees and occupational taxes that existed on January 1, 2006,

for providers of multichannel video programming services or

communications services as defined in KRS 136.602 that were taxed

under KRS 136.120 prior to the effective date of this section.

2. To further this intent, no company providing multichannel video

programming services or communications services as defined in KRS

136.602 shall be required to pay a license tax. If only a portion of an

entity's business is providing multichannel video programming services

including products or services that are related to and provided in support

of the multichannel video programming services or communications

services, this exclusion applies only to that portion of the business that

provides multichannel video programming services or communications

services, including products or services that are related to and provided

in support of the multichannel video programming services or

communications services.

(d)No license tax shall be imposed upon or collected from any insurance

company except as provided in KRS 91A.080, bank, trust company, combined

bank and trust company, combined trust, banking, and title business in this

state, or any savings and loan association whether state or federally chartered,

or in other cases where the county is prohibited by law from imposing a

license fee.

(5)No license fee shall be imposed or collected on:

(a)Income received by members of the Kentucky National Guard for active duty

training, unit training assemblies, and annual field training;

(b)Income received by precinct workers for election training or work at election

booths in state, county, and local primary, regular, or special elections;

(c)Any profits, earnings, or distributions of an investment fund which would

qualify under KRS 154.20-250 to 154.20-284 to the extent any profits,

earnings, or distributions would not be taxable to an individual investor; or

(d)1. a. The profits earned; or

b. Income received for work performed;

during a disaster response period by a disaster response business or a

disaster response employee.

2. As used in this paragraph, "disaster response business," "disaster

response employee," and "disaster response period" have the same

meaning as in KRS 141.010.

(6)Persons who pay a county license fee pursuant to this section and who also pay a

license fee to a city contained in the county may, upon agreement between the

county and the city, credit their city license fee against their county license fee. As

used in this subsection, "city contained in the county" shall include a city that is in

more than one

(1)county.

(7)The provisions of subsection

(6)of this section notwithstanding, effective with

license fees imposed under the provisions of subsection

(1)of this section on or

after July 15, 1986, persons who pay a county license fee and a license fee to a city

contained in the county shall be allowed to credit their city license fee against their

county license fee. As used in this subsection, "city contained in the county" shall

include a city that is in more than one

(1)county.

(8)Notwithstanding subsection

(7)of this section, if a city annexes territory pursuant to

KRS 81A.415, and both the city and the county in which the territory annexed is

contained levy a license fee at the time of annexation:

(a)The county license fee shall no longer apply in the area annexed by the city if

the city license fee is equal to or greater than the license fee rate imposed by

the county at the time of the annexation;

(b)If the city license fee is less than the license fee imposed by the county at the

time of the annexation, only the portion of the county license fee that exceeds

the city license fee rate shall remain in effect in the annexed area;

(c)The city shall annually pay an amount to the county that guarantees that the

county shall receive at least the same dollar amount of revenue that was

generated by the county license fee in the territory in the tax year immediately

preceding the annexation; and

(d)After the tax year in which the annexation occurs, if the revenues generated

by the city license fee for the territory decrease below the amount of revenue

generated by the county license fee at the time of the annexation, then the

revenue received by the county from the city shall be reduced proportionately.

(9)A county that enacted an occupational license fee under the authority of KRS

67.083 shall not be required to reduce its occupational tax rate when it is

determined that the population of the county exceeds thirty thousand (30,000).

(10)Notwithstanding any statute to the contrary:

(a)In those counties where a license fee has been authorized by a public question

approved by the voters, there shall be no credit of a city license fee against a

county license fee except by agreement between the county and the city in

accordance with subsection

(6)of this section;

(b)Notwithstanding any provision of the KRS to the contrary, no taxpayer shall

be refunded or credited for any overpayment of a license tax paid to any

county to the extent the overpayment is attributable to or derives from this

section as it existed at any time subsequent to July 15, 1986, and the taxpayer

seeks a credit for a license tax paid to a city located within such county, if

such refund claim or amended tax return claim was filed or perfected after

November 18, 2004, except by agreement between the city and county in

accordance with subsection

(6)of this section;

(c)In those counties where a license fee has been authorized by a public question

approved by the voters, the percentage rate of the license fee in effect on or

after January 1, 2005, and any maximum salary limit upon which the license

fee is calculated may be increased or decreased in subsequent fiscal years with

the approval of the fiscal court through the passage of an ordinance. The

percentage rate of a license fee in such counties shall at no time exceed one

percent (1%) and the maximum salary limit shall at no time exceed an amount

equal to the maximum Social Security contribution and benefit base

established under subsection

(b)of 42 U.S.C. sec. 430. Notwithstanding

subsection

(7)of this section, there shall be no credit of any license fee

increased or decreased under this paragraph except by agreement between the

county and the city in accordance with subsection

(6)of this section.

(d)This subsection shall have retroactive application; and

(e)If any provision of this subsection or the application thereof to any person or

circumstance is held invalid, the invalidity shall not affect other provisions or

application of this section that can be given effect without the invalid

provision or application, and to this end the provisions of this subsection are

severable.

(11)Pursuant to this section, no fiscal court shall regulate any aspect of the manner in

which any duly ordained, commissioned, or denominationally licensed minister of

religion may perform his or her duties and activities as a minister of religion. Duly

ordained, commissioned, or denominationally licensed ministers of religion shall be

subject to the same license fees imposed on others in the county on salaries, wages,

commissions, and other compensation earned for work done and services performed

or rendered.