ORDINANCE NO. ______________
AN ORDINANCE RELATING TO THE IMPOSITION AND
ADMINISTRATION OF AN OCCUPATIONAL LICENSE REQUIREMENT AND PAYMENT OF AN
OCCUPATIONAL AND OTHER COMPENSATION AND NET PROFITS TAX BY PERSONS AND BUSINESS
ENTITIES CONDUCTING BUSINESSES, OCCUPATIONS AND PROFESSIONS WITHIN CRITTENDEN
COUNTY, KENTUCKY.
WHEREAS, the Crittenden
County Fiscal Court, having seen the necessity for increased revenue for
operations and maintenance of various services throughout the County such as
EMS, health insurance for county
employees services to senior citizens, park maintenance and improvement;
WHEREAS,
the Crittenden County Fiscal Court, having determined that the most feasible
method for obtaining the desired revenue for the County is by imposition of a
tax;
WHEREAS,
the Crittenden County Fiscal Court having determined that an annual
occupational license fee tax shall be imposed on any wage, salary, business,
trade, occupation or profession in Crittenden County, Kentucky;
WHEREAS,
an Ordinance should be enacted to implement the above referenced annual fee;
NOW,
THEREFORE, BE IT ORDAINED by the Crittenden County Fiscal Court as follows:
Crittenden Fiscal Court
Ordinance No. ___________ is hereby enacted and shall read in full as follows:
Sections:
1
Definitions
2
License
Application Required
3
Occupational
License Tax Payment Required
4
Apportionment
5
Employers
to Withhold
6
Returns
Required
7
Extensions
8
Refunds
9
Federal
Audit Provisions
10
Administrative
Provisions
11
Information
to Remain Confidential
12
Penalties
13
Use
of Occupational License Tax
14
Officials
to Collect and Keep Records
15
Severability
16
Effective
Date
Section No. 1 – Definitions
As used in this
Ordinance, the following terms and their derivatives shall have the following
meanings unless the context clearly indicates that a different meaning is
intended:
(1) ÒBusiness
entityÓ means 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;
(2) ÒBusinessÓ
means any enterprise, activity, trade, occupation, profession or undertaking of
any nature conducted for gain or profit. ÒBusinessÓ 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. ÒBusinessÓ 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;
(3) ÒCountyÓ
means Crittenden County, Kentucky;
(4) ÒCompensationÓ
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:
(a) 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 by not limited to salary reduction
arrangements under Section 401 (a), 401 (k), 402 (e), 403 (a), 403 (b), 408,
414 (h), or 457 of the Internal Revenue Code; and
(b) Includes 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;
(5) ÒConclusion
of the federal auditÓ means the date that the adjustments made by the Internal
Revenue Service to net income as reported on the business entityÕs federal
income tax return become final and unappealable;
(6) ÒFinal
determination of the federal auditÓ means the revenue agentÕs report or other
documents reflecting the final and unappealable adjustments made by the
Internal Revenue Service;
(7) ÒFiscal
yearÓ means fiscal year as defined in Section 7701 (a) (24) of the Internal
Revenue Code;
(8) ÒEmployeeÓ
means 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 (1) or more
of the above. A person classified as an independent contractor under the
Internal Revenue Code shall not be considered an employee;
(9) ÒEmployerÓ
means employer as defined in Section 3401 (d) of the Internal Revenue Code
– to-wit: ÒEmployerÓ means the person for whom an individual performs or
performed any service, of whatever nature, as the employee of such person, as
set forth within except that:
(a) If the person for whom the individual
performs or performed the services does not have control of the payment of the
wages for such services, the term ÒemployerÓ means the person having control of
the payment of such wages; and
(b) In the case of a person paying wages on
behalf of a nonresident alien individual, foreign partnership, or foreign
corporation, not engaged in trade or business within the United States, the
term ÒemployerÓ means such person;
(10) ÒInternal
Revenue CodeÓ means the Internal Revenue Code as defined in KRS 67.750 (7);
(11) ÒNet
profitÓ 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:
(a) 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;
(b) 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;
(c) Include any amount claimed as a net operating loss carry back or
carry forward allowed under Section 172 of the Internal Revenue Code;
(d) 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
(e) 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;
(12) ÒPersonÓ
shall mean every natural person, whether a resident or nonresident of
Crittenden County, Kentucky. Whenever the word ÒpersonÓ 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;
(13) ÒReturnÓ
or ÒReportÓ means 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;
(14) ÒSales
revenueÓ means receipts from the sale, lease, or rental or goods, services, or
property;
(15) ÒTax
districtÓ means any county or city with the authority to levy net profits or
occupational license taxes;
(16) ÒTaxable
net profitÓ in case of a business entity having payroll or sales revenue only
within Crittenden County, Kentucky means net profit as defined in subsection
(11) of this section;
(17) ÒTaxable
net profitÓ in case of a business entity having payroll or sales revenue both
within and without Crittenden County, Kentucky means net profit as defined in
subsection (11) of this section, and as apportioned under Section (4) of this
Ordinance; and
(18) ÒTaxable
yearÓ means the calendar year or fiscal year ending during the calendar year,
upon the basis of which net income is computed.
(19) ÒTreasurerÓ
means the duly appointed Treasurer of Crittenden County, Kentucky.
Section No. 2 –
Occupational License Application Required
(1) Every
person or business entity engaged in any trade, occupation, or profession, or
other activity for profit or anyone required to file a return under this
Ordinance in Crittenden County, Kentucky shall be required to complete and
execute an application for license with the office of the Treasurer within
_____ days of enactment of this Ordinance, subsequent to the above date. Each
person shall be required to complete a separate application for each separate
business before the commencement of business or in the event of a status
change, other than change of address. Licensees are required to notify the Treasurer
of changes of address, or the cessation of business activity, and of other
changes which render inaccurate the information supplied in the completed application.
Section
No. 3 – Occupational License Tax Payment Required
(1) Except
as provided in subsection (2) and subsection (5) 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
Crittenden County, Kentucky an occupational license tax for the privilege of
engaging in such activities within Crittenden County, Kentucky. The
occupational license tax shall be measured by ONE PERCENT (1.0%) of:
(a)
All wages and compensation paid or payable in Crittenden County,
Kentucky for work done or services performed or rendered in Crittenden County,
Kentucky by every resident and nonresident who is an employee;
(b)
The net profit from business conducted in Crittenden County, Kentucky by
a resident or nonresident business entity.
(2) All
partnerships, S corporations, and all other entities where income is Òpassed
throughÓ to the owners are subject to this Ordinance. The occupational license
tax imposed in this Ordinance is assessed against income before it is Òpassed
throughÓ these entities to the owners.
(3) If
any business entity dissolves, ceases to operate, or withdraws from Crittenden
County, Kentucky during any taxable year, or if any business entity in any
manner surrenders or loses its charter during any taxable year, the
dissolution, cessation of business, withdrawal, or loss or surrender of charter
shall not defeat the filing of returns and the assessment and collection of any
occupational license tax for the period of that taxable year during which the
business entity had business activity in Crittenden County, Kentucky.
(4) If
a business entity makes, or is required to make, a federal income tax return,
the occupational license tax shall be computed for the purposes of this
Ordinance on the basis of the same calendar or fiscal year required by the
federal government and shall employ the same methods of accounting required for
federal income tax purposes.
(5) The
occupational license tax imposed in this section shall not apply to the
following persons or business entities:
(a) Any bank, trust company, combined bank
and trust company, combined trust, banking and title business organized and
doing business in this state, any savings and loan associated whether state or
federally chartered;
(b) Any compensation received by members of
the Kentucky National Guard for active duty training, unit training assemblies
and annual field training;
(c) Any compensation received by precinct
workers for election training or work at election booths in state, Crittenden
County, Kentucky and local primary, regular, or special elections;
(d) Old age or retirement payments: Periodical payments, commonly
recognized as old age or retirement pensions, made to persons retired from
service after reaching a specified age or after a stated period of employment
are not subject to the occupational tax;
(e) Disability, sickness, accident benefits
and unemployment compensation:
Payments made to employees by an employer under a disability, sickness
and accident plan, are not subject to the occupational tax. Unemployment
compensation payments by the state or any other agent are not subject to the
occupational tax;
(f) Death benefits: Death benefits payable by an employer
to the beneficiary of any employee or to his estate, whether payable in a
single sum or otherwise, are not subject to the occupational tax;
(g) Benefits arising under the WorkmenÕs
Compensation Act as compensation for disabilities sustained during the course
of employment, together with any amount of damages received by suit or
agreement on account of such disability, are not subject to this occupational
tax;
(h) Public Service Corporations that pay an
ad valorem tax on property valued and assessed by the Kentucky Department of
Revenue pursuant to the provisions of KRS 136.120. Licensees whose businesses
are predominantly non-public service who are also engaged in public service
activity are required to pay a license fee on their net profit derived from the
non-public service activities apportioned to Crittenden County, Kentucky;
(i) Insurance companies incorporated under
the laws of and doing business in the Commonwealth of Kentucky except as
provided in KRS 91A.080;
(j) Any profits, earnings, 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.
(6) A
minimum occupational license fee of twenty-five and/no dollars ($25.00) shall
be paid by all individuals and/or businesses required to file an occupational
license tax return on their net profits. The minimum occupational license fee
of twenty-five and/no dollars ($25.00) shall be a credit on the occupational
license fee otherwise required by this Ordinance.
Section No. 4 –
Apportionment
(1) Except
as provided in subsection (4) of this section, net profit 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 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 of which is two (2); and
(b) For business entities with sales
revenue in more than one (1) tax district, by multiplying the net profit by the
sales factor as set forth in subsection (3) of this section;
(c) For the purposes of subsections (1)
through (4) of this section, the business entity shall file an appointment form
provided by the Occupational Tax Office.
(2) The
payroll factor is a fraction, the numerator of which is the total amount paid
or payable in Crittenden County, Kentucky 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 Crittenden County, Kentucky based upon the
time the individualÕs service is performed within said Crittenden County,
Kentucky.
(3) The
sales factor is a fraction, the numerator of which is the total sales revenue
of the business entity in Crittenden County, Kentucky 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 sales, lease, or rental of tangible
personal property is in Crittenden County, Kentucky 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 Crittenden
County, Kentucky 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 Crittenden County, Kentucky 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
Crittenden County, Kentucky based upon a fraction, the numerator of which is
the time spent in performing such income-producing activity within Crittenden
County, Kentucky and the denominator of which is the total time spent
performing that income-producing activity;
(c)
Sales revenue from the sale, 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 entityÕs activity in Crittenden County, Kentucky the business
entity may petition Crittenden County, Kentucky or Crittenden County, Kentucky
may require, in respect to all or any part of the business entityÕs 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 entityÕs business
activity in Crittenden County, Kentucky; or
(d) The employment of any other method to
effectuate an equitable allocation and apportionment of net profit.
(5) When
compensation is paid or payable for work done or services performed or rendered
by an employee, both within and without Crittenden County, Kentucky, the
license 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 Crittenden
County, Kentucky. The license tax shall be computed by obtaining the percentage
which the compensation for work performed or services rendered within
Crittenden County, Kentucky bears to the total wages and compensation paid or
payable. In order for Crittenden County, Kentucky to verify the accuracy of a
taxpayerÕs reported percentages under this subsection, the taxpayer shall
maintain adequate records.
Section No. 5 –
Employers to Withhold
(1) Every
employer making payment of compensation to an employee shall deduct and
withhold upon the payment of the compensation any tax imposed against the
compensation by Crittenden County, Kentucky. Amounts withheld shall be paid to
Crittenden County, Kentucky in accordance with Section (No. 3) of this
Ordinance.
(2) Every
employer required to deduct and withhold tax under this section shall, for the
quarter ending after January 1 and for each quarter ending thereafter, on or
before the end of the month following the close of each quarter, make a return
and report to Crittenden County, Kentucky and pay to Crittenden County,
Kentucky the tax required to be withheld under this section, unless the
employer is permitted or required to report within a reasonable time after some
other period as determined by Crittenden County, Kentucky.
(3) Every
employer who fails to withhold or pay to Crittenden County, Kentucky any sums
required by this Ordinance to be withheld and paid shall be personally and
individually liable to Crittenden County, Kentucky for any sum or sums withheld
or required to be withheld in accordance with the provisions of this section.
(4) Crittenden
County, Kentucky shall have a lien upon all the property of any employer who
fails to withhold or pay over to Crittenden County, Kentucky the sums required
to be withheld under this section. If the employer withholds, but fails to pay
the amounts withheld to Crittenden County, Kentucky, the lien shall commence as
of the date the amounts withheld were required to be paid to Crittenden County,
Kentucky. If the employer fails to withhold, the lien shall commence at the
time the liability of the employer is assessed by Crittenden County, Kentucky.
(5) Every
employer required to deduct and withhold tax under this section shall annually
on or before February 28 of each year complete and file on a form furnished or
approved by Crittenden County, Kentucky a reconciliation of the occupational
license tax withheld where compensation is paid or payable to employees. Either
copies of federal forms W-2 and W-3, transmittal of wage and tax statements, or
a detailed employee listing with the required equivalent information, as
determined by Crittenden County, Kentucky, shall be submitted.
(6) Every
employer shall furnish each employee a statement on or before January 31 of
each year showing the amount of compensation and occupational license tax
deducted by the employer from the compensation paid to the employee for payment
to Crittenden County, Kentucky during the preceding calendar year.
(7) An
employer shall be liable for the payment of the tax required to be deducted and
withheld under this section.
(8) The
president, vice president, secretary, treasurer or any other person holding an
equivalent corporate office of any business entity subject to this Ordinance
shall be personally and individually liable, both jointly and severally, for
any tax required to be withheld from compensation paid to one or more employees
of any business entity, and neither the corporate dissolution or withdrawal of
the business entity from Crittenden County, Kentucky, nor the cessation of
holding any corporate office, shall discharge that liability of any person;
provided that the personal and individual liability shall apply to each or
every person holding the corporate office at the time the tax becomes or became
obligated. No person shall be personally and individually liable under this
subsection who had no authority to collect, truthfully account for, or pay over
any tax imposed by this Ordinance at the time that the taxes imposed by this
Ordinance become or became due.
(9) Every
employee receiving compensation in the County subject to the tax imposed under
Section (No. 3) of this Ordinance shall be personally liable for the tax
notwithstanding the provisions of subsections (7) and (8) of this section. In
all cases where the employer does not withhold the tax levied under this
Ordinance from the employee, such employee or employees shall be responsible
for filing with Crittenden County, Kentucky each quarter in the same manner as
if they were the employer. If an employer fails to or is not required to
withhold, report, or pay the License Fee it shall become the duty of the
employee to file with Crittenden County, Kentucky. The only employer that is not required to
withhold, report, and pay the occupational license tax is the Federal Government
including the United States Postal Service. The payment required to be made by
an employee, can be made quarterly, for the periods ending March 31st,
June 30th, September 30th, and December 31st
of each year, or at any time the employee wishes to make an estimated payment
for the year in which wages are earned. All license fees must be received by
February 28th for the preceding calendar year, together with a copy
of the employeeÕs W-2 form. Employers not required to withhold, report, or pay
the license fee must annually during the month of January of each year, make a
return to the Treasurer, in which is set forth the name and social security
number of each employee of the employer during the preceding year by each such
employee. This list shall include all current full time employees, part time
employees, temporary employees, and terminated employees whether it be
voluntary or involuntary.
Section No. 6 –
Returns Required
(1) All
business entity returns for the preceding taxable year shall be made by April
15 of each year, except returns made on the basis of a fiscal year, which shall
be made by the fifteenth day of the fourth month following the close of the
fiscal year. Blank forms for returns shall be supplied by Crittenden County,
Kentucky.
(2) As
part of said return, every person, individual or entity set forth in above
shall attach a copy of his or its federal income schedule used in completing
his or its federal income tax return, the same described as follows:
1.
Individual Proprietorship, Form 1040 Schedule C.
2.
Estates and Trusts, Form 1041, page 1.
3.
Partnerships, Form 1065, page 1.
4.
Corporations, Form 1120, page 1.
5.
Subchapter S corporations, Form 1120-S, page 1.
Crittenden
County, Kentucky may also require copies of reports of adjustments made by the
federal government.
(3) Every
business entity subject to an occupational license tax governed by the
provisions of this Ordinance shall keep records, render under oath statements,
make returns, and comply with rules as Crittenden County, Kentucky from time to
time may prescribe. Whenever Crittenden County, Kentucky deems it necessary,
Crittenden County, Kentucky may require a business entity, by notice served to
the business entity, to make a return render statements under oath, or keep
records, as Crittenden County, Kentucky deems sufficient to determine the tax
liability of the business entity.
(4) Crittenden
County, Kentucky may require, for the purpose of ascertaining the correctness
of any return or for the purposes of making an estimate of the taxable income
of any business entity, the attendance of a representative of the business
entity or of any other person having knowledge of the business entity
operations.
(5) The
full amount of the unpaid tax payable by any business entity, as appears from
the face of the return, shall be paid to Crittenden County, Kentucky at the
time prescribed for filing the occupational license tax return, determined
without regard to any extension of time for filing the return.
(6) It
shall be the responsibility of persons who make Federal Form 1099 Ònon-employee
compensationÓ payments to natural persons other than employees for services
performed within Crittenden County, Kentucky, to maintain records of such payments
and to report such payments to Crittenden County, Kentucky. Said payments must
be reported on by remitting Federal Form 1099 by February 28 of the year
following the close of the calendar year in which the non-employee compensation
was paid. If a business entity or person is not required to remit Federal Form
1099 to the IRS, including but not limited to payments less than $600, they are
not liable to remit the equivalent information to Crittenden County, Kentucky.
Section No. 7 –
Extensions
(1) Crittenden
County, Kentucky may grant any business entity an extension of not more than
six (6) months, unless a longer extension has been granted by the Internal
Revenue Service or is agreed to by Crittenden County, Kentucky and the business
entity, for filing its return, if the business entity, on or before the date
prescribed for payment of the occupational license tax, requests the extension
and pays the amount properly estimated as its tax.
(2) If
the time for filing a return is extended, the business entity shall pay, as
part of the tax, an amount equal to twelve percent (12%) per annum simple
interest on the tax shown due on the return, but not been previously paid, from
the time the tax was due until the return is actually filed and the tax paid to
the County. A fraction of a month is counted as an entire month.
Section No. 8 –
Refunds
(1) Where
there has been an overpayment of tax under Section (No. 5) of this Ordinance, a
refund or credit shall be made to the employer only to the extent that the amount
of the overpayment was not deducted and withheld under Section (No. 5) by the
employer;
(2) Unless
written application for refund or credit is received by Crittenden County,
Kentucky from the employer within two (2) years from the date the overpayment was
made, no refund or credit shall be allowed;
(3) An
employee who has compensation attributable to activities performed outside
Crittenden County, Kentucky, based on time spent outside Crittenden County,
Kentucky, whose employer has withheld and remitted to Crittenden County,
Kentucky, the occupational license tax on the compensation attributable to
activities performed outside of the date prescribed by law for the filing of a
refund Crittenden County, Kentucky, may file a refund within two (2) years. The
employee shall provide a schedule and computation sufficient to verify the
refund claim and Crittenden County, Kentucky may confirm with the employer the
percentage of time spent outside Crittenden County, Kentucky and the amount of
compensation attributable to activities performed outside Crittenden County,
Kentucky prior to approval of the refund.
Section No. 9 –
Federal Audit Provisions
(1) As
soon as practicable after each return is received, Crittenden County, Kentucky
may examine and audit the return. If the amount of tax computed by Crittenden
County, Kentucky is greater than the amount returned by the business entity,
the additional tax shall be assessed and a notice of assessment mailed to the
business entity by Crittenden County, Kentucky within five (5) years from the
date the return was filed, except as otherwise provided in this subsection.
(a) In the case of a failure to file a
return or of a fraudulent return the additional tax may be assessed at any
time;
(b) In the case of a return where a
business entity understates net profit, or omits an amount properly includable
in net profits, or both, which understatement or omission, or both, is in
excess of twenty-five percent (25%) of the amount of net profit stated in the
return, the additional tax may be assessed at any time within six (6) years
after the return was filed;
(c) In the case of an assessment of
additional tax relating directly to adjustments resulting from a final
determination of a federal audit, the additional tax may be assessed before the
expiration of the times provided in this subsection, or six (6) months from the
date Crittenden County, Kentucky receives the final determination of the
federal audit from the business entity, whichever is later. The times provided
in this subsection may be extended by agreement between the business entity and
Crittenden County, Kentucky. For the purpose of this subsection, a return filed
before the last day prescribed by law for filing the return shall be considered
as filed on the last day. Any extension granted for filing the return shall
also be considered as extending the last day prescribed by law for filing the
return.
(2) Every
business entity shall submit a copy of the final determination of the federal
audit within thirty (30) days of the conclusion of the federal audit.
(3) Crittenden
County, Kentucky may initiate a civil action for the collection of any
additional tax within the times prescribed in subsection (1) of this section.
Section No. 10
– Administration Provisions
(1) No
suit shall be maintained in any court to restrain or delay the collection or
payment of the tax levied by this Ordinance.
(2) Any
tax collected pursuant to the provisions of this Ordinance may be refunded or
credited within two (2) years of the date prescribed by law for the filing of a
return or the date the money was paid to Crittenden County, Kentucky, whichever
is the later, except that:
(a) In any case where the assessment period
contained in Section (No. 9) of this Ordinance has been extended by an
agreement between the business entity and Crittenden County, Kentucky, the
limitation contained in this subsection shall be extended accordingly.
(b) If the claim for refund or credit
relates directly to adjustments resulting from a federal audit, the business
entity shall file a claim for refund or credit within the time provided for in
this subsection or six (6) months from the conclusion of the federal audit,
whichever is later.
For
the purposes of this subsection and subsection (3) of this section, a return
filed before the last day prescribed by law for filing the return shall be
considered as filed on the last day.
(3) The
authority to refund or credit overpayments of taxes collected pursuant to this
Ordinance is vested exclusively in Crittenden County, Kentucky.
Section No. 11
– Information to Remain Confidential
(1) No
present or former employee of Crittenden County, Kentucky shall intentionally
and without authorization inspect or divulge any information acquired by him or
her of the affairs of any person, or information regarding the tax schedules,
returns, or reports required to be filed with Crittenden County, Kentucky or
other proper officer, or any information produced by a hearing or
investigation, insofar as the information may have to do with the affairs of
the personÕs business. This prohibition does not extend to information required
in prosecutions for making false reports or returns for taxation, or any other
infraction of the tax laws, or in any way made a matter of public record, nor
does it preclude furnishing any taxpayer or the taxpayerÕs properly authorized
agent with information respecting his or her own return.
Further,
this prohibition does not preclude any employee of Crittenden County, Kentucky
from testifying in any court, or from introducing as evidence returns or
reports filed with Crittenden County, Kentucky in an action for violation of
Crittenden County, Kentucky tax laws or in any action challenging the
Crittenden County, Kentucky laws.
(2) Crittenden
County, Kentucky reserves the right to disclose to the Commissioner of Revenue
of the Commonwealth of Kentucky or his or her duly authorized agent all such
information and rights to inspect any of the books and records of Crittenden
County, Kentucky if the Commissioner of Revenue of the Commonwealth of Kentucky
grants to Crittenden County, Kentucky the reciprocal right to obtain
information from the files and records of the Kentucky Department of Revenue
and maintains the privileged character of the information so furnished.
Provided, further, that Crittenden County, Kentucky may publish statistics
based on such information in such a manner as not to reveal data respecting net
profits or compensation of any person or business entity.
(3)
In addition, Crittenden County, Kentucky is empowered to execute similar
reciprocity agreements as described in subsection (2) of this section with any
other taxing entity, should there be a need for exchange of information in
order to effect diligent enforcement of this Ordinance.
(4) Nothing
contained within this Ordinance prevents the Treasurers from discussing any
issues regarding the administration of this Ordinance with the Crittenden
County Judge Executive and/or Crittenden County Attorney necessary for the
performance of her duties. However, all discussion shall be subject to the
confidentiality requirements within this Ordinance.
Section No. 12
– Penalties
(1) A
business entity subject to tax on net profits may be subject to a penalty equal
to five percent (5%) of the tax due for each calendar month or fraction thereof
if the business entity:
(a) Fails to file any return or report on
or before the due date prescribed for filing or as extended by Crittenden
County, Kentucky; or
(b) Fails to pay the tax computed on the
return or report on or before the due date prescribed for payment. The total
penalty levied pursuant to this subsection shall not exceed twenty-five percent
(25%) of the total tax due; however, the penalty shall not be less than
twenty-five dollars ($25.00).
(2) Every
employer who fails to file a return or pay the tax on or before the date
prescribed under Section (No. 5) of this Ordinance may be subject to a penalty
in an amount equal to five percent (5%) of the tax due for each calendar month
or fraction thereof. The total penalty levied pursuant to this subsection shall
not exceed twenty-five percent (25%) of the total tax due; however, the penalty
shall not be less than twenty-five dollars ($25.00).
(3) In
addition to the penalties prescribed in this section, any business entity or
employer shall pay, as part of the tax, an amount equal to twelve percent (12%)
per annum simple interest on the tax shown due, but not previously paid, from
the time the tax was due until the tax is paid to Crittenden County, Kentucky.
A fraction of a month is counted as an entire month.
(4) Every
tax imposed by this Ordinance, and all increases, interest, and penalties
thereon, shall become, from the time the tax is due and payable, a personal
debt of the taxpayer to Crittenden County, Kentucky.
(5) Crittenden
County, Kentucky may enforce the collection of the occupational tax due under
Section (No. 3) of this Ordinance and any fees, penalties, and interest as
provided in subsections (1), (2), (3), and (4) of this section by civil action
in a court of appropriate jurisdiction. To the extent authorized by law,
Crittenden County, Kentucky shall be entitled to recover all court costs and
reasonable attorney fees incurred by it in enforcing any provision of this
Ordinance. Civil legal actions for the collection of the tax, penalties,
interest, costs, attorney fees and other damages, if any, shall be commenced
only with the express authority of the Crittenden Fiscal Court. Information may
be divulged unto the Crittenden Fiscal Court, its members, agents or other
appropriate representatives, necessary for the commencement of legal action, if
any, as is allowable by the Ordinance.
(6) In
addition to the penalties prescribed in this section, any person, business
entity or employer who willfully fails to make a return, willfully makes a
false return, or who willfully fails to pay taxes owing or collected, with the
intent to evade payment of the tax or amount collected, or any part thereof,
shall be guilty of a Class A Misdemeanor.
(7) 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 Ordinance of a return, affidavit, claim, or other document, which is
fraudulent or is false as to any material matter, 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.
(8) A
return for the purpose of this section shall mean and include any return,
declaration, or form prescribed by Crittenden County, Kentucky and required to
be filed with Crittenden County, Kentucky by the provisions of this Ordinance,
or by the rules of Crittenden County, Kentucky or by written request for
information to the business entity by Crittenden County, Kentucky.
(9) Any
person violating the provisions of Section (No. 11) of this Ordinance by
intentionally inspecting confidential taxpayer information without authorization,
shall be fined not more than five hundred dollars ($500.00) or imprisoned for
not longer than six (6) months, or both fine and imprisonment.
(10) Any
person violating the provisions of Section (No. 11) of this Ordinance by
divulging confidential taxpayer information shall be fined not more than one
thousand ($1000.00) or imprisoned for not more than one (1) year, or both fine
and imprisonment.
(11) Any
person who violates any provisions of this Ordinance and for which a specific
penalty is not otherwise prescribed herein shall be guilty of a Class A
Misdemeanor.
Section No. 13
– Use of Occupational License Tax Proceeds
All
monies derived from the occupational license fee tax pursuant to the provisions
of this Ordinance shall be paid to the Crittenden County Treasurer and placed
to the credit of the general revenue fund of Crittenden County, Kentucky. It is
the purpose of this Ordinance to provide revenue for the general fund of
Crittenden County, Kentucky to improve and maintain services to the people of
Crittenden County including but not limited to EMS, services to Senior
citizens, health insurance to county employees, and park maintenance. It is not
the intention of Crittenden County, Kentucky or this Ordinance to impose and
require an occupational license fee prohibited by law.
Section No. 14
– Officials to Collect and Keep Records
It
shall be the duty of the Treasurer to collect and receive the occupational
taxes imposed by this Ordinance. The Tax Administrator and Treasurer shall keep
records showing the amount received by him/her from each licensee and employer
and the date of such receipt.
Section
No. 15 – Severability
Each
section and each provision of each section of this Ordinance are severable, and
if any provision, section, paragraph, sentence or part thereof, or the
application thereof to any person, licensee, class or group, is held by a court
of law to be unconstitutional or invalid for any reason, such holding shall not
affect or impair the remainder of this ordinance, it being the legislative
intent to ordain and enact each provision, section, paragraph, sentence and
part thereof, separately and independently of the rest.
Section No. 16
– Effective Date
(1) This
Ordinance shall take effect and be in full force immediately upon adoption and
all Ordinances or parts of other Ordinances conflicting with this Ordinance are
hereby amended and/or repealed, as applicable, as so allowable by applicable
law. Any Ordinance or parts thereof not in conflict with the foregoing remain
valid and in full force and effect.
(2) All
provisions of Kentucky Revised Statute Chapter 67 are incorporated herein by
reference not inconsistent with the aforegoing Ordinance.
UPON
MOTION DULY MADE, SECONDED, FIRST READ AND APPROVED on this the ____ day of
_______________, 20____.
SECOND
READING, APPROVED AND ADOPTED on this the ____ day of ____________, 20____.
_______________________________
PERRY
NEWCOM, CRITTENDEN
COUNTY
JUDGE EXECUTIVE
__________________________
CAROLYN
BYFORD