67.750 Definitions for KRS 67.750 to 67.790.
As used in KRS 67.750 to 67.790, unless the context requires otherwise:
(1) "Business entity" means each separate corporation, limited liability company,
business development corporation, partnership, limited partnership, sole
proprietorship, association, joint stock company, receivership, trust, professional
service organization, or other legal entity through which business is conducted;
(2) "Compensation" 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 but 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) 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;
(3) "Fiscal year" means "fiscal year" as defined in Section 7701(a)(24) of the Internal
Revenue Code;
(4) "Employee" means any person who renders services to another person or 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 or 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;
(5) "Employer" means "employer" as defined in Section 3401(d) of the Internal
Revenue Code;
(6) "Gross receipts" means all revenues or proceeds derived from the sale, lease, or
rental of goods, services, or property by a business entity reduced by the following:
(a) Sales and excise taxes paid; and
(b) Returns and allowances;
(7) "Internal Revenue Code" means the Internal Revenue Code in effect on December
31, 2008, as amended;
(8) "Net profit" 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
(9)
(10)
(11)
(12)
(13)
(14)
(15)
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 carryback or carryforward
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;
"Sales revenue" means receipts from the sale, lease, or rental of goods, services, or
property;
"Tax district" means 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," in case of a business entity having payroll or sales
revenues both within and without a tax district, means gross receipts as defined in
subsection (6) of this section, as apportioned under KRS 67.753;
"Taxable gross receipts," in case of a business entity having payroll or sales revenue
only in one (1) tax district, means gross receipts as defined in subsection (6) of this
section;
"Taxable net profit," in case of a business entity having payroll or sales revenue
only in one (1) tax district, means net profit as defined in subsection (8) of this
section;
"Taxable net profit," in case of a business entity having payroll or sales revenue
both within and without a tax district, means net profit as defined in subsection (8)
of this section, as apportioned under KRS 67.753; and
"Taxable year" means the calendar year or fiscal year ending during the calendar
year, upon the basis of which net income or gross receipts is computed.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 49, sec. 1, effective June 25, 2009. -- Amended
2007 Ky. Acts ch. 52, sec. 1, effective June 26, 2007. -- Amended 2006 Ky. Acts
ch. 149, sec. 197, effective July 12, 2006; and ch. 168, sec. 1, effective July 12,
2006. -- Amended 2005 Ky. Acts ch. 153, sec. 1, effective June 20, 2005. -Amended 2004 Ky. Acts ch. 63, sec. 1, effective July 13, 2004. -- Created 2003 Ky.
Acts ch. 117, sec. 1, effective June 24, 2003.
Legislative Research Commission Note (6/26/2007). 2007 Ky. Acts ch. 52, sec. 3,
provides that the amendments to KRS 67.750 in 2007 Ky. Acts ch. 52, sec. 1, "shall
apply to tax years beginning on or after January 1, 2007."
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