2014 Kentucky Revised Statutes
CHAPTER 68 - COUNTY FINANCE AND COUNTY TREASURER
68.197 License fees in counties of 30,000 or more -- Exemptions from local fees and taxes -- Regulation of ministers.
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<![CDATA[68.197 License fees in counties of 30,000 or more -- Exemptions from local
fees and taxes -- Regulation of ministers.
(1)
(2)
(3)
(4)
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.
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.
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.
(c) 1.
It is the intent of the General Assembly to continue the exemption
from 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 income received by members
of the Kentucky National Guard for active duty training, unit training
assemblies, and annual field training, or on income received by precinct
workers for election training or work at election booths in state, county, and
local primary, regular, or special elections, or upon 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.
(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 any statute to the contrary, the provisions of subsection (7) of
this section shall apply as follows from March 14, 2012, through July 15, 2014:
(a) Any set-off or credit of city license fees against county license fees that
exists between a city and county as of March 15, 2012, shall remain in
effect as it is on March 15, 2012; and
(b) The provisions of subsection (7) of this section shall not apply to a city
and county unless both the city and the county have both levied and are
collecting license fees on March 15, 2012.
(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 January 1, 2005, and any maximum salary limit upon which the
license fee is calculated shall remained unchanged for subsequent fiscal
years. A percentage rate higher than the percentage rate in effect on
January 1, 2005, or any change in the maximum salary limit upon which a
license fee is calculated shall be prohibited unless approved by the voters
at a public referendum. The percentage rate of a license fee in such
counties shall at no time exceed one percent (1%). Any question to be
placed before the voters as a result of this paragraph shall be placed on
the ballot at a regular election or nominating primary.
(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.
Effective:April 11, 2012
History: Amended 2012 Ky. Acts ch. 110, sec. 18, effective April 11, 2012. -Amended 2006 Ky. Acts ch. 168, sec. 2, effective July 12, 2006. -- Amended
2005 Ky. Acts ch. 79, sec. 1, effective March 16, 2005; ch. 167, sec. 2, effective
July 1, 2005; and ch 168, sec. 122, effective January 1, 2006. -- Amended 2003
Ky. Acts ch. 117, sec. 19, effective June 24, 2003. -- Amended 2002 Ky. Acts
ch. 230, sec. 2, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 425,
sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 509, sec. 2,
effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 481, sec. 2, effective July
13, 1990. -- Amended 1986 Ky. Acts ch. 131, sec. 1, effective July 15, 1986. -Amended 1978 Ky. Acts ch. 268, sec. 1, effective June 17, 1978. -- Amended
1976 Ky. Acts ch. 301, sec. 3. -- Amended 1974 Ky. Acts ch. 113, sec. 1. -Amended 1968 Ky. Acts ch. 152, sec. 40. -- Created 1966 Ky. Acts ch. 263,
secs. 1 and 2.
Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch.168,
sec. 3, provides that the amendments to KRS 68.197 in 2006 Ky. Acts ch. 168,
sec. 2, shall apply retroactively to August 1, 2005.
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