KRS § 91.200 — KY Code / Title IX / Chapter 91 / Section 91.200
91.200 City license taxes -- Imposition -- Exemptions -- Rate -- Collection -- Transfer of surplus to general fund -- Use -- Restriction on ad valorem tax for sinking fund purposes -- Issuance and enforcement of licenses -- Regulation of ministers
Status: in_force

91.200 City license taxes -- Imposition -- Exemptions -- Rate -- Collection --

Transfer of surplus to general fund -- Use -- Restriction on ad valorem tax for

sinking fund purposes -- Issuance and enforcement of licenses -- Regulation of

ministers.

(1) The board of aldermen of every city of the first class, in addition to levying ad

valorem taxes, 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 a business, trade, occupation, or profession for revenue purposes

may be imposed at a percentage rate not to exceed those hereinafter set forth on:

(a) Salaries, wages, commissions and other compensations earned by every

person within the city for work done and services performed or rendered in the

city (all of such being hereinafter collectively referred to as "wages"); and

(b) The net profits of all businesses, professions, or occupations from activities

conducted in the city (hereinafter collectively referred to as "net profits").

(3) (a) Licenses imposed for regulatory purposes shall not be subject to such

limitations as to form and amount.

(b) No company that pays an ad valorem tax and a franchise 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 January 1, 2006.

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

or communications 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 bank, trust

company, combined bank and trust company or combined trust, banking and

title business in this state, any savings and loan association whether state or

federally chartered.

(e) No license tax shall be imposed upon income received by members of the

Kentucky national guard for active duty training, unit training assemblies, and

annual field training.

(f) No license tax shall be imposed on income received by precinct workers for

election training or work at election booths in state, county, and local primary,

regular, or special elections.

(g) No license tax shall be imposed 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, or in any other case where the city is prohibited by

statute from imposing a license tax.

(h) 1. No license tax shall be imposed upon:

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.

(4) The rate fixed on both "wages" and "net profits" shall be one and one-fourth percent

(1.25%).

(5) License fees or taxes shall be collected by the commissioners of the sinking fund.

The proceeds from the taxes shall be paid to the secretary and treasurer of the

sinking fund until income from all sources of the sinking fund is sufficient to pay

the cost of administration and the interest charges for the current fiscal year of the

sinking fund in addition to a sum sufficient to amortize the outstanding principal

indebtedness of the city on a yearly basis in accordance with regularly used

amortization tables.

(6) Revenue remaining after meeting the foregoing requirements shall be transferred to

the city. Such revenues shall be credited to the general fund of the city as received

and may be expended for general purposes or for capital improvements.

(7) The term "capital improvements" as used in this section is limited to additions or

improvements of a substantial and permanent nature and services rendered in

connection therewith, and includes but is not limited to:

(a) The purchase of rights of way for highways, expressways, and the widening of

existing streets;

(b) The purchase of lands for park, recreational, and other governmental facilities

and for public off-street parking facilities;

(c) The purchase, construction, reconstruction, renovation, or remodeling of

municipal buildings, and facilities;

(d) The replacement of machinery, wires, pipes, structural members or fixtures,

and other essential portions of municipal buildings;

(e) The initial equipment of any newly acquired facility wherein any essential

governmental function of the municipality may be located or carried on;

(f) The purchase and installation of traffic control devices and fire alarm

equipment;

(g) The reconstruction and resurfacing, but not routine maintenance, of streets and

other public ways;

(h) The acquisition of motorized equipment purchased as additions to, but not

replacements for, existing equipment; and

(i) Engineering and other costs incurred by the city in connection with the

construction of public improvements financed under a special assessment

plan.

(8) Ad valorem taxes for the benefit of the sinking fund shall not be levied unless the

income of the sinking fund is otherwise insufficient to meet such requirements.

(9) Licenses shall be issued and enforced on terms and conditions as prescribed by

ordinance.

(10) Pursuant to this section, no city of the first class 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 city on

salaries, wages, commissions, and other compensation earned for work done and

services performed or rendered.