68.197 License fees in counties of 30,000 or more -- Exemptions from local fees and
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 <br>business, trade, occupation, or profession, and the using, holding, or exhibiting of <br>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 <br>exceed one percent (1%) of: <br>(a) Salaries, wages, commissions, and other compensation earned by persons
within the county for work done and services performed or rendered in the <br>county;
(b) The net profits of self-employed individuals, partnerships, professional
associations, or joint ventures resulting from trades, professions, occupations, <br>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: <br>(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 <br>salaries, wages, commissions, and other compensation earned within the <br>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 <br>of reporting and paying the percentage rate as provided in this subsection on <br>net profits of businesses, trades, professions, or occupations from activities <br>conducted in the county.
(4) (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 <br>local license fees and occupational taxes that existed on January 1, 2006, <br>for providers of multichannel video programming services or <br>communications services as defined in KRS 136.602 that were taxed <br>under KRS 136.120 prior to the effective date of this section.
2.
To further this intent, no company providing multichannel video <br>programming services or communications services as defined in KRS <br>136.602 shall be required to pay a license tax. If only a portion of an <br>entity's business is providing multichannel video programming services <br>including products or services that are related to and provided in support <br>of the multichannel video programming services or communications
services, this exclusion applies only to that portion of the business that <br>provides multichannel video programming services or communications <br>services, including products or services that are related to and provided <br>in support of the multichannel video programming services or <br>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 <br>bank and trust company, combined trust, banking, and title business in this <br>state, or any savings and loan association whether state or federally chartered, <br>or in other cases where the county is prohibited by law from imposing a <br>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 <br>annual field training, or on income received by precinct workers for election <br>training or work at election booths in state, county, and local primary, regular, or <br>special elections, or upon any profits, earnings, or distributions of an investment <br>fund which would qualify under KRS 154.20-250 to 154.20-284 to the extent any <br>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 <br>county and the city, credit their city license fee against their county license fee. As <br>used in this subsection, "city contained in the county" shall include a city that is in <br>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 <br>after July 15, 1986, persons who pay a county license fee and a license fee to a city <br>contained in the county shall be allowed to credit their city license fee against their <br>county license fee. As used in this subsection, "city contained in the county" shall <br>include a city that is in more than one (1) county.
(8) On July 14, 2000, the provisions of subsection (7) of this section notwithstanding,
city license fees not credited against county license fees enacted under this section <br>or KRS 67.083 as of January 1, 2000, shall not be credited against county license <br>fees. However, this exception shall not apply to county license fees enacted for the <br>first time, or increased, on or after January 1, 2000. This provision shall expire July <br>15, 2002, unless otherwise extended by the General Assembly.
(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 <br>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 <br>county license fee except by agreement between the county and the city in <br>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 <br>county to the extent the overpayment is attributable to or derives from this <br>section as it existed at any time subsequent to July 15, 1986, and the taxpayer <br>seeks a credit for a license tax paid to a city located within such county, if <br>such refund claim or amended tax return claim was filed or perfected after <br>November 18, 2004, except by agreement between the city and county in <br>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 <br>January 1, 2005, and any maximum salary limit upon which the license fee is <br>calculated shall remained unchanged for subsequent fiscal years. A percentage <br>rate higher than the percentage rate in effect on January 1, 2005, or any change <br>in the maximum salary limit upon which a license fee is calculated shall be <br>prohibited unless approved by the voters at a public referendum. The <br>percentage rate of a license fee in such counties shall at no time exceed one <br>percent (1%). Any question to be placed before the voters as a result of this <br>paragraph shall be placed on the ballot at a regular election or nominating <br>primary.
(d) This subsection shall have retroactive application; and <br>(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 <br>application of this section that can be given effect without the invalid <br>provision or application, and to this end the provisions of this subsection are <br>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 <br>religion may perform his or her duties and activities as a minister of religion. Duly <br>ordained, commissioned, or denominationally licensed ministers of religion shall be <br>subject to the same license fees imposed on others in the county on salaries, wages, <br>commissions, and other compensation earned for work done and services performed <br>or rendered.
Effective: July 12, 2006 <br>History: 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 <br>1, 2005; and ch. 168, sec. 122, effective January 1, 2006. -- Amended 2003 Ky. Acts <br>ch. 117, sec. 19, effective June 24, 2003. -- Amended 2002 Ky. Acts ch. 230, sec. 2, <br>effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 425, sec. 1, effective July 14, <br>2000. -- Amended 1998 Ky. Acts ch. 509, sec. 2, effective July 15, 1998. -- Amended <br>1990 Ky. Acts ch. 481, sec. 2, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 131, sec. 1, effective July 15, 1986. -- Amended 1978 Ky. Acts ch. 268, sec. 1, <br>effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 301, sec. 3. -- Amended 1974 <br>Ky. Acts ch. 113, sec. 1. -- Amended 1968 Ky. Acts ch. 152, sec. 40. -- Created 1966 <br>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 <br>apply retroactively to August 1, 2005.
68.197 License fees in counties of 30,000 or more -- Exemptions from local fees and
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 <br>business, trade, occupation, or profession, and the using, holding, or exhibiting of <br>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 <br>exceed one percent (1%) of: <br>(a) Salaries, wages, commissions, and other compensation earned by persons
within the county for work done and services performed or rendered in the <br>county;
(b) The net profits of self-employed individuals, partnerships, professional
associations, or joint ventures resulting from trades, professions, occupations, <br>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: <br>(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 <br>salaries, wages, commissions, and other compensation earned within the <br>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 <br>of reporting and paying the percentage rate as provided in this subsection on <br>net profits of businesses, trades, professions, or occupations from activities <br>conducted in the county.
(4) (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 <br>local license fees and occupational taxes that existed on January 1, 2006, <br>for providers of multichannel video programming services or <br>communications services as defined in KRS 136.602 that were taxed <br>under KRS 136.120 prior to the effective date of this section.
2.
To further this intent, no company providing multichannel video <br>programming services or communications services as defined in KRS <br>136.602 shall be required to pay a license tax. If only a portion of an <br>entity's business is providing multichannel video programming services <br>including products or services that are related to and provided in support <br>of the multichannel video programming services or communications
services, this exclusion applies only to that portion of the business that <br>provides multichannel video programming services or communications <br>services, including products or services that are related to and provided <br>in support of the multichannel video programming services or <br>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 <br>bank and trust company, combined trust, banking, and title business in this <br>state, or any savings and loan association whether state or federally chartered, <br>or in other cases where the county is prohibited by law from imposing a <br>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 <br>annual field training, or on income received by precinct workers for election <br>training or work at election booths in state, county, and local primary, regular, or <br>special elections, or upon any profits, earnings, or distributions of an investment <br>fund which would qualify under KRS 154.20-250 to 154.20-284 to the extent any <br>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 <br>county and the city, credit their city license fee against their county license fee. As <br>used in this subsection, "city contained in the county" shall include a city that is in <br>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 <br>after July 15, 1986, persons who pay a county license fee and a license fee to a city <br>contained in the county shall be allowed to credit their city license fee against their <br>county license fee. As used in this subsection, "city contained in the county" shall <br>include a city that is in more than one (1) county.
(8) On July 14, 2000, the provisions of subsection (7) of this section notwithstanding,
city license fees not credited against county license fees enacted under this section <br>or KRS 67.083 as of January 1, 2000, shall not be credited against county license <br>fees. However, this exception shall not apply to county license fees enacted for the <br>first time, or increased, on or after January 1, 2000. This provision shall expire July <br>15, 2002, unless otherwise extended by the General Assembly.
(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 <br>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 <br>county license fee except by agreement between the county and the city in <br>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 <br>county to the extent the overpayment is attributable to or derives from this <br>section as it existed at any time subsequent to July 15, 1986, and the taxpayer <br>seeks a credit for a license tax paid to a city located within such county, if <br>such refund claim or amended tax return claim was filed or perfected after <br>November 18, 2004, except by agreement between the city and county in <br>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 <br>January 1, 2005, and any maximum salary limit upon which the license fee is <br>calculated shall remained unchanged for subsequent fiscal years. A percentage <br>rate higher than the percentage rate in effect on January 1, 2005, or any change <br>in the maximum salary limit upon which a license fee is calculated shall be <br>prohibited unless approved by the voters at a public referendum. The <br>percentage rate of a license fee in such counties shall at no time exceed one <br>percent (1%). Any question to be placed before the voters as a result of this <br>paragraph shall be placed on the ballot at a regular election or nominating <br>primary.
(d) This subsection shall have retroactive application; and <br>(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 <br>application of this section that can be given effect without the invalid <br>provision or application, and to this end the provisions of this subsection are <br>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 <br>religion may perform his or her duties and activities as a minister of religion. Duly <br>ordained, commissioned, or denominationally licensed ministers of religion shall be <br>subject to the same license fees imposed on others in the county on salaries, wages, <br>commissions, and other compensation earned for work done and services performed <br>or rendered.
Effective: July 12, 2006 <br>History: 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 <br>1, 2005; and ch. 168, sec. 122, effective January 1, 2006. -- Amended 2003 Ky. Acts <br>ch. 117, sec. 19, effective June 24, 2003. -- Amended 2002 Ky. Acts ch. 230, sec. 2, <br>effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 425, sec. 1, effective July 14, <br>2000. -- Amended 1998 Ky. Acts ch. 509, sec. 2, effective July 15, 1998. -- Amended <br>1990 Ky. Acts ch. 481, sec. 2, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 131, sec. 1, effective July 15, 1986. -- Amended 1978 Ky. Acts ch. 268, sec. 1, <br>effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 301, sec. 3. -- Amended 1974 <br>Ky. Acts ch. 113, sec. 1. -- Amended 1968 Ky. Acts ch. 152, sec. 40. -- Created 1966 <br>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 <br>apply retroactively to August 1, 2005.
68.197 License fees in counties of 30,000 or more -- Exemptions from local fees and
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 <br>business, trade, occupation, or profession, and the using, holding, or exhibiting of <br>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 <br>exceed one percent (1%) of: <br>(a) Salaries, wages, commissions, and other compensation earned by persons
within the county for work done and services performed or rendered in the <br>county;
(b) The net profits of self-employed individuals, partnerships, professional
associations, or joint ventures resulting from trades, professions, occupations, <br>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: <br>(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 <br>salaries, wages, commissions, and other compensation earned within the <br>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 <br>of reporting and paying the percentage rate as provided in this subsection on <br>net profits of businesses, trades, professions, or occupations from activities <br>conducted in the county.
(4) (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 <br>local license fees and occupational taxes that existed on January 1, 2006, <br>for providers of multichannel video programming services or <br>communications services as defined in KRS 136.602 that were taxed <br>under KRS 136.120 prior to the effective date of this section.
2.
To further this intent, no company providing multichannel video <br>programming services or communications services as defined in KRS <br>136.602 shall be required to pay a license tax. If only a portion of an <br>entity's business is providing multichannel video programming services <br>including products or services that are related to and provided in support <br>of the multichannel video programming services or communications
services, this exclusion applies only to that portion of the business that <br>provides multichannel video programming services or communications <br>services, including products or services that are related to and provided <br>in support of the multichannel video programming services or <br>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 <br>bank and trust company, combined trust, banking, and title business in this <br>state, or any savings and loan association whether state or federally chartered, <br>or in other cases where the county is prohibited by law from imposing a <br>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 <br>annual field training, or on income received by precinct workers for election <br>training or work at election booths in state, county, and local primary, regular, or <br>special elections, or upon any profits, earnings, or distributions of an investment <br>fund which would qualify under KRS 154.20-250 to 154.20-284 to the extent any <br>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 <br>county and the city, credit their city license fee against their county license fee. As <br>used in this subsection, "city contained in the county" shall include a city that is in <br>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 <br>after July 15, 1986, persons who pay a county license fee and a license fee to a city <br>contained in the county shall be allowed to credit their city license fee against their <br>county license fee. As used in this subsection, "city contained in the county" shall <br>include a city that is in more than one (1) county.
(8) On July 14, 2000, the provisions of subsection (7) of this section notwithstanding,
city license fees not credited against county license fees enacted under this section <br>or KRS 67.083 as of January 1, 2000, shall not be credited against county license <br>fees. However, this exception shall not apply to county license fees enacted for the <br>first time, or increased, on or after January 1, 2000. This provision shall expire July <br>15, 2002, unless otherwise extended by the General Assembly.
(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 <br>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 <br>county license fee except by agreement between the county and the city in <br>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 <br>county to the extent the overpayment is attributable to or derives from this <br>section as it existed at any time subsequent to July 15, 1986, and the taxpayer <br>seeks a credit for a license tax paid to a city located within such county, if <br>such refund claim or amended tax return claim was filed or perfected after <br>November 18, 2004, except by agreement between the city and county in <br>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 <br>January 1, 2005, and any maximum salary limit upon which the license fee is <br>calculated shall remained unchanged for subsequent fiscal years. A percentage <br>rate higher than the percentage rate in effect on January 1, 2005, or any change <br>in the maximum salary limit upon which a license fee is calculated shall be <br>prohibited unless approved by the voters at a public referendum. The <br>percentage rate of a license fee in such counties shall at no time exceed one <br>percent (1%). Any question to be placed before the voters as a result of this <br>paragraph shall be placed on the ballot at a regular election or nominating <br>primary.
(d) This subsection shall have retroactive application; and <br>(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 <br>application of this section that can be given effect without the invalid <br>provision or application, and to this end the provisions of this subsection are <br>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 <br>religion may perform his or her duties and activities as a minister of religion. Duly <br>ordained, commissioned, or denominationally licensed ministers of religion shall be <br>subject to the same license fees imposed on others in the county on salaries, wages, <br>commissions, and other compensation earned for work done and services performed <br>or rendered.
Effective: July 12, 2006 <br>History: 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 <br>1, 2005; and ch. 168, sec. 122, effective January 1, 2006. -- Amended 2003 Ky. Acts <br>ch. 117, sec. 19, effective June 24, 2003. -- Amended 2002 Ky. Acts ch. 230, sec. 2, <br>effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 425, sec. 1, effective July 14, <br>2000. -- Amended 1998 Ky. Acts ch. 509, sec. 2, effective July 15, 1998. -- Amended <br>1990 Ky. Acts ch. 481, sec. 2, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 131, sec. 1, effective July 15, 1986. -- Amended 1978 Ky. Acts ch. 268, sec. 1, <br>effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 301, sec. 3. -- Amended 1974 <br>Ky. Acts ch. 113, sec. 1. -- Amended 1968 Ky. Acts ch. 152, sec. 40. -- Created 1966 <br>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 <br>apply retroactively to August 1, 2005.
