30 KAR 7:010reg. Standard form for occupational license fee return

      Section 1. Definitions. (1) "Business entity" is defined by KRS 67.750(1).

      (2) "Tax district" is defined by KRS 67.750(10).

 

      Section 2. A business entity shall:

      (1) Follow the filing requirements specified by the business entity’s local tax district; and

      (2) Use the Form OL-S, Single Tax District, Occupational License Fee Return and Instructions to report business and occupational license taxes to the business entity’s local tax district, if so required.

 

      Section 3. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Form OL-S, Single Tax District, Occupational License Fee Return", June 2016[July 2015]; and

      (b) "General Instructions for Form OL-S for a Single Tax District", June 2016[July 2015].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Secretary of State’s office, 700 Capital Avenue, State Capitol, Suite 152, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m., or may be obtained from the Secretary of State’s Web site at http://www.sos.ky.gov.

 

JACOB M. EWING, Special Assistant for

      MARGARET C. MCKAY, Executive Director

      APPROVED BY AGENCY: July 13, 2016

      FILED WITH LRC: July 15, 2016 at noon

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 24 2016, at 9:00 a.m., at the Office of the Secretary of State. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. This hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until the end of the calendar day, 11:59 p.m., on August 31, 2016. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Margaret C. McKay, 700 Capital Avenue, State Capitol, Suite 153, Frankfort, Kentucky 40601, phone [phone], fax [phone], email [e-mail].

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Margaret C. McKay

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation prescribes the standard form for occupational license tax returns as mandated by KRS 67.767.

      (b) The necessity of this administrative regulation: This administrative regulation is necessary to comply with KRS 67.767(1) which requires the Secretary of State to promulgate an administrative regulation prescribing a standard form which shall be accepted by all tax districts and shall allow for returns of net profits and gross receipts occupational license taxes by all business entities.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 67.767(1) mandates that the Office of Secretary of State promulgate an administrative regulation prescribing a standard form which shall be accepted by all tax districts and shall allow for returns of net profits and gross receipts occupational license taxes by all business entities. This administrative regulation prescribes the standard form for occupational license tax returns as mandated by KRS 67.767(1).

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the effective administration of KRS 67.767(1) by prescribing the mandated standard form which shall be accepted by all tax districts and shall allow for returns of net profits and gross receipts occupational license taxes by all business entities.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment will not change the administrative regulation but will solely revise the instructions.

      (b) The necessity of the amendment to this administrative regulation: This amendment will eliminate any confusion in completing Form OL-S.

      (c) How the amendment conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statute. (KRS 67.767(1))

      (d) How the amendment will assist in the effective administration of the statutes: This amendment will eliminate any confusion in completing Form OL-S.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This administrative regulation will affect countless entities, local government occupational license tax administrators, and certified public accountants that are located within the state.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Regulated entities and individuals identified in question (3) will have to familiarize themselves with the form and the law regarding its usage pursuant KRS 67.767.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Entities identified in question (3) will incur no costs in order to use the form.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): By adopting this standardized form, entities identified in question (3) that conduct business in multiple tax jurisdictions will no longer have to file a multitude of jurisdiction specific occupational license tax return forms for net profits or gross receipts. The filing of occupational license tax returns will be greatly streamlined because these entities will simply fill out this single form and file it in any tax jurisdiction where they conduct business.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: There is no cost to implement this administrative regulation.

      (b) On a continuing basis: There is no cost to implement this administrative regulation on a continuing basis.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: There is no source of funding since there is no cost to implement this administrative regulation.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: An increase in fees or funding will not be necessary to implement this administrative regulation.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This administrative regulation neither establishes nor increases any fees.

      (9) TIERING: Is tiering applied? Tiering was not appropriate in this administrative regulation because the administrative regulation applies equally to all those individuals or entities regulated by it.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? This administrative regulation will impact only the local government occupational license tax administrator and the office of Secretary of State since it has prescribed the form incorporated by reference in this administrative regulation.

      2. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. This administrative regulation is authorized by KRS 67.767(1).

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation will not generate any additional revenue for state or local governments during the first year.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will not generate any additional revenue for state or local governments during subsequent years of implementation.

      (c) How much will it cost to administer this program for the first year? There will be no cost to implement this administrative regulation for the first year.

      (d) How much will it cost to administer this program for subsequent years? There will be no cost to administer this program for subsequent years.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation:

Notation

      RELATES TO: KRS 67.750, 67.767

      STATUTORY AUTHORITY: KRS 67.767(1)(a)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 67.767(1)(a) requires the Secretary of State to promulgate an administrative regulation prescribing a standard form that[which] shall be accepted by all tax districts and shall allow for returns of net profits and gross receipts occupational license taxes by all business entities, as well as instructions for completing the form. This administrative regulation prescribes the standard form for occupational license tax returns and form instructions as mandated by KRS 67.767(1)(a).