{"data":{"id":"us-ky/krs-67.750","jurisdiction":"us-ky","citation":"KRS 67.750","heading":"Definitions for KRS 67.750 to 67.790.","body":"As used in KRS 67.750 to 67.790, unless the context requires otherwise:\n(1) \"Business entity\" means each separate corporation, limited liability company,\nbusiness development corporation, partnership, limited partnership, sole\nproprietorship, association, joint stock company, receivership, trust, professional\nservice organization, or other legal entity through which business is conducted;\n(2) \"Compensation\" means wages, salaries, commissions, or any other form of\nremuneration paid or payable by an employer for services performed by an\nemployee, which are required to be reported for federal income tax purposes and\nadjusted as follows:\n(a) Include any amounts contributed by an employee to any retirement, profit\nsharing, or deferred compensation plan, which are deferred for federal income\ntax purposes under a salary reduction agreement or similar arrangement,\nincluding but not limited to salary reduction arrangements under Section\n401(a), 401(k), 402(e), 403(a), 403(b), 408, 414(h), or 457 of the Internal\nRevenue Code; and\n(b) Include any amounts contributed by an employee to any welfare benefit, fringe\nbenefit, or other benefit plan made by salary reduction or other payment\nmethod which permits employees to elect to reduce federal taxable\ncompensation under the Internal Revenue Code, including but not limited to\nSections 125 and 132 of the Internal Revenue Code;\n(3) \"Fiscal year\" means \"fiscal year\" as defined in Section 7701(a)(24) of the Internal\nRevenue Code;\n(4) \"Employee\" means any person who renders service s to another person or business\nentity for compensation, including an officer of a corporation and any officer,\nemployee, or elected official of the United States, a state, or any political\nsubdivision of a state, or any agency or instrumentality of any one (1) or more of the\nabove. A person classified as an independent contractor under the Internal Revenue\nCode shall not be considered an employee;\n(5) \"Employer\" means \"employer\" as defined in Section 3401(d) of the Internal\nRevenue Code;\n(6) \"Gross receipt s\" means all revenues or proceeds derived from the sale, lease, or\nrental of goods, services, or property by a business entity reduced by the following:\n(a) Sales and excise taxes paid; and\n(b) Returns and allowances;\n(7) \"Internal Revenue Code\" means the Internal Revenue Code in effect on December\n31, 2008, as amended;\n(8) \"Net profit\" means gross income as defined in Section 61 of the Internal Revenue\nCode minus all the deductions from gross income allowed by Chapter 1 of the\nInternal Revenue Code, and adjusted as follows:\n(a) Include any amount claimed as a deduction for state tax or local tax which is\ncomputed, in whole or in part, by reference to gross or net income and which\nis paid or accrued to any state of the United States, local taxing authority in a\nstate, the District of Columbia, the Commonwealth of Puerto Rico,  any\nterritory or possession of the United States, or any foreign country or political\nsubdivision thereof;\n(b) Include any amount claimed as a deduction that directly or indirectly is\nallocable to income which is either exempt from taxation or otherwise n ot\ntaxed;\n(c) Include any amount claimed as a net operating loss carryback or carryforward\nallowed under Section 172 of the Internal Revenue Code;\n(d) Include any amount of income and expenses passed through separately as\nrequired by the Internal Revenue Code to an owner of a business entity that is\na pass-through entity for federal tax purposes; and\n(e) Exclude any amount of income that is exempt from state taxation by the\nKentucky Constitution or the Constitution and statutory laws of the United\nStates;\n(9) \"Sales revenue\" means receipts from the sale, lease, or rental of goods, services, or\nproperty;\n(10) \"Tax district\" means a city, county, urban-county, charter county, consolidated local\ngovernment, school district, special taxing district, or any other  statutorily created\nentity with the authority to levy net profits, gross receipts, or occupational license\ntaxes;\n(11) \"Taxable gross receipts,\" in case of a business entity having payroll or sales\nrevenues both within and without a tax district, means gr oss receipts as defined in\nsubsection (6) of this section, as apportioned under KRS 67.753;\n(12) \"Taxable gross receipts,\" in case of a business entity having payroll or sales revenue\nonly in one (1) tax district, means gross receipts as defined in subsect ion (6) of this\nsection;\n(13) \"Taxable net profit,\" in case of a business entity having payroll or sales revenue\nonly in one (1) tax district, means net profit as defined in subsection (8) of this\nsection;\n(14) \"Taxable net profit,\" in case of a business e ntity having payroll or sales revenue\nboth within and without a tax district, means net profit as defined in subsection (8)\nof this section, as apportioned under KRS 67.753; and\n(15) \"Taxable year\" means the calendar year or fiscal year ending during the c alendar\nyear, upon the basis of which net income or gross receipts is computed.","path":["KRS Chapter 67"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48677","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:26Z","sha256":"be58e171283def631961ea5f80d6189ea1f7b58c6aaa4ce01c8521cfc56374d9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-67.745","next":"us-ky/krs-67.753"},"notice":"GroundRules: Original legal text. Not legal advice."}