Request By:
Hon. M. L. McInnis
Devondale City Attorney
Lyndon Professional Building
1313 Lyndon Lane, Suite 208
Louisville, Kentucky 40222
Opinion
Opinion By: Steven L. Beshear, Attorney General; Walter C. Herdman, Asst. Deputy Attorney General
This is in response to your letter of November 1 in which you indicate that the City of Devondale in Jefferson County is contemplating revising an ordinance governing the licensing of trades, occupations and professions enacted pursuant to KRS 92.280 and Section 181 of the Constitution. Your specific question is as follows:
"Is an individual that actively rents real property (residential or commercial) engaging in a trade or occupation so as to be subject to licensing and taxation?"
The answer to your question depends upon the ownership of the property to be rented. If the individual is renting his own property, we do not believe he would be subject to a business or occupational license tax under the terms of the referred to statute and Constitution. See
Young v. Vienna, 203 Va. 265, 123 S.W.2d 388 and McQuillin, Mun. Corp., Vol. 9, § 26.102(a). We also refer to the "property owner" exception under the Real Estate and Broker's License Tax Act, Chapter 324 KRS, particularly KRS 324.030(1).
On the other hand, if the individual is renting property owned by another, to a third party, such individual would not only be subject to a state broker's license under Chapter 324 KRS, but also a municipal license authorized by virtue of KRS 324.340.