Occupational License

Occupational License

 Effective January 1, 2008, The State of Kentucky has mandated cities to be in compliance with Kentucky Revised Statutes 67.750 to 67.790.

As of this date, the annual renewal form for the occupational license fee will no longer be due by June 30th of each year.

All business entity returns for the preceding taxable calendar year will now be due on April 15th of each year.

Please note, that in accordance with Kentucky Revised Statutes, the amount of interest to be assessed for filing a late return will remain at 12% per year or 1% per month simple interest. The state is requiring that the penalty for a late return will be increased to 5% per month up to a maximum of 25% and a minimum of $25.00. Both the interest and penalty calculation will be assessed at a rate of a full month even for a fraction of a month.

A six month extension is now available for those business entities that cannot complete their Federal tax return by the due date stated above. A copy of the entity’s Federal tax extension form MUST be attached to be considered. This does not extend the period of time to pay the estimated tax liability due. Payment is to be sent in with the extension request form.

Business entities that have gross receipts in more than one taxing district are now required to fill out "Schedule A" for the apportionment of gross receipts.

New businesses prior to beginning operation within the City of Florence, KY are required by Ordinance Number 0-27-07 and subsequent amendments to secure an occupational license. The application must be submitted with applicable fee (based on estimated income) to the City of Florence, KY.

This application will be approved or denied within fifteen (15) business days from the date the application is received, or within fifteen (15) business days from the date of receipt of additional information. No activity may be conducted within the City prior to the issuance of the occupational license. Failure to obtain an occupational license may result in criminal prosecution.

A new business shall estimate license fee based on the projected first year income. If an underpayment occurs, then penalty and interest shall be assessed on the amount of the difference.

The annual occupational license fee is calculated by applying a rate of 0.001 or 0.1% on total gross receipts. The minimum fee for the City of Florence occupation license fee is $40.00 for businesses with a total income of -0- to $40,000 gross receipt amount. The maximum fee for the City of Florence occupation fee for businesses with a total income of $10,000,000.00 is $10,000.00.