Occupational License Tax Summary: The Louisville Metro Revenue Commission collects Occupational License Fees / Taxes on all income earned within Louisville Metro, Kentucky. There is no minimum earned amount before you are liable for filing a tax return. The occupational tax is imposed upon the privilege of engaging in business, profession, occupation, or trade within Louisville Metro, Kentucky, regardless of the legal residence of the person so engaged. Louisville Metro includes the area within the boundaries of Jefferson County, Kentucky. What is the tax rate for the Occupational License Tax? The current tax rate for Occupational Taxes totals 2.2% (.0220) for resident individuals, sole- proprietors, partnerships, corporations, etc. The tax rate for non-resident individuals is 1.45% (.0145). How is the Occupational Tax Distributed?

1.25% (.0125) to Louisville Metro Government .2% (.0020) to Transit Authority of River City (TARC) .75% (.0075) to the Louisville and Anchorage Public Schools

Who must file an OL? Corporations, partnerships, sole proprietorships, estates, trusts, or other businesses engaged in an occupation, trade, or profession with business in Louisville Metro, Kentucky. Must an employer in Louisville Metro withhold occupational fees / taxes from an employee that does not reside in Metro Louisville? Yes, employers are required to withhold occupational license fees / taxes from every employee whose physical work location is in the Louisville Metro jurisdiction. The tax rate is determined by where the employee lives. For employees who work in Louisville Metro, but live outside of Louisville Metro, the occupational fee / tax rate is 1.45% (.0145). For employees who both work and live in Louisville Metro, the occupational fee / tax is 2.2% (.0220). What is the occupational tax rate for ordained ministers? The tax rate is .75% (.0075) for ordained ministers who both work and reside in the Louisville Metro jurisdiction. Ministers are exempt from the Louisville Metro, KY, occupational tax rate of (.0125) and the Transit Authority of River City occupational tax rate of (.0020), but are subject to the School Boards’ occupational tax rate of (.0775). I am a Minister who works in Louisville Metro, but resides outside of Louisville Metro, do I still pay Occupational Tax? Ministers who work in Louisville but reside outside of Louisville Metro, Kentucky are not subject to the occupational tax. How do I register? You can register by logging into the eMINTS online portal, by filling out a Registration Application and mailing it to PO Box 32060 Louisville, KY 40232-2060 or by bringing the application into the Louisville Metro Revenue Commission’s office at 617 W Jefferson Street Louisville, KY 40202 Monday- Friday from 8 a.m. – 5 p.m.

When do I need to file? Due Dates

How do I file and Pay my OL Return? You can file and pay your Form OL, OL-A, OL-3EZ, OL-3D or OL-3EXT Return by logging into the eMINTS online portal, by mail P.O. Box 35410 Louisville, KY 40232-5410, or by coming into the Louisville Metro Revenue Commission office Monday-Friday at 617 W Jefferson Street Louisville, KY 40202 8 a.m. – 5 p.m.

I need to file an OL extension, will the Revenue Commission accept a copy of the Federal extension? A standard extension request form (OL-3E) is available through the Louisville Metro Revenue Commission’s website. However, a copy of your federal income extension request for the same year, is acceptable. Your Louisville Metro Revenue Commission account number needs to be clearly marked on the federal extension for proper posting to your account. The extension request must be submitted through the eMINTS online portal, postmarked or hand delivered to the Revenue Commission on or before the original filing due date of the tax return.

Business activity ceased before the due date on the return, do I still need to file? Yes, The Revenue Commission must be advised in writing that there was no activity conducted within Louisville Metro, Kentucky, or Jefferson County. Check the box on Form OL-3 that indicates “No Activity”. If you plan to conduct no activity within this jurisdiction in the future, also check the “Final Return” box and indicate the date activity ceased in this jurisdiction. The Revenue Commission will then close your occupational tax account.

Are Homeowner’s Associations required to file an Occupational License Tax Return? If a Homeowner’s Association reports unrelated business income on their federal tax return (Form 1120 or 1120-H) for any tax period, a Form OL-3 must be timely filed and occupational license fees must be timely paid for that tax period. A Homeowner’s Association is exempt from occupational license fees and does not have to file a Form OL-3 only if it annually submits a copy of the federal tax return reporting no unrelated business income.

What are the penalties for Failure to File and or Pay? There is a five percent (5%) penalty per month, or a fraction of month, to a max of twenty-five percent (25%) of the outstanding tax liability, for failure to file and or pay a tax return by the regular due date. Pursuant to KRS 67.790, there is a minimum $25.00 penalty for failure to file any return or report by the due date.

Is interest charged? Interest is computed at twelve percent (12%) per annum from the original due date until total tax liability is paid in full. Where can I find the Ordinances on Occupational License Tax? Ordinance No. 110.01-110.99