Business retention is a priority for the City of Paducah. We would love to hear from our local business community as we engage with local business owners. Please complete the Business Economic Survey.
The Business License Tax (also called the Occupational License Tax) is outlined in Section 106 Article III of the Paducah Code of Ordinances. It's projected to generate approximately $4.5 million for Fiscal Year 2023. The funds are placed in the General Fund, the City's main operating fund.
There are two basic systems for calculating business tax: gross receipts and net profit. More than 30 cities in Kentucky operate on a gross receipts system. The City of Paducah works on a gross receipts system. However, instead of charging one flat rate, the City places businesses into one of five classifications (see A through E below) with a rate based on profitability. The structure of the Paducah's Business License Tax with its five rates is unique and has been called a modified net profits system.
Benefits and advantages of the City of Paducah's system include
In addition to cash and/or check, the City of Paducah accepts credit and debit card payments at City Hall. This service for in-person and over-the-phone payments provides a convenient way to pay for many of Paducah’s fees and charges collected through the Finance Department and Fire Prevention Division in addition to the Engineering and Planning departments.
Services payable by credit or debit card include business licenses, property tax bills, building permits, fines, and liens. A 2.95 percent service charge will apply on credit and debit card payments. Payment types include American Express, Discover, MasterCard, and Visa. The City does not charge or retain this service charge. There is a $2.00 minimum per transaction.
If you have a question, contact the Finance Department at 270-444-8513 or send an email to Revenue.
For businesses that are new to Paducah, please complete the Registration Application for a Business License.
|Application to Receive Payroll Tax Number for Business||32.29 KB|
|Business License Form 2022||507.38 KB|
|Business License Form 2021||77.35 KB|
|Business License Form 2020||77.23 KB|
|Business License Form 2019||507.74 KB|
|Business License Form 2018 (Word version)||21.97 KB|
|Business License Form 2018 (PDF)||239.44 KB|
|Business License Form 2017 (Word version)||21.97 KB|
|Business License Form 2017 (PDF version)||239.15 KB|
|Employee's Individual Return of License Fee Form (PDF) (Payroll Tax)||169.07 KB|
|Employer's Quarterly Return of License Fee Withheld (PDF)||212.74 KB|
|Annual Reconciliation of Employer's Quarterly Return (PDF)||162.74 KB|