The Business License Tax (also called the Occupational License Tax) is projected to generate approximately $4.5 million for Fiscal Year 2019. The funds are placed in the General Fund, the City's main operating fund. 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 is unique and has been called a modified net profits system.
The following document outlines the Business License Tax as approved by City ordinance. Business License Ordinance >>
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 is unique with its five rates. The other cities in Kentucky operate with one rate. Some of the benefits and advantages of the City of Paducah's system include
Click Business License Tax Presentation for a slide presentation from the March 9, 2010 Commission Meeting. The presentation follows a year-long study of how businesses would be affected if the City of Paducah changed from its current gross receipts collection system to a net profits system.
The Four Rivers Business Journal contained an article written by attorney Tom Keuler explaining Paducah's tax structure. Click Paducah's Revised Tax Code to read a copy of the May 2009 article.
If you have a question, contact the Finance Department at 270-444-8513.
|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|
|Business License Form 2016 (Word Version)||23.03 KB|
|Business License Form 2016 (PDF Version)||227.11 KB|
|Business License Form 2015 (Word Version)||22.93 KB|
|Business License Form 2015 (PDF Version)||227.04 KB|
|Business License Form 2014 (PDF)||227.06 KB|
|Business License Form 2013 (PDF)||201.16 KB|
|Employee's Individual Return of License Fee Form (PDF) (Payroll Tax)||25.26 KB|
|Employer's Quarterly Return of License Fee Withheld (Payroll Tax)||135.71 KB|
|Annual Reconciliation of Employer's Quarterly Fee Withheld (PDF)||28.2 KB|
|Application to Receive Payroll Tax Number for Business||184.41 KB|