City of Glasgow

 

 

 

 

Business License / Occupational Tax 270-651-5131

 

The License Fee Division collects Occupational License Fees from all entities or individuals with business activity in the city limits of Glasgow. These license fees include a Minimum License Fee, a Net Profit License Fee, and a quarterly license fee/occupational tax on payrolls (local Payroll Tax).

  • The Minimum License Fee must be paid by any person or entity operating a business inside the city limits of Glasgow.  This includes, but is not limited to landlords (some exclusions apply, see below), real estate agents, construction workers, barbers, beauticians and any other independent contractor.  An application, which can be obtained at this website, must be completed and returned to this office, along with a $25 minimum license fee.  Certain businesses such as pawn shops, entertainment venues, transient or itinerant merchants and circuses are subject to additional fees and regulations.  Contact this office for additional information.

  **INDIVIDUALS WITH 5 OR FEWER RESIDENTIAL RENTAL PROPERTIES ARE NOT SUBJECT TO LOCAL OCCUPATIONAL TAX. NOTE THAT THIS EXCLUSION DOES NOT APPLY TO ENTITIES THAT HAVE BEEN SET UP FOR RENTAL ACTIVITY. ALSO, ALL COMMERCIAL PROPERTY, REGARDLESS OF NUMBER OF UNITS, IS SUBJECT TO LOCAL OCCUPATIONAL TAX. 

  **PLEASE NOTE THAT A SUBCONTRACTOR CANNOT WORK UNDER THE LICENSE OF ANOTHER BUSINESS LICENSE HOLDER. 

  **ALSO NOTE THAT BUSINESS LICENSES ARE NOT TRANSFERRABLE.  A NEW OWNER OF A BUSINESS CANNOT OPERATE UNDER THE LICENSE OF THE PREVIOUS OWNER.

  • The Net Profit License Fee Return is a local tax return prepared by you or your tax professional each year.  It is based on your taxable year end (12/31 for most businesses).  This return imposes a 1.5% occupational tax on the profits of your business allocable to the City of Glasgow.  If you have businesses both inside and outside of Glasgow, a formula is used to figure the profit subject to local occupational tax.  A copy of this return can be obtained on this website.
  • The Occupational Tax/Local Payroll Tax is a quarterly tax that each employer must withhold from gross wages, salaries, commissions and other compensation (including deferred compensation and employee contributions to Cafeteria Plans under Section 125 of the IRC) paid to employees earned within Glasgow.  This local tax applies to the full gross earnings of employees, without any deductions.

 **Note:  Some professions and careers (e.g., attorney, cosmetologist, barber, psychologist, massage therapist, mortician, daycare, taxi cabs, etc.) require additional State of Kentucky licensing and certification requirements.  Please check with the specific Department of the State of Kentucky in which your area of expertise may be handled.  The state chapter of your professional association may be able to assist you regarding these additional requirements.

The License Fee Division is also responsible for the collection of the Insurance Premium Tax. Depending on the type of policy, the tax varies from 2 - 5% of the Premium Amount. This tax is remitted by the insurance companies and being collected on a policyholder's bill.

The License Fee Division is also responsible for collection of the Transient Room Tax. This is a 3% tax imposed on Gross Rental of all motels, bed & breakfasts, cabins, etc. located in Barren County (excluding the city limits of Cave City and Park City). The room tax is due on a monthly basis. These funds are only collected by the City.  These are forwarded to the Barren County Tourism Commission for use.

All questions regarding Occupational License Fees should be directed to the License Fee Division at the numbers below.  You may also email your questions to bkerney@glasgow-ky.com.

License Fee Office
126 East Public Square
P.O. Box 278
Glasgow, KY 42142-0278
Phone: 270-651-5131
Fax: 270-651-2511   

Hours:
Monday thru Friday
7:30 a.m. to 4:30 p.m. CT

 

Brandon Kerney

Occupational Tax Administrator

ABC Administrator

bkerney@glasgow-ky.com

 

 Teresa Cross

Assistant Tax Administrator

 

t.cross@glasgow-ky.com

 
 All information provided to the License Fee Division is subject to KRS 61.870 TO 61.884. If you have any questions regarding the Kentucky Open Records Act ask our office BEFORE filing the application.