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CCH® PAYROLL — 5/16/08

Kentucky local governments may impose occupational license fee

A new provision has been added to the Kentucky tax increment financing statutes authorizing local governments to impose an occupational license fee against each person employed in a development area or local development area. The fee may be imposed only against persons whose jobs are newly created as a result of a project within the development area or local development area. The assessment or any combination of assessments imposed by a city, a county, or a combination of cities and counties within the development area or local development area may not exceed 2% of gross wages of the person. Under certain circumstances, persons against whom an assessment is imposed will be entitled to a credit against any jurisdiction-wide local occupational license fee levied by the local government(s) that established the development area or local development area. (H.B. 611, Laws 2008, approved April 24, 2008, effective July 15, 2008.)

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