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Business License / Occupational Tax
License Fee Division
📞 270-651-5131
126 E. Public Sq, Glasgow, KY (located at the end of the hall on the first floor)
The License Fee Division is responsible for collecting Occupational License Fees from all individuals and entities conducting business within the city limits of Glasgow.
These fees may include:
A Net Profit License Fee and or a Quarterly Occupational/Local Payroll Tax on employee wages
Occupational Tax Rate:
The occupational tax rate is 1.75%, effective July 1, 2021.
Any person or entity engaged in a trade, occupation, profession, or other activity for profit within the City of Glasgow is required to register their business unless specifically exempt by ordinance.
This requirement includes, but is not limited to:
Independent contractors
Rental property owners (see rental exclusions below)
Real estate agents
Construction workers and tradespeople
Barbers, beauticians, and cosmetology professionals
Remote employees performing work for employers with business activity in the City of Glasgow
Owners and operators of commercial rental property
Individuals with more than five (5) residential rental properties
Other individuals or entities providing services or conducting business for profit within the city limits
To register, you must:
Complete a Business Registration Form (available on the link above)
Submit the form to the License Fee Division
Pay a $50 registration fee
Certain businesses such as pawn shops, entertainment or amusement venues, and circuses are subject to additional fees and regulations. Please contact the License Fee Division for details.
Residential Rental Properties
Individuals with five (5) or fewer residential rental properties are not subject to the local occupational tax.
This exclusion does not apply to rental properties owned by entities (LLCs, corporations, etc.).
All commercial rental property, regardless of the number of units, is subject to local occupational tax.
Subcontractors
A subcontractor cannot operate under another business’s license. Each business must hold its own license.
License Transfers
Business licenses are not transferable.
A new owner must obtain a new license and may not operate under the previous owner’s license.
The Net Profit License Fee is reported annually using a local tax return prepared by you or your tax professional.
Key details:
Based on your taxable year end (December 31 for most businesses)
Imposes a 1.75% occupational tax on profits allocable to the City of Glasgow
Businesses operating both inside and outside city limits will use an allocation formula to determine taxable profit (Minimum $25)
Net Profit License Fee Return forms is available HERE
The Occupational (Local Payroll) Tax is a quarterly tax that employers must withhold from employee compensation earned within Glasgow.
This tax applies to:
Wages
Salaries
Commissions
Deferred compensation
Employee contributions to Section 125 Cafeteria Plans
The tax is applied to gross earnings, with no deductions.
Some professions require additional State of Kentucky licensing or certification, including but not limited to:
Attorneys
Cosmetologists and barbers
Psychologists
Massage therapists
Morticians
Daycare providers
Taxi and transportation services
Please consult the appropriate Kentucky state agency or your professional association to ensure compliance with all state requirements.
Insurance Premium Tax
The License Fee Division collects the Insurance Premium Tax, which is remitted by insurance companies and included on policyholder bills.
Transient Room Tax
The License Fee Division also collects the Transient Room Tax, which includes:
A 3% tax on gross rental charges
Applies to motels, bed & breakfasts, cabins, and similar accommodations
Applies throughout Barren County, excluding Cave City and Park City
Due monthly:
Collected by the City and forwarded to the Barren County Tourism Commission
Transient Room Tax return forms are available on this website.
For questions regarding business licenses, occupational taxes, or filing requirements:
📞 License Fee Division: 270-651-5131
📧 Email: [email protected]
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.
Central Time Zone
Debbie Bow
Assistant Tax Administrator
[email protected]
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.
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