Occupational Tax/Business License

PURPOSE OF OCCUPATIONAL FEES

The occupational fees in Hancock County, Kentucky, are a major source of tax support for the county government. The license fees are necessary to provide the better things for Hancock County.

WHO MUST PAY THE OCCUPATIONAL FEES

1. Every person or business (including self-employed individuals such as farmers, rental property owners, home based businesses, etc., sole proprietorship, partnership, corporation, association or other entity) which has activity within Hancock County, Kentucky, is required to pay occupational fees on the net profits of its business operation or enterprise with the exception of: (1) No person or company employing more than 100 persons in the county in the manufacturing process for gain or profit shall be required to pay a license fee on net profits. (2) No person or company that pays a franchise tax to the county shall be required to pay a license fee on net profits. No license tax shall be imposed upon or collected from any person, firm or corporation where the county is prohibited by law from imposing a license tax.
2. Every employee who works in this taxing jurisdiction is subject to occupational fees on their gross earnings. Employers are required to withhold the occupational fees each pay period and remit quarterly to the Hancock County Administrator.

TAXPAYER REQUIREMENTS

1. Business License — All persons, firms, partnerships, corporations, or any other entity whatsoever conducting business within the boundaries of Hancock County, Kentucky is required to purchase an annual business license from the Occupational Tax Administrator at the cost of $10.00.
2. Tax Filing Account — Every person or business must register to pay occupational taxes by filling out a questionnaire obtainable from the Hancock County Occupational Tax Administrator.
3. Annual Net Profits Return — At the end of each calendar or fiscal year businesses or enterprises are required to file Form Bus. #1, reporting net profits subject to occupational fees. The tax rate on business or enterprise profits earned in Hancock County, Kentucky is presently 1.60% effective January 1, 2020.
4. Employee Withholding — Every employer who has employees working in this taxing jurisdiction must withhold the appropriate occupational fees each pay period and remit these amounts quarterly on forms provided by the Administrator. At the end of each calendar year, employers will be required to submit the name, address, social security number, gross wage amount and amount of occupational fees withheld for each employee. The tax rate on amounts earned in Hancock County, Kentucky is 1.60% of the gross wage on all employees.
5. 1099 Wages — Every employer who issues 1099’s for work performed in Hancock County, Kentucky must submit copies of all 1099’s to the Administrator at the end of each calendar year. The tax rate is 1.60% on all 1099 wages.

Any questions or further information concerning the occupational fees in Hancock County, Kentucky should be directed to the attention of the Stacy Bozarth, Hancock County Administrator at (270) 927-8788.

Forms

Net Profit License Fee Return
Employer’s Quarterly Return
Reconciliation of Quarterly License Fee Withheld
Questionnaire
Summary & Transmittal of Non-Employee Earnings
Hancock County Business License Application