Business Licenses/Occupational Fees
All businesses are required to submit a Business License Reconciliation form within 105 days of each year ending April 15th. In order to receive a filing extension for the Business License Reconciliation, you must submit a copy of the Federal Request for Extension, along with your estimated fee payment (which is the amount due after deducting your minimum $100 or $50 license fee payment).
PLEASE NOTE - Just a friendly reminder - Business Licenses expire on December 31st of each year, and is payable on or before January 31st. After which time, a penalty will be charged. When making payment, please note any corrections or change of address. The City of Franklin requires that your Business License be posted in a public area within the premises of the business.
All businesses are required to submit an Occupational License Fee of 1% of gross wages paid employees for services within the City of Franklin each year. This is for working within the City limits, and must be paid regardless of place of residence. Withholdings should be for all taxable federal wages with a few exemptions as outlined in Ordinance 220.10-6-92 and subsequent amendments. The following money receipts are not deemed to be "salaries, wages, commission, and other compensations" within our ordinance, and are not subject to the 1% Occupational License Fee: old age or retirement payments; disability, sickness, accident benefits, and unemployment compensation; death benefits arising under the Workers' Compensation Act; and wages, bonuses, salaries, or incentive payments to the extent that said payments exceed the Federal Social Security withholding limit. Payments for should be submitted along with the Quarterly Return of Occupational License Fee form by the last day of the month, following the end of each quarter. If you need additional forms, please call and they can be mailed to you.
As usual, by January 31st, each organization must file with the City the name and address of each employee and the amount of salaries, wages, commissions, or other compensations earned during each year (computer printouts or copies of W2's and 1099's are acceptable). If you have any questions, or need additional information, you may contact Mandy Cassady from 8:00 a.m. to 4:30 p.m. CST Monday through Friday at 270-586-4497.
A friendly reminder from the Business License Department:
- 2013 business license expires December 31, 2013.
- 2014 business license due on or before January 31, 2014. $25.00 late filing fee will apply.
- Business license reconciliation (gross receipts) for 2012 tax year must be received by April 15th, 2014 (or 108 days after fiscal year end date) a copy of applicable federal return is required. Minimum $25.00 late filing fee.
- If a federal extension is granted- a copy must be submitted to the City of Franklin by April 15, 2014 with estimated payment.
- Each business is required to furnish a list of all contract laborers contracted by the business during the 2013 calendar year byJanuary 31, 2014. A copy of 1099 issued is required.
- Please notify the business license department if your business has ceased operations in the city of franklin in order to close your account.
The License Fee Division collects Occupational License Fees from all businesses that operate within the city limits of Franklin. As with most cities in Kentucky, Occupational License Fees are our main source of revenue. This revenue is generated by four sources: 1) Minimum Business License Fees, 2) Business License Reconciliation of Gross Receipts, 3) Occupational Fee on payrolls 4) Manufacturing License Fee 5) Insurance Premium Fee.
- Minimum Business License Fee must be paid by all businesses operating for profit in the city limits of Franklin. New businesses should pay the Minimum License Fee before beginning operations in Franklin. Existing businesses must renew the License on or before January 31 of each year.
- Business License Reconciliation must be filed on or before April 15 of each calendar year, or 105 days after the businesses fiscal year end. Copies of the applicable Federal return must be attached to verify gross receipts.
- Occupational License Fee on payroll is the largest contributor of revenue to the City. This fee is withheld from the employees by the employer and remitted quarterly. The 1% fee applies to the gross wages of individuals working in the city limits of Franklin, regardless of residence.
- Manufacturing License Fee is imposed on all manufacturing companies located within the city of Franklin. Each manufacturer must pay an annual license fee equal to the number of employees, including salaried employees, multiplied by $20. This fee shall be due and payable quarterly, and the number of employees shall be defined as the weekly average of total employment for each quarter. The minimum annual license fee is $100.00. This fee is in addition to the Payroll fee imposed on employees.
- Insurance Premium Fee is imposed on insurance policies issued in Franklin at a rate of 9%. This fee is remitted by the insurance companies and is imposed on the policyholder’s bill.
SPECIAL NOTE TO CONTRACTORS
All subcontractors must have an Occupational License. One cannot work “under” another’s license unless they are considered an employee and the 1% Occupational License Fee is being withheld from the subcontractor’s earnings. Therefore, all subcontractors must also obtain an application and License before doing business within the City Of Franklin. Penalties will be imposed on those contractors in violation of Occupational License Ordinance.
Any questions regarding Occupational License Fees should be directed to the License Fee Division at (270)586-4497. You may also email the License Fee Division via Mandy Cassady.
Under the City Code, the City Clerk/Tax Collector has been appointed as the Alcoholic Beverage Control Administrator for the City. By local option election, businesses located within the City limits are allowed to sell distilled spirits and malt beverages by the drink. Hours of sale are governed by the City and vary depending upon the type of license issued. Sunday sales licenses are available to qualifying restaurants. All applicants for alcoholic beverage licenses must complete a comprehensive set of forms for the City, State and Federal licenses. The licensing process normally takes five weeks. Applications are obtained and returned to the ABC Coordinator, 117 W Cedar St. for review and processing.