KRS 67.767: Development, adoption, use, and availability of standard forms for

occupational license tax returns -- Duties of Secretary of State, advisory

committee, and tax districts -- Administrative regulation -- Opt out by tax

districts with an online filing and payment system -- Exemptions.

(1) (a) 1. The Secretary of State shall prescribe separate standard forms, through

promulgation of an administrative regulation in accordance with KRS

Chapter 13A, which shall allow for:

a. A combined net profit s and gross receipts occupational license

taxes return or separate forms for a net profits occupational license

tax return and a gross receipts occupational license tax return by

all business entities; and

b. A payroll occupational license tax return, for returns of payroll

taxes by all business entities.

2. For business entities to have the information necessary to ensure the

proper payment of the taxes to each tax district, the Secretary shall also

develop and update as necessary:

a. Instructions for business entities on the completion of the standard

forms; and

b. Fillable portable document format versions of each of the

standardized forms developed pursuant to subparagraph 1. of this

paragraph.

(b) The Secretary shall seek advice and comments on the deve lopment,

amendment, and maintenance of the forms and instructions from an advisory

committee chaired by the Secretary, or his or her designee, that is composed

of:

1. One (1) member of the Secretary of State's staff;

2. Two (2) members submitted by the Kentucky League of Cities;

3. Two (2) members submitted by the Kentucky Association of Counties,

at least one (1) of which shall be a current elected county

judge/executive;

4. Two (2) members submitted by the Kentucky Society of Certified Public

Accountants;

5. One (1) member submitted by the Kentucky Association of County

Treasurers and Finance Officers;

6. One (1) member submitted by the Associated General Contractors o f

Kentucky;

7. One (1) member submitted by the Kentucky Association of Master

Contractors;

8. One (1) member submitted by the National Federation of Independent

Business;

9. One (1) member submitted by the Associated Builders and Contractors

of Indiana/Kentucky;

10. Two (2) members submitted by the Kentucky Occupational License

Association; and

11. One (1) member submitted by the Kentucky School Boards Association.

(c) The advisory committee shall:

1. Meet at the call of the chair;

2. Convene before August 31, 2026, for the first meeting, and as necessary

thereafter;

3. Develop any new forms, returns, and instructions required in this

subsection before June 1, 2027; and

4. File the completed forms to the Legislative Research Committee for

referral to the Int erim Joint Committee on Local Government by June

24, 2027.

(d) Within fourteen (14) days after the July 2027 Interim Joint Committee on

Local Government meeting, the Secretary of State shall submit a proposed

administrative regulation to the Legislative Re search Committee in

accordance with KRS Chapter 13A, which includes the forms and electronic

links required in this subsection.

(e) This subsection shall not be interpreted to require the development or

adoption of a new form if the Secretary of the State determines that an

existing form satisfies the requirements of paragraph (a) of this subsection.

(f) Once the standard forms are adopted or amended, the Secretary of State shall

include the forms, instructions, electronic links to the fillable portable

document format versions of the forms, and any updates on the one -stop

business portal or another public website maintained by that office, along with

information submitted to the Secretary of State pursuant to subsection (2) or

(4) of this section. The forms and instructions shall be updated and maintained

by the Secretary of State at no cost to the tax districts. A fee shall not be

levied against the public or businesses for accessing and downloading forms,

instructions, or other information maintained by th e Secretary of State under

this section.

(2) After the forms are adopted under subsection (1) of this section but prior to July 1,

2029, a tax district shall:

(a) Adopt the standard forms as its exclusive electronic return forms;

(b) Accept the standard fo rms electronically in addition to the tax district's own

return form or forms; or

(c) 1. Opt out from adopting or using the forms in paragraphs (a) and (b) of

this subsection if it has:

a. An online filing and payment system in use on or before January

1, 2025; or

b. Entered into a binding contract for the implementation of an online

filing and payment system on or before July 1, 2026.

2. If a tax district opts out under subparagraph 1. of this paragraph, in

addition to providing online access to the electronic filing and payment

system it uses on its own website that permits the electronic submission

of forms and the electronic remittance of payments, and in order to

maintain its exemption, it shall provide:

a. An electronic link to access its online filing and payment system to

the Secretary of State for inclusion on the one -stop business portal

or another public website maintained by that office;

b. A copy of the written order specifying that the tax district has a

qualifying online filing system in use and will not accept the

standard forms within thirty (30) days of its adoption; and

c. A copy of occupational license tax forms that the t ax district

accepts, any accompanying instructions, and any future

amendments to those forms, instructions, and electronic links

within thirty (30) days of any change.

(3) A tax district that accepts the standard forms for filing under subsection (2)(a) or (b)

of this section shall have nine (9) months from the final approval date of an

administrative regulation establishing any new or amended standard forms to

comply with the provisions of those subsections.

(4) After July 1, 2029, a tax district:

(a) Shall either adopt the standard forms as its exclusive electronic return forms

or accept the standard forms in addition to the tax district's own return form or

forms, unless:

1. The tax district submits a written request approved by the tax district's

governing body to the Secretary of State for an exemption based on

documented information that:

a. Acceptance of the form will impose an undue financial hardship

on the tax district; or

b. The tax district is part of an interlocal agreement that provides for

a single tax collection process for multiple jurisdictions; and

2. The Secretary of State approves the request for an exemption and

obtains the return forms that will be accepted by the tax district and any

applicable instructions for inclusion on the one -stop business portal or

another public website maintained by that office. In exercising his or her

discretion to grant an exemption under this subsection, the Secretary of

State may impose any reasonable terms and limitations upon the

exemption;

(b) Shall prov ide on its official website or other means for business entities to

access and download the forms, returns, instructions, and methods of

acceptable electronic payment of its occupational license taxes in a way that

the forms and returns may be electronical ly completed and submitted to the

tax district by the taxpayer;

(c) Shall allow a taxpayer who files the forms or returns electronically to pay the

tax due with the form or return by an automated clearinghouse electronic

funds transfer directly to the tax district's designated depository account or by

any other approved electronic method;

(d) May charge and collect from the taxpayer an additional electronic processing

fee and any fee or surcharge to recover the actual costs incurred by the taxing

district i n connection with the electronic filing, processing, security,

maintenance, and acceptance of electronic payments, including costs imposed

by third-party vendors or financial institutions;

(e) Shall provide an electronic receipt to the taxpayer upon the s uccessful

electronic filing of the form or return and payment; and

(f) If approved by an annual application with the Secretary of State, shall not be

subject to the provisions of paragraphs (b) to (f) of this subsection if the tax

district:

1. Collected less than two hundred thousand dollars ($200,000) during the

immediately preceding fiscal year from the combined levy of all types

of occupational license taxes in the immediately preceding fiscal year;

or

2. Submits reasonable evidence that the cost of comp liance with this

paragraph would exceed more than five percent (5%) of the taxing

district's total annual budget.

(5) Upon receipt of an order pursuant to subsection (2) of this section or upon the

issuance of an exemption under subsection (4) of this sect ion, the Secretary of State

shall provide notice to the Kentucky Society of Certified Public Accountants of the

tax districts that have submitted a written order to opt out under subsection (2) of

this section or that are granted an exemption under subsection (4) of this section.

(6) The Secretary of State shall include electronic links for the electronic downloading

of forms and electronic links for the online tax filing and payment system provided

to it under this section on the one -stop business portal o r other website maintained

by the Secretary of State within thirty (30) of receipt from the tax district.

(7) Nothing in this section or KRS 67.766 shall be interpreted to alter or preempt the

requirements imposed by a tax district regarding deadlines, reporting, rates, or other

legally imposed procedures regarding the imposition, administration, and collection

of local occupational license taxes by a tax district. Nor shall the adoption or use of

a standard forms developed under this section release the ta xpayer from any

liability or responsibility to the tax district for the correct payment of taxes,

penalties, and any other obligations imposed by the tax district. This section and

KRS 67.766 shall not be interpreted to authorize the collection of local tax revenues

by the state government or any other agency of the state.