{"data":{"id":"us-ky/krs-65.7056","jurisdiction":"us-ky","citation":"KRS 65.7056","heading":"Occupational license fee -- Assessment -- Credit against other license fee --","body":"Collection and remittance -- Job development assessment fee -- Fee maximums.\n(1) Any city, county, or combination of cities and counties establishing a development\narea or l ocal development area may, as a condition of employment, impose an\noccupational license fee against each person employed in the development area or\nlocal development area through the adoption of an ordinance imposing such fee.\nThe imposition of the fee shall be subject to the following:\n(a) The occupational license fee shall be imposed only against persons whose jobs\nare newly created as a result of a project within the development area or local\ndevelopment area. A job is not newly created if it occurs due to the relocation\nof a job from another location within the Commonwealth;\n(b) The person against whom the assessment is imposed shall be subject to the\nstate tax imposed by KRS 141.020;\n(c) The assessment or any combination of assessments imposed by a city , a\ncounty, or a combination of cities and counties within the development area or\nlocal development area shall not exceed two percent (2%) of gross wages of\nthe person; and\n(d) The imposition of a fee shall be reported to the Kentucky Economic\nDevelopment Finance Authority established by KRS 154.20-010.\n(2) (a) Each person against whom an assessment is imposed shall be entitled to a\ncredit against any jurisdictionwide local occupational license fee levied by the\ncity, county, or combination of cities and c ounties that established the\ndevelopment area or local development area if the jurisdictionwide levy has\nnot previously been made available as a credit against assessments imposed\nunder Subchapter 23, 24, 25, 26, or 27 of KRS Chapter 154.\n(b) The amount of  the credit shall not exceed the amount of the jurisdictionwide\noccupational license fee paid to that city, county, or combination of cities and\ncounties by the person subject to the assessment.\n(c) If the city, county, or combination of cities and countie s imposing the\noccupational license fee within the development area or local development\narea does not levy a jurisdictionwide occupational license fee, the employee\nshall not be entitled to a credit against any other city's or county's occupational\nlicense fee or any income tax levied by the Commonwealth.\n(3) Each employer in the development area or local development area shall, for each\nemployee subject to an occupational license fee levied pursuant to this section:\n(a) Collect the occupational license fe e by deducting the occupational license fee\nfrom each paycheck of its employees;\n(b) Promptly remit the occupational license fee to the official charged with\ncollecting revenues in the development area or local development area;\n(c) Make its payroll books and records available to the official charged with\ncollecting revenues in the development area or local development area at a\nreasonable time as specified by the city, county, or cities and counties\nestablishing the development area or local development area; and\n(d) File with the official charged with collecting revenues in the development area\nor local development area any documentation with regard to the occupational\nlicense fee as required by the city, county, or cities and counties establis hing\nthe development area or local development area.\n(4) Any assessment of a person under this section shall permanently lapse on the earlier\nof:\n(a)  The termination date;\n(b) The date on which any bonds issued in connection with the project are retired;\nor\n(c) The date on which any loans or other financing incurred in connection with\nthe establishment of the development area or local development area mature\nor are paid in full.\n(5) If a company, against whose employees an assessment is levied under this s ection,\nenters into an agreement with the economic development authority under\nSubchapter 23, 24, 25, 26, or 27 of KRS Chapter 154 allowing the company to\nimpose a job development assessment fee as part of that agreement, the total\nassessment levied against the employee for state inducements and the development\narea or local development area shall not exceed six percent (6%), subject to\nsubsection (6) of this section.\n(6) If an eligible company under Subchapter 23, 24, 25, 26, or 27 of KRS Chapter 154\nlocates or expands within a development area or local development area, the\nassessment imposed under this section shall not exceed the lesser of two percent\n(2%) or the difference between two percent (2%) and the local occupational license\nfee used as a credit against the assessments granted under Subchapter 23, 24, 25, 26,\nor 27 of KRS Chapter 154.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23477","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:22Z","sha256":"e4c712ce968f77eb4ae39947af5bf72f7a68b558057e33f24fa4ffa827e465fd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.7055","next":"us-ky/krs-65.7057"},"notice":"GroundRules: Original legal text. Not legal advice."}