Business License F.A.Q

  • What is required on the form:
    • All applicable fields on the form are required.
  • Is the SSN (Social Security Number) required, or can I just use my Federal Tax ID number:
    • The Federal Tax ID number CAN NOT be used in place of the SSN. The SSN is a required field of the form per the Secretary of States Office.
  • Who is required to have a license:
    • Every business entity engaged in any trade, occupation, employment, business, or profession (which terms are hereinafter collectively called “business“) hereinafter specified, shall be required to obtain the occupational license and pay a license tax therefor herein provided, prior to beginning to engage in the business and thereafter, on or before the fifteenth day of the fourth month following the end of the taxable year of the business entity.
  • Is anyone exempt:
    • The following entities must obtain a business license, however they are except of the license fee.
      • Non-profit entities as designated as such by federal tax code
      • Any governmental entity or agency
      • Schools
      • Churches
      • Minors (17 & Under) (Exemption VOID if minor uses commercial transportation)
      • Any other entity where the imposition of such tax would violate a provision of the Kentucky Revised Statue or federal law.
  • What is my Taxable Year?
    • The calendar year or fiscal year ending during the calendar year, upon the basis of which gross receipts is computed. (The federal tax year of the business).
  • What is the license tax rate for the City of Dry Ridge?
    • The license tax rate is 0.05% (0.0005) of taxable gross receipts
  • Gross Receipts:
    • When calculating gross receipts for the application there is a formula on the application to assist. The gross receipts are based on what is grossed inside the city limits.
  • Is there a minimum or maximum license tax?
    • Yes, the minimum is $40.00 and the maximum is $1,000.00.
  • Duplicate License:
    • A license is to be posted at a conspicuous place in the place of business, or with employee. If the business has multiple locations / worksites in the city, a duplicate license can be requested. The fee for duplicate license is $25.00 per license.
  • Can an extension be filed?
    • If an extension of time for filing is needed, a separate extension request must be filed with each tax district and is mandatory in all cases. Some tax districts have their own forms for requesting an extension of time to file, but most will accept a timely filed copy of the federal extension application with the district. Include your local tax district account number on the application. The extension request must be postmarked or hand-delivered to the local tax district on or before the original due date and it must be accompanied by the amount properly estimated as due. If a request for extension of time is timely filed, any amount that is not paid by the regular due date bears interest at the rate of one percent (1%) per month, or part of a month. [KRS 67.770]
    • A application (State Form OL-S) is required to be sent in along with the extension.
  • Tax due when filing:
    • The full amount of the unpaid tax payable by any business entity, as appears from the face of the return, shall be paid to the city at the time prescribed for filing the tax return, determined without regard to any extension of time for filing the return.

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