This information is intended to acquaint businesses with the Pendleton County Occupational License Tax Ordinance and tax collection process. The following is for general information purposes only and does not constitute tax or legal advise.
For the complete text of the Ordinance and Amendment, please click on the links below.
430.0 Occupational Licence Tax (799KB)
430.01 Occupational Tax Amendment (274KB)
What is the Occupational Tax and who benefits from this tax?
The Pendleton County Occupational Tax is a payroll tax withheld from those employees who work within Pendleton County and paid to the county. The tax collected will assist the community including, but not limited to, ambulance service, fire protection, police protection, animal control, senior services, mandatory jail, capital improvements, parks and recreation services.
Who must Register with the Tax Administrator?
Every person or business who renders services to another person or business for compensation is required to register by completing a questionnaire for a Pendleton County Occupational Tax Account.
For companies, please complete the Questionnaire for Business (22KB) for your company and return to the Tax Administrator within ten working days.
An Account Information Update for Business (26KB) form should be used anytime pertinent changes occur.
For individuals who are required to comply, please complete the specified Questionnaire for Individuals (22KB) form. (*Please note that all forms are available in pdf format and can only be downloaded, then mailed to the Tax Administrator or faxed to 859-654-5047.)
Who is required to Pay Pendleton County Occupational Tax?
Any person who renders services to another person or business for compensation
What if the employee does not live in Pendleton County?
The payroll tax is imposed on compensation earned for work performed in the county.
What is the tax rate?
Effective 01-01-06 through 03-31-09, the tax rate is ½ percent (.5% or .005) of subject compensation.
Effective 04-01-09 through 12-31-10, the tax rate is 1 ½ percent (1.5% or .015) of subject compensation.
Effective 01-01-11,tax rate reverts back to original rate of ½ percent (.5% or .005) of subject compensation.
For more information as to what dollar amounts are inclusive, refer to the
Occupational License Tax Ordinance and Amendment (274KB) or contact your tax preparer.)
Must an employer in Pendleton County withhold payroll tax?
Yes. Every employer making payment of compensation to an employee must withhold the tax.
What is the Penalty for failure to file Payroll Tax Returns timely?
Employers may be subject to a Penalty of 5% of the tax due for each calendar month, not to exceed 25% of the total tax due and not less than $25.00, plus Interest of 12%.
Where do I pay?
Your check should be made payable to the Pendleton County General Fund at 233 Main Street, Room 4, Falmouth, KY, 41040.
When do I pay?
Quarterly Payroll Withholding Schedule is as follows:
Quarter-End: March 31st.......Return Due: April 30th
Quarter-End: June 30th........ Return Due: July 31st
Quarter-End: Sept. 30th........Return Due: Oct. 31st
Quarter-End: Dec. 31st.........Return Due: Jan. 31st
What do I do if I overpaid this tax?
A refund or credit can be made to the employer within two years from the date the overpayment was made. An employee who has compensation attributable to activities performed outside the county may file for a refund by completing a Refund Request Form (20KB) and providing the necessary information. Confirmation with the employer of the percentage of time spent outside the county will be verified prior to approval of the refund claim.
I am interested in starting my own business. Where can I get information?
Small businesses are vital to Kentucky's economy and a variety of services and programs exist to assist small business. The Kentucky Business Guide has been developed by the Kentucky Cabinet for Economic Development to help direct you through the proper steps and provide additional sources of information.