Occupational license fees – filing requirements

Every person and business entity engaged in any business in Fayette County is required to apply for and obtain an initial occupational license before starting a business, and annually thereafter.

The Occupational Tax on wages is required to be withheld from the compensation of employees. The employee has no filing requirements unless an employer fails to withhold or under withholds.

Types of forms and when to file

Form 228  Net Profit License Fee Return must be filed by every business entity including sole proprietors unless they have a Tax Exempt determination letter from the IRS.

Form 220-221  Employer's Return of License Fee Withheld must be filed quarterly by every employer with employees working in Lexington. If the total withholdings in any quarter exceed $300.00, the return must be filed on a monthly basis.

Form 222  Reconciliation of License Fee Withheld must be filed annually by every employer.

Form 228 LX  1099  Misc. Transmittal. All persons who make Federal Form 1099 "non-employee compensation" payment to natural persons other than employees for services performed within the urban county government, should maintain records of such payments and to report such payments to the urban county government.

Current year tax forms for download

Ordinances and regulations

These taxes and fees are governed by the following codes and ordinance.

License Fee Regulations - 5th edition - Issued: 12/1/00

Chapter 13 Code of Ordinances (Rev. December 6, 2007)