Net Profit License Fee Returns
The following information is provided as an overview of the Net Profit Tax filing requirements for Jessamine County and the City of Nicholasville. You can access the net profit license fee return form, instructions and the extension request form from this page. If you are looking for information regarding another local tax subject, please click here and return to the Occupational Tax Office homepage.
Who is required to file a Net Profit License Fee Return?
Corporations, partnerships, sole proprietorships, estates and trusts, or other business entities engaged in a business with:
- Business activity in Jessamine County/City of Nicholasville and/or
- Business nexus in Jessamine County/City of Nicholasville sufficient to justify the imposition of the license tax.
You must file a net profit tax return even if:
- Your business activity resulted in a net loss for the tax year. Complete the form JCOT-2 according to the instructions provided, sign the form, and return to the Jessamine County Occupational Tax Office.
- You were not actively engaged in business during the year but intend to resume operations at a future date. Check the box marked “No Activity” on form JCOT-2, sign the form and return it to the Jessamine County Occupational Tax Office.
- Your business activity ceased prior to the beginning of the tax year but you have not provided written notification that operations ceased. Indicate “No Activity” and “Final” on Form JCOT-2, complete question F, sign and return it to the Jessamine County Occupational Tax Office.
- Your business was operational for a portion of the tax year but ceased operation prior to the completion of the calendar/fiscal year end. Complete Form JCOT-2 according to the instructions provided and indicate “Final” on the form, complete question F, sign and return it to the Jessamine County Occupational Tax Office.
- You registered with the intention of starting a business but never transacted business with Nicholasville/Jessamine County and do not intend to do so in the future. Indicate “No Activity” and “Final” on Form JCOT-2, complete question F, sign the form and return it to the Jessamine County Occupational Tax Office.
What is the net profit tax rate for Jessamine County/City of Nicholasville?
The tax rate for Jessamine County is 1%. The tax rate for the City of Nicholasville is 1%.
- Income earned within the City of Nicholasville, or the City of Wilmore is subject to the applicable city tax rate and the county tax rate.
- Income earned within Jessamine County outside the incorporated city limits of Nicholasville and Wilmore is subject to only the County tax rate.
When are Net Profit License Fee Returns due?
For taxpayers filing on a calendar year basis (12/31), returns are due April 15th or within 105 days of the fiscal year end, i.e. FYE 6/30/2024 are due 10/15/2024.
How and where do I make tax payments?
Net profit tax payments must be made separately to each jurisdiction.
- If you are paying the City of Nicholasville net profit tax, your check should be payable to the City of Nicholasville.
- If you are paying Jessamine County net profit tax, your check should be payable to Jessamine County Fiscal Court.
All payments should be sent to the Occupational Tax Office, 105 Court Row, Nicholasville, KY 40356.
What do I do if I am filing late? Will I be charged penalty and interest?
If the due date for filing a return has passed, file the return as soon as possible. Penalty is assessed at 5% per month or portion thereof not to exceed 25% with a $25.00 minimum; interest is assessed at 12% per annum. Penalties and interest are assessed for late filing and/or payment on any tax that is not paid by the original due date.
Can Net Profit License Fee Return due dates be extended?
Yes, the county may grant any business entity an extension of not more than 6 months, unless a longer extension has been granted by the IRS or is agreed to by the county and the business entity, for filing its return, if the business entity, on or before the date prescribed for payment of the occupational license tax, requests the extension and pays the amount properly estimated as its tax. Click here for the Form to Request Extension
If the time for filing a return is extended, the business entity shall pay, as part of the tax, an amount equal to 12% per annum simple interest on the tax shown due on the return, but not previously paid, from the time the tax was due until the return is filed and the tax paid to the county. A fraction of a month is counted as an entire month.
We will accept a copy of the federal extension to extend for local filing purposes as long as it and estimated payments are made as required on or before the original due date.
I have 2 separate sole proprietorships that I operate in Jessamine County. Do I need to have a separate account for each business?
No, you may file a net profit return for both businesses under one account number if you wish, so long as both businesses are sole proprietorships that operate in Jessamine County and you are the owner unless:
- Either of the businesses is organized as an LLC, then the LLC will need a separate account.
- Either of the businesses have activity outside of Jessamine County, a separate account will be required.
Sole proprietorships with business activity exclusively in Jessamine County (outside the city limits of Nicholasville), i.e. a farm, cannot be combined with business activity conducted within the city limits of Nicholasville for city tax filing purposes.
My spouse and I file a joint return and each of us own a business that is a sole proprietorship. Can we combine our Schedule C’s like we do on our federal return and file under one local tax account number?
No, the income from multiple sole proprietorships operating in Jessamine County and/or the City of Nicholasville can only be combined under one account number when the sole proprietorship is owned by the same individual. You and your spouse require separate accounts.
I have a short-term rental that is listed on Air BnB, and they collect and pay all the taxes on my behalf. Am I required to file a Net Profit License Fee Return too?
Yes, the Transient Room Tax is like an excise tax that is typically paid by the consumer (in this case the person renting the property.) The net profit tax is an annual tax which is based on the net profits of your business.
I am the owner of a sole proprietorship that is located in Jessamine County/City of Nicholasville. I work from my home, and I sell all of my products through an online retailer. Am I required to file a net profit license fee return?
Yes, you are operating a business in Jessamine County/City of Nicholasville and are required to register and file an annual net profit license fee return. In addition, if you have employees or compensate family members or other individuals for labor provided to your business, you are required to withhold and remit the occupational license tax payroll withholding on wages, which is filed quarterly.
I operate a business that does not have a physical location in Jessamine County/City of Nicholasville but do have remote employee(s) who work from their home(s) in Jessamine County/City of Nicholasville. Am I required to file a net profit license fee return?
Yes, any employee who is hired to work remotely out of a home located within Jessamine County/City of Nicholasville is considered to be conducting business activity on behalf of the employer within the jurisdiction. Wages paid in our jurisdiction are a determining factor of business activity.
I operate as an independent contractor for a rideshare company (Uber). Am I required to file a net profit license fee return?
Yes, gig economy workers who engage in temporary or part-time jobs as independent contractors are required to file an annual net profit license fee return. These include but are not limited to all rideshare and food delivery service positions.
Are Homeowner’s Associations required to file a Net Profit License Fee Return?
If a Homeowner’s Association reports unrelated business income on their federal tax return for any tax period, a Net Profit License Fee Return must be filed, and the net profit taxes must be paid for that tax period. A Homeowner’s Association is only exempt if it annually submits a copy of the federal tax return reporting no unrelated business income.
Department Supervision and Contacts
- 105 Court Row Nicholasville, KY 40356
- Monday - Friday 8AM to 4PM
[email protected]
(859) 885-4500
About
Jessamine County is ideally set in the heart of Kentucky’s Bluegrass region. Rolling hills, horse farms, lush landscapes and a meandering river offer classic Kentucky vistas.