Need to Know

A friendly reminder from the Business License Department:

- 2023 business license due on or before January 31, 2023.  $25.00 late filing fee will apply.

- If a federal extension is granted- a copy must be submitted to the City of Franklin by Annual Gross Receipts due date with estimated payment.

- Each business is required to furnish a list of all contract laborers contracted by the business during the 2022 calendar year by January 31, 2023. A copy of 1099 issued is required.

- Please notify the business license department if your business has ceased operations in the city of franklin in order to close your account.

The License Fee Division collects Occupational License Fees from all businesses that operate within the city limits of Franklin. As with most cities in Kentucky, Occupational License Fees are our main source of revenue. This revenue is generated by five sources: 1) Minimum Business License Fees, 2) Business License Reconciliation of Gross Receipts, 3) Occupational Fee on payrolls 4) Manufacturing License Fee 5) Insurance Premium Fee.

  1. Minimum Business License Fee must be paid by all businesses operating for profit in the city limits of Franklin. New businesses should pay the Minimum License Fee before beginning operations in Franklin. Existing businesses must renew the License on or before January 31 of each year.
  2. Business License Reconciliation must be filed on or before April 15 of each calendar year, or 105 days after the businesses fiscal year end. Copies of the applicable Federal return must be attached to verify gross receipts.
  3. Occupational License Fee on payroll is the largest contributor of revenue to the City. This fee is withheld from the employees by the employer and remitted quarterly. The 1% fee applies to the gross wages of individuals working in the city limits of Franklin, regardless of residence.
  4. Manufacturing License Fee is imposed on all manufacturing companies located within the city of Franklin. Each manufacturer must pay an annual license fee equal to the number of employees, including salaried employees, multiplied by $20. This fee shall be due and payable quarterly, and the number of employees shall be defined as the weekly average of total employment for each quarter. The minimum annual license fee is $100.00. This fee is in addition to the Payroll fee imposed on employees.
  5. Insurance Premium Fee is imposed on insurance policies issued in Franklin at a rate of 9%. This fee is remitted by the insurance companies and is imposed on the policyholder’s bill.

SPECIAL NOTE TO CONTRACTORS

All subcontractors must have an Occupational License. One cannot work “under” another’s license unless they are considered an employee and the 1% Occupational License Fee is being withheld from the subcontractor’s earnings. Therefore, all subcontractors must also obtain an application and License before doing business within the City Of Franklin. Penalties will be imposed on those contractors in violation of Occupational License Ordinance.

Any questions regarding Occupational License Fees should be directed to the License Fee Division at (270)586-4497. You may also email the License Fee Division at taxdept@franklinky.org .