Owensboro staff outlines occupational license tax rules, exemptions and filing requirements

Dana Coombs, the city’s occupational tax and revenue collections manager, presented an overview of occupational license taxes and fees to the Owensboro Board of Commissioners on May 20, 2025. The presentation covered what the tax is, who pays it, required forms and filing schedules, common exemptions and how the city determines tax nexus.

Coombs told commissioners the occupational license tax and occupational license fee are treated as the same and apply to business activity inside the jurisdiction. “The license fee on wages is imposed on employees only. All others pay license fee on the net profits,” Coombs said. She said independent contractors receiving a 1099 must file a net profit return (NP1). Coombs said employers withholding more than $300 per quarter must file payroll withholding monthly; others may file quarterly. The annual NP1…