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FORM OL-3 INSTRUCTIONS
Extensions If an extension of time for filing is required, a separate extension request to the Louisville Metro Revenue
A 90% estimated Commission is mandatory in all cases. You must file Form OL-3EXT or a copy of your federal extension application to
payment of the final tax request an automatic 6-month extension to file Form OL-3. All extension requests should include your Revenue
liability is required to Commission Account ID. The extension must be postmarked or hand-delivered to the Revenue Commission, 617 West
avoid penalty. Jefferson Street, Louisville, Kentucky 40202, on or before the original due date. Any tax due must be paid by the 15th
day of the 4th month following the close of the fiscal year end.
Penalties for There is a five percent (5%) penalty per month, or a fraction of a month, to a maximum of twenty-five percent (25%) of
the total license tax liability, for failure to file and/or pay a tax return by the regular or extended due date. Pursuant to
Failure to File/Pay KRS 67.790, there is a minimum $25.00 penalty for failure to file any return or report by the due date.
Interest Interest is computed at twelve percent (12%) per annum from the original due date until total tax liability is paid in full.
(See EXHIBIT “A”, ACCELERATED PAYMENT OF OCCUPATIONAL TAX ON BUSINESS NET PROFIT regarding interest on late
quarterly deposits.)
Refund Request Claims for refund or credit must be submitted within two (2) years from the filing of the tax return or due date of the tax
return, or two (2) years from payment, whichever is later.
State Exemptions • Any company that pays both an ad valorem tax and a franchise tax pursuant to the provisions of KRS 136.120.
• Persons whose sole business activity is the manufacture and/or sale of alcoholic beverages. (However, persons
having only a portion of their business activity being derived from the manufacturing and/or selling of alcoholic
The following persons beverages are required to file a return, but may exclude the portion of their net profits derived from such
are exempt under manufacture and/or sale of alcoholic beverages on Line 15. See instructions for Line 15 for more detailed
Kentucky law from the information).
net profits occupational • Life insurance companies incorporating under the laws of and doing business in the State of Kentucky [See KRS
tax and are not required
136.320 (4) (5)].
to file a return • Banks, trust companies, combined bank and trust companies, combined trust, banking and title businesses, savings
and loan associations (whether state or federally chartered).
• Persons whose sole wages, salaries, commissions, or other compensations earned in Louisville Metro, Kentucky,
are derived from service as members of the Kentucky National Guard for active duty training, unit training
assemblies, and annual field training.
• Persons engaged in the business of conducting a race track at which races are run for stakes, purses, or prizes,
under the jurisdiction of the State Racing Commission, whose only activity in Louisville Metro, Kentucky, is the
conducting of such race track and/or the operating or maintenance of pari-mutuel machines.
Special Provisions The following entities are exempt under Louisville Metro, KY, ordinances from the occupational tax and are not required
to file a return: boards of trade, chambers of commerce, trade associations or unions, community chest funds or
of Local Laws foundations, corporations or associations organized and operated exclusively for religious, charitable, scientific, literary,
educational, or civic purposes, or for the prevention of cruelty to children or animals; clubs or fraternal organizations
operated exclusively for social, literary, educational, or fraternal purposes where no part of the earnings, income, or
receipts of any such units, groups, or associations inures to the benefits of any private shareholder or individual.
The following persons are exempt from the Louisville Metro, KY, occupational tax rate of (.0125) and the Transit
Authority of River City occupational tax rate of (.0020), but are subject to the School Boards’ occupational tax rate of
(.0075):
• Compensation received by duly ordained ministers of religion- A duly ordained minister of religion is defined as
being a natural person who has been ordained in accordance with the ceremonial ritual or discipline of a
recognized church, religious sect, or other religious organization to teach and preach its doctrines or to administer
its rites in public worship, and who regularly performs one or more of those duties. The exemption does not apply
to compensation for services performed in Jefferson County in activities not connected with his/her regular duties
as a minister of religion.
The following persons are subject to the Louisville Metro, KY, and Transit Authority of River City occupational tax rate of
(.0145), but are not subject to the School Boards’ occupational tax rate of (.0075)
• An employee whose legal residence is not within Louisville Metro, Kentucky.
• A sole proprietor whose legal residence is not within Louisville Metro, Kentucky.
Accounting CONSOLIDATED RETURNS - Are not permitted in filing this return. If a corporation which is subject to the occupational
license tax is included in a consolidated return, that corporation shall submit the following
Methods • Form OL-3 based upon the taxable income (or loss) of the corporation subject to the occupational tax, not the
consolidated taxable income.
• A copy of the consolidated Form 1120 or its equivalent.
• A computation sheet allocating all revenue and expense items on the consolidated Federal return to each
corporation included in that consolidated return.
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