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                               USE THIS FORM NP-1 TO FILE FOR PERIODS                                               
                                  ENDING AFTER 06/30/05 ONLY!                                                       
    
Please call (270) 687-5600 regarding the Net Profit License Fee Return to be used when filing for periods ending prior 
to 7/01/05 for the City Of Owensboro. A Net Profit License Fee Return is not required to be filed for Daviess County 
for any period ending prior to 07/01/05. 
                                                                                                                                        
General Instructions 
  
The following instructions are provided to aid the license fee payer in the completion of Form NP-1, Net Profit License 
Fee Return. These instructions are not intended to be all inclusive and therefore should be used only as a supplement to 
the existing Occupational License Fee ordinance and regulations for the City of Owensboro and Daviess County Fiscal 
Court.   
 
HOW IS THE NET PROFIT LICENSE FEE ASSESSED: 
 
Form NP-1 is required to be filed by a licensee that conducts business in the City of Owensboro and/or Daviess County. 
For purposes of calculating the Net Profit License Fee due, business receipts resulting from business activity within the 
corporate city limits of Owensboro shall be considered when determining the Net Profit License Fee due the City of 
Owensboro. Business receipts resulting from business activity within Daviess County, occurring outside the corporate 
city limits of Owensboro, shall be considered when determining the Net Profit License Fee due Daviess County Fiscal 
Court. 
 
WHO MUST FILE FORM NP-1:  
 
Corporations, partnerships, sole proprietors, estates and trusts, or other entities engaged in a business having:  
1) Business activity in the City of Owensboro and/or Daviess County and, 2) business nexus in the City of Owensboro 
and/or Daviess County sufficient to justify the imposition of the license tax.  
 
YOU MUST FILE FORM NP-1 EVEN IF: 
 
Your business activity resulted in a loss for the tax year. Complete form NP-1 according to the instructions provided, 
sign the form and return to the City of Owensboro or Daviess County Fiscal Court.(CODCFC) 
 
You were not actively engaged in business during the year but intend to resume operations at a future date. Indicate 
“No activity in jurisdictions during tax year” on Form NP-1, sign the form and return it to the CODCFC.  
 
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 in jurisdictions during tax year” and “Final return” on Form NP-1, complete 
question B, sign the form and return it to CODCFC. 
 
Your business was operational for a portion of the tax year but ceased operation prior to the completion of your federal 
tax year. Complete Form NP-1 according to the instructions provided and indicate “Final” on the form, complete 
question B, sign and return it to CODCFC. 
 
You applied for a Business License Fee account number with the intention of starting a business but never transacted 
business within Owensboro/Daviess County and do not intend to do so in the future. Indicate “No activity in 
jurisdictions during tax year” and “Final” on Form NP-1, complete question B, sign the form and return it to CODCFC. 
 
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FORM NP-1 DUE DATE: 
 
The Form NP-1, Net Profit License Fee Return, must be filed and all fees paid on or before the fifteenth day of the 
fourth month following the close of the licensee’s federal tax year.  
 
EXTENSION OF TIME TO FILE FORM NP-1: 
 
IMPORTANT NOTE: When filing for an extension of time, that includes a payment, the licensee must indicate if 
the request is for the City of Owensboro, Daviess County or is a combined request for both.Any payment        made 
with a combined request must specifically identify the amount being paid on behalf of each jurisdiction.  
 
An automatic extension of six months will be granted to any business entity for filing its Net Profit License Fee Return 
if the business entity, on or before the date prescribed for payment of the occupational license fee, requests the 
extension and pays the amount properly estimated as its fee.  
 
No standard form for requesting an extension of time for filing is prescribed. Any written communication from the 
applicant, or his attorney or accountant, which clearly states the request, when accompanied with proper payment, will 
be acceptable if filed on or before the due date involved. Federal forms 4868, 8736 or 7004 will be accepted as a valid 
written request for extension, provided that the licensee’s occupational license fee account number is plainly noted 
thereon. The extension request submitted by the licensee or his agent shall set out the licensee’s name and account 
number, the period for which the extension of time for filing is desired, and the reason requested (Also see 
IMPORTANT NOTE above).  
 
An extension of time for filing the Net Profit License Fee Return does not extend the time for payment of the license 
fee. Full payment of the estimated license fee liability must accompany the request for extension. Merely sending a 
tentative or estimated payment is not an acceptable request for an extension, and the written request for the extension 
must be on a separate paper from the check by which any estimated payment is made(See IMPORTANT NOTE 
above). 
 
Interest at the rate of twelve (12) percent per annum shall apply to any unpaid license fee during the period of extension 
and shall be included with the amount remitted in payment of the license fee at the time of filing the Net Profit License 
Fee Return. No penalty shall be assessed in those cases in which all filing and payment requirements have in good faith 
been fulfilled and the final license fee and interest is paid with the filing of the Net Profit License Fee Return within the 
period as extended. 
 
Any extension shall be granted with the understanding that all prior filing and payment requirements have been fulfilled 
(See IMPORTANT NOTE above). However, if upon further examination it becomes evident that prior filing and 
payment requirements have not been fulfilled; interest and penalty shall be assessed in full and in the same manner as 
though no extension had been granted.  
 
GROSS INCOME LIMITATIONS; CITY OF OWENSBORO: 
 
If gross receipts/sales revenue and other subject income earned in the City of Owensboro by an entity is less than 
$3,500, such entity may calculate the license fee due by multiplying the total income subject by the license fee rate. To 
be eligible for this treatment the licensee must complete Worksheet E of the Net Profit License Fee Return. 
 
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PLEASE READ THESE INSTRUCTIONS BEFORE COMPLETING FORM NP-1
Licensee Information

In order for your return to be processed properly you must:

 File using City of Owensboro/Daviess County Fiscal Court Form NP-1, Net Profit License Fee Return.
 Complete and attach the appropriate Worksheet used to determine the total net profit per Line 1 of Form NP-1,
Net Profit License Fee Return. (NOTE: Each entity must file a separate Form NP-1, including a separately
assigned account number, for each worksheet required to be completed).
 Enter or verify the year for which the return is filed
 Enter or verify the License Account Number under which Form NP-1 is being filed.
 Clearly indicate or verify the name and address of the business and note any changes.
 Sign and date the return.
 Questions A, B & C on Form NP-1 must be answered fully. If the question does not apply to your business
indicate “N/A”.
 Attach copies of the appropriate federal tax forms and all supporting documentation and complete applicable
worksheet. The following is a list of the most common federal tax returns required for each form of business
enterprise. (NOTE: Each entity must file a separate Form NP-1 for each separate worksheet required to be
completed).

Sole Proprietorship Federal Form 1040, Schedules C, D, E, F Complete Worksheet I
Partnership Federal Form 1065 including Schedule K Complete Worksheet P
Corporation Federal Form 1120 Complete Worksheet C
Sub-Chapter S Corporation Federal Form 1120-S including Schedule K Complete Worksheet C

Line-by-line instructions for Form NP-1, Net Profit License Fee Return

Important: Use Column A of Form NP-1 to calculate the Net Profit License Fee Due
the City of Owensboro, generated from business activity within the
corporate city limits of Owensboro.

Use Column B of Form NP-1 to calculate the Net Profit License Fee Due
the Daviess County Fiscal Court, generated from business activity
within Daviess County, outside the corporate city limits of Owensboro.

TAX COMPUTATION

Line 1 Enter the total net profit from Worksheet C, I, or P in applicable Column(s). (NOTE: Each entity must
file a separate Form NP-1 for each separate worksheet required to be completed).

Line 2 CITY OF OWENSBORO – Add the total net profit or loss resulting from: real estate rental if filing
Worksheet I and the Gross Receipts from such rental is $5,000 or less for periods ending on or after
12/31/06, or for the rental of less than 10 single habitable residential units if period ending is prior to
12/31/06 ; the net profit or loss from the sale of farm products by a farmer in the city limits, as defined
by regulation; and amounts earned prior to attaining age 16. If the adjustment is a net profit, enter as a
negative number. If the adjustment is a net loss, enter as a positive number. Attach Schedule
showing exempt amounts.

DAVIESS COUNTY – Add the total net profit or loss resulting from: the rental of less than 10 single
habitable residential real estate units in Daviess County, outside the City of Owensboro, if filing
Worksheet I; the amounts earned prior to attaining age 16. If the adjustment is a net profit, enter as a
negative number. If the adjustment is a net loss, enter as a positive number. Attach Schedule
showing exempt amounts .
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Line 3          Enter the Adjusted Net Profit. Line 1 plus Line 2. 
 
Line 4          Enter the average allocation percentage from Worksheet Y, Line 4, Column C, Parts I and II. 
 
Line 5     Taxable Net Profit. Multiply Line 3 by Line 4. 
 
Line 6     Occupational License Fee Rate 
 
                City of Owensboro: 1.33% 
             
                Daviess County: Refer to Table A or B below to determine the applicable rate to enter on Line 6,  
                                         Column B.  
                                                                                                     
                                   Table A                                                                         Table B                                                          
          Period Ending                    Rate (%):                                   Period Ending               Rate (%) 
           (tax year end)                                                                          (tax year end)                                                          
                                                                              
             07/31/05                     .0417                          01/31/07                                            .4875   
             08/31/05                     .0833                                                   02/28/07                                                  .4750 
             09/30/05                     .1250                                                             03/31/07         .4625 
             10/31/05                     .1667                                                             04/30/07         .4500 
             11/30/05                     .2084                                                             05/31/07         .4375 
             12/31/05                     .2500                                                             06/30/07         .4250 
             01/31/06                     .2917                                                             07/31/07         .4125 
             02/28/06                     .3333                                                             08/31/07         .4000 
             03/31/06                     .3750                                                             09/30/07         .3875 
             04/30/06                     .4167                                                             10/31/07         .3750 
             05/31/06                     .4584                                                             11/30/07         .3625 
06/30/06 thru 12/31/06                    .5000                                                      12/31/07 and after          .3500 
 
.                                         
Line 7          Multiply Line 5 by the license fee rate on Line 6. Enter the result on Line 7. 
 
Line 8    CITY OF OWENSBORO ONLY – $47 Minimum License Fee Due. (NOTE: The $47 Minimum  
               License Fee is not due if there was no business activity in the City of Owensboro during the year  
               or if Gross Receipts/Sales Revenue earned in the City of Owensboro are less than $3,500. If Gross 
               Receipts/Sales Revenue earned in the City of Owensboro is less than $3,500 Worksheet E must be  
                completed). 
   
  DAVIESS COUNTY ONLY- No Minimum License Fee Due. Go to Line 9. 
 
Line 9    City of Owensboro (Column A): Compare amounts from Line 7 and Line 8. Enter the larger amount                    
                on Line 9. 
 
  Daviess County (Column B): Enter the amount from Line 7 on Line 9.  
 
Line 10         Enter on Line 10 any credits resulting from estimated payments, minimum license fees and/or                                                          
               registration fees paid in advance or credits carried forward from a previous filing period. NOTE: 
                Any overpayment of license fee to the City of Owensboro, including payments made with an  
               extension request, will not be allowed to offset any underpayment of license fee to Daviess County. 
               Any overpayment of license fee to Daviess County, including payments made with an extension  
               request, will not be allowed to offset any underpayment of license fee to the City of Owensboro. 
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Line 11  If amount from Line 10 is larger than the amount from Line 9 enter difference as refund or credit due.  
    Please check box next to refund or credit to denote how you prefer the overpayment to be handled for  
    your account.       
                NOTE: Any overpayment of license fee to the City of Owensboro, including payments made with  
    an extension request, will not be allowed to offset any underpayment of license fee to Daviess  
    County. Any overpayment of license fee to Daviess County, including payments made with an  
    extension request, will not be allowed to offset any underpayment of license fee to the City Of  
         Owensboro.
  
Line 12  If amount from Line 9 is larger than Line 10, enter difference as license fee due. 
 
Line 13  If the Net Profit License Fee Return is not filed, or an extension requested, by the due date of the return; 
    or if the license fee due is not paid, or an extension properly applied for, by the due date of the return,  
    then penalty is assessed at the rate of five percent (5%) for each calendar month or fraction of calendar  
    month the return remains delinquent or the license fee remains unpaid. The total penalty due shall never 
    exceed twenty-five percent (25%) of the total license fee due; however the penalty will always be a  
    minimum of twenty-five dollars ($25). The penalty is assessed on the first day after the due date of the  
    Net Profit License Fee Return and on the first day of each succeeding calendar month that the license fee 
    remains unpaid or the return remains delinquent. 
 
Line 14  If the license fee due is not paid by the due date, interest is assessed at the rate of twelve percent (12%)  
    per annum simple interest from the time the fee was due until the fee is paid. A full months’ interest of  
    one percent (1%) is assessed on the first day after the due date of the Net Profit License Fee Return  
    and on the first day of each succeeding calendar month that the license fee remains unpaid. 
 
Line 15  Add Lines 12 through 14. This is the total license fee, penalty and interest due. 
 
Line 16  Add Line 15 Column A to Line 15 Column B to determine the payment due with Form NP-1. 
                 NOTE: Any overpayment of license fee to the City of Owensboro, including payments made with  
    an extension request, will not be allowed to offset any underpayment of license fee to Daviess  
    County. Any overpayment of license fee to Daviess County, including payments made with an  
    extension request, will not be allowed to offset any underpayment of license fee to the City Of  
         Owensboro.
 
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WORKSHEET Y
BUSINESS APPORTIONMENT
Part I – City of Owensboro

Part I must be completed by all licensees with sales revenue and/or payroll both within and without the City
of Owensboro. Completion of the schedule allocates to the City of Owensboro the proportionate part of the
licensee’s total business activity attributable to the City. If your business is conducted entirely within the City then
Part I should not be completed. Instead enter 100% on Line 4 of Form NP-1 under Column A labeled “City of
Owensboro”, and complete Lines 5 through 15 of that column.

Payroll Factor

Line 1, Column A: Enter the total compensation paid or payable to employees for work done or services
performed or rendered within the City of Owensboro during the period covered by the
Net Profit License Fee Return.
Line 1, Column B: Enter the total compensation paid or payable to employees for work done or services
performed or rendered in all business locations during the period covered by the Net
Profit License Fee Return.
Line 1, Column C: Divide Column A by Column B. Enter the result on Line 1, Column C. Carry out to at
least six (6) decimal places.

Sales Revenue Factor

Line 2, Column A: Enter the total gross receipts from the sale, lease, or rental of goods, services, or property
received from all City of Owensboro sources, except for the receipts related to the
net profit or loss from: exempt rental property receipts, the sale of qualified farm products,
earnings made before attaining 16, and receipts from qualifying exempt festivals during the
period covered by the Net Profit License Fee Return. Attach schedule.
Line 2, Column B: Enter the total gross receipts from the sale, lease, or rental of goods, services, or property
received from all sources, except for the gross receipts related to the net profit or loss in the
City of Owensboro from: exempt rental property receipts, the sale of qualified farm
products, earnings made before attaining age 16 and receipts from qualifying exempt
festivals during the period covered by the Net Profit License Fee Return. Attach schedule.
Line 2, Column C: Divide Column A by Column B. Enter the result on Line 2, Column C. Carry out to at
least six (6) decimal places.

Average Percentage

Line 3, Column C: Add Column C, Lines 1 and 2. Enter the result on Line 3, Column C.
Line 4, Column C: Divide Line 3, Column C by the number of percents used on Lines 1 and 2, Column C.
Enter the result on Line 4, Column C and Line 4 of Form NP-1 under Column A
labeled “City of Owensboro”.

Note: If one of the factors is missing the remaining factor is the average allocation percentage to be entered on
Line 4 of Form NP-1. A factor (payroll or sales revenue) is considered missing if:

1. With regards to the payroll factor, a licensee’s entire business operation did not have any compensation
paid or payable to employees for work done or services performed or rendered. (i.e. Part I, Line 1, Columns
A and B both equal zero).

2. With regard to the sales revenue factor, a licensee’s entire business operation did not recognize any receipts
from the sale, lease, or rental of goods, services, or property. (i.e. Part I, Line 2, Columns A and B both
equal zero).

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WORKSHEET Y
BUSINESS APPORTIONMENT

Part II – Daviess County

Part II must be completed by all licensees with sales revenue and/or payroll both within and without Daviess
County. Completion of the schedule allocates to Daviess County the proportionate part of the licensee’s total
business activity attributable to Daviess County. If your business is conducted entirely within Daviess County,
outside the corporate city limits of Owensboro, then Part II should not be completed. Instead enter 100% on Line 4
of Form NP-1 under Column B labeled “Daviess County”, and complete Lines 5 through 15 of that column.

Payroll Factor

Line 1, Column A: Enter the total compensation paid or payable to employees for work done or services
performed or rendered within Daviess County, outside the corporate city limits of
Owensboro, during the period covered by the Net Profit License Fee Return.
Line 1, Column B: Enter the total compensation paid or payable to employees for work done or services
performed or rendered in all business locations during the period covered by the Net
Profit License Fee Return.
Line 1, Column C: Divide Column A by Column B. Enter the result on Line 1, Column C. Carry out to at
least six (6) decimal places.

Sales Revenue Factor

Line 2, Column A: Enter the total gross receipts from the sale, lease, or rental of goods, services, or property
received from all Daviess County sources, outside the corporate city limits of Owensboro,
except for the receipts related to the net profit or loss from: exempt residential
rental property and earnings made before attaining age 16, during the period covered by the
Net Profit License Fee Return.
Line 2, Column B: Enter the total gross receipts from the sale, lease, or rental of goods, services, or property
received from all sources, except for the receipts related to the net profit or loss in Daviess
County, outside the city limits of Owensboro, from: exempt residential rental property and
earnings made before attaining age 16, during the period covered by the Net Profit License
Fee Return.
Line 2, Column C: Divide Column A by Column B. Enter the result on Line 2, Column C. Carry out to at
least six (6) decimal places.

Average Percentage

Note: If one of the factors is missing the remaining factor is the average allocation percentage to be entered on
Line 4 of Form NP-1. A factor (payroll or sales revenue) is considered missing if:

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WORKSHEET I
COMPUTATION OF TOTAL NET PROFIT
FOR BUSINESS ENTITIES REQUIRED TO FILE INDIVIDUAL U.S. INCOME TAX RETURN

Line 1: Enter the amount of non-employee compensation reported on federal Form 1099 MISC on Line 1.
Line 1 shouldNote:only be completed by individuals who received payments for contract services
who are not claiming business expenses and did not own or operate a business during the year (attach
a copy of federal Form 1040 and Form 1099 MISC).

Line 2: Enter the net profit or (loss) per federal schedule C, or C-EZ (attach a copy of Federal Form 1040 and
applicable schedule(s)).

Line 3: Enter 100% of the short term capital gains and long term capital gains carried over from federal Form
4797 or Form 6252 (installment sales) to federal Schedule D representing gain from the sale of
property used in the trade or business. In addition, enter the net gain or (loss) from the sale of property
used in the trade or business per federal Form 4797 (attach a copy of federal Form 4797, Form 6252
and/or Schedule D). NOTE: Proceeds from the 2004 Tobacco Transition Payment Program, also called
the “Tobacco Buyout”, whether treated as a capital gain/loss or ordinary income, is exempt from payment
of the occupational license fee and should not be included on this worksheet.

Line 4: Enter all net rental profit or (loss) per federal Schedule E (attach a copy of Federal Form 1040 and
applicable schedule(s)). (Exclude the net rental profit for the City of Owensboro on Line 2, Column A of
Form NP-1 if the Gross Receipts from total real estate rental is $5,000 or less; Exclude the portion of net
rental profit applicable to the rental of less than 10 residential units in Daviess County on Line 2,
Column B of Form NP-1)

Line 5: Enter the net farm profit or (loss) per federal Schedule F, or Form 4835, (attach a copy of Federal Form
1040 and applicable schedule(s)).

Line 6: If a deduction is taken for state or local taxes (based on income) or license fee (based on income),
regardless of jurisdiction, on federal Schedule C, C-EZ, E, F, or Form 4835, then the amount of those
taxes or license fees should be entered on Line 6.

Line 7: This line should be used to report any subject items of income or other non-deductible expenses not
accounted for on this Worksheet. An explanation of the adjustments must be attached.

Line 8: Add Lines 1 through 7. Enter the total on Line 8.

Line 9: Enter the Alcoholic Beverage Sales Deduction from Worksheet X, Line 3.

Line 10: This line should include deductible items of income not deducted elsewhere on this
Worksheet. A schedule and explanation of the adjustments must be attached.

Line 11: Add Line 9 and 10. Enter the total on Line 11.

Line 12: Subtract Line 11 from line 8 to determine the Total net profit. Enter here and on Line 1 under
Column A and Column B of Form NP-1. NOTE: If gross receipts/sales revenue in the City of
Owensboro is less than $3,500 do not enter amount from this line in Column A; instead complete
Worksheet E.

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                                         WORKSHEET C 
                             COMPUTATION OF TOTAL NET PROFIT 
 FOR BUSINESS ENTITIES REQUIRED TO FILE U.S. CORPORATE TAX RETURN 
 
Line 1:  Enter the taxable income after special deductions and net operating loss per federal Form 1120 or  
   1120A (attach a copy of federal Form 1120 or 1120A and all supporting schedules) or enter                             
   the ordinary income or (loss) per federal Form 1120S (attach a copy of federal Form 1120S,                            
   Schedule K and all supporting schedules). 
 
Line 2:  If a deduction is taken for state or local taxes (based on income) or license fees (based on                    
   income), regardless of jurisdiction, on federal Form 1120, 1120A, or 1120S then the amount    
   of those taxes or license fees should be entered on Line 2. 
 
Line 3:  If a deduction is taken on federal Form 1120 for a net operating loss then the amount of the                    
   net operating loss should be entered on Line 3. 
 
Line 4:  The following income items which are allocated to the shareholders are not included as                          
   income on federal Form 1120S and thus must be added to income on Line 4. 
 
Net income from rental real estate activities          Net long term capital gain 
Net income from other rental activities                  Other portfolio income 
Interest income                                                       Net gain under Sec 1231(other than due to casualty or theft)  
Dividend income                                                    Other income items per Schedule K (attach schedule)  
Royalty income 
Net short- term capital gain 
Enter the total of these items on Line 4 (attach a copy of Schedule K, and rental schedule(s), if applicable) 
 
Line 5:   Real Estate Investment Trusts: This line should be used to add back the amount of the total deduction 
         for dividends paid and the Section 857(b)(2)(E) deductions since these are not allowable deductions for 
         purposes of the Net Profit License Tax Return. This line should be used to report any additional subject 
         items of income or other non-deductible expenses not accounted for on this Worksheet. Attach  
         explanation. 
 
Line 6:  Add Lines 1 through 5. Enter the total on Line 6. 
 
Line 7:  The following items which are allocated to the shareholders are not included in losses or expenses 
   on federal Form 1120S and are allowed as deductions for license fee purposes on Line 7. 
 
Net loss from rental real estate activities           Net long term capital loss 
Net loss from other rental activities             Net loss under Sec 1231 (other than due to casualty loss or theft)  
Portfolio loss                                                      Sec 179 expense 
Net short-term capital loss                                Deductions related to portfolio income 
Charitable Contributions                                  Other allowable deductions per Schedule K (attach schedule)    
Enter the total of these items on Line 7 (attach a copy of Schedule K, and rental schedule(s), if applicable) 
 
Line 8:  Enter the Alcoholic Beverage Sales Deduction from Worksheet X, Line 3 
 
Line 9:  This line should include deductible items of income not deducted elsewhere on this                                            
   Worksheet. A schedule and explanation of the adjustments must be attached. 
 
Line 10: Add Lines 7 through 9. Enter the total on Line 10. 
 
Line 11: Subtract Line 10 from line 6 to determine the Total net profit. Enter here and on Line 1 under  
 Column A and Column B of Form NP-1. NOTE: If gross receipts/sales revenue in the City of    
 Owensboro is less than $3,500 do not enter amount from this line in Column A; instead complete  
 Worksheet E.

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WORKSHEET P
COMPUTATION OF TOTAL NET PROFIT
FOR BUSINESS ENTITIES REQUIRED TO FILE U.S. PARTNERSHIP INCOME TAX RETURN

Line 1: Enter the ordinary income or (loss) per federal Form 1065 (attach a copy of federal Form 1065, Schedule
K and all supporting schedules).

Line 2: If a deduction is taken for state or local taxes (based on income) or license fees (based on income),
regardless of jurisdiction, on federal Form 1065 then the amount of those taxes or license fees should be
entered on Line 2.

Line 3: The following income items which are allocated to the partners are not included as income on federal
Form 1065 and thus must be added to income on Line 3.

Net income from rental real estate activities Net long term capital gain
Net income from other rental activities Other portfolio income
Interest income Net gain under Sec 1231(other than due to casualty or theft)
Dividend income Guaranteed payments to partners
Royalty income Other income items per Schedule K (attach schedule)
Net short- term capital gain
Enter the total of these items on Line 3 (attach a copy of Schedule K, and rental schedule(s), if applicable).

Line 4: This line should be used to report any subject items of income or other non-deductible expenses not
accounted for on this Worksheet. An explanation of the adjustments must be attached.

Line 5: Add Lines 1 through 4. Enter the total on Line 5.

Line 6: The following items which are allocated to the partners are not included in losses or expenses on federal
Form 1065 and are allowed as deductions for license fee purposes on Line 6.

Net loss from rental real estate activities Net long term capital loss
Net loss from other rental activities Net loss under Sec 1231 (other than due to casualty loss or theft)
Portfolio loss Sec 179 expense
Net short-term capital loss Deductions related to portfolio income
Charitable Contributions Other allowable deductions per Schedule K (attach schedule)
Enter the total of these items on Line 6 (attach a copy of Schedule K, and rental schedule(s), if applicable).

Line 7: Enter the Alcoholic Beverage Sales Deduction from Worksheet X, Line 3.

Line 8: This line should include deductible items of income not deducted elsewhere on this
Worksheet. A schedule and explanation of the adjustments must be attached.

Line 9: Enter the amount of professional expenses incurred by the partners that were NOT reimbursed by the
partnership. Attach schedule detailing these expenses.

Line 10: Add Lines 6 through 9. Enter the total on Line 10.

Line 11: Subtract Line 10 from line 5 to determine the Total net profit. Enter here and on Line 1 under
Column A and Column B of Form NP-1. NOTE: If gross receipts/sales revenue in the City of
Owensboro is less than $3,500 do not enter amount from this line in Column A; instead complete
Worksheet E.

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                                      WORKSHEET R 
  
                              RECONCILIATION OF PAYROLL FACTOR 
     FOR BUSINESS ENTITIES COMPLETING THE PAYROLL APPORTIONMENT FACTOR 
  
 Be sure to complete the column that corresponds to the jurisdiction(s) for which the Form NP-1 was filed. 
  
 Line 1:  Enter the compensation paid or payable to employees per Form NP-1, Worksheet Y, Line 1. 
  
 Line 2:  Enter the amount expensed as a prior year accrual for compensation paid or payable to employees. 
  
 Line 3:  Enter any other additions that were made in determining the payroll allocation factor. Attach an  
       explanation, including amounts, for each item. 
  
 Line 4:  Add Lines 1 through 3. Enter the total on Line 4. 
  
 Line 5:  Enter the amount expensed as a current year accrual for compensation paid or payable to employees. 
  
 Line 6:  Enter any other subtractions that were made in determining the payroll allocation factor. Attach an  
       explanation, including amounts, for each item. 
  
 Line 7:  Subtract Lines 5 and 6 from Line 4 to determine the compensation paid or payable to employees as 
 reported on the periodic Employer’s Return of License Fee Withheld (Form E-1) during the same period as the 
 licensee’s calendar or fiscal year end Net profit return reporting period.  
  
                                      WORKSHEET E 
  
     COMPUTATION OF LICENSE FEE DUE IF GROSS RECEIPTS/SALES REVENUE 
               IS LESS THAN $3,500 IN THE CITY OF OWENSBORO 
  
 Worksheet E shall be completed only by those earning gross receipts/sales revenue of less than $3,500 in the City 
 Of Owensboro. This provision does not apply to gross receipts/sales revenue earned in Daviess County, outside 
 the City of Owensboro. If gross receipts/sales revenue is greater than $3,500, complete Worksheet I, P, or C, 
 whichever is applicable.  
  
 No net profits license fee is imposed, and no filing is required, of any person (entity) that has gross receipts or sales 
 revenue generated in the City of Owensboro of less than $600 during that person’s federal tax year and such person 
 had no employee(s) working within the city during their federal tax year. However, such person must file a net 
 profit license fee return to declare eligibility for the exemption if holding an occupational business license fee 
 account. Note: No person shall be exempt on the first $600 of gross receipts, sales revenue or other earnings if the 
 total gross receipts, sales revenue or other earnings subject to the occupational license fee exceeds $600 during that 
 person’s federal tax year.   
  
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 YOUR RIGHTS AS A CITY OF OWENSBORO - DAVIESS COUNTY FISCAL COURT 
                                 LICENSE FEE PAYER 
                                                    
 MISSION                                              
                                                     Appeal – You have the right to appeal a 
The Mission of the City of Owensboro-Daviess         determination of CODCFC, such an assessment 
County Fiscal Court (CODCFC) is to provide           of license fee or penalty, reduction or a denial of 
courteous, accurate and efficient services for the   a refund, or a revocation of a license or permit. 
benefit of Owensboro/Daviess County and its           
citizens, and administer the occupational license    Conference – You have the right to a conference 
fee laws of the City of Owensboro and the            to discuss a license fee matter. 
Daviess County Fiscal Court in a fair and             
impartial manner.                                    Representation – You have the right to 
                                                     representation by an attorney, accountant or 
RIGHTS OF OCCUPATIONAL                               other person in any hearing or conference with 
                                                     CODCFC. If you intend for your representative 
LICENSE FEE PAYER 
                                                     to come in your place, you must notify the 
                                                     CODCFC prior to any hearing or conference. 
Privacy – You have the right to privacy of            
information provided to the CODCFC. The              Recordings – You have the right to make an 
CODCFC is not authorized to discuss your tax         audio recording of any meeting, conference or 
matters with anyone unless you authorize the         hearing with CODCFC, or to be notified in 
CODCFC to do so.                                     advance if the CODCFC plans to record the 
                                                     proceedings and to receive a copy of any 
Assistance – You have the right to advice and        recording. 
assistance from the CODCFC in complying with          
the occupational license fee laws of the City of     Consideration – You have the right of 
Owensboro and Daviess County Fiscal Court.           consideration of: 
                                                      
Explanation – You have the right to a clear and 
                                                       Waiver of penalties or collection fees if 
concise explanation of: 
                                                        “reasonable cause” for reduction or 
 
                                                        waiver is given (“reasonable cause” is 
           Basis of assessment of additional           defined as: “an event, happening or 
            license taxes, interest and                 circumstance entirely beyond the 
            penalties, or the denial or                 knowledge or control of a taxpayer who 
            reduction of any refund or credit           has exercised due care and prudence in 
            claim:                                      the filing of a return or report or the 
                                                        payment of monies due the CODCFC 
           Procedure for an appeal of a                pursuant to the law or administrative 
            determination of CODCFC; and                regulation”); 
                                                      
           License fee laws and changes in            Installment payments of delinquent 
            license fee laws so that you can            license taxes, interest and penalties. 
            comply with the law.                      
                                                       
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