CITY OF RUSSELLVILLE, KENTUCKY 
                       Occupational Tax Department  
                                   P.O. Box 434 
                               Russellville, Kentucky 
                                   270-726-5002 
                                         
                       INFORMATION FOR NEW LICENSEES 
 
The City of Russellville requires all businesses and independent contractors to 
obtain a business license.  There is a business license registration fee of $25.00 
due at time of registration, and annually thereafter. 
 
THE  BUSINESS  LICENSE,  (obtained  upon  registration),  MUST  BE  RENEWED 
ANNUALLY, ON OR BEFORE THE ANNIVERSARY DATE OF THE LICENSE.             The license 
will not  be  renewed  until  all  outstanding  occupational  license  fees  and 
withholdings have been paid.  Late renewals will incur a penalty of 5% of the fee.  
If the license is not renewed within 30 days of its due date, the license will be 
revoked, and the penalty incurred will be 10% of the fee for each month or 
portion of a month that the renewal is late. 
 
EVERY  LICENSEE  WITH  AT  LEAST  ONE  EMPLOYEE  MUST  PAY  TO  THE  CITY  OF 
RUSSELLVILLE A FEE OF 2% OF ALL GROSS SALARIES, WAGES, COMMISSIONS AND 
OTHER COMPENSATIONS THAT YOU PAID TO ANY AND ALL OF YOUR EMPLOYEES 
FOR WORK PERFORMED IN THE CITY OF RUSSELLVILLE. Payment of these payroll 
withholdings  to  the City  shall be  made on  a  monthly  or  quarterly  basis,  as 
selected by licensee.  The City's occupational form must always be completed 
and returned; if there was no applicable payroll for the period, the form must still 
be sent, indicating payroll of zero.    FAILURE TO REMIT THESE FUNDS IS DEFINED AS 
FELONY THEFT UNDER KENTUCKY REVISED  STATUTE  514.070, WITH  A  PENALTY NOT TO  
EXCEED  FIVE  (5)  YEARS  IN  A  STATE PENITENTIARY. 
 
EVERY LICENSEE MUST PAY 2% OF THEIR NET PROFITS TO THE CITY OF RUSSELLVILLE 
ON AN ANNUAL BASIS.  THERE IS A MINIMUM PAYMENT REQUIRED OF $25.00, EVEN 
IF  YOU  HAD  A  LOSS  FOR  THE  YEAR.  FAILURE  TO  FILE  IS  A  CRIMINAL  OFFENSE, 
PUNISHABLE BY A FINE OF NOT MORE THAN $100.00 PER DAY AND JAIL TIME NOT TO 
EXCEED THIRTY (30) DAYS.  THIS IS IN ADDITION TO INTEREST AND PENALTY THAT WILL 
ACCRUE FROM THE DUE DATE OF THE RETURN. 
    
The net profit payment is due either April 15 ,thor 3½ months after the licensee's 
fiscal year end, if the licensee has a fiscal year accounting system.  The City 
requires that a copy of one of the following federal forms must accompany Form 
1040 and the net profit form:   
      
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   1) Schedule C  2) Schedule E            3) Form 1041 
   4) Form 1065              5) Form 1120  6) Form 1120S 
 
All  occupational  fees that remain unpaid,  beginning the day after their due 
date,  shall bear interest at the rate of  1.0% per month, and a penalty of  5%  (up 
to 25%) of the unpaid balance for every month or portion of a month that 
payment is late.  Minimum penalty will be $25.00. Continued non-payment will 
result in the account's assignation to the City Attorney for further collection 
procedures.      
  
Please notify this office in writing if your business closes, so that we may change 
our records.  Keep in mind that you will still need to file payroll and net profit 
returns for the portion of the year that you were still in business (for example, if 
your business closes in March, you will need to file returns for January through 
March). 
 
Please notify the City of any changes in business name and/or address/phone.  
A  new  registration is required  for any changes  in  ownership and/or  tax i.d. 
number. 
 
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