ANNUAL FEDERAL EMPLOYEE OCCUPATIONAL LICENSE TAX RETURN INSTRUCTIONS 
 
General                  The Louisville Metro Revenue Commission (hereinafter referred to as the “Revenue Commission”) collects Occupational 
Information              License Fees/Taxes (hereinafter referred to as “Occupational Taxes” on all income earned within Louisville Metro, 
                         Kentucky. There is no minimum earned income amount before you are liable for filling a tax return. The occupational 
                         tax is imposed upon the privilege of engaging in business, profession, occupation, or trade within Louisville Metro, 
                         Kentucky, regardless of the legal residence of the person so engaged. Louisville Metro includes the area within the 
                         boundaries of Jefferson County, Kentucky. 
Tax Rates                •  Resident employees - Employees who work and live in Louisville Metro, Kentucky, are subject to a tax rate of 2.2% 
                           (.0220).   
                         •  Non-resident employees - Employees who work in Louisville Metro, Kentucky and live outside Louisville Metro, 
                           Kentucky, are subject to a tax rate of 1.45% (.0145).   
Who Must File an         •  Non-Resident, military personnel receiving services payments. (Applicants are only required to complete the Non-
                           Resident military personnel exemption portion and provide signature certifying all information is true and correct.) 
Annual Federal 
                         •  Members of the Kentucky National Guard receiving income for active duty training, unit training assemblies, and 
Employee                   annual field training. 
Occupational             •  All federal employees whose earnings within Louisville Metro, Kentucky, were from salaries, commission, or other 
License Tax Return         compensation received from a federal agency, and on which occupational license taxes were not withheld or not 
                           fully withheld. 
                         •  All federal employees whose earnings are attributable to activities performed outside the Louisville Metro area and 
                           their employer withheld and remitted to the Commission the occupational license tax. 
When to File and         •  If “Occupational Tax” is owed the occupational taxes must be paid in full at the time of filing to avoid penalties and 
Pay                                                   April 15 .th  
                           interest. The deadline is 
                         •  If a refund is requested, THERE IS A TWO-YEAR STATUTE OF LIMITATIONS. The refund request must be 
                           postmarked within two (2) years from the date the Annual Reconciliation (Form W-3) and W-2 data is due.  The 
                           Annual Reconciliation and W-2 data is due on or before February 28th. Example: The Annual Reconciliation for 
                           2008 is due on or before February 28, 2009. Request for refunds of any employee withholding taxes for quarters 
                           beginning on or after July 1, 2008 must be postmarked on or before February 28, 2011. 
Where to File            Form I-2 should be mailed to the Louisville Metro Revenue Commission, P.O. Box 32060, Louisville, Kentucky 40232-
                         2060, or hand-delivered to 617 West Jefferson Street, Louisville, Kentucky 40202. All checks should be made payable to 
                         the Louisville Metro Revenue Commission and include Account ID. 
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 
Failure to Pay           the total license tax liability, for failure to file and/or pay a tax return by the regular or extended 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. 
 READ INSTRUCTIONS BELOW TO COMPLETE THE ANNUAL FEDERAL EMPLOYEE OCCUPATIONAL LICENSE TAX RETURN 
Demographics             •  If applicant is requesting a refund, provide Employer’s Account ID. 
                         •  If applicant is filing for tax due, provide Applicant’s Account ID. 
                         •  Provide applicant’s full legal name and social security number 
                         •  Provide applicant’s current address. (Correspondence/Refund check will be mailed directly to applicant to the 
                           address provided. If the address is incorrect, the check will be returned to our agency.) 
                         •  Provide applicant’s current phone number. (This number may be used by our agency to contact applicant if there is 
                           a problem with the application.) 
                         •  Application must include tax year end for filing.  
Income Earned                  Use the formula below to compute any deduction for wages earned outside of Louisville Metro, KY. 
Outside Louisville       A Enter the Total number of hours worked outside Louisville Metro, Kentucky. 
                         B Enter the Total number of hours worked per year. (For example:  40 hours x 52 weeks = 2,080 hours worked per 
Metro, KY                  year) This number may vary based on overtime. Total hours worked per year should exclude vacation, sick, and 
                           holidays. 
NOTE: Applies only if at C Divide Total hours worked outside Louisville Metro, KY (Line 1) by Total hours worked per year (Line 2) to 
least 5% of time           compute the Percentage of time worked outside Louisville Metro, KY.   
worked was spent         D Enter the Total Gross Wages per Form W-2 (including deferred compensation). This should be the greater of Box 5 
outside Louisville         (Medicare Wages) or Box 18 (Local Wages) as reported on Form W-2. Generally, this amount is total compensation 
Metro, KY.                 before deductions. Deferred compensation and Non-Cash Fringe Benefits must be included. 
                         E Multiply Percentage of time worked outside (Line 3) by Total Gross Wages (Line 4) to compute the Total amount 
                           of wages earned outside Louisville Metro, Kentucky. 
                           (For example: $50,000 (gross wages) multiplied by 24% equals $12,000) 

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              ANNUAL FEDERAL EMPLOYEE OCCUPATIONAL LICENSE TAX RETURN INSTRUCTIONS 
 
Wage Information     Line 1    Enter the Total Gross Wages per Form W-2 (including deferred compensation). This should be the greater of 
                               Box 5 (Medicare Wages) or Box 18 (Local Wages) as reported on Form W-2. This amount is total 
                               compensation before deductions. Deferred compensation and Non-Cash Fringe Benefits must be included in 
                               the gross figure. 
                     Line 2    Enter Total amount of wages earned outside Louisville Metro, Kentucky computed on Line E from ‘Income 
                               earned outside Louisville Metro, KY” section 
                     Line 3    Subtract Total amount of wages earned outside Louisville Metro, Kentucky (Line 2) from Total Gross Wages 
                               (Line 1) to compute Wages Subject to Occupational Tax  
Occupational tax     Line 4a   Multiply Wages Subject to Occupational Tax (Line 3) by .0145 (Louisville Metro Tax & Mass Transit Tax) 
Calculations         Line 4b   Multiply Wages Subject to Occupational Tax (Line 3) by .0075 (Only Louisville Metro Residents are subject to 
                               School Board tax) 
Tax Due              Line 5    Enter Tax Due (Residents: Line 4a + 4b, Non-Residents: Line 4a) 
Calculations         Line 6    Enter the Total taxes withheld per your W-2 Form or Total Prepayments. This should only include the taxes 
                               withheld for Louisville Metro, Kentucky. (Do not include any other jurisdiction) 
                     Line 7    If Total Tax Due (Line5) is greater than Total Taxes Withheld (Line 6), the additional amount (Balance Due) 
                               must be paid on or before the due date to avoid penalties and interest.  
                     Line 8    Penalty and Interest charges resulting from late filing or late payment of the occupational tax. (See "Penalty 
                               and Interest" on page 1 of the Instructions)   
                     Line 9    Add Balance Due (Line 7) and Penalty and Interest (Line 8) to compute the Total Amount Due. 
                     Line 10   If Total Taxes Withheld (Line 6) is greater than Total Tax Due (Line 5) enter the Overpayment to be 
                               Refunded. 
Non-Resident         If applicant is claiming a refund as a non-resident of Louisville Metro, KY, you must provide non-resident address. If 
                     applicant had more than one residence during the refund year, you must provide ALL addresses and time spent at each 
Statement 
                     address.  
Worksheet for        1.     Gross wages from W-2 (greater of line 5 or 18)                                                    $ 
                     2.     Percentage of time worked outside of Louisville Metro (Line C on pg. 1 of application)                                    % 
partial year         3.     Total wages earned outside Louisville Metro (Multiply line 1 by line 2)                           $ 
resident             4.     Local taxable wages (line 1 minus line 3)                                                         $ 
                     5.              Total days as a resident           Divided by                  Total days     Equals                             % 
If you were a        6.              Total days as a non-resident       Divided by                  Total days     Equals                             % 
resident for part of 7.     Multiply resident percentage (Line 5) by line 3                                                   $ 
the year, use this   8.     Multiply non-resident percentage (Line 6) by line 3                                               $ 
worksheet to help    9.     Multiply line 7 by 2.2%                                                                           $ 
                     10.    Multiply line 8 by 1.45%                                                                          $ 
calculate refund 
                     11.    Total tax due (line 9 + line 10)                                                                  $ 
amount.              12.    Amount withheld per W-2                                                                           $ 
                     13.    Refund amount (line 12 minus line 11)                                                             $ 
Non-Resident         Service payments to non-resident military personnel are exempt from state and local taxation under the Soldiers and 
                     Sailors Civil Relief Act. If your earnings were for military duty and you are not a resident of the State of Kentucky, please 
military personnel 
                     complete the Non-Resident military personnel exemption portion and the certification statement of this form.  
exemption 
Certification        Applicant must sign application certifying that all information is true and correct. Failure to provide signature will result 
                     in delay of refund and appropriate correspondence from our agency. 
Statement 
 
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