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State and Local Tax Information

A state sales tax is levied at the rate of 6% on the purchase or lease price of taxable goods and on utility services. Local sales taxes are not levied in Kentucky.

The Kentucky Constitution requires the state to tax all classes of taxable property, and state statutes allow local jurisdictions to tax only a few classes. All locally taxed property is subject to county taxes and school district taxes (either a county school district or an independent school district). Property located inside city limits may also be subject to city property taxes. Property assessments in Kentucky are at 100% fair cash value. Special local taxing jurisdictions (fire protection districts, watershed districts and sanitation districts) levy taxes within their operating areas (usually a small portion of the community or county).


State Property Rates Per $100 Valuation, 2006

Selected Classes of Property State Rate Local Taxation Permitted
Real Estate $0.1280 Yes
Mfg. Machinery $0.1500 No
Pollution Control Eqp $0.1500 No
Inventories    
     Raw Materials $0.0500 No
     Goods in Process $0.0500 No
     Finished Goods $0.0500 Yes
     Goods in Transit Exempt Limited
Motor Vehicles $0.4500 Yes
Other Tangible Personal Property $0.4500 Yes

(Source: Kentucky Department of Revenue)


Local Property Tax Rates per $100 Valuation, 2006

Taxing Jurisdiction Real Estate Tangibles Motor Vehicles
Counties      
    Oldham County $0.1720 $0.2383 $0.2180
Cities:      
     Crestwood $0.0990 $0.0000 $0.0000
     LaGrange $0.2100 $0.2650 $0.2650
     Orchard Grass Hills $0.1440 $0.1440 $0.0000
     Pewee Valley $0.1440 $0.1440 $0.0000
School Districts:      
     Oldham County $0.6500 $0.6500 $0.6430

(Source: Kentucky Revenue Cabinet)


Local Occupational License Taxes, 2007

Cities, counties and school districts may levy an occupational license tax on the net profits of businesses and/or on the salaries and wages of employees earned in the jurisdiction. Rates can vary between the two types of occupational license taxes. Occupational license taxes may be levied on businesses as either a flat rate schedule or as a percentage of apportioned net profits or gross receipts. Where both the city and county levy an occupational license tax, a credit may be given, at the option of the local governments, for the amount paid to the city against the occupational license tax of the county. (Consult local jurisdictions for further details.)

Taxing Jurisdiction Tax Rate on Salaries/Wages Tax Rate on Net Profits/Receipts
Counties No tax No tax
    Oldham County No tax No tax
Cities:    
     Crestwood No tax No tax
     LaGrange No tax No tax
     Orchard Grass Hills No tax No tax
     Pewee Valley No tax No tax
School Districts:    
     Oldham County No tax No tax

(Source: Kentucky Society of Certified Public Accountants)

Major State Incentive Programs

(Note: The fact sheets on this page require Adobe Acrobat Reader to view.)

Bluegrass State Skills Corporation - BSSC offers a Grant and a Tax Credit Program. To learn more about these programs visit the BSSC Programs section. 

Kentucky Jobs Development Act (KJDA) - Service or technology related companies that locate or expand their operations.

Kentucky Industrial Development Act (KIDA) - Manufacturers that locate or expand their operations.

Other Business Incentives and Financing Programs - Fact sheet on programs provided by the Kentucky Cabinet for Economic Development.

(Source: Kentucky Cabinet for Economic Development)

Oldham County Chamber of Commerce © 2006     412 E Main St., LaGrange, KY  40031     502-222-1635          Email
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