JUST ASK: Occupational tax, business license

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  I recently received a packet from the mayor’s office, informing me that I needed to purchase a business license. The letter went on to say that any rent received from rental property in the City of Hodgenville is now subject to occupational taxes.

  I do not understand this. When was this law passed ... or is it just being imposed by our new mayor?

  If passed by the council, when and how did each councilman vote? I have not seen anything in the local paper about this new law.



We asked City Hall for a copy of the letter that was mailed to rental property owners.

Dec. 12, 2014

All business licenses are due at this time. All landlords who have rental properties in the city, other than their own personal home, are subject to Hodgenville City Ordinance relating to occupation, trade and professional licenses. The business license fee is $50. Please make arrangements to remit payment to City of Hodgenville.

Attached also are the net profits form for which you are to prepare at the end of your fiscal year and an Employer’s Quarterly Return if you have employees. There are four different quarterly forms for your convenience to complete at the end of each quarter.

The letters were signed by City Clerk/Treasurer Toni Burton.

Burton said rent received is not subject to the occupational tax. However, the wages of any employees of the rental property owner are subject to the tax. (All employees who work inside city limits must pay the occupational tax.)

Burton has been mailing the packets to all owners of rental property within the city limits. 

Rental property is considered a business and is subject to the business license fee. Burton said the ordinance has not been enforced uniformly in the past.

The ordinance was first passed on May 11, 2000 during Mayor Darrell Florence’s term. Councilmen Bud Ireland and Eudell Stearman voted against the measure, according to a story in The LaRue County Herald News. The other four (James Phelps Jr., Otis Smith, Ned Bradshaw and Linda Allen) voted for it.

The ordinance was updated in November 2004 during Mayor Roger Truitt’s term. Voting in favor were council members Kenny DeVore, Bradshaw, Allen, Phelps and Stearman. Councilman Smith abstained.