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Occupational Taxes - You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality.
Any individual (resident or non-resident) or business entity (partnerships, corporations, or S-Corporations) who receive taxable compensation are required to file the Occupational License Return (OL-3) and pay the Occupational License Tax to the Louisville Metro Revenue Commission (LMRC).
Form OL-3 is a tax form used by any entity with a business nexus in Louisville/Jefferson County to file and pay the Occupational Tax Rate of 2.2% (resident rate) or 1.45% (non-resident rate).
0:22 2:46 Tax not their clients. This means professionals like doctors or lawyers bear the cost rather thanMoreTax not their clients. This means professionals like doctors or lawyers bear the cost rather than those who seek their services. Some American cities and states impose occupation.
Every person, association, corporation, or other business entity engaging in an occupation, business, trade, or profession is required to file and pay occupational license tax. Business activity includes rental property, sole proprietorships, partnerships, and corporations.

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An occupation tax shall be levied upon those businesses and practitioners of professions and occupations with one or more locations or offices in the unincorporated part of the county and/or upon the applicable out-of-state businesses with no location or office in the state pursuant to O.C.G.A.
Jeffersontowns Occupational Tax is a 1% wage withholding tax on an employees gross wage. The tax must be withheld and remitted by the employer to the Jeffersontown Revenue Department on a quarterly basis each April 30th, July 31st, October 31st and January 31st.
Occupational license taxes may be imposed as a percentage of gross earnings (payroll) on all persons working within the city or on gross receipts or net profits on all businesses within a city. A flat annual rate may also be used by cities, which is often referred to as a business license fee.

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