Bill > HB495

This bill clarifies how local governments can collect occupational license fees, which are taxes on wages, from employees. It defines key terms like "corporate office" as the main management location of a business that was established with incentives or has at least 50 employees, and "incentive agreement" as a contract between a local government and a business offering benefits to encourage locating a corporate office there. The bill mandates that 100% of an employee's wages associated with a corporate office, even if they work remotely, will be taxed by the local government where that corporate office is situated, unless the work is performed at a designated "satellite office" (a physical business location, not a home office or temporary site). Similarly, wages for employees assigned to a state government office will be taxed by the local government where that state office is located. Employees can claim a refund for occupational license fees paid on wages earned from work physically performed outside the taxing local government's jurisdiction, provided they meet specific documentation and verification requirements, and these refunds will be prorated based on the time worked elsewhere. The bill also amends existing law to state that withheld taxes may be subject to these new apportionment rules and specifies that these provisions apply to incentive agreements made or changed on or after the bill's effective date.

Government Affairs

https://apps.legislature.ky.gov/record/26RS/hb495.html