Northern Kentucky 		Kentucky Cabinet for Economic Development
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  State & Local Taxes  
  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).

Click here for general fact sheets on federal, state and local business and personal taxes.

  
     
  State Property Tax Rates Per $100 Valuation, 2009  
  Selected Class of Property State Rate Local Taxation
Permitted		  
  Real Estate $0.1220 Yes  
  Manufacturing Machinery $0.1500 No  
  Pollution Control Equipment $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, 2009  
  Taxing Jurisdiction Property Taxes
Per $100 Valuation		  Notes  
  Real Estate Tangibles Motor Vehicles  
  County  
  Boone $0.1870 $0.2601 $0.2230    
  Campbell $0.2398 $0.3853 $0.1990    
  Kenton $0.3130 $0.4660 $0.2790    
  City  
  Cold Spring $0.1640 $0.1810 $0.1690    
  Covington $0.2995 $0.2995 $0.0000    
  Elsmere $0.2180 $0.2400 $0.0000    
  Erlanger $0.2980 $0.5500 $0.0000    
  Florence $0.2460 $0.4360 $0.0000    
  Independence $0.2000 $0.5960 $0.0000    
  Newport $0.2250 $0.2810 $0.0000    
  Walton $0.1050 $0.2310 $0.2310    
  Wilder $0.2160 $0.5000 $0.1480    
  School District  
  Beechwood Independent Schools $0.7430 $0.7460 $0.5740    
  Bellevue Independent Schools $0.6430 $0.7280 $1.0140    
  Boone County Schools $0.5390 $0.5390 $0.4970    
  Campbell County Schools $0.5220 $0.5220 $0.5220    
  Covington Independent Schools $1.0260 $1.0260 $0.8590    
  Dayton Independent Schools $0.8500 $0.8500 $0.8590    
  Erlanger-Elsmere Independent Schools $0.6950 $0.6950 $0.6710    
  Ft. Thomas Independent Schools $0.9050 $0.9050 $0.9250    
  Kenton County Schools $0.5580 $0.5590 $0.6350    
  Ludlow Independent Schools $0.6480 $0.6480 $0.7460    
  Newport Independent Schools $0.8610 $0.8610 $0.9930    
  Silver Grove Independent Schools $0.9940 $0.9940 $0.8960    
  Southgate Independent Schools $0.8290 $0.8290 $0.5040    
  Walton-Verona Independent Schools $1.0060 $1.0060 $0.9070    
  Source: Kentucky Revenue Cabinet.  
  Local Occupational License Taxes, 2010  
  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		  
  County  
  Boone 0.80% (Various caps apply. Mental health tax .15) 0.80% (Various caps apply. Mental health tax .15.)  
  Campbell 1.050% 1.050%  
  Kenton .7097% for wages under $25K and 1.097% for wages over $25K .7097% on net profits under $37.5K and 1.097% on net profits over $37.5K  
  City  
  Cold Spring 1.00% scale on gross profits  
  Covington 2.50% 2.50%  
  Elsmere 1.00% 1.00%  
  Erlanger 1.00% 0.075% (on gross profits)  
  Florence 2.00% No tax  
  Independence 1.25% 0.075% (on gross profits)  
  Newport 2.50% 0.35% (on gross receipts)  
  Walton No tax No tax  
  Wilder 2.25% 2.25% (on gross receipts)  
  School District  
  Beechwood Independent Schools No tax No tax  
  Bellevue Independent Schools No tax No tax  
  Boone County Schools 0.50% 0.50%  
  Campbell County Schools No tax No tax  
  Covington Independent Schools No tax No tax  
  Dayton Independent Schools No tax No tax  
  Erlanger-Elsmere Independent Schools No tax No tax  
  Ft. Thomas Independent Schools No tax No tax  
  Kenton County Schools No tax No tax  
  Ludlow Independent Schools No tax No tax  
  Newport Independent Schools No tax No tax  
  Silver Grove Independent Schools No tax No tax  
  Southgate Independent Schools No tax No tax  
  Walton-Verona Independent Schools No tax No tax  
  Source: Kentucky Society of Certified Public Accountants.   
  Incentives  
 

Major State Incentive Programs

Bluegrass State Skills Corporation (BSSC) – Click on this link to learn more about the Grant-in-Aid and Tax Credit programs for workforce training offered through BSSC.

Kentucky Business Incentives & Financial Programs – Click on this link to learn more about the various tax incentive programs offered by the Kentucky Cabinet for Economic Development.

  
  Source: Kentucky Cabinet for Economic Development.