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).
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State Property Tax Rates Per $100 Valuation, 2010
|Selected Class of Property||State Rate||Local Taxation Permitted|
|Pollution Control Equipment||$0.1500||No|
|Goods in Process||$0.0500||No|
|Other Tangible Personal Property||$0.4500||Yes|
Source: Kentucky Department of Revenue.
Local Property Tax Rates Per $100 Valuation, 2012
|Taxing Jurisdiction||Property Taxes Per $100 Valuation||Notes|
|Real Estate||Tangibles||Motor Vehicles|
|Graves County Schools||$0.3750||$0.3750||$0.4640|
|Mayfield Independent Schools||$0.6830||$0.6830||$0.6890|
Source: Kentucky Revenue Cabinet.
Local Occupational License Taxes, 2013
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|
|Mayfield||2.00% (different rate over $50,000)||2.00% (different rate over $50,000)|
|Graves County Schools||No tax||No tax|
|Mayfield Independent Schools||No tax||No tax|
Source: Kentucky Society of Certified Public Accountants.