Owensboro, KY Local Taxes & Fees: Business Tax Classification (2026)

Owensboro's occupational license tax, codified at Municipal Code §§ 16-21 through 16-38, taxes most businesses at 1.78 percent, applied to employee wages under § 16-22 and § 16-23 or to net profits under § 16-24, with a $75 minimum annual net profit fee and a $75 new-business license fee collected once before a business starts operating. Section 16-32, however, carves out 'special occupations' that the board of commissioners has found need distinct regulation: pawnbrokers, dealers in second-hand and antique jewelry and precious metals, and secondary metals recyclers each owe a flat minimum license fee of $100 a year, credited against any net profit fee otherwise due under the same article.

Section 16-32(b) separately classifies promoters of temporary events such as flea markets, trade shows, expos, or sporting activities that rent out booths to two or more vendors: the promoter pays a $5 permit event fee per booth, backed by a matching deposit, valid for up to seven days at the permitted site, with the deposit forfeited unless the promoter reconciles the actual fee within 20 days of the event. The director of finance administers and enforces this article under § 16-29, and can issue a citation or a 'stop work' order against an unlicensed business under § 16-34.

A person who operates without the required business license, or who knowingly files a false return, is guilty of a misdemeanor punishable by up to $500 or 30 days in jail, or both, with each day of continued operation a separate offense.