Occupational License Fee

Every employer, whether for profit or non-profit, who pays salaries, wages, commissions, bonuses, incentive payments, tips, or any other taxable compensation to an employee for work performed within the City of Ashland is required to withhold and remit  to the City of Ashland a 2% license fee. 

An Employer's Return of License Fee Withheld Form (Form OLF-1) must be filed.  The form is due on the last day of the month following the end of the calendar quarter.  The form must be filed monthly if the amount withheld is $3,000.00 or more per quarter.

An Annual Reconciliation of License Fee Withheld Form (Form OLF-2) must be filed by February 28th each year with a copy of the W-2's from the employer.  Every employer is required to submit a copy of Forms 1096 and the respective Form 1099's to reflect monies paid to contract labor, subcontractors, etc.

An individual employee subject to the fee shall file his or her return on or before April 15th each year for the previous year's wages / compensation on the Annual Individual Return of License Fee Form (Form OLF-3).

An Application For License Fee Refund (Form OLF-4) may be completed if an employee was not subject to the withholding fee, but the withholding fee was withheld.  The application must be completed and signed, be accompanied by a signed letter from the employer and a copy of the W-2, and if the requested amount is greater than $1,000.00, a time log is also required. 

All Occupational License Fee forms are located in the Online Document Center.

Contact Information:

Business Privilege License, Net Profit, Occupational License:
Phone Number:  (606) 327-2013, 2014, 2023 
Fax:  (606) 324-0978
E-mail:  mlayne@ashlandky.org, amccalvin@ashlandky.org, rlitchfield@ashlandky.org

Mailing Address:

City of Ashland
Attn:  OLF
P. O. Box 1839
Ashland, KY  41105