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This data is provided by the Kentucky Cabinet. We offer detailed analysis of our region through our GIS system.
  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, 2006  
  Selected Class of Property State Rate Local Taxation
Permitted
 
  Real Estate $0.1310 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, 2007  
  Taxing Jurisdiction Property Taxes
Per $100 Valuation
   
  Real Estate Tangibles Motor Vehicles  
  County  
  Allen $0.3770 $0.4300 $0.3017    
  Barren $0.1800 $0.1944 $0.1949    
  Butler $0.2015 $0.2774 $0.3234    
  Edmonson $0.2280 $0.4385 $0.3060    
  Hart $0.2230 $0.2956 $0.1930    
  Logan $0.2606 $0.3533 $0.1647    
  Metcalfe $0.2440 $0.3213 $0.1851    
  Monroe $0.2910 $0.3301 $0.2910    
  Simpson $0.1850 $0.2608 $0.2390    
  Warren $0.1645 $0.2280 $0.1880    
  City  
  Adairville $0.3170 $0.3170 $0.3220    
  Auburn $0.2630 $0.3400 $0.2420    
  Bonnieville $0.1430 $0.3620 $0.2600    
  Bowling Green $0.2490 $0.2600 $0.2600    
  Brownsville $0.0690 $0.0690 $0.1300    
  Cave City $0.1400 $0.1730 $0.1400    
  Edmonton $0.0750 $0.0750 $0.1520    
  Fountain Run $0.2550 $0.2550 $0.3000    
  Franklin $0.1222 $0.1399 $0.1871    
  Gamaliel $0.2060 $0.2060 $0.2000    
  Glasgow $0.1560 $0.1560 $0.2700    
  Horse Cave $0.1930 $0.5610 $0.2400    
  Lewisburg $0.3300 $0.3420 $0.2100    
  Morgantown $0.1040 $0.1040 $0.2790    
  Munfordville $0.1920 $0.1920 $0.2500    
  Park City $0.3040 $0.3040 $0.3200    
  Russellville $0.2550 $0.3290 $0.2200    
  Scottsville $0.1700 $0.1700 $0.2600    
  Tompkinsville $0.2110 $0.2110 $0.2000    
  Woodburn $0.3000 $0.0000 $0.0000    
  School District  
  Allen County Schools $0.5570 $0.5590 $0.5180    
  Barren County Schools $0.5550 $0.5550 $0.4920    
  Bowling Green Independent Schools $0.6920 $0.6920 $0.6020    
  Butler County Schools $0.3770 $0.3770 $0.4590    
  Caverna Independent Schools $0.6030 $0.6030 $0.6030    
  Edmonson County Schools $0.3780 $0.3920 $0.5030    
  Glasgow Independent Schools $0.6800 $0.6800 $0.5540    
  Hart County Schools $0.4660 $0.4660 $0.5510    
  Logan County Schools $0.3600 $0.3600 $0.4490    
  Metcalfe County Schools $0.4120 $0.4040 $0.5660    
  Monroe County Schools $0.4250 $0.4250 $0.5620    
  Russellville Independent Schools $0.6590 $0.6380 $0.5390    
  Simpson County Schools $0.4080 $0.4120 $0.5460    
  Warren County Schools $0.3710 $0.3800 $0.5450    
  Source: Kentucky Revenue Cabinet.  
  Local Occupational License Taxes, 2007  
  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  
  Allen 1.00% 1.00%  
  Barren No tax No tax  
  Butler 1.00% 1.00%  
  Edmonson No tax No tax  
  Hart 0.01% 0.01%  
  Logan 0.75% 0.75%  
  Metcalfe 1.00% 1.00%  
  Monroe 0.50% 0.50%  
  Simpson 0.75% No tax  
  Warren No tax No tax  
  City  
  Adairville 1.50% 1.50%  
  Auburn 1.50% 1.50%  
  Bonnieville No tax No tax  
  Bowling Green 1.85% 1.85%  
  Brownsville 1.00% 1.00%  
  Cave City 2.00% 1.00%  
  Edmonton 1.50% 1.50%  
  Fountain Run No tax No tax  
  Franklin 1.00% 1.00% (on gross receipts)  
  Gamaliel 1.00% 1.00%  
  Glasgow 1.50% 1.50%  
  Horse Cave 0.50% (passed but not implemented) No tax  
  Lewisburg 1.50% 1.50%  
  Morgantown 2.00% 2.00%  
  Munfordville No tax No tax  
  Park City 1.00% 1.00%  
  Russellville 2.00% 2.00%  
  Scottsville 1.50% 1.50%  
  Tompkinsville 1.00% No tax  
  Woodburn No tax No tax  
  School District  
  Allen County Schools No tax No tax  
  Barren County Schools No tax No tax  
  Bowling Green Independent Schools No tax No tax  
  Butler County Schools No tax No tax  
  Caverna Independent Schools No tax No tax  
  Edmonson County Schools No tax No tax  
  Glasgow Independent Schools No tax No tax  
  Hart County Schools No tax No tax  
  Logan County Schools No tax No tax  
  Metcalfe County Schools No tax No tax  
  Monroe County Schools No tax No tax  
  Russellville Independent Schools No tax No tax  
  Simpson County Schools No tax No tax  
  Warren County Schools 0.50% 0.50%  
  Source: Kentucky Society of Certified Public Accountants.   
  Incentives  
  Major State Incentive Programs (Note: The fact sheets on this page require Adobe Acrobat Reader to view.)

Bluegrass State Skills Corporation - BSSC offers a Grant and a Tax Credit Program. To learn more about these programs visit the BSSC Programs section. 

Kentucky Jobs Development Act (KJDA) - Service or technology related companies that locate or expand their operations.

Kentucky Industrial Development Act (KIDA) - Manufacturers that locate or expand their operations.

Kentucky Rural Economic Development Act (KREDA) - Manufacturers that locate or expand their operations in counties with high unemployment.

Kentucky Economic Opportunity Zone (KEOZ) - Provides tax credits to companies that establish new or expand existing manufacturing,service, or technology operations in a qualified zone having high unemployment and poverty levels.

Local Government Economic Development Fund (LGEDF) - Grants to eligible coal producing counties to diversify local economies.

Other Business Incentives and Financing Programs - Fact sheet on programs provided by the Kentucky Cabinet for Economic Development.

 
  Source: Kentucky Cabinet for Economic Development.  
  Local Incentives  
  Job Development Incentive Fund

In the City of Bowling Green, a loan or financial incentive of up to 75% abatement of the local occupational license fee (OLF) withholdings is offered to new or existing service, technological or industrial companies. For a new job creating project, the Company must submit an application to the Chief Financial Officer of the City who in turn will have it reviewed by the Job Development Incentive Committee and final review by the City Commission (a process which takes about four weeks).

The incentive period may be up to 60-months or up to 120-months based on the applicable state incentive period. Company payroll from the new project full time jobs must generate an average OLF of $10,000 per year in employee withholdings over the incentive period to qualify. At present, the OLF rate is 1.85% of employee gross pay.

Build-to-Suit/Leaseback Options

The Bowling Green Area Economic Development Authority (BGAEDA) can provide a build-to-suit capitalized leaseback which can provide property tax relief. However, payment in lieu of school taxes is requested and an administration fee is assessed.

Enterprise Community Incentives

On January 21, 1999 the United States Department of Agriculture recognized Bowling Green as an Enterprise Community. Through the Enterprise Community designation, selected industrial sites can receive federal tax exemptions of up to $2,100 per employee for the hiring of targeted employment. Assistance in identification of these potential employees is available through the local Department for Employment Services.

Additional Incentives

Companies eligible for Kentucky Jobs Development Act (KJDA) are also eligible for a 10% reduction in Bell South monthly services for one year and a waiver of installation fees.

 
  Source: Bowling Green Area Chamber of Commerce  
South Central Kentucky
Bowling Green Area Chamber of Commerce
710 College Street | P.O. Box 51
Bowling Green, Kentucky 42102
(270) 781-3200 Phone | (866) 330-2422 Toll Free
(270) 843-0458 FAX
info@southcentralky.com
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