Net Profit License Fee Return Form - City Of Hopkinsville Page 2
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2NET PROFIT LICENSE FEE RETURN INSTRUCTIONS
GENERAL- Every person or business entity engaged in any for profit business activity in the City shall
be required to file and pay to the City an occupational license tax. There is imposed an annual license fee being
the greater of $250.00 or 1.5% of the net profits from that portion of business conducted in the City. For each
business there shall be a Ten Thousand Dollar ($10,000.00) maximum liability. No license tax shall be required
for any person or business whose gross receipts are Twenty-Five Thousand Dollars ($25,000.00) or less, regardless
of whether the gross receipts are derived from within or without the City.
All businesses are required to attach a copy of the applicable Federal Return or Schedule-Federal Schedule C,
Federal Schedule E, Federal Form 1065, Federal Form 1120, Federal Form 1120S. The Federal Return should
include the cost of goods sold schedule and schedule of "other deductions" (Page 1 plus any other pages that
include deductions that do not flow thru Page 1.)
WHO SHOULD FILE- The Net Profit License Fee Return is to be filed by any entity having receipts and/or
payroll within the City limits of Hopkinsville. If any business entity dissolves, ceases to operate, or withdraws
from the City during any taxable year, the cessation of business shall not defeat the filing of the Net Profit
Return or the collection of any occupational license tax for the period of the taxable year during which the
business had activity in the City.
WHEN TO FILE- The Net Profit License Fee Return must be filed on or before April 15 if the Licensee has a
calendar year federal return. Fiscal year returns are due on or before the fifteenth day of the fourth month
following the end of the Federal tax year. All license fees remaining unpaid after they become due shall bear
interest at the rate of five percent (5%) per calendar month until paid. The penalty shall not exceed twenty-five
percent (25%) of the total tax due; however, the penalty shall not be less than $25.00. Interest at the rate of
12% per annum shall be charged.
EXTENSION- The Chief Financial Officer shall have the authority to grant an extension of time for filing the
license return. Licensee should submit (prior to the due date of the Net Profit Return) a written request or copy
of the appropriate federal application for extension. The extension request must be accompanied by payment
equivalent to 90% of the fee due or an amount equal to the total liability for the most recent year. In no case
shall the estimated fee be less than $250.00. Interest at the rate of 12% per annum shall apply to all unpaid
license fees not submitted by the original due date of the Net Profit Return.
SECTION B
Expenses Not Deductible
Income Not Subject to Tax
17. State and Local Taxes based on Income
25. Interest Income
18. Prior year City License Fee
26. Dividend Income
19. Net Loss from Capital Assets
27. Net Gain Capital Assets
20. Ordinary Losses (Form 4797)
28. Ordinary Gain (Form 4797)
21. Net Operating Loss Deduction
29. Other Items (Attach Schedule)
22. Partner's Salaries (Line 10 from 1065)
30. Total (Enter on Line 7, Section A)
23. Other Items (Attach Schedule)
24. Total (Enter on Line 5, Section A)
SECTION C-ALLOCATION FACTOR
Section C must be completed by licensee whose business operations were not conducted entirely in Hopkinsville.
ALLOCATION FACTORS
Column A
Column B
Column C
Hopkinsville
Total
Percentage
31. Gross Receipts/Sales-Write N/A if not applicable
%
32. Total Wages, Salaries & other Compensation
%
33. TOTAL PERCENTAGE
%
34. BUSINESS ALLOCATION FACTOR-If your business had both a Gross Receipts and a Wage Factor,
divide Line 33 by two (2). However, if one of the factors is missing, the remaining percentage
is the Business Allocation Percentage. Enter here and on Line 9, Section A.
%
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Parent category: Financial