This office is responsible for collecting taxes levied by the Fayette County Board of Education. The board levies an occupational license tax of one-half of 1 percent on salaries, wages, commissions, and other compensation of individuals who are Fayette County residents for activities performed or rendered in Fayette County and on the net profits of all businesses, professions, or occupations from activities conducted in Fayette County. The tax is levied in accordance with KRS 160.605.

Web tip: The URL shortcut to this page is fcps.net/taxes 

COVID-19 impact -- Fayette County Public Schools will extend the 2020 Net Profit filing deadline for individuals from April 15, 2021 to May 17, 2021. This extension only applies to individual Net Profit taxes that are normally due on April 15. It does not apply to corporations or partnerships that file a Net Profit form.

PPP loan deductions -- Kentucky Revised Statute 67.750(8)(b) requires taxpayers to include in net profits “any amount claimed as a deduction that directly or indirectly is allocable to income which is either exempt from taxation or otherwise not taxed.” Based upon this statute, deductions financed with forgiven or forgivable Paycheck Protection Program (PPP) loans must be included for purposes of calculating net profits. Fayette County Public Schools is not authorized by statute or otherwise to amend this requirement.

Forms update

Because of the increasing number of taxpayers filing returns provided by tax preparers, the FCPS Tax Collection Office will no longer be bulk mailing the following:

• Form 228-S – Net Profits Occupational License Tax Return
• Form 222-S – Reconciliation of Occupational License Tax Withheld

Forms 228-S and 222-S are available for download. In addition, you may call (859) 381-4174 and we will provide a return by email, mail, or fax.

Note: We will continue to mail the preprinted Form 220-221-S, Employer’s Return of Occupational License Tax Withheld.

Card payments

You can pay business taxes in our office with Visa or MasterCard. These added convenience fees are charged and retained by the payment processor, Value Payment Systems -- not the school district:

• Personal debit cards: 1.5% per transaction
• Personal credit cards: 2.6% per transaction
• Corporate and international cards: 3% per transaction

The minimum added fee is $3.95.

Federal government employees

Wages received by employees of the federal government for services performed in Fayette County are subject to the license tax at the same rate and on the same basis as compensation received by other employees. Certain federal agencies, however, citing federal regulations, do not withhold and remit to the Fayette County Public Schools. Such employees shall be responsible for filing with the school district each quarter in the same manner as if they were the employer. It is the federal employee's responsibility to obtain an occupational license tax account number with FCPS and remit taxes.

Taxes are remitted on a quarterly basis using Form 220-221-S, Employer's Return of Occupational License Tax Withheld for Schools. In addition, employees must file Form 222-S, Reconciliation of Occupational License Tax Withheld for Schools, along with a copy of the employee's W-2. 

Instructions for Form 220-221-S

For questions, please email Betty Ann Carroll or call (859) 381-4156.