The Finance Department is responsible for collecting business license fees, occupational taxes, insurance premium taxes, transient room taxes, restaurant taxes, and billing and collection of City property taxes for tax years 2018 and earlier. Tax bills for years 2019 and later will now be sent and collected by the Hardin County Sheriff's Office. Other duties include managing the City's finances, preparing the City’s budget and providing a comprehensive annual financial report.
3rd Floor of City Hall
P.O. Box 550
200 West Dixie Avenue
Elizabethtown, KY 42701
Hours: Monday - Thursday 8 a.m. - 5 p.m., Friday 8 a.m. - 4:30 p.m.
Business License / Occupational Tax
We are charged with the administration and collection of the City's occupational and net profits taxes, as well as the minimum license fees for City businesses. They also issue the licenses to all businesses operating within the City of Elizabethtown are required to obtain. An annual fee of $25 is charged for this license and must be renewed at the beginning of each year. In addition, we impose a tax on net profits of 1.95% only earned within the City and employees are required to pay a 1.95% occupational tax for wages earned within the City limits.
IMPORTANT NOTICE - CHANGE IN TAX RATES EFFECTIVE JANUARY 1, 2024
The City Council passed Ordinance No 13-2023 on June 26, 2023. This ordinance sets new tax rates for Occupational withholding as well as annual Net Profit tax returns. The City’s Occupational License Tax has increased from 1.35% to 1.95%. The Occupational License Tax had not been changed since 2006.
The effective date for the change is January 1, 2024. Please adjust your withholding rates to take effect on January 1, 2024 and remit the new tax withholdings with your first quarter reporting. The new rate also applies to your Net Profits tax return. This change, however, will not be reported until you submit your 2024 Net Profits return which is due by April 15, 2025. Your 2023 Net Profits return will still be based on the 1.35% rate.
Beginning with the 2019 tax year, the City of Elizabethtown has contracted with the Hardin County Sheriff's Office for the property tax billing and collection services. The City will no longer be sending your property tax bills for real and tangible property. You will now receive only one bill which includes both your City and County tax amounts, and all payments will be remitted to the Sheriff's Office. For tax year ended December 31, 2023, the current property tax rate imposed by the City on real and tangible property, as well as motor vehicles, is $0.110 per $100 of assessed value.
The City will continue to bill and collect the Franchise and Bank Shares property taxes.
For tax years 2018 and earlier, the City will still collect any outstanding tax bills in our office.
Restaurant / Motel / Insurance Premium Tax
We are responsible for the administration and collection of the restaurant, transient room (hotel) and insurance taxes for the City. All property and casualty policies have an 8% insurance premiums tax. A 5% tax on alcohol sales is collected by retail stores/restaurants and a 2% tax is imposed on all prepared food sales. A 3% hotel tax is imposed by all hotels.
If you are a vendor that supplies goods or services to the City and have a question related to your account, feel free to direct your inquiry to accounts payable.
Human resources is responsible for the preparation of the City's bi-weekly payroll, maintenance of all employee (past and present) records, processing all newly hired employees’ paperwork and the administration of the City's employee benefit plan. Submitted job applications are sent to human resources.
Anyone wishing to start or operate a business in the City must apply for a business license in our office. An annual fee of $25 is charged for this license and must be renewed at the beginning of each year. In addition, we impose a tax on net profits of 1.35% (1.95% beginning January 1, 2024) only on the profits earned within the City and employees are required to pay a 1.35% (1.95% beginning January 1, 2024) occupational tax for wages earned within the city limits.
The current property tax rate imposed by the City on real and tangible property, as well as motor vehicles, is $0.116 per $100 of assessed value. These rates have remained unchanged since 2007.
The City does not impose a local option sales tax; however, we do charge a 1.35% (1.95% beginning January 1, 2024) occupational tax on wages earned within the City limits. This is either withheld by the employer or paid directly to the City by the employee.
Besides the net profits, occupational and property taxes collected by the City, there are various other taxes collected dependent on the service provided. All property and casualty policies have an 8% insurance premiums tax which is collected by insurance agents and remitted to the City quarterly. A 5% tax on alcohol sales is collected by retail stores/restaurants and remitted either quarterly or monthly, depending on what type of establishment. A 3% hotel tax is imposed by all hotels in the area and is remitted to the City by each hotel on a monthly basis. A 2% restaurant tax is imposed on all prepared food sales sold within the City. This tax is collected by the establishment and remitted to the City monthly. Both the alcohol, restaurant and hotel tax can be passed on to the end consumer. The hotel and restaurant taxes are forwarded to the Elizabethtown Tourism Commission for use in promoting tourism in the area. Additionally, Hardin County Government imposes their own property tax on real and tangible property. School taxes are included in the Hardin County tax rate. See the Hardin County Government website for additional information.
The City posts their current and prior Annual Budgets online. To download a copy, click here and select the year you would like to see. If you would like a hard copy, you can request one through our open records policy, but note that we must charge $0.10 per page for your copies. As this is a large document, we recommend downloading the file you wish to see.
The City posts their current and prior Comprehensive Annual Financial Reports (CAFR) online. To download a copy, click here and select the year you would like to see. If you would like a hard copy, you can request one through our open records policy, but note that we must charge $0.10 per page for your copies. As this is a large document, we recommend downloading the file you wish to see.
The City is working hard to provide all the online amenities the public desires, but these things do take time. As we begin to roll out new features such as online payments, we will notify you as soon as possible. Please keep watching our website for any updates.
As employees of the City, we work for the public. The City follows the guidelines set forth by the Kentucky Open Records Act. As such, we have three (3) business days to respond to any requests. Not all information is subject to Open Records Laws and some may be denied. File an Open Records Request Form with the City Clerk who is located on the third floor of City Hall.