Finance Department — Office Information
City of Florence Finance Department
8100 Ewing BlvdFlorence, KY 41042
| Phone | (859) 647-5416 |
| Fax | (859) 647-5422 |
| Hours | Mon–Fri, 8:00 AM – 4:30 PM |
| Walk-in | Yes — no appointment required |
| Online filing | Available for annual return renewals |
| Forms available | At office or downloadable from city website |
8100 Ewing Blvd
Florence, KY 41042
Rates & Fee Schedule
| Item | Rate / Amount | Notes |
|---|---|---|
| Business registration fee | $0 | One-time, no charge |
| Net profit tax rate | 2.0% | Applied to net profit earned within Florence city limits |
| Employee wage withholding | 2.0% | Applied to gross wages earned within Florence city limits |
| Minimum annual tax | None | No minimum — zero profit = zero tax owed |
| Late filing penalty | 5% per month | Max 25% of tax due |
| Late payment interest | 12% per year | Accrues from original due date |
| Extension available | Yes | Must request before Apr 15; extends filing, not payment |
How to Register a Business in Florence, KY
-
Form your business entity with Kentucky SOS
Register your LLC or corporation at sos.ky.gov before registering locally. Fee: $40 (LLC), $50 (corporation). Sole proprietors with no DBA can skip this step but still need to register with the city. -
Obtain your federal EIN
Apply free and instantly at irs.gov/ein. You'll need this for your Florence registration form even if you have no employees. -
Complete Florence's Business Registration Form
Pick up the form at the Finance Dept (8100 Ewing Blvd) or download it from the City of Florence website. The form asks for your business name, EIN, business type, start date, and owner information. There is no fee. -
Submit the registration form
Return the completed form to the Finance Dept in person, by mail, or by fax (859-647-5422). You'll receive a confirmation and your account number, which you'll use on all future filings. -
Register separately with Boone County
File a separate registration with the Boone County Fiscal Court for the county's 0.8% OLT. The county office is at 2950 Washington St, Burlington, KY 41005. Phone: (859) 334-2144. -
Set up quarterly withholding (if you have employees)
For each employee performing work within Florence city limits, withhold 2.0% of wages earned there. Remit quarterly: April 30, July 31, October 31, January 31. -
File your annual net profit return by April 15
Report all net profit attributable to work performed within Florence city limits. If you use a fiscal year, the return is due 3.5 months after your fiscal year end.
Florence-Specific Rules & Local Quirks
- No registration fee — but you still must register. Florence charges $0 to register, which causes some businesses to skip the step entirely thinking nothing is required. The OLT obligation begins the day you start operating in Florence, regardless of whether you've registered. Unregistered businesses that are later discovered owe back taxes plus penalties from day one.
- Home-based businesses are fully subject to OLT. There is no home-based business exemption. A Florence resident running a consulting business from their kitchen owes the same 2.0% on net profit as a business operating from a commercial office. You still register with the Finance Dept the same way.
- Work performed outside Florence is not taxable by Florence. If you're based in Florence but drive to client sites in Erlanger, Covington, or Cincinnati, only the portion of wages/profit attributable to work actually performed within Florence city limits is subject to Florence's OLT. Keep records of where work is performed.
- Florence and Boone County are separate filings — same deadline. Both are due April 15. Don't combine them into one payment. File one return with Florence (Finance Dept) and a separate return with Boone County (Fiscal Court). Sending a combined payment to either office creates accounting problems.
- Extensions extend the filing deadline, not the payment deadline. If you need more time to file, request an extension before April 15. But any tax you estimate you owe must still be paid by April 15, or interest begins accruing. This is a common mistake — business owners assume an extension gives them more time to pay.
- Seasonal and part-year businesses still owe for the months they operated. A business that operated only June through September in Florence still must file an annual return for that year showing the months active and profit earned during those months.
- Florence City Hall closes on major federal holidays. If April 15 falls on a weekend or holiday, the due date moves to the next business day — same rule as federal taxes.
Frequently Asked Questions — Florence, KY
I just started a business in Florence. How soon do I need to register?
You should register before you begin operating — or as soon as possible after. The OLT obligation starts from your first day of business activity in Florence. While the city won't typically come after you for a few weeks' delay, there's no grace period written into the ordinance. Register when you get your EIN, before you open.
My business is in Erlanger but I sometimes work at client sites in Florence. Do I owe Florence OLT?
Yes — for the wages earned on those Florence job sites. Kentucky's OLT is sourced to where work is physically performed. If your employee spends two days working at a client's Florence location, those two days' wages are subject to Florence's 2.0% withholding. You'd need to register with Florence and file quarterly withholding for those wages. This is one of the most commonly missed compliance issues for NKY contractors and service businesses.
Can I file my Florence OLT return online?
Online filing is available for annual net profit return renewals — meaning if you've filed before and already have an account number. For first-time filers, the initial registration and first return must be submitted on paper (in person, by mail, or fax). Contact the Finance Dept at (859) 647-5416 to confirm current online filing options, as the city's portal capabilities have expanded in recent years.
What if my business had a net loss this year? Do I still need to file?
Yes — you must still file a return even if you had zero profit or a net loss. You'd report the loss, owe $0 in tax, and no payment is due. Skipping the filing because you don't owe anything is still a failure to file, which can result in a penalty notice. File the return showing the loss.
I'm a sole proprietor with no employees. What do I actually have to do?
Register with the Finance Dept (one-time, free). File an annual net profit return each April 15 showing your net profit from activities within Florence city limits. Pay 2.0% of that profit. No quarterly filings unless you have employees. That's it. The registration form takes about 10 minutes to complete.
Does Florence require any other business permits besides the OLT registration?
The OLT registration is the primary local business filing requirement. Depending on your business type, you may also need: a Kentucky state professional license (contractors, healthcare, etc.), a Boone County health permit (food service), or a zoning/home occupation permit from Florence's Planning & Zoning department if operating from a residential address. The Finance Dept handles OLT only — contact Planning & Zoning at (859) 647-5418 for zoning questions.