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 of 2% of the net profits from that portion of business conducted in the City, with a $25 minimum fee , beginning in tax year 2014.
- Net Profit License Fee Return (Tax year 2014 and Forward)
- Net Profit License Fee Return (Tax year 2013 and Prior)
- Net Profit License Fee Return Instructions
The Net Profit License Fee Return is to be filed by any entity having receipts and/or payroll within the City limits of Berea. Corporation, partnerships, individual proprietorships and fiduciaries for trust and estates must file on the Net Profit License Fee Return form. A partner in a partnership need not file a return for partnership income since the license fee is paid by the partnership on the income before partners’ drawings have been deducted. The beneficiary of an estate or trust need not file on fiduciary income since the license fee is paid by the fiduciary.
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.
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.
Payment of the license fee must be paid on the original due date regardless of extension to avoid penalties and interest. All license fees remaining unpaid after they become due, shall bear a penalty of 5% of tax due per calendar month until paid, not to exceed 25%, but not less than $25. In addition to penalties and interest, the amount of 12% per annum will be due on unpaid tax amounts.
For more information, please call the Finance Office at (859) 986-7218.