State & Local Taxes
A state sales tax is levied at the rate of 6% on the purchase or lease price of taxable goods and on utility services. Local sales taxes are not levied in Kentucky. The Kentucky Constitution requires the state to tax all classes of taxable property, and state statutes allow local jurisdictions to tax only a few classes. All locally taxed property is subject to county taxes and school district taxes (either a county school district or an independent school district). Property located inside city limits may also be subject to city property taxes. Property assessments in Kentucky are at 100% fair cash value. Special local taxing jurisdictions (fire protection districts, watershed districts and sanitation districts) levy taxes within their operating areas (usually a small portion of the community or county).
State Property Tax Rates Per $100 Valuation, 2006
Selected Class of Property State Rate Local Taxation
Permitted
Real Estate $0.1280 Yes
Manufacturing Machinery $0.1500 No
Pollution Control Equipment $0.1500 No
Inventories:
Raw Materials $0.0500 No
Goods in Process $0.0500 No
Finished Goods $0.0500 Yes
Goods-In-Transit Exempt Limited
Motor Vehicles $0.4500 Yes
Other Tangible Personal Property $0.4500 Yes
Source: U.S. Department of Labor, Bureau of Labor Statistics.
Local Occupational License Taxes, 2008
Cities, counties and school districts may levy an occupational license tax on the net profits of businesses and/or on the salaries and wages of employees earned in the jurisdiction. Rates can vary between the two types of occupational license taxes. Occupational license taxes may be levied on businesses as either a flat rate schedule or as a percentage of apportioned net profits or gross receipts. Where both the city and county levy an occupational license tax, a credit may be given, at the option of the local governments, for the amount paid to the city against the occupational license tax of the county. (Consult local jurisdictions for further details.)
Barren County Labor Market Area
Taxing Jurisdiction Tax Rate on
Salaries/Wages
Tax Rate on
Net Profits/Receipts
County
Barren No tax No tax
City
Cave City 2.00% 1.00% (on net profits)
Glasgow 1.50% 1.50%
School District
Barren County Schools No tax No tax
Caverna Independent Schools No tax No tax
Glasgow Independent Schools No tax No tax
Source: U.S. Department of Labor, Bureau of Labor Statistics.
Local Property Tax Rates Per $100 Valuation, 2007
from thinkkentucky.com
Taxing Jurisdiction Property Taxes
Per $100 Valuation
Real Estate Tangibles Motor Vehicles
County
Barren $0.1800 $0.1944 $0.1949
City
Cave City $0.1400 $0.1730 $0.1400
Glasgow $0.1560 $0.1560 $0.2700
School District
Barren County Schools $0.5550 $0.5550 $0.4920
Caverna Independent Schools $0.6030 $0.6030 $0.6030
Glasgow Independent Schools $0.6800 $0.6800 $0.5540
Source: U.S. Department of Labor, Bureau of Labor Statistics.
Local Occupational License Taxes, 2008
from thinkkentucky.com
Taxing Jurisdiction Real Estate Tangibles Motor Vehicles

County

Barren $0.1800 $0.1944 $0.1949

City

Cave City $0.1400 $0.1730 $0.1400
Glasgow $0.1560 $0.1560> $0.2700

School Districts

Barren County Schools $0.5550 $0.5550 $0.4920
Caverna Independent Schools $0.6030 $0.6030 $0.6030
Glasgow Independent Schools $0.6800 $0.6800 $0.5540
Source: Kentucky Revenue Cabinet.
Local Property Tax Rates Per $100 Valuation, 2007
from thinkkentucky.com
  2004 2005 2006 2007 2008
Labor Market Area 273,951 274,832 278,423 281,197 285,039
Barren County 39,473 39,743 40,389 40,400 41,598
Glasgow 13,871 14,062 14,107 14,202 N/A
Source: Applied Geographic Solutions, Simi Valley, CA (Labor Market Area and County, 2005 and later);
State Property Tax Rates Per $100 Valuation, 2006
from thinkkentucky.com
Selected Class of Property State Rate Local Taxation Permitted
Real Estate $0.1280 Yes
Manufacturing Machinery $0.1500 No
Pollution Control Equipment $0.1500 No

Inventories:

Raw Materials $0.0500 No
Goods in Process $0.0500 No
Finished Goods $0.0500 Yes
Goods-In-Transit Exempt Limited
Motor Vehicles $0.4500 Yes
Other Tangible Personal Property $0.4500 Yes>
Source: Kentucky Department of Revenue.