The Shelby County Occupational License Office is the collection agent on behalf of Shelby County Fiscal Court. All persons/businesses working in Shelby County should be licensed through this office.
Occupational License Requirements
Register Your Business
Each entity conducting business in Shelby County (outside the city limits) must apply for an occupational business license. The application and a $75 fee is required for each separate business before commencement of business activity or in the event of a status change other than a change of address. Issuance of the occupational business license requires the licensee to file an annual Net Profit License Fee return for each year or part of year the business activity takes place in Shelby County.
Required Payments
Business License Renewal
Each entity conducting business in Shelby County is required to annually renew its business license and pay a $75.00 renewal fee and is due no later than April 15th of each year.
Business License Renewal Form (1).pdf
Net Profit
An Annual Net Profit Fee of 1% is levied on all persons, fiduciaries, corporations, and associations engaged in the occupation, trade, profession or other business earned for work performed in the county at the rate of 1%. The Net Profits License Fee return is due April 15 of each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the fiscal year.
Occupational Fee
An Occupational License Fee is imposed on the wages of those employees working in Shelby County at the rate of 1% of all salaries, wages, commissions and other compensation including deferred compensation, earned for work and or services performed in the county. For an employee, the employer must withhold the occupational license fee from any payment made for services performed or work done in the county. The employer is responsible to remit the employee withholdings to the county on a quarterly filing basis.
Who is Required to Obtain a Business License in Shelby County?
Any person, association, corporation, or other entity engaged in any trade, occupation, or profession or other activity performed in Shelby County, outside the incorporated area must apply for an occupational business license. This includes all contractors and subcontractors. Registration is required for all businesses before the commencement of business activity or in the event of a status change other than a change of address. Issuance of the occupational business license requires the licensee to file an annual Net Profit License Fee return for each year or part of year the business activity takes place in Shelby County.
Starting a Business in Shelby County
If you plan to start a business in Shelby County, click on the tab below for information that will help you meet local, state, and federal requirements for starting your business.
Applying for a Business License (Occupational License)
Once you have registered your business name with the state, have a federal EIN, you are ready to apply for an occupational license.
Net Profit Returns
Occupational (Withholding) Tax Returns
An Occupational License Fee is imposed on the wages of those employees working in Shelby County at the rate of 1% of all salaries, wages, commissions and other compensation including deferred compensation, earned for work and or services performed in the county. For each employee, the employer must withhold the occupational license fee from any payment made for services performed or work done in Shelby County. The employer is responsible to remit the employee withholdings to the county on a quarterly filing basis.
Due dates
Quarterly payroll returns are due 30 days after the end of each quarter.
Annual Occupational Reconciliation Reports
Each employer shall, on or before February 28 of each year, complete and file this form for the purpose of reconciling employers' withholding tax remitted to the Shelby County Occupational License Fees Office.
Penalties
Failure to apply for a license or to file any of the above referenced returns will result in penalties, interests, and fines. Additionally, delinquent taxes may be turned over to the County Attorney for collection, and a court order may be obtained prohibiting the further conduct of the business.
Transient Room Tax
The Shelby County Occupational License Office is the collection agent on behalf of Shelby County Fiscal Court for a transient room tax.
A transient room tax in the amount of 3% of the rent for every occupancy of suite, room, or rooms, charged by all persons, companies, corporations, or other like similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses.
A local conference center tax in the amount of 1% of the rent for every occupancy of suite, room, or rooms, charged by all persons, companies, corporations, or other like similar persons, groups, or organizations doing business as motor courts, motels, hotels, inns, or like or similar accommodations businesses.
For example, if you charge a $100 rental fee, the total tax amount owed would be $11.24. If you want to pass those taxes on to the customer, their total bill would be $111.24 See the below rate card for details.
| Room Rate | | $100.00 |
| 3% Local Transient Room Tax | | $3.00 |
| 1% Local Conference Center Tax | | $1.00 |
| 1% State Transient Room Tax | | $1.00 |
| Taxable Amount | | $105.00 |
| 6% Sales Tax | | $6.24 |
| Total | | $111.24 |
Exception to Transient Room Taxes
Transient room taxes shall not apply to the rental or leasing of an apartment supplied buy an individual or business that regularly holds itself out as exclusively providing apartments.
Disposition of Funds
- All room taxes collected shall be remitted to the Occupational Tax Administrator no later than 30 days following the last day of the month in which the taxes have been charged.
- All room taxes collected that are not remitted to the Occupational Tax Administrator as required shall bear interest at the rate of 12% per annum which shall be added to the principal amount due when paid.
- In the event that any room taxes collected pursuant to this subchapter are not remitted to the Occupational Tax Administrator as required, Shelby County Fiscal Court may seek enforcement and collection through the county attorney’s office.
Forms
Printable Forms