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Cost of Doing Business in Muhlenberg County Kentucky

Kentucky has the 13th lowest overall business cost in the nation. In 2009, based on a US cost of business of 100, Muhlenberg County had the following cost ratings:

Labor Cost 94    
Energy Cost 74    
Overall Business Cost 89

Muhlenberg County offers a number of assets that should pique the interest of investors. It is an affordable place in which to operate a business with relatively low labor cost, electric power rates and construction costs. The county has strong roadway access with two industrial parks and a growing community college. Muhlenberg Countys is strategically located with easy access to three Kentucky Parkways connecting it to the US interstate system and nearby major markets.

Following are overviews of the costs of operating your business in Muhlenberg County.

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 Proerty Tax Rates per $100 Valuation, 2009

Selected Class of Property
State Rate
Local Taxation
Real Estate
$0.1220
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.

The Kentucky Workers Compensation Funding Commission has adopted the following Assessment Rates for calendar year 2011:
     All Employers Rate of 6.5%
     Additional Coal Rate of 0.50%
     Severed Coal Assessment of .435 cents per ton severed

The division assigns new employers (other than contract construction) a beginning rate of 2.70% payable on the first $8,000 of wages per employee per year.

Details on rates and policies can be found on the Kentucky Office of Employment and Training website.

Local Property Tax Rates Per $100 Valuation, 2009

Taxing Jurisdiction
Property Taxes Per $100 Valuation
Real Estate
Tangibles
Motor Vehicles
Muhlenberg County
$0.2292
$0.2596
$0.1612
City
Central City
$0.2210
$0.3150
$0.2180
Drakesboro
$0.2700
$0.3070
$0.3070
Greenville
$0.2280
$0.1700
$0.1940
Powderly
$0.1810
$0.2530
$0.0840
School District
Muhlenberg County Schools
$0.4970
$0.4970
$0.4970

Source: Kentucky Revenue Cabinet.

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.)

Taxing Jurisdiction
Tax Rate on Salaries/Wages
Tax Rate -Net Profits/Receipts
Muhlenberg County
No tax
No tax
City
Central City
No tax
No tax
Drakesboro
No tax
No tax
Greenville
No tax
No tax
Powderly
No tax
No tax
Muhlenberg County Schools
No tax
No tax

Source: Kentucky Society of Certified Public Accountants

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location of Muhlenberg Kentucky

Percent of US Within 600 Miles of Muhlenberg County, Kentucky...
Population 50%+
(within 120 miles of the Median Center of US Population)
Personal Income 56%
Retail Sales 41%
Manufacturing Employment 51%

Location topo for Muhlenberg County Kentucky