Restaurant Tax Form - Click Here

In accordance with Mt. Vernon City Ordinance #2007-4, an ordinance levying a restaurant tax and providing for its collection, was levied upon the retail sales of all food and non-alcoholic beverages by all restaurants (as defined in Section 5A of the ordinance) in Mt. Vernon, Kentucky, a tax of three percent (3%) of the gross amount of such sales; which shall be passed on to the customer or ultimate consumer effective January 2, 2008. As outlined in the ordinance, the collected tax is to be submitted monthly to the Mt. Vernon-Rockcastle County Tourism Commission.  Reporting forms must be received by the tourist commission office on or before the twentieth (20th) of each month.

Check Payable to and Mail to:
Mt Vernon - Rockcastle County Tourism Commission
PO BOX 1467
Mt. Vernon KY 40456

Restaurant Taxes Frequently Asked Questions

When was the restaurant tax ordinance adopted? The ordinance was adopted by the Mt. Vernon City Council on September 17, 2007 and levies a 3 percent tax on the gross sales of a restaurant’s foods and non-alcoholic beverages in the City.

How is a restaurant defined? A restaurant as used in this ordinance is any fixed or mobile commercial establishment that engages in the preparation and serving of non-prepackaged foods in portions to the consumer, including, but not limited to:  restaurants; coffee shops; cafeterias; short order cafes; luncheonettes; grilles; tea rooms; sandwich shops; soda fountains; street vendors; catering events kitchens; delicatessens; non-packaged ice cream or similar places in which food is prepared for sale for consumption on the premises or elsewhere.  It does not include schools, food vending machines, establishments serving beverages only in prepackaged single service or original containers.

When is a beverage taxed? All non-alcoholic beverages that are not sold in their original containers are subject to the tax whether purchased individually or collectively with another item.  Included, but not limited to: fountain drinks and coffee.  Excluded is any tamper-proof sealed beverage (i.e. canned or bottled beverage).

How is the tax calculated and collected? The 3 percent tax is calculated on gross sales before the state sales tax is added.  The 3 percent tax is a pass-through tax which is collected by the restaurants, delicatessens, caterers, etc. and is in addition to the 6 percent state sales tax.  Example:  Meal @ $10.00, 3% restaurant tax ($0.30) = $10.30 + 6% KY Sales Tax ($0.62).  Total charge for the meal would be $10.92.

How is the tax used? The 3 percent tax is used by the Mt. Vernon-Rockcastle County Tourist Commission to enhance the local economy by promoting Mt. Vernon-Rockcastle County as a destination for group travel, conventions, meetings and individual leisure travel and by the City of Mt. Vernon for “quality of life” recipients identified that directly impact the tourism industry.

When is the tax due? The tax for the preceding calendar month’s gross sales is due in the tourism office on the twentieth day of each month.  It is considered late if it is not received by the tourism office on or before the twentieth.

What happens if you don’t pay penalties, fines and delinquent taxes? Fifteen calendar days after notice of delinquency, penalties and fines is mailed, all delinquent accounts will be referred to the proper authority for further action.

Is any caterer, food truck, or food vendor subject to the tax? Any caterer, food truck, or food vendor, who serves/delivers food or beverages within the Mt. Vernon city limits, must collect and pay the tax on all food sales within the city limits.

Do I need to file if I have no gross sales during a calendar month? Yes, every business that is subject to the restaurant tax must file monthly regardless of tax due.  Simply sign and return a blank form showing zero gross sales, otherwise the business will be subject to a late filing fee.

What if I don’t file my restaurant tax form? Businesses which do not file the correct restaurant tax form by deadline will be subject to penalties and fines as defined in the ordinance and on the tax forms.

What records do I need to keep? All tax-related records such as receipts, invoices and other pertinent documents shall be kept for a minimum of four years.  The Tourist Commission or the City Clerk may have access to all of the above records to the extent needed to determine proper compliance with this ordinance.