The City of Paducah levies a tax of 2.0% called the Occupational License Fee, also known as the Payroll Tax. It's a tax paid by people who work within the City of Paducah. In other words for every $1.00 that is earned, $0.02 is paid to the City of Paducah. The Payroll Tax is the largest revenue source for the City. Three-quarters of the Payroll Tax is placed into the General Fund. The remaining quarter is placed into the Investment Fund. The Investment Fund is dedicated to the following expenditures: economic development, neighborhood redevelopment, infrastructure capital investment, and property tax relief.
The anticipated revenue from the Payroll Tax for Fiscal Year 2022 for the General Fund is approximately $16.3 million with the revenue for the Investment Fund equal to $5.285 million (approximately a quarter of the total Payroll Tax collected is set aside in the Investment Fund).