Auto Repair Shop Permit Requirements in Lexington, KY

1. EIN (Employer Identification Number)

   Required if you have employees or operate as an LLC or corporation. Free from the IRS.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. Kentucky Department of Revenue — Sales and Use Tax Permit (Retailer's or Seller's Permit)

   KRS 139.200 imposes a 6% tax on the gross receipts of all retailers from retail sales of tangible personal property and of digital property, and from the furnishing of the services enumerated in subsection (2). That enumerated list is long and catches many service businesses that assume they are untaxed: landscaping services including lawn care and maintenance, tree trimming, landscape design and installation, and snow plowing or removal (paragraph (g)); janitorial services including residential and commercial cleaning and carpet, upholstery and window cleaning (h); small animal veterinary services (i); pet care services including grooming, boarding, pet sitting and obedience training (j); non-coin-operated laundry and dry cleaning (l); indoor skin tanning (n); non-medical diet and weight reducing (o); extended warranty services (p); photography and photofinishing (q); telemarketing (r); lobbying (t); executive employee recruitment (u); website design and development (v) and website hosting (w); bodyguard services (z); security system monitoring (aa); private investigation (ab); process serving (ac); repossession (ad); personal background checks (ae); parking and valet (af); rental of space for meetings, conventions, weddings, banquets, parties and other short-term social events (ai); social event planning and coordination (aj); leisure, recreational and athletic instructional services (ak); recreational camp tuition (al); personal fitness training (am); massage except when medically necessary (an); cosmetic surgery (ao); body modification including tattooing, piercing, scarification and branding (ap); non-medical laboratory testing (aq); interior decorating and design (ar); household moving (as); specialized design (at); lapidary (au); labor to repair or maintain commercial refrigeration equipment where no property is sold (av); labor to repair or alter apparel, footwear, watches or jewelry where no property is sold (aw); prewritten computer software access services (ax); and data brokering services (ay), the last effective August 1, 2026. KRS 139.240(1) requires every person presently engaged in or desiring to engage in business as a retailer or seller in Kentucky to file a permit application for each place of business, and KRS 139.250 requires the department to issue a separate permit per location, makes it nonassignable, limits it to the person named, and requires it to be conspicuously displayed. There are no local sales and use taxes in Kentucky, so the rate is 6% statewide.

   Official government source

   No fee. Neither KRS 139.240 nor KRS 139.250 prescribes a charge for the retailer's or seller's permit, and the Department of Revenue issues the account at no cost through the Kentucky Business One Stop registration·Not published by the Department of Revenue. KRS 139.240(1) requires the application to be on file before engaging in business as a retailer, and KRS 139.240(4) waives the written signature for electronic registrants, so file through the Kentucky Business One Stop before the first taxable sale

   No fee. Neither KRS 139.240 nor KRS 139.250 prescribes a charge for the retailer's or seller's permit, and the Department of Revenue issues the account at no cost through the Kentucky Business One Stop registration

   Not published by the Department of Revenue. KRS 139.240(1) requires the application to be on file before engaging in business as a retailer, and KRS 139.240(4) waives the written signature for electronic registrants, so file through the Kentucky Business One Stop before the first taxable sale

2. Kentucky Division of Waste Management — Used Oil and Hazardous Waste Rules for Auto Repair Shops

   Two separate regimes apply and only one involves any registration. Used oil first: EPA treats a shop that changes oil as a used oil generator, and generators do not need an EPA identification number or a permit to handle their own used oil. What they must do is keep containers and aboveground tanks in good condition with no rust, leaks or deterioration, label every container and tank clearly with the words Used Oil, never store used oil in a lagoon, pit or unpermitted surface impoundment, and on a leak or spill stop the flow at the source, contain the oil, recycle what is recovered, and repair or replace the defective container immediately. An ID number is needed only if the shop itself transports shipments over 55 gallons. Kentucky adopts the federal used oil standards of 40 C.F.R. Part 279 through Section 4 of 401 KAR 39:080. Hazardous waste second: 401 KAR 39:080 Section 1 adopts the generator standards of 40 C.F.R. Part 262, and the shop's obligations depend entirely on its generator category. A very small quantity generator produces 100 kilograms or less of hazardous waste and one kilogram or less of acute hazardous waste per calendar month and may accumulate up to 1,000 kilograms on site; a small quantity generator produces more than 100 but less than 1,000 kilograms per month, may accumulate up to 6,000 kilograms, and may hold waste 180 days without a permit, or 270 days if shipping more than 200 miles; a large quantity generator produces 1,000 kilograms or more per month or more than one kilogram of acute waste, and is limited to 90 days. Most independent auto repair shops fall in the VSQG tier on solvents, parts washer sludge, brake cleaner and spent antifreeze. Section 1(10) of 401 KAR 39:080 bars a large or small quantity generator from treating, storing, disposing of, transporting or offering for transportation any hazardous waste until it has received an EPA identification number, obtained through cabinet registration on eForm 108. Kentucky's annual generator registration goes beyond the federal notification requirement, and large and small quantity generators must file a Kentucky annual report; very small quantity generators generally do not file unless they held a higher status during the reporting year.

   Official government source

   No fee to obtain an EPA identification number through registration, and no fee at all for a used oil generator, which registers nothing. Large and small quantity generators pay the Kentucky hazardous waste assessment computed on Form DEP-7070 with the annual report: solid hazardous waste is $0.00 per pound if generated for off-site disposal, $0.001 per pound if burned off site for energy recovery, $0.001 per pound if treated, recycled or disposed on site, and $0.0005 per pound if burned on site for energy recovery; liquid hazardous waste is $0.012 per pound for off-site disposal, $0.006 per pound burned off site for energy recovery, $0.006 per pound treated, recycled or disposed on site, and $0.003 per pound burned on site for energy recovery. The form directs filers to send no check if the total due is under $50.00·There is no waiting period for a used oil generator — the container, labeling and spill rules apply immediately, with nothing to file. A shop that crosses into small or large quantity generator status registers through the Kentucky Online Gateway eForms system to receive an EPA identification number, and the cabinet publishes no processing time. The Kentucky annual report and DEP-7070 assessment return are due January 1 each year, with a grace period to March 1 before late fees attach

   No fee to obtain an EPA identification number through registration, and no fee at all for a used oil generator, which registers nothing. Large and small quantity generators pay the Kentucky hazardous waste assessment computed on Form DEP-7070 with the annual report: solid hazardous waste is $0.00 per pound if generated for off-site disposal, $0.001 per pound if burned off site for energy recovery, $0.001 per pound if treated, recycled or disposed on site, and $0.0005 per pound if burned on site for energy recovery; liquid hazardous waste is $0.012 per pound for off-site disposal, $0.006 per pound burned off site for energy recovery, $0.006 per pound treated, recycled or disposed on site, and $0.003 per pound burned on site for energy recovery. The form directs filers to send no check if the total due is under $50.00

   There is no waiting period for a used oil generator — the container, labeling and spill rules apply immediately, with nothing to file. A shop that crosses into small or large quantity generator status registers through the Kentucky Online Gateway eForms system to receive an EPA identification number, and the cabinet publishes no processing time. The Kentucky annual report and DEP-7070 assessment return are due January 1 each year, with a grace period to March 1 before late fees attach

1. Lexington-Fayette Urban County Government — Division of Revenue — Occupational License

   Every business entity operating in Fayette County must apply for and obtain an initial occupational license from the LFUCG Revenue Department before starting business. The occupational license fee is a flat 2.25% of an individual's compensation and a business's net profits — there is no fee tier by business type — reported on an annual Net Profits License Fee Return. Employers file an Employer's Return of License Fee Withheld quarterly, or monthly when quarterly withholding exceeds $300, plus an annual Reconciliation of License Fee Withheld.

   Official government source

   $100 initial license fee and a $100 annual minimum license fee, plus the 2.25% occupational license fee on net profits and payroll·Not published by the LFUCG Revenue Department; the license must be obtained before starting business

   $100 initial license fee and a $100 annual minimum license fee, plus the 2.25% occupational license fee on net profits and payroll

   Not published by the LFUCG Revenue Department; the license must be obtained before starting business

2. Lexington Zoning Approval and Certificate of Occupancy

   An auto repair shop must sit in a commercial or industrial zone permitting vehicle repair, and needs a certificate of occupancy from the LFUCG Building Inspection Department before opening. If the space is being remodeled or its use changed, a building permit comes first; otherwise the certificate may be applied for directly. Every applicant schedules a life safety inspection with the Fire Inspector. Applications are filed through the lexingtonky.gov permits portal or the One Stop Shop at 101 E. Vine St.

   Official government source

   LFUCG publishes no certificate of occupancy fee; commercial construction fee estimates are available through the One Stop portal·Not published by the Building Inspection Department; issuance follows the fire life safety inspection

   LFUCG publishes no certificate of occupancy fee; commercial construction fee estimates are available through the One Stop portal

   Not published by the Building Inspection Department; issuance follows the fire life safety inspection

Official Sources

• Lexington-Fayette Urban County Government — Revenue Division
• Kentucky Division of Waste Management — Used Oil and Hazardous Waste Requirements

Related Guides