Licensing Fees and Occupation Taxes

A state agency may pay a licensing fee or an occupation tax for an officer or employee of the agency if the agency determines the:

• Payment would be directly and substantially related to the agency’s governmental functions.
  – and –
• Agency would receive an adequate return for the payment.

A state agency may consider the following factors (among others) when determining if the agency would be receiving an adequate return if the:

• Employee in question works full time or part time.
• Employee uses their professional credentials in working outside the confines of their state employment.
• Employee’s professional credentials are required or merely useful in performing the employee’s state duties.

Documentation Requirements [+]

Sources [+]