§ 11-51-90.2 — Purchase of Business License; Classification of Taxpayers; Vehicle Decals; Determination of Gross Receipts; Construction with Other Provisions

Alabama § 11-51-90.2

• Jurisdiction: Alabama
• Title 11: Counties and Municipal Corporations
• Ch. 51: Taxation
• Art. 2: License Taxes
• Div. 1: General Provisions

Text

(a) Every taxpayer required to purchase a business license under this chapter shall:
(1) Purchase a business license for each location at which it does business in the municipality, except as otherwise provided by the municipality.
(2) Except as provided in Section 11-51-193, with respect to taxpayers subject to state licensing board oversight, be classified into one or more of the following 2002 North American Industrial Classification System (“NAICS”) sectors and applicable sub-sectors, industry groups, industries, and U.S. industries thereunder:
SECTOR
NAICS TITLE
SUGGESTED BUSINESS LICENSE CODE GROUPING BY SAMPLE TOPIC OR CATEGORY
BASIS FOR LICENSE CALCULATION
111
Crop Production
Agriculture, farming, nursery, fruit, growers
Gross Receipts and/or Flat Rate
112
Animal Production
Animal, dairy, cattle, ranching, sheep, chicken
Gross Receipts and/or Flat Rate
113
Forestry and Logging
Forestry, logging, timber
Gross Receipts and/or Flat Rate
114
Fishing, Hunting, and Trapping
Fishing, hunting, supplies and equipment
Gross Receipts and/or Flat Rate
115
Support for Agriculture and Forestry
Cotton ginning, farm management, post-harvest activities
Gross Receipts and/or Flat Rate
211
Oil and Gas Extraction
Oil, gas, extraction, natural gas, crude
State Regulated [See, e.g. Section 40-20-2(c)]
212
Mining (except Oil and Gas)
Mining activities
Gross Receipts and/or Flat Rate Where not State Regulated
213
Support for Mining Activities
Support activities for oil and gas wells
Gross Receipts and/or Flat Rate Where not State Regulated
221
Utilities
Utilities, gas, electric, water, sewage, steam
State Regulated (See Section 11-51-129)
236
Building, Developing and General Contracting
Construction, building, general, residential, subdivisions
Gross Receipts and/or Flat Rate
237
Heavy Construction
Construction, heavy construction, highway, bridge, street
Gross Receipts and/or Flat Rate
238
Special Trade Contractors
Construction, all special trades
Gross Receipts and/or Flat Rate
311
Food Manufacturing
Food manufacturing, animal, grain, fruit, dairy, meat, seafood
Gross Receipts, Flat Rate, or Value of Goods Produced
312
Beverage and Tobacco Products Manufacturing
Beverage manufacturing, soft drink, bottled water, breweries, ice
Gross Receipts and/or Flat Rate Where Not State Regulated, or Value of Goods Produced
313
Textile Mills
Mills, textile, fabric, yarn, carpet, canvas, rope, twine
Gross Receipts, Flat Rate, or Value of Goods Produced
314
Textile Product Mills
Other mill operations not covered in 313
Gross Receipts, Flat Rate, or Value of Goods Produced
315
Apparel Manufacturing
Apparel manufacturing, hosiery, men, women, children, lingerie
Gross Receipts, Flat Rate, or Value of Goods Produced
316
Leather and Allied Product Manufacturing
Leather manufacturing, shoes, luggage, handbag, related products
Gross Receipts, Flat Rate, or Value of Goods Produced
321
Wood Products Manufacturing
Wood products, sawmills, wood, preservation, veneer, trusses, millwork
Gross Receipts, Flat Rate, or Value of Goods Produced
322
Paper Manufacturing
Paper manufacturing, pulp, paper, converted products
Gross Receipts, Flat Rate, or Value of Goods Produced
323
Printing and Related Support Activities
Printing, lithographic, screen, quick, digital, books, handbills
Gross Receipts, Flat Rate, or Value of Goods Produced
324
Petroleum and Coal Products Manufacturing
Petroleum manufacturing, asphalt, roofing, paving, grease
Gross Receipts, Flat Rate, or Value of Goods Produced
325
Chemical Manufacturing
Chemical manufacturing, wood, fertilizer, pesticide, paint, soap, other
Gross Receipts, Flat Rate, or Value of Goods Produced
326
Plastics and Rubber Product Manufacturing
Plastic and tire manufacture, pipe, hoses, belts, bottle, sheet, foam
Gross Receipts, Flat Rate, or Value of Goods Produced
327
Nonmetallic Mineral Product Manufacturing
Nonmetallic manufacturing, clay, glass, cement, lime, gypsum, other
Gross Receipts, Flat Rate, or Value of Goods Produced
331
Primary Metal Manufacturing
Metal manufacturing, iron, steel, aluminum, copper, other nonferrous
Gross Receipts, Flat Rate, or Value of Goods Produced
332
Fabricated Metal Product Manufacturing
Fabricated metal, cutlery, structural, ornamental, wire, machine shops
Gross Receipts, Flat Rate, or Value of Goods Produced
333
Machinery Manufacturing
Machinery manufacturing, farm, HVAC, office, industrial, engine, other
Gross Receipts, Flat Rate, or Value of Goods Produced
334
Computer and Electronic Product Manufacturing
Computers and electronics, peripherals, audio, video, circuit boards
Gross Receipts, Flat Rate, or Value of Goods Produced
335
Electrical Equipment Appliance Component Manufacturing
Electrical equipment, lighting, small appliance, battery, other
Gross Receipts, Flat Rate, or Value of Goods Produced
336
Transportation Equipment Manufacturing
Transportation manufacturing, auto, truck, trailer, motor home, ship, boat, motorcycle
Gross Receipts, Flat Rate, or Value of Goods Produced
337
Furniture and Related Products Manufacturing
Furniture manufacturing, cabinets, office furniture, beds, kitchen
Gross Receipts, Flat Rate, or Value of Goods Produced
339
Misc. Manufacturing
Misc. manufacturing, medical, dental, jewelry, sporting goods, toys, signs, all other
Gross Receipts, Flat Rate, or Value of Goods Produced
421
Wholesale Trade, Durable Goods
Wholesale trade-durable, motor vehicle, home furniture, machinery, equipment
Gross Receipts and/or Flat Rate
422
Wholesale Trade, Non-Durable Goods
Wholesale trade-nondurable, paper, apparel, grocery, dairy, farm, beverages
Gross Receipts and/or Flat Rate
441
Motor Vehicle and Parts Dealer
Motor vehicles, automobiles, motorcycles, boats, parts, accessories
Gross Receipts and/or Flat Rate
442
Furniture and Home Furnishing Stores
Furniture stores, home, floor, furnishings, window, special products
Gross Receipts and/or Flat Rate
443
Electronics and Appliance Stores
Electronic and appliance store, household, radio, television, computer
Gross Receipts and/or Flat Rate
444
Building Material and Gardening Equipment Dealers
Building materials, hardware, paint, home center, wallpaper
Gross Receipts and/or Flat Rate
445
Food and Beverage Stores
Food and beverage stores, grocery, convenience, markets, liquor, beer
Gross Receipts and/or Flat Rate Where Not State Regulated
446
Health and Personal Care Stores
Health and personal care stores, drug, cosmetic, optical, health food
Gross Receipts and/or Flat Rate
447
Gasoline Stations
Gasoline stations, filling stations
Gross Receipts and/or Flat Rate Based on No. of Dispensers
448
Clothing and Accessories Stores
Clothing stores, men’s, women’s, children, infants, shoe, jewelry, luggage
Gross Receipts and/or Flat Rate
451
Sporting Goods, Hobby, Book, Music
Sporting goods stores, hobby, toy, fish, gun, music, books
Gross Receipts and/or Flat Rate
452
General Merchandise
General merchandise stores, department, warehouse clubs, superstores
Gross Receipts and/or Flat Rate
453
Miscellaneous Store Retailers
Misc. store retailers, florist, gift, novelty, used, pets, art, tobacco
Gross Receipts and/or Flat Rate
454
Nonstore Retailers
Nonstore retailers, electronic shopping, mail order, vending, direct selling
Gross Receipts and/or Flat Rate
481
Air Transportation
Air transportation, airline tickets, shipping, freight, charters
Gross Receipts and/or Flat Rate Where Not State Regulated
482
Rail Transportation
Rail transportation, ticket offices, short line, freight
State Regulated and/or Flat Rate
483
Water Transportation
Water transportation, coastal, freight, inland, passenger, forwarders
Gross Receipts and/or Flat Rate Where Not State Regulated
484
Truck Transportation
Truck transportation, terminal, local, long-distance, freight
Gross Receipts and/or Flat Rate Where Not State Regulated
485
Transit and Ground Passenger Transportation
Ground transportation, bus, taxi, limousine, charter, buggy
Gross Receipts and/or Flat Rate
487
Scenic and Sightseeing Transportation
Scenic and sightseeing, land, water, air, special
Gross Receipts and/or Flat Rate
492
Couriers and Messengers
Couriers and messengers, services, delivery
Gross Receipts and/or Flat Rate
493
Warehousing and Storage
Warehouse and storage, household, refrigerated, distribution, special
Gross Receipts, Flat Rate or Square Feet
511
Publishing Industries (except Internet)
Publishing, newspapers, periodicals, databases, software
Gross Receipts and/or Flat Rate
512
Motion Picture and Sound Recording Industry
Motion pictures and videos, theatres, recording, studios, drive-in
Gross Receipts and/or Flat Rate
515
Broadcasting (except Internet)
Broadcasting and radio, TV
Gross Receipts and/or Flat Rate Where Not State Regulated
516
Internet Publishing and Broadcasting
Publications or broadcasting for Internet only
Gross Receipts and/or Flat Rate Where Not State Regulated
517
Telecommunications
Providing, access to facilities for voice, data, text, sound and/or video
Gross Receipts and/or Flat Rate Where Not State Regulated
519
Information Services and Data Processing
Providing, storing, processing, and providing access to information
Gross Receipts and/or Flat Rate
522
Credit Intermediation and Related Activities
Credit companies and activities related to credit and mediation of credit
Gross Receipts and/or Flat Rate Where Not State Regulated. Banks and savings and loan associations are state regulated and are subject to the license tax authorized under Section 11-51-130 and under Section 11-51-131, respectively.
523
Securities, Commodity, Other Financial Products
Insurance companies, life, health, accident, and all other
Gross Receipts and/or Flat Rate Where Not State Regulated
524
Insurance Carriers and Related Activities
Insurance companies, fire, marine, and fire casualty
State Regulated
525
Funds, Trusts, Other Financial Vehicles
Funds, plans, and/or programs organized to pool securities or other assets for others, other than the Alabama Municipal Funding Corporation
Gross Receipts and/or Flat Rate Where Not State Regulated
531
Real Estate
Real estate, offices, agents, brokers, developers
Gross Receipts and/or Flat Rate Where Not State Regulated
532
Rental and Leasing Services
Rental and leasing, auto, truck, equipment, tangible property
Gross Receipts and/or Flat Rate
541
Professions, Scientific, Technical Services
Attorney, doctor, dentist, architect, engineer, vet, other professions
Gross Receipts for outdoor/billboard advertising; otherwise flat rate and/or gross receipts
551
Management of Companies and Enterprises
Management of companies and enterprises, offices, regional, corporate
Gross Receipts and/or Flat Rate Where Not State Regulated. For purposes of this chapter only, bank holding companies are state regulated and are subject only to the license tax amount authorized under Section 11-51-130(a)(12).
561
Administrative and Support Services
Administrative and support services, office, employment, answering, travel
Gross Receipts and/or Flat Rate Where Not State Regulated
562
Waste Management and Remediation Services
Waste management, services, landfill, septic tank, companies, trucks
Gross Receipts and/or Flat Rate Where Not State Regulated
611
Educational Services
Educational services, business, secretarial, computer, technical, sports, other
Gross Receipts and/or Flat Rate Where Not State Regulated
621
Ambulatory Health Care Services
Health care services, mental, outpatient, HMO, diagnostic, blood, dialysis, other
Gross Receipts and/or Flat Rate
622
Hospitals
Hospitals, surgical, substance abuse, psychiatric, specialty
Gross Receipts and/or Flat Rate Based on No. of Patients or Beds
623
Nursing and Residential Care Facilities
Nursing and residential care facilities, elderly, day care, assisted living
Gross Receipts and/or Flat Rate
624
Social Assistance
Social assistance, child, shelters, vocational, emergency
Gross Receipts and/or Flat Rate Where Not State Regulated
711
Performing Arts, Spectator Sports
Arts and sports, dance, musical, spectator, teams, tracks, promoters, agents
Gross Receipts and/or Flat Rate
712
Museums, Historical Sites and Similar
Museums, historical sites, zoos, botanical gardens, parks, special sites
Gross Receipts and/or Flat Rate
713
Amusement, Gambling and Related
Amusement and recreation, gambling, theme, arcade, golf, marinas, fitness
Gross Receipts and/or Flat Rate Where Not State Regulated
721
Accommodations
Accommodations, hotel, travel, bed-and-breakfast, rooming houses, motel
Gross Receipts and/or Flat Rate
722
Food Services and Drinking Places
Food service and drinking places, restaurant, caterers, bar, lounge, club
Gross Receipts and/or Flat Rate
811
Repair and Maintenance
Repair and maintenance, automotive, electronic, commercial, residential, other
Gross Receipts and/or Flat Rate
812
Personal and Laundry Services
Personal care services, hair, nail, skin, barber, beauty, diet, tanning, funerals
Gross Receipts and/or Flat Rate
910
Category for:
Vending machines, pool tables, amusement devices, etc.
Gross Receipts and/or Flat Rate
920
Category for employees:
Employees: as in number of employees used in license calculation
Gross Receipts, Flat Rate or Number of Employees
930
Category for square feet:
Square feet used for warehousing, large buildings, and other types
Gross Receipts, Flat Rate or Number of Square Feet
923
Administration of Human Resource Programs
General Category
Gross Receipts and/or Flat Rate Where Applicable
924
Administration of Environmental Quality Programs
General Category
Gross Receipts and/or Flat Rate Where Applicable
925
Administration of Housing, Urban, Comm.
General Category
Gross Receipts and/or Flat Rate Where Applicable
926
Administration of Economic Programs
General Category
Gross Receipts and/or Flat Rate Where Applicable
927
Space Research and Technology
General Category
Gross Receipts and/or Flat Rate Where Applicable
928
National Security and International Affairs
General Category
Gross Receipts and/or Flat Rate Where Applicable
999
Unclassified Establishments
General Category
Gross Receipts or Flat Rate, Where Not State Regulated
(3) Notwithstanding any provision of this chapter to the contrary, a business license is not required for a person travelling through a municipality on business if the person is not operating a branch office as provided in Section 11-51-90, or doing business in the municipality.
(b) The taxing jurisdiction’s basis for determination of the business license tax for each sector shall correspond with the basis specified in subsection (a), such as gross receipts, flat rate, number of employees, or square footage. Provided, however, with respect to machines and other devices described in Sector 910 above, the municipality, in addition to a gross receipts-based or flat rate license, may require the taxpayer to purchase a decal for each machine or device located within the municipality. The charge for such decal shall not exceed the municipality’s actual cost of the decal. Provided further, the taxing jurisdiction shall have authority to issue one license, rather than multiple licenses, to a business in accordance with the taxing jurisdiction’s business license ordinance. To the extent that subsection (a) indicates that a business activity described in an NAICS sector is fully or partially state regulated, no taxing jurisdiction shall have authority to impose a business license tax in excess of the amount otherwise authorized by state law on the state regulated portion of such sector.
(c) The measure of a municipal business license based on gross receipts shall be based on the taxpayer’s gross receipts for the license year next preceding the current license year unless the taxpayer first began doing business in the municipality during the current license year, in which event the gross receipts shall be projected by the taxpayer for the remaining portion of the current license year. If the taxpayer’s actual gross receipts for the short license year are either more or less than projected, the taxpayer’s annualized gross receipts used in calculating its business license tax liability for the following license year shall be increased or decreased, respectively, by the amount of the difference. When annualizing the gross receipts for the short license year, the amount of the gross receipts projected by the taxpayer shall be divided by the number of full months the taxpayer was in business in the municipality and multiplied by 12; provided that each taxpayer shall be deemed to have been in business in the municipality for a minimum of one month for purposes of this calculation. If the taxpayer employs a fiscal year for federal and state income tax purposes, the taxpayer’s gross receipts may be determined, at the option of the taxpayer, from the federal income tax return of the taxpayer for the fiscal year next preceding the current license year, provided that the gross receipts reported thereon reasonably reflect the financial condition of the taxpayer as of the December 31 next preceding the current license year, and the taxpayer so notifies the municipality either prior to or simultaneously with filing the first business license remittance form using fiscal year data. The taxpayer’s use of fiscal year data, as provided above, shall constitute an irrevocable election to use fiscal year data with respect to the current and subsequent business license years unless the governing body of the municipality or its director of finance or other chief revenue officer or his or her designee consents otherwise. Provided, however, that nothing in this subsection shall prohibit a municipality from doing any of the following:
(1) Creating one or more sub-sectors in each of the NAICS sectors listed in subsection (a) above, subject to the limitations regarding the basis for license calculation and subsections (e) and (f) below.
(2) Levying and collecting any municipal tax, other than an annual business license, that now exists or that may hereafter be adopted pursuant to Section 11-51-90 or some other provision of state law, including, but not limited to, lodgings taxes, alcoholic beverage taxes, gasoline and motor fuel taxes, tobacco taxes, leasing or rental taxes, occupational taxes, sales and use taxes, and gross receipts taxes in the nature of a sales tax.
(3) Allowing or requiring a taxpayer to purchase a minimum business license with respect to the short license year following 90 days of operations in the municipality, based on the amount which bears the same relationship to the actual amount of gross receipts during such preceding license year as the entire license year bears to the number of days during which the taxpayer was operating during such preceding license year. If the taxpayer did not commence operations until after the first day of the calendar year, the municipality may by ordinance require the taxpayer to remit the business license tax at the end of such 90 day period, or on December 31 of the current license year, whichever occurs first.
(d) For purposes of subsection (a), the terms “state regulated” or “where not state regulated,” when used with reference to a business listed in one of the NAICS sectors and any subsequently created sub-sector, mean and refer to other provisions of the Code of Alabama 1975, that deal with or limit the taxation of the respective business by municipalities, none of which are amended or repealed by Act 2006-586.
(e) Notwithstanding anything in this chapter to the contrary, the licenses authorized by Sections 11-51-130 and 11-51-131 are in lieu of any other business licenses authorized by this chapter, and banks and savings and loan associations subject to either of those sections are not subject to the business license taxes otherwise authorized by this chapter, regardless of whether one or more NAICS sectors or sub-sectors describe or include any business or activity of such bank or savings and loan association. Any municipal business license tax applicable to a bank holding company, as defined in Section 5-13B-2(f), shall not exceed the amount set forth in the schedule provided for banks under Section 11-51-130(a)(12). Provided, however, if a bank holding company is engaged in additional lines of business that do not fall within NAICS Sectors 551 or 522 and which are not considered financial in nature, as defined under federal banking law, the bank holding company shall take out and pay for a business license for each additional line of business so assessed by the municipality; provided further that for each separate additional business license, the gross receipts taxable under such license shall be only those gross receipts of the bank holding company which arise under the license for the respective additional line of business and not from a financial activity, as defined under federal banking law, or from an activity within NAICS Sector 551 or 522. This subsection (e) shall not apply to any subsidiary of a bank or savings and loan association.
(f) Notwithstanding any provision of this chapter to the contrary, each of the several municipalities in this state may annually assess and collect from each utility or other entity described in Section 11-51-129 only one municipal business license tax for all lines of business classified in NAICS Sector 221, and the levy, collection, and assessment of the single business license tax shall be subject to the provisions and limitations of Section 11-51-129 and Section 11-51-90.1. If any such utility or entity described in Section 11-51-129 is engaged in one or more additional lines of business that do not fall within NAICS Sector 221, and if the additional line of business of such utility or other entity is so assessed by the municipality, then the utility or other entity shall take out and pay for a business license for that additional line of business, even if the utility or other entity does not meet the requirement in Section 11-51-95 that it must derive more than 10 percent of its gross receipts from the business falling within the NAICS sector during the preceding license year; provided however, that for each separate, additional business license, the gross receipts taxable under such license shall be only those gross receipts of the utility or other entity from business done within the municipality and which arise within the line of business which is the subject of the respective license.

Legislative History

(Act 2006-586, p. 1548, §3; Act 2018-411, §1.)