AL Code § 11-51-90.2 (2021)
2021 Code of Alabama|Title 11 - Counties and Municipal Corporations.|Title 2 - Provisions Applicable to Municipal Corporations Only.|Chapter 51 - Taxation.|Article 2 - License Taxes.|Division 1 - General Provisions.|Section 11-51-90.2 - Purchase of Business License; Classification of Taxpayers; Vehicle Decals; Determination of Gross Receipts; Construction With Other Provisions.

Section 11-51-90.2Purchase of business license; classification of taxpayers; vehicle decals; determination of gross receipts; construction with other provisions. (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: SECTORNAICS TITLESUGGESTED BUSINESS LICENSE CODE GROUPING BY SAMPLE TOPIC OR CATEGORYBASIS FOR LICENSE CALCULATION111Crop ProductionAgriculture, farming, nursery, fruit, growersGross Receipts and/or Flat Rate112Animal ProductionAnimal, dairy, cattle, ranching, sheep, chickenGross Receipts and/or Flat Rate113Forestry and LoggingForestry, logging, timberGross Receipts and/or Flat Rate114Fishing, Hunting, and Trapping Fishing, hunting, supplies and equipmentGross Receipts and/or Flat Rate115Support for Agriculture and ForestryCotton ginning, farm management, post-harvest activitiesGross Receipts and/or Flat Rate211Oil and Gas ExtractionOil, gas, extraction, natural gas, crudeState Regulated [See, e.g. Section 40-20-2(c)]212Mining (except Oil and Gas)Mining activitiesGross Receipts and/or Flat Rate Where not State Regulated213Support for Mining ActivitiesSupport activities for oil and gas wellsGross Receipts and/or Flat Rate Where not State Regulated221UtilitiesUtilities, gas, electric, water, sewage, steam State Regulated (See Section 11-51-129)236Building, Developing and General ContractingConstruction, building, general, residential, subdivisionsGross Receipts and/or Flat Rate237Heavy ConstructionConstruction, heavy construction, highway, bridge, streetGross Receipts and/or Flat Rate238Special Trade ContractorsConstruction, all special tradesGross Receipts and/or Flat Rate311Food ManufacturingFood manufacturing, animal, grain, fruit, dairy, meat, seafoodGross Receipts, Flat Rate, or Value of Goods Produced312Beverage and Tobacco Products ManufacturingBeverage manufacturing, soft drink, bottled water, breweries, iceGross Receipts and/or Flat Rate Where Not State Regulated, or Value of Goods Produced313Textile MillsMills, textile, fabric, yarn, carpet, canvas, rope, twineGross Receipts, Flat Rate, or Value of Goods Produced314Textile Product MillsOther mill operations not covered in 313Gross Receipts, Flat Rate, or Value of Goods Produced315Apparel ManufacturingApparel manufacturing, hosiery, men, women, children, lingerieGross Receipts, Flat Rate, or Value of Goods Produced316Leather and Allied Product ManufacturingLeather manufacturing, shoes, luggage, handbag, related productsGross Receipts, Flat Rate, or Value of Goods Produced321Wood Products ManufacturingWood products, sawmills, wood, preservation, veneer, trusses, millworkGross Receipts, Flat Rate, or Value of Goods Produced322Paper ManufacturingPaper manufacturing, pulp, paper, converted productsGross Receipts, Flat Rate, or Value of Goods Produced323Printing and Related Support ActivitiesPrinting, lithographic, screen, quick, digital, books, handbillsGross Receipts, Flat Rate, or Value of Goods Produced324Petroleum and Coal Products ManufacturingPetroleum manufacturing, asphalt, roofing, paving, greaseGross Receipts, Flat Rate, or Value of Goods Produced325Chemical ManufacturingChemical manufacturing, wood, fertilizer, pesticide, paint, soap, otherGross Receipts, Flat Rate, or Value of Goods Produced326Plastics and Rubber Product ManufacturingPlastic and tire manufacture, pipe, hoses, belts, bottle, sheet, foamGross Receipts, Flat Rate, or Value of Goods Produced327Nonmetallic Mineral Product ManufacturingNonmetallic manufacturing, clay, glass, cement, lime, gypsum, otherGross Receipts, Flat Rate, or Value of Goods Produced331Primary Metal ManufacturingMetal manufacturing, iron, steel, aluminum, copper, other nonferrousGross Receipts, Flat Rate, or Value of Goods Produced332Fabricated Metal Product ManufacturingFabricated metal, cutlery, structural, ornamental, wire, machine shopsGross Receipts, Flat Rate, or Value of Goods Produced333Machinery ManufacturingMachinery manufacturing, farm, HVAC, office, industrial, engine, otherGross Receipts, Flat Rate, or Value of Goods Produced334Computer and Electronic Product ManufacturingComputers and electronics, peripherals, audio, video, circuit boardsGross Receipts, Flat Rate, or Value of Goods Produced335Electrical Equipment Appliance Component ManufacturingElectrical equipment, lighting, small appliance, battery, otherGross Receipts, Flat Rate, or Value of Goods Produced336Transportation Equipment ManufacturingTransportation manufacturing, auto, truck, trailer, motor home, ship, boat, motorcycleGross Receipts, Flat Rate, or Value of Goods Produced337Furniture and Related Products ManufacturingFurniture manufacturing, cabinets, office furniture, beds, kitchenGross Receipts, Flat Rate, or Value of Goods Produced339Misc. ManufacturingMisc. manufacturing, medical, dental, jewelry, sporting goods, toys, signs, all otherGross Receipts, Flat Rate, or Value of Goods Produced421Wholesale Trade, Durable GoodsWholesale trade-durable, motor vehicle, home furniture, machinery, equipmentGross Receipts and/or Flat Rate422Wholesale Trade, Non-Durable GoodsWholesale trade-nondurable, paper, apparel, grocery, dairy, farm, beveragesGross Receipts and/or Flat Rate441Motor Vehicle and Parts DealerMotor vehicles, automobiles, motorcycles, boats, parts, accessoriesGross Receipts and/or Flat Rate442Furniture and Home Furnishing StoresFurniture stores, home, floor, furnishings, window, special productsGross Receipts and/or Flat Rate443Electronics and Appliance StoresElectronic and appliance store, household, radio, television, computerGross Receipts and/or Flat Rate444Building Material and Gardening Equipment DealersBuilding materials, hardware, paint, home center, wallpaperGross Receipts and/or Flat Rate445Food and Beverage StoresFood and beverage stores, grocery, convenience, markets, liquor, beerGross Receipts and/or Flat Rate Where Not State Regulated446Health and Personal Care StoresHealth and personal care stores, drug, cosmetic, optical, health foodGross Receipts and/or Flat Rate447Gasoline StationsGasoline stations, filling stationsGross Receipts and/or Flat Rate Based on No. of Dispensers448Clothing and Accessories StoresClothing stores, men's, women's, children, infants, shoe, jewelry, luggageGross Receipts and/or Flat Rate451Sporting Goods, Hobby, Book, MusicSporting goods stores, hobby, toy, fish, gun, music, booksGross Receipts and/or Flat Rate452General Merchandise General merchandise stores, department, warehouse clubs, superstoresGross Receipts and/or Flat Rate453Miscellaneous Store RetailersMisc. store retailers, florist, gift, novelty, used, pets, art, tobaccoGross Receipts and/or Flat Rate454Nonstore RetailersNonstore retailers, electronic shopping, mail order, vending, direct sellingGross Receipts and/or Flat Rate481Air TransportationAir transportation, airline tickets, shipping, freight, chartersGross Receipts and/or Flat Rate Where Not State Regulated482Rail TransportationRail transportation, ticket offices, short line, freightState Regulated and/or Flat Rate483Water TransportationWater transportation, coastal, freight, inland, passenger, forwardersGross Receipts and/or Flat Rate Where Not State Regulated484Truck TransportationTruck transportation, terminal, local, long-distance, freightGross Receipts and/or Flat Rate Where Not State Regulated485Transit and Ground Passenger TransportationGround transportation, bus, taxi, limousine, charter, buggyGross Receipts and/or Flat Rate 487Scenic and Sightseeing TransportationScenic and sightseeing, land, water, air, specialGross Receipts and/or Flat Rate492Couriers and MessengersCouriers and messengers, services, deliveryGross Receipts and/or Flat Rate493Warehousing and StorageWarehouse and storage, household, refrigerated, distribution, specialGross Receipts, Flat Rate or Square Feet511Publishing Industries (except Internet)Publishing, newspapers, periodicals, databases, softwareGross Receipts and/or Flat Rate512Motion Picture and Sound Recording IndustryMotion pictures and videos, theatres, recording, studios, drive-inGross Receipts and/or Flat Rate515Broadcasting (except Internet)Broadcasting and radio, TVGross Receipts and/or Flat Rate Where Not State Regulated516Internet Publishing and BroadcastingPublications or broadcasting for Internet onlyGross Receipts and/or Flat Rate Where Not State Regulated517TelecommunicationsProviding, access to facilities for voice, data, text, sound and/or videoGross Receipts and/or Flat Rate Where Not State Regulated519Information Services and Data ProcessingProviding, storing, processing, and providing access to informationGross Receipts and/or Flat Rate522Credit Intermediation and Related ActivitiesCredit companies and activities related to credit and mediation of creditGross 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.523Securities, Commodity, Other Financial ProductsInsurance companies, life, health, accident, and all other Gross Receipts and/or Flat Rate Where Not State Regulated524Insurance Carriers and Related ActivitiesInsurance companies, fire, marine, and fire casualtyState Regulated525Funds, Trusts, Other Financial VehiclesFunds, plans, and/or programs organized to pool securities or other assets for others, other than the Alabama Municipal Funding CorporationGross Receipts and/or Flat Rate Where Not State Regulated531Real EstateReal estate, offices, agents, brokers, developersGross Receipts and/or Flat Rate Where Not State Regulated532Rental and Leasing ServicesRental and leasing, auto, truck, equipment, tangible propertyGross Receipts and/or Flat Rate541Professions, Scientific, Technical ServicesAttorney, doctor, dentist, architect, engineer, vet, other professionsGross Receipts for outdoor/billboard advertising; otherwise flat rate and/or gross receipts551Management of Companies and EnterprisesManagement of companies and enterprises, offices, regional, corporateGross 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).561Administrative and Support ServicesAdministrative and support services, office, employment, answering, travelGross Receipts and/or Flat Rate Where Not State Regulated562Waste Management and Remediation ServicesWaste management, services, landfill, septic tank, companies, trucksGross Receipts and/or Flat Rate Where Not State Regulated611Educational ServicesEducational services, business, secretarial, computer, technical, sports, otherGross Receipts and/or Flat Rate Where Not State Regulated621Ambulatory Health Care ServicesHealth care services, mental, outpatient, HMO, diagnostic, blood, dialysis, otherGross Receipts and/or Flat Rate622HospitalsHospitals, surgical, substance abuse, psychiatric, specialtyGross Receipts and/or Flat Rate Based on No. of Patients or Beds623Nursing and Residential Care FacilitiesNursing and residential care facilities, elderly, day care, assisted livingGross Receipts and/or Flat Rate624Social AssistanceSocial assistance, child, shelters, vocational, emergencyGross Receipts and/or Flat Rate Where Not State Regulated711Performing Arts, Spectator SportsArts and sports, dance, musical, spectator, teams, tracks, promoters, agentsGross Receipts and/or Flat Rate712Museums, Historical Sites and SimilarMuseums, historical sites, zoos, botanical gardens, parks, special sites Gross Receipts and/or Flat Rate713Amusement, Gambling and RelatedAmusement and recreation, gambling, theme, arcade, golf, marinas, fitnessGross Receipts and/or Flat Rate Where Not State Regulated721AccommodationsAccommodations, hotel, travel, bed-and-breakfast, rooming houses, motelGross Receipts and/or Flat Rate722Food Services and Drinking PlacesFood service and drinking places, restaurant, caterers, bar, lounge, clubGross Receipts and/or Flat Rate811Repair and MaintenanceRepair and maintenance, automotive, electronic, commercial, residential, otherGross Receipts and/or Flat Rate812Personal and Laundry ServicesPersonal care services, hair, nail, skin, barber, beauty, diet, tanning, funeralsGross Receipts and/or Flat Rate910Category for: Vending machines, pool tables, amusement devices, etc.Gross Receipts and/or Flat Rate920Category for employees:Employees: as in number of employees used in license calculationGross Receipts, Flat Rate or Number of Employees930 Category for square feet:Square feet used for warehousing, large buildings, and other types Gross Receipts, Flat Rate or Number of Square Feet923Administration of Human Resource ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable924Administration of Environmental Quality ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable925Administration of Housing, Urban, Comm.General CategoryGross Receipts and/or Flat Rate Where Applicable926Administration of Economic ProgramsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable927Space Research and TechnologyGeneral CategoryGross Receipts and/or Flat Rate Where Applicable928National Security and International AffairsGeneral CategoryGross Receipts and/or Flat Rate Where Applicable999Unclassified EstablishmentsGeneral CategoryGross 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. (Act 2006-586, p. 1548, §3; Act 2018-411, §1.)