Economic development information can be found at tuscaloosa.com/business.
Sec. 7-3. - Records of taxpayers required to be maintained. It shall be the duty of every person engaging in any business to keep and maintain an accurate and complete set of records. The records maintained must be sufficient to allow the city or its auditors to determine the correct amount of any tax, business license, or other amount levied by this chapter or otherwise levied by the city. To the extent necessary to determine the correct amount of any tax, business license, or other amount levied, the records required to be maintained shall include without limitation all books of account, invoices, purchases, sales, receipts, register tapes, inventory, reports, bank statements, financial statements, and federal income tax returns. It shall be the duty of every person to keep and preserve all invoices of goods and merchandise purchased, for resale or otherwise. The records for any person selling both at wholesale and retail shall be kept separately in order to show the gross proceeds of wholesale sales and the gross proceeds of retail sales. All such books, invoices, and other records shall be open for examination by the revenue department. Without limiting the foregoing, taxpayers shall also keep and maintain any records required by state law. In the event the taxpayer's records are inadequate, the Revenue Department may calculate and determine the amount of license or tax based on any information available.
To learn more about business licenses, taxes and regulations, see Chapter 7 of the City Code.
Most of our licenses are gross receipts-based. Until you have been in business three years, you must estimate your gross receipts. This is called the “phase-in” period. Upon renewal you will be asked what the actual gross receipts were and you may be required to give a new estimate (depending on the time of year that the license was first purchased). An adjustment or credit will be issued depending on the difference between your estimated and actual gross receipts. Please contact the Revenue Department at 205-248-5211 to help with the license fees during this “phase-in” period.
Yes. You can file your city taxes electronically using the Alabama Department of Revenue web application, My Alabama Taxes (MAT). Even though you file and pay online via the Alabama Department of Revenue, taxes will remain self-administered by the City of Tuscaloosa. The payment you authorize will go directly to the City's bank and returns will go directly to the City as well.
Your Jurisdiction Account Number (City of Tuscaloosa Account ID number) is required. If you do not have an Account ID with the City of Tuscaloosa, you will need to apply by completing and returning the Application for Business License/Tax form found on the Tax Forms page. See tuscaloosa.com/business/file-pay-taxes for more information.
Use tax is to be filed by persons, firms or corporations storing, using or otherwise consuming tangible personal property when not taxed according to sales tax law. Use tax is imposed on the sales price of the property only if sales tax cannot be assessed or has not been assessed.
Also known as "rental tax," the rental tangible personal property tax is a privilege tax levied on the lessor for leasing or renting tangible personal property.
A tax exempt sale is when sales or use tax is not assessed by state law, such as sales to governments, schools, or a special tax exemption is granted (e.g., Girl and Boy Scouts, United Way, Salvation Army, YMCA, etc.).
Monthly taxes are due by the 20th day of the month following the reporting period in which the tax is collected or accrued.
Quarterly tax deadlines are as follows:
Sales, Use, Rental Tangible Personal Property, Lodging, Liquor, Wine, Tobacco, Commercial and Residential Rental.
It is the six digit account number assigned to your business and can be found in the top left corner of your City of Tuscaloosa business license.
City Ordinance 7-16 states: It shall be unlawful for any person described in subsection (a) to engage in the activity for which a business license is levied without first having procured a business license therefore. In addition to any applicable civil penalties, violations of this section shall be punishable by a fine of up to five hundred dollars ($500.00) for each offense, and if the violation is willful, by imprisonment, not to exceed six (6) months for each offense, or both such fine and imprisonment, all at the discretion of the court trying the same. Each day during which such violation occurs shall constitute a separate offense.
Yes. If the business license is not renewed on or before Feb. 15, there is a 15 percent penalty assessed for the first 30 days the payment is late. There is an additional 15 percent penalty assessed if the license is paid after 30 days. The maximum penalty assessed each year for a delinquent license is 30 percent. In addition to a penalty, all delinquent licenses are assessed interest of 1 percent each month on the unpaid balance.
All City of Tuscaloosa business licenses expire Dec. 31 and are renewable from Jan. 1 until Feb. 15 without a penalty.
There are several hundred different types of business licenses. Licenses are based on the occupation, trade or profession of the business. In some cases more than one type of license may be required.
Gross receipts are any and all receipts of a business from whatever source derived, to the maximum extent permitted by applicable laws and constitutional provisions, to be used in calculating the amount due for a business license. Gross receipts are not subject to any deductions, exclusions, exemptions or reductions unless expressly provided by state law.
The cost of the initial business license is based on the business license classification and the estimated gross receipts from the time the business is open until Dec. 31 plus the base license fee.
A code compliance is the process the City of Tuscaloosa uses to obtain approval of a business location by the various City departments. This is necessary to determine whether the operation of the business would conflict with the public safety, health or welfare, or with any provision of law including but not limited to zoning laws, building and safety codes, fire codes, health codes and any other laws or codes which would potentially affect public safety, health and welfare prior to the issuance of a business license. This approval must be granted prior to issuance of a business license.
The first step is determining the physical location of the business. If the business is located inside the Tuscaloosa City limits or its Police Jurisdiction, the business location must be approved through a code compliance. Once this code compliance approval has been completed, a business license will be issued based on the estimated gross receipts of the business for the calendar year.
If you discover that you have made an error on a sales tax return previously filed, use a blank form marked “AMENDED” to report the corrected information for the applicable period(s). Forward the amended return, a copy of the original return, and any addition tax, penalty, and/or interest due to the following address:
City of Tuscaloosa
P.O. Box 2089
Tuscaloosa, AL 35403
If there is no additional tax due, you can email the forms to email@example.com.
Contact our office at 205-248-5200 or by email at firstname.lastname@example.org.
You can renew your business license by completing the business license renewal form you are mailed in January of each year. If you need a copy of this form, you can contact our office. Our office can also provide help with calculations on your renewal.
Yes. Penalty and interest is due if the tax is paid after the 20th day of the month in which tax is due. The Failure to Timely File penalty is 10% of the total tax due or $50, whichever is greater. The Failure to Timely Pay Penalty is 10% of the total tax due. Interest is based on the current APR. For the current interest rate, you can call our office or visit the website: https://revenue.alabama.gov/assessements/quarterly-interest-rates.
NOTE: Returns and payment must be submitted by 4:00 pm CST on the due date of the return to be considered “on-time”
No. The City of Tuscaloosa tax returns can be filed on My Alabama Taxes free of charge.
ACH Debit is the preferred EFT payment method; however, taxpayers may request approval to submit payments via ACH Credit by sending an email to email@example.com. Please include the following information with your approval request:
Legal Name of Business
State of Alabama City/County Account ID (LCL number received from State)
Federal ID Number
Your Local Jurisdiction ID number is the account number you have with the City or County you are filing. Your City of Tuscaloosa account number can be found as your Account ID on your City of Tuscaloosa business license or a City of Tuscaloosa tax form.
If you can’t find your Local Jurisdiction ID number when you are filing on My Alabama Taxes for the City of Tuscaloosa, either use your LCL number the State assigned you or all zeros (ex. 000000)
Sales Tax, Use Tax, Rental Tangible Personal Property Tax, and/or Lodging Tax can be filed online on the State of Alabama’s website called My Alabama Taxes. https://myalabamataxes.alabama.gov/
Tobacco Tax and Wine tax returns must be filed by submitting a paper return directly to the City of Tuscaloosa.
Yes. A discount is allowed if the tax is paid on or before the 20th day of the month in which the tax is due. The sales tax discount consists of 5% on the first $100 of tax due and 2% of all tax over $100. The monthly discount may not exceed $200.
Monthly. Sales, Consumer and Seller’s Use, and Rental Tangible Personal Property taxes can sometimes be paid quarterly or annually depending on your business activities. Contact the Revenue Division for assistance in determining your filing frequency.
If you file using My Alabama Taxes, you must use the same filing frequency as you do with the State of Alabama.
Use tax is traditionally the most confusing tax, and should be of particular interest to individuals and businesses engaged in construction, contracting, and services, but it is very likely that every person and business is subject to use tax to some degree.
Use tax, at the same rates as sales tax, becomes due when the user and consumer of taxable goods does not pay tax to the seller, or pays tax to an seller that is not registered to collect City of Tuscaloosa tax. Use tax is due on purchases made by Tuscaloosa residents and businesses from another city or state which are not taxed.
Generally, if you would be required to pay sales tax on goods purchased inside Tuscaloosa, but you purchase them outside Tuscaloosa and do not pay local sales tax, you are probably subject to use tax and must report and pay it to the city.
You are strongly encouraged to consult with your advisers or ask city representatives about how use tax applies to your activities.
Yes. If you are set up to file taxes with the City of Tuscaloosa, a tax return is required even if you had zero gross receipts.
Businesses and individuals who have transactions in Tuscaloosa are responsible for reporting and paying applicable taxes directly to the City of Tuscaloosa.
The City of Tuscaloosa administers the following taxes:
Our physical address is:
City of Tuscaloosa
C/O Revenue Division
2201 University Blvd
Tuscaloosa, AL 35401
We accept the following payment types:
All individuals and entities having a city business license are required by law to keep records that clearly show all transactions subject to City business licenses and taxes. This includes, but is not limited to, records showing:
Failure to keep proper records and make the available upon the City’s request constitutes a misdemeanor offense for which the City may issue a citation for observed violations. You are strongly encouraged to consult with your advisors about the law’s requirements or contact the City for more information. Retail businesses receiving primarily cash are especially encouraged to establish proper record-keeping procedures to avoid City penalties.
Complete a Business License & Tax application and return it to the Revenue Division for processing. The completed form can be emailed to firstname.lastname@example.org, mailed to the mailing address on the form, or brought into our office. When your new tax account has been created, you will receive and email confirming your account number and filing requirement.
Please visit the Business License section of our website for more detailed information about a business license. All new businesses will complete a Business License/Tax Application and return it to our office with a copy of the owner(s) driver’s license. Based on the type of business you have there may be other requirements you must fulfill.
Any business or individual performing work of any kind in the City of Tuscaloosa or its jurisdiction needs to purchase a city business license. All commercial and residential-based businesses operating in the City of Tuscaloosa or its jurisdiction are required to have a business license. Please contact our office at email@example.com or 205-248-5200 with any questions.