Is there a penalty for failure to renew a business license on time?
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.
- 1st Qtr. (Jan. Feb. Mar.) due on or before April 20
- 2nd Qtr. (April May June) due on or before July 20
- 3rd Qtr. (July Aug. Sept. ) due on or before Oct. 20
- 4th Qtr. (Oct. Nov. Dec. ) due on or before Jan. 20
When are taxes due?
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:
When is a City of Tuscaloosa business license required?
What is use tax?
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.
What is the first step to obtain 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.
What is a code compliance?
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.
What type of license do I need to open a business?
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.
What are Gross Receipts?
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.
What taxes are administered by the City of Tuscaloosa?
Sales, Use, Rental Tangible Personal Property, Lodging, Liquor, Wine, Tobacco, Commercial and Residential Rental.
What is rental tangible personal property tax?
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.