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City News

City of Tuscaloosa Considers New Approach to Some Business Licenses, Seeks Feedback

The City of Tuscaloosa will hold an open house Thursday, June 21, 3-6 p.m. at City Hall in the Daugherty Conference Room to discuss proposed updates to the City’s business license structure.
 
In this come-and-go event, business owners can review and provide feedback on the proposed amendments that were recommended after a thorough analysis comparing Tuscaloosa’s rates to other major municipalities in Alabama. 
 
The types of businesses that could be affected are:
-Telecommunications: Local phone service and long-distance phone service
-Recreation: Carnivals, circuses and rodeos
-Financial: Check cashing and title loan businesses
-Storage: Warehousing, mini storage and self-storage 
-Waste collection: Collection, landfill and recycling
 
Business licenses are second only to the sales and use tax as a general fund revenue source in Tuscaloosa; the sales tax makes up roughly half of the general fund and licenses make up 15 percent. In the 2017 license year, 11,219 licenses were issued, and they generated approximately $23 million in revenue. The proposed changes could yield an estimated additional annual revenue of $46,900 and could affect approximately 100 businesses.
 
By updating Tuscaloosa’s business license structure, the City will continue to evolve with today’s economic environment. The proposed effective date of any changes is the 2019 license year.