Frequently Asked Questions

• Who has to purchase a Business License?
• Any person or organization conducting business in Auburn is required to purchase a license. This includes offering merchandise for sale, performing services, and soliciting orders for goods or services, making deliveries of any merchandise or engaging in business of any nature.

  There are exceptions:

  1. Veterans of World War I, World War II and the Korean War as provided for in the Code of Alabama
  2. farmers selling products raised by them and registered with the County Agricultural Agent
  3. citizens seventeen years of age and under and citizens sixty-five of age and older who are paid for incidental lawn maintenance work
  4. persons selling programs for an event conducted by Auburn University licensed under a license agreement with the University.

  The Ordinance requires that the license must be obtained before transacting any business.
• Does this include a business operated out of my home?
• Yes, it includes any business. Home-operated businesses must meet zoning requirements and must have the approval of the City of Auburn Planning Department to operate the business in a particular location.
• How much does a City of Auburn Business License cost?
• The cost varies depending on the type of business. Businesses are classified into categories and each category has a rate that is used to calculate the amount of the license. Most licenses are based on the gross receipts from the previous year with the first year license having a fixed rate of $105.00. An exception is a General contractor who purchases a business license for a flat fee of $155.00. Licensed contractors can then purchase a permit at the Codes Division for a fee of 1/4 of 1% of the total cost of the job.
• Can I set up on the side of the road and sell items from my vehicle?
• No, the City does not allow anyone to sell on the right of way. You can, however, get permission in writing from a local property owner and purchase a transient vendor license. The fee for this license is $505.00 and the license will allow you sell from a temporary location provided the City Planning Department has approved the location in writing prior to your beginning business.
• Why do I need to have a decal on my vehicle? I purchased a business license.
• The decal allows our Revenue Accountants to see that you are properly licensed to do business in Auburn, without having to interrupt your employees. The City provides the decals at no cost to the business owner. It is voluntary whether you choose to use one on your vehicle.
• I plan to change from a sole proprietorship to a corporation. Will this make a difference to the City?
• Yes, as a sole proprietor you purchased the business license and did not have to claim yourself as an employee. When you change to a corporation, you will become an employee of the corporation and you should begin to deduct the occupational license fee from your wages.
• Can you tell me about Auburn's Occupational License fee?
• Anyone who works within the City limits has one percent (1%) deducted from their gross wages by their employer. Generally, the employer does the withholding, reporting and remitting. However, if your employer does not withhold the fee, it is the responsibility of the employee to make the payment to the City.
• Where can I make a tax payment after hours?
• Your payment can be made at the Water Board drop box. The window is located on the north side of City Hall. There are two boxes. The one on the right is for payments to the City and the one on the left is for payments to the Water Board. Please note that cash payments should not be placed in this drop box.
• Can I pay for a traffic ticket at the Revenue Office?
• On Monday through Friday from 7:00 a.m. to 6:00 p.m. and on the weekends from 2:00 p.m. to 6:00 p.m. there are Judicial employees available to take your payments in the Public Safety building located at 141 North Ross Street. There are curb boxes located in front of the Public Safety building and at Toomer's Corner (College and Magnolia) for your convenience in paying traffic tickets.
• What is the sales tax rate in Auburn?
• The rate of sales tax that a business would collect in Auburn is 8 %. Four percent (4%) is remitted to the State of Alabama, one percent (1%) to Lee County and three (3 %) is remitted to the City of Auburn. Forms are available for remitting sales tax by clicking on the form button in this section.
• How much is a dog license?
• All dogs over three months of age residing in Auburn must be licensed. The fee is $15.00 to license any dog that is not sterilized or $5.00 for sterilized and exempt dogs. You will need to bring a current rabies certificate, and proof of sterilization if applicable, with you to City Hall to purchase the license. You may receive your dog license by mail by filling and submitting the dog license application.
• How do I get on the City's bid list?
• The City of Auburn is required to request bids for most items exceeding a $7,500.00 limit except in the case of public works bids. To be on the City's bid list fill and submit the request form.