Updated 02/05/07

DEFINITIONS OF LICENSES AND TAXES

RESIDENTIAL RENTAL LICENSE

Applies To: People who are lessors of real property

Legal Definition: Each owner of residential real property in the City, who rents or leases such property to others as the lessor, whether directly or through an agent, shall obtain a business license and pay a business license fee to the City as provided for in Section 7.2 (Category 4). The business license fee for residential rental real property shall be due on the first business day of each calendar year, and such license fee shall become delinquent on the last business day of February of each calendar year.

Simple Definition: If you own residential property and rent it to someone, then under City of Auburn Ordinance 1842, 1.5% of what you take in for the preceding year is due the City. 

Example: If you rent a house to someone and in calendar year 2006 you collected $12,000 in rent, then prior to February 28 you would owe the City $180.00 and $5.00 for the issuance fee to obtain the 2007 business license.

Contact: Tamara Yancy
Phone: 334.501.7227
email: tyancy@auburnalabama.org

Due Date

February 15

OCCUPATIONAL LICENSE

Applies To: People that work in the City limits of Auburn

Legal Definition: Ordinance 416 Any person engaging in any trade, occupation or profession shall be required to file a return and pay a license fee equal to one percent (1%) of any salaries, wages, commissions, bonuses, severance pay or other compensation of any kind earned in Auburn.

Simple Definition: If you have employees that come into the City while conducting business, then 1% of their gross pay is to be withheld for time they are in Auburn and reported to the City on a quarterly or annual basis (depending on how your account is set up).

Example: If you are an employee that works in the City of Auburn, then 1% of your gross pay is to be withheld by your employer and reported to the City on a quarterly basis. If your employer does not withhold the occupation license fee, then you are responsible to pay it to the City directly.

Note: There is no filing requirement for employees who have the Occupational License withheld by their employers, employees who do not have Occupational License withheld by their employers DO have to file a City tax return.

Contact: Amy Saylor
Phone: 334.501.7228
email: asaylor@auburnalabama.org

Due Dates

1st Quarter (January, February, March) due April 30th.
2nd Quarter (April, May, June) due July 31st.
3rd Quarter (July, August, September) due October 31st.
4th Quarter (October, November, December) due January 31st.

CONTRACTOR'S QUARTERLY REPORT

Applies To: General Contractors and Sub-Contractors

Legal Definition: Ordinance 1842 Contractor - any person who accepts orders or contracts from the owner of property or the property owner's duly authorized agent to assume authority or control, or to supervise, manage, or direct the work of others, or who is delegated authority by the owner to do so, whether at a fixed price or on a cost-plus basis, for doing any work.

Simple Definition: For General Contractors - If you do not buy a permit before doing a job in Auburn (which includes Auburn University Campus), then each quarter you would pay the City 1/4 of 1% of jobs in which you did not buy a permit. For Sub-Contractors - If you are not working under a General Contractor doing new construction OR you do not buy permits for your job, then on the jobs in which a permit was not purchased by you or the General Contractor you would owe the City 1/4 of 1% of these jobs. This is paid quarterly. All work on Auburn University Campus is subject to the 1/4 of 1%. AU is in the City limits but permits are not required by the City.

Example: You frame a new house. The General Contractor buys the permit for the entire job before starting construction. You do not pay 1/4 of 1% to the City for this job. If you paint an existing house, you do not have to buy a permit. You would be required to pay the City 1/4 of 1% on that job.

Contact: Amy Saylor
Phone: 334.501.7228
email: asaylor@auburnalabama.org

Due Dates

1st Quarter (January, February, March) due April 30th.
2nd Quarter (April, May, June) due July 31st.
3rd Quarter (July, August, September) due October 31st.
4th Quarter (October, November, December) due January 31st.