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:
- Veterans of World War I, World War II and the Korean War as provided for in the Code of Alabama
- Farmers selling products raised by them and registered with the County Agricultural Agent
- Citizens seventeen years of age and under and citizens sixty-five of age and older who are paid for incidental lawn maintenance work
- 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.
I mailed my tax return before the due date, but I received a delinquent notice. How can I prove the return was mailed on time?
- The City uses the postmark to determine when the return was mailed. For example, a sales tax return postmarked by the Post Office on the 20th (the due date for monthly sales tax returns) is on time. A postmark of the 21st is late. To ensure your tax returns are mailed on time, the Revenue Office strongly encourages taxpayers to use certified mail with a return receipt.
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. Each employer, other than Federal Employers, shall deduct from each salary or wage or compensation due to each employee, the occupational license fee of 1%. The gross wages and occupational license fee shall be reported and remitted to the City each quarter.
Where can I make a tax payment after hours?
- Your payment can be made in the drop box located across the street from City hall. The drop box is the black box located next to the mail receptacle on Tichenor Avenue.
What is the sales tax rate in Auburn?
- The rate of sales tax that a business would collect in Auburn is 9 %. Four percent (4%) is remitted to the State of Alabama, one percent (1%) to Lee County and four (4 %) is remitted to the City of Auburn. Forms are available for remitting sales tax by clicking on the form button in this section.