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 Frequently Asked Questions
    1.  Why do I need to purchase a business license?
    2.  What is the cost of an initial business license?
    3.  What type of license do I need to open a business?
    4.  What are the steps in getting a license?
    5.  How long does it take to acquire a business license?
    6.  When does the license expire?
    7.  Do I need to be tested for a contractor's license?
    8.  On what is the contractor's license fee based?
    9.  What type of license is needed to clean homes or apartments?
 
    Q.  Why do I need to purchase a business license?
    A.  Each person located or engaged in any business, vocation, occupation or profession in the City of Tuscaloosa or the City of Northport or their Police Jurisdiction shall take out and pay a City business license. A license is required if you are doing business in the City, but not located in the City. Depending on the type of business you have, a license for both Cities may be required. The Police Jurisdiction extends 3 miles around the corporate limits of Tuscaloosa and Northport.

    Q.  What is the cost of an initial business license?
    A.  The cost of the initial license is based on your estimated gross receipts from the time you open until December 31st plus the base license fee. For a business located in the city of Northport there is a one time $30 inspection fee.

    Q.  What type of license do I need to open a business?
    A.  The type of license issued will be based on the type of business you will be operating. We can determine what type of license is necessary by asking you questions concerning your business. In several cases, more than one type of business license is required.


    Q.  What are the steps in getting a license?
    A.  The first step is determining where your physical location will be. If this location is inside the city limits or its police jurisdiction, then you will be required to get your business location approved through a Code Compliance.

Once this Code Compliance is complete, then a business license will be issued based on your estimated gross receipts for the remainder of the calendar year. When the license is renewed at the end of the partial year, an adjustment to the amount originally paid will be made on the next year's license amount.

A license is required if you are doing business in the City, but not located in the City.

You will also need to check with other governmental agencies to see whether or not a license is needed. The following is a list of the local agencies:

License and Business Tax Information:

City of Tuscaloosa, Revenue Department
Business License and Tax
2201 University Boulevard
Tuscaloosa, AL 35401
(205) 349-0220

Tuscaloosa County License Department
714 Greensboro Avenue
Tuscaloosa, AL 35401
(205) 349-3870 ext. 235

Tuscaloosa County Special Tax Board
714 Greensboro Avenue
Tuscaloosa, AL 35401
(205) 349-3870 ext. 225

Northport Revenue Division
3500 McFarland Boulevard
Northport, AL 35476
(205) 339-7000

State Department of Revenue
Business Tax
518 19th Avenue
Tuscaloosa, AL 35401
(205) 759-2571



    Q.  How long does it take to acquire a business license?
    A.  If the business is physically located in Northport or Tuscaloosa, then the various city departments must approve your location before you can open for business. If you are located outside the City, then the license can be issued that day.


    Q.  When does the license expire?
    A.  All City licenses expire December 31st and you have until February 15th to renew without a penalty.


    Q.  Do I need to be tested for a contractor's license?
    A.  The State and County require no testing. However, you may need to contact the State Contractors Board. (334) 272-5030

    Q.  On what is the contractor's license fee based?
    A.  It is based on the previous year's gross receipts less payment made to licensed sub-contractors. First and second year businesses must estimate and/or annualize their gross receipts through December 31st of that year.

    Q.  What type of license is needed to clean homes or apartments?
    A.  Both Cities require a business license.