FAQs

Sales, Use, Rental, Lodgings, Gas, Wine, Liquor, Tobacco, and Business Licenses are administered by the City of Northport Revenue Department.

Tax rates are as follows:

• Sales - General 3%, Automotive 1.125%
• Use - General 3%, Automotive 1.125%
• Rental - General 3%, Automotive 0.50%, Linens/Garments 1%
• Lodgings - 11%
• Liquor - 7% of purchase price
• Gasoline - $0.01 per gallon
• Tobacco
  • Cigarettes $0.10 per pack (PJ $0.05 per pack)
  • Cigars $0.02 per cigar (PJ $0.01 per pack)
  • Smokeless Tobacco $0.10 per package (PJ $0.05 per pack)

Taxes are due by the 20th day of the month following the reporting period in which the tax is collected or accrued. Liquor tax is due by the 15th day of the month.

A business license is required by any person or other entity prior to starting any service or business activity in the City of Northport.

Each person located or engaged in any business, vocation, occupation or profession in the City of Northport or its 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 Northport.

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 application fee.

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.

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. 

View License and Business Tax Information Local Agencies.

If the business is physically located in Northport, 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.

All City licenses expire December 31st and you have until February 15th to renew without a penalty.

The State and County require no testing. However, you may need to contact the State Contractors Board at 334-272-5030.

It is based on the previous year's gross receipts less payment made to licensed sub-contractors. First year businesses must estimate their gross receipts through December 31st of that year.

We require a business license if you are receiving any compensation for cleaning a home or apartment.

You must be approved by the various departments and have a Health Department permit.

You must complete our requirements for a business license.

You are required to have a license but the type of license required varies.

You are required to have a business license if you are located, or if you are performing services in the City of Northport or the Northport Police Jurisdiction.

Yes a license required for washing cars.

The Revenue Department administers, collects, and enforces several types of taxes: The following is a list of the taxes administered, collected and enforced by the City of Northport Revenue Department:

• Business License
• Consumers Use Tax
• Liquor Tax
• Lodgings Tax
• Rental Tangible Personal Property Tax
• Residential Rental Tax
• Sales Tax
• Sellers Use Tax
• Tobacco Tax

Sales tax is a privilege tax imposed on the retail sale of tangible personal property. The tax is collected by the seller from their customers and remitted directly to the City of Tuscaloosa or the City of Northport. All sales of tangible personal property are retail sales except those defined as wholesale sales.

The total sales tax percentage for Tuscaloosa County is 10%. The breakdown is as follows:

For sales made within the City Limits of Northport:

• City - 3%
• County - 3%
• State - 4%

For sales made outside the City Limits of Northport, but within our police jurisdictions (1/2 of rate within City Limits of Northport):

• City - 1.50%
• County - 4%
• State - 4%

Wholesale sales are sales of tangible personal property to licensed merchants, jobbers, dealers, or other wholesalers for resale. It does not include sales to users or consumers that are not for resale. The seller must maintain the sales tax number or exemption number for these customers.

The sales tax is due monthly, with returns and remittances to be filed on or before the 20th day of the month for the previous month's sales. However, beginning with the calendar year 1999, a taxpayer may elect to file and pay sales tax on a calendar quarter basis if the total State of Alabama sales tax for which the taxpayer is liable averages less than $200 per month during the preceding calendar year. Also, if a taxpayer's total State of Alabama sales tax liability during the preceding year is $10 or less, the taxpayer may file sales tax on a calendar year basis. The request to file quarterly or on a calendar basis must be made in writing to the taxing jurisdiction.

To be considered a timely filing, the return must be postmarked on or before the next working day, or paid in the revenue office the first working day following the weekend or holiday.

Yes, a discount is allowed if the tax is paid before the 20th day of the month in which the tax is due. The sales tax discount consists of 5% on the first $100 of tax due, and 2% on all tax over $100. Please note, however, that the monthly discount may not exceed $200.

The penalty is the same as the State of Alabama. The penalty for failure to file is 10% or $50, whichever is greater, and 10% for failure to pay.

Also known as rental tax, this tax is a privilege tax levied on the lessor for the leasing or renting of tangible personal property. Gross receipts, including any rental of tangible personal property are subject to the rental tax at the following rate.

If lessee is located inside the City of Northport:

• Automotive vehicles - 1/2 of 1% (.005)
• General Rates - 3% (.03)
• Lines and garments - 1% (.01)

Police Jurisdiction rate would be ½ of the above listed rate.

This tax is for tangible personal property bought for use, storage, or consumption in which the seller did not collect tax on the sale of the property.