WHAT IS A PRIVILEGE LICENSE?
A privilege license is a license requirement of every person, firm, company
or corporation engaged in any business, vocation, occupation or profession described
in Title 40, Chapter 12, Code of Alabama 1975.
WHEN IS THE LICENSE DUE?
The annual license covers the period of October 1 through September 30.
The license will be delinquent on November 1.
WHERE DO I BUY THE LICENSE?
The State and County license(s) is issued by the county Probate
Judge or License Commissioner in the county where the business is located.
Unless otherwise provided, a license is required in every county where the business
is conducted.
DO I NEED A CITY LICENSE?
The Alabama Department of Revenue does not administer municipal licenses.
You should check with every city office where you are conducting business to
verify what licenses are required prior to transacting business.
WHAT LICENSES AND PERMITS ARE
NECESSARY AND WHAT ARE THE FEES?
City and County officials will determine what local licenses and permits
are necessary. A variety of business privilege licenses are administered by
the Alabama Department of Revenue which affect proprietorships, partnerships,
and corporations as well as certain professions. Fees vary dependent upon the
type of license required, and, in some cases, upon the population
of the area where the business is located or upon the volume of business.
It is important to be aware that one business may require several different
types of business privilege licenses depending upon the services offered or
products sold by the business.
HOW DO I BECOME AN AUTOMOBILE
DEALER?
Alabama law has a regulatory license requirement
prior to the issuance of an automobile dealers privilege license. An application
form must be completed and accompanied by a $25,000 surety bond for new car
dealers and a $10,000 surety bond for used car dealers, wholesalers, rebuilders
and/or reconditioners. Proof of issuance of your regulatory license to the county
will enable you to purchase an automobile dealers license.
The cost of the privilege license is based upon the city
population.
HOW MUCH DOES A REGULATORY LICENSE
COST?
The automobile regulatory license has four (4) categories for licensing: 1)
new auto dealer OR used auto dealer, 2) wholesaler, 3) rebuilder and/or 4) reconditioner.
Each category costs $10 per year. There is a $5 fee for each additional location
of business.
WHAT IS THE DIFFERENCE BETWEEN
A RETAIL AUTO DEALER AND WHOLESALE AUTO DEALER?
A retail dealer can sell to the public and is required to collect applicable
sales tax. Accordingly, a sales tax
number is required in the legal name of the business prior to the issuance
of the regulatory license. A wholesale auto dealer sells autos to other auto
dealers only and is not required to have a sales tax number.
WHAT IS THE DIFFERENCE BETWEEN
A REBUILDER AND A RECONDITIONER?
A rebuilder engages in the business of making extensive
repairs, replacements or combination of different motor vehicles to the extent
that the finished motor vehicle must be assigned a new identification number.
A reconditioner engages in the business of refurnishing
and repairing damaged motor vehicle parts to the vehicle for resale under the
same identification number.
HOW MANY CARS CAN BE SOLD AT
RETAIL PRIOR TO THE REQUIREMENT OF AN AUTOMOBILE DEALERS LICENSE?
The law states that any person, firm or corporation negotiating the sale of
five (5) or more motor vehicles at retail during a calendar year shall be defined
as a Used Motor Vehicle Dealer and will be required to comply with applicable
statutes.
HOW DO I BECOME A DISMANTLER?
A regulatory license which requires a $10,000 surety bond
is required of a dismantler prior to the issuance of an automobile dealers privilege
license. The total cost of this regulatory license is $226. For list of other
licenses and exemptions click here.
WHERE DO I OBTAIN REGULATORY
LICENSE INFORMATION?
Regulatory license information and applications can be obtained by calling (334)
353-7827 or writing the Alabama Department of Revenue, Sales, Use & Business
Tax Division, Severance & License Section, P. O. Box 327550, Montgomery,
Alabama 36132-7550. The physical location of the office is 3103 Gordon Persons
Building, 50 Ripley Street, Montgomery, Alabama. The regulatory licenses are
issued by this office.
This page last updated June 15, 2000.