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Five-Year Adjustment to Municipal Business License Issuance Fees

Related Division
Posted: August 2, 2022

Every five years, the Alabama Department of Revenue (ALDOR) is responsible for establishing and publishing adjustments to municipal business license issuance fees. Based on the U.S. Department of Labor’s Producer Price Index, municipal business license issuance fees remain or may be adjusted to a maximum amount of $14, at the discretion of each municipality, for the license year beginning January 1, 2023.

ALDOR is required by law to analyze the U.S. Department of Labor’s Producer Price Index and determine how much municipal business license issuance fees should increase every five license years. ALDOR must then notify all municipalities and the Alabama League of Municipalities of any such fee increase no later than November 30 preceding the affected license year. (Section 11-51-90, Code of Alabama 1975, and Departmental Rule 810-8-5-.15).

Business and License Tax Division
Severance and License Section
P. O. Box 327550
Montgomery, AL 36132-7550
334-353-7827, Option 5

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