Title
(First Reading) Ordinance Amending Ordinance No. 1018-07 (Business License Ordinance) Replacing Section 5-4 License Requirements.
Summary
DESCRIPTION OF TOPIC: Synopsis: Amendment to Business License Ordinance
This proposed amendment updates our Business License Ordinance to ensure full compliance with the Uniform Business License Reform Act of 2006 and subsequent state legislation. These updates have been reviewed and vetted by legal counsel, Casey Pipes.
Key changes include:
- New Business Revenue Annualization: Adjusts the assessment method for new businesses. Currently, initial licenses are based on projected income, with the first renewal based on actual gross revenue. This amendment will instead annualize the gross revenue for all new businesses during their first renewal period.
- Contractor Compliance: Adds new sections to ensure our local ordinance aligns with recent state laws regarding contractors.
- Administrative Cleanup: Removes old and outdated fee schedules from the ordinance and edited wording to remove unclear verbiage.
Ordinance is too large to print in Legistar. It is attached in its entirety.
Body
WHEREAS, the City Council of the City of Foley, Alabama, has previously adopted a comprehensive Business License Ordinance to regulate the licensing, levy, and assessment of privilege taxes on businesses, trades, vocations, and professions operating within its corporate limits and police jurisdiction; and
WHEREAS, the Legislature of the State of Alabama has enacted statutory frameworks establishing uniform guidelines for municipal business licensing, including mandatory methods for annualizing the gross receipts of new businesses during their short license years pursuant to Code of Alabama 1975 § 11-51- <https://alison.legislature.state.al.us/code-of-alabama?section=11-51-90.2> 90.2 <https://alison.legislature.state.al.us/code-of-alabama?section=11-51-90.2>; and
WHEREAS, the State of Alabama has further enacted legislative reforms modifying the licensing of building trades, general contractors, and subcontractors, governing how municipalities may assess fees or flat rates for out-of-jurisdiction contractors doing work inside the municipality while preventing double- taxation on overlapping gross receipts; and
WHEREAS, the State of Alabama has enacted Act 2025-408, the Business License Tax Reporting and Appeals Act, which provides that taxpayers may appeal business license tax or business privilege tax determinations of counties and municipalities to the Alabama Tax Tribunal as provided in Code of Alabama 1975 § 40-2B-2; and
WHEREAS, the City Council finds it necessary and prudent to amend its existing Business License Ordinance to completely align with these new statutory mandates; and
WHEREAS, the City Council also desires to modernize local code administration by removing obsolete, redundant, or outdated fee schedules and North American Industry Classification System (NAICS) sector codes that no longer serve the business community; and
WHEREAS, the City Council recognizes that cleaning up text errors, clarifying definitions, and simplifying the administrative wording of the ordinance provides greater transparency and administrative ease for both the municipality and local taxpayers; and
WHEREAS, the proposed amendments have been reviewed, and due notice and public hearing have been conducted as may be required under Title 11, Chapter 45 of the Code of Alabama 1975.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FOLEY, ALABAMA, AS FOLLOWS: