Small Business Strengthens Our Community
endless opportunity on the horizon for new and expanding businesses
The City of Lincoln is proud to support small businesses in our community. We believe in the growth of our local economy and know that there is endless opportunity for new and expanding businesses in our community.
Licensing & Permits:
The Revenue Department’s mission is collection of business license and tax laws for the City. This department is responsible for licensing all business activity within the city limits and police jurisdiction. The City administers sales & use, lease and lodging taxes, motor fuels, tobacco, and wine taxes.
City of Lincoln business licenses are based on either gross receipts or a flat rate as regulated by state law. The license period is based on a calendar year, January 1st – December 31st. Renewals are due by January 31st of each year after which time penalties and interest incur. Each business license issued by the city is assessed a $12.00 issuance fee.
Business License Due Dates
Except as otherwise provided in Ordinance 2017-14, all licenses shall be due and payable on the first day of the calendar year for the whole calendar year, or from the day on which business is commenced for the remainder of the calendar year. The payment for the calendar year license renewal shall be delinquent on February 1st of that year.
Payments for the license renewal shall be delinquent on March 1st of each year.
business license penalties:
- Fifteen Percent (15%) - during the period beginning February 1st and ending February 29th.
- Thirty Percent (30%) - during the period beginning March 1st and thereafter.
- Interest – All delinquent accounts (both license taxes and penalties) shall also be charged interest at the rate determined pursuant to section 40-1-44 Code of Alabama 1975.
Penalties - Other:
The information above shall apply to penalties except where, in the judgment of the Revenue Officer and/or City Clerk, it is necessary to check the accounts of the license in order to properly determine the amount of license tax due, and after having done so, it is found that the licensee had not paid the full amount due, a penalty not exceeding twenty-five percent (25%) of the amount originally due shall, in the judgment of the Revenue Officer and/or City Clerk, be assessed as penalty.
Sales & Use Tax Rates
The following sales tax rates apply to sales made in the city limits of the City of Lincoln and do not include any taxes due to the county or state. *
|General Rate||5% (Five Percent)|
|Amusement/Entertainment||5% (Five Percent)|
|Machine Rate||1% (One Percent)|
|Automotive Rate||2% (Two Percent)|
|Vending Machine Rate||5% (Five Percent)|
|Agricultural Machinery & Equip.||1% (One Percent)|
|W/D Fee||$3.00 (Three Dollars)|
Lodgings Tax Rates
The following lodging tax rates apply to sales made in the city limits of the City of Lincoln and do not include any taxes due to the county or state. *
|General Rate||8% (Eight Percent)|
Rental & Lease Tax Rates
The following rental and lease tax rates apply to sales made in the city limits of the City of Lincoln and do not include any taxes due to the county or state. *
|General Rate||4% (Four Percent)|
|Linen||3% (Three Percent)|
|Auto||1.5% (One and One-Half Percent)|
* If sales, storage, use or consumption of tangible personal property, occurs outside the corporate limits of the City of Lincoln but within the police jurisdiction, the rates of tax are one-half of those stated above.
Gasoline and Tobacco Tax Rates
|Gasoline||$0.02 per Gallon (Two Cents)|
|Diesel||$0.02 per Gallon (Two Cents)|
|Tobacco (Cigarettes)||$0.08 per pack (Eight Cents)|
|Tobacco (All Other Products)||10% of Sell Price (Ten Percent)|
Wine Tax Rates
|Wine||$0.07 per Liter (Seven Cents)|
Here’s all the necessary and supplemental paperwork you’ll need to register your business in Lincoln, Alabama
All persons, firms, corporations, and other legal entities having business activities within the City of Lincoln and its police jurisdiction are required by law and/or ordinance to register with the City of Lincoln Revenue Department. The “Business License Application” form shall be used to register and can be obtained from the Revenue Department by emailing a request to firstname.lastname@example.org The Business License Application form must be completed fully and must be accompanied by all required documentation as indicated below. Failure to complete the form fully and/or failure to supply the necessary additional documentation may delay processing of your application and issuance of your City business license. If you have questions about this information, or if you need assistance with completing an application form, please contact our office at 205-763-4006.
Applications for Non-Controlled Licenses
If you are applying to register a new, non-controlled business with the City of Lincoln, please provide the documents and/or information indicated below:
1. ALL APPLICANTS – Complete and sign the “Business License Application” form.
2. SOLE PROPRIETORSHIPS, PARTNERSHIPS – Provide a copy/copies of valid driver’s license of sole proprietor and/or all partners.
3. ALABAMA CORPORATIONS – Provide copies of Articles of Incorporation filed with the Alabama Secretary of State and a copy or copies of valid driver’s licenses of principal officers.
4. “FOREIGN” CORPORATIONS – (Incorporated in a state other than Alabama)-Provide copies of Articles of Incorporation; Copy of your letter of authorization to do business in the State of Alabama obtained from the Alabama Secretary of State; and a copy or copies of valid driver’s licenses of principal officers.
5. FOOD/EATING ESTABLISHMENTS – Furnish a copy of a valid Health Department Permit. Such businesses include restaurants, lounges, food stores, convenience stores, snack bars, mobile food vendors, etc.
6. DAY CARE CENTERS – Provide valid zoning documentation; a copy of County or State Day Care License (issued through the County or State Department of Human Resources); copy of a valid Health Department Permit.
7. HOME OCCUPATIONS / HOME OFFICES – Provide copy of “Home Occupation Approval Letter” from the City of Lincoln’s Planning Commission.
8. STATE CERTIFIED, STATE REGULATED, OR STATE LICENSED OCCUPATIONS – Provide copies of evidence of State licensing or State certification cards for the following occupations: Burglar Alarm Companies (Installation and Monitoring); Master Electricians; Master Plumbers; Master Gas Fitters; Master Plumbers and Gas Fitters; Heating and Air Conditioning (HVAC) Contractors; Tree Pruning and/or Tree Surgery; and Landscape Architects or Landscape Gardeners.
9. TRANSIENT VENDORS / SPECIAL EVENTS LICENSE – Contact the Revenue Department at 205-763-4006 for details of the application procedures and prerequisites for issuance of such licenses.
10. OTHER – If you are unsure if your business requires special certification, licensing, or approval, please contact the Revenue Department for additional information at 205-763-4006.
Applications for Controlled Licenses
Controlled licenses are granted only through a specific approval process. Controlled licenses cannot be issued without the proper approval of specific authorities such as the Lincoln City Council. Such licenses include but are not limited to the following:
1. Alcoholic Beverage Licenses;
2. Solid Waste Facilities;
APPLICATIONS FOR CONTROLLED LICENSES ARE TAKEN BY APPOINTMENT ONLY. Please contact the Revenue Department at 205-763-4006 for details of the specific application procedures and prerequisites for such controlled licenses.
proper zoning of business address required
Each designated business location must be approved by the City of Lincoln’s Code Official and Fire Inspector before a City business license can be issued. In the event that your business relocated from one address within the City to another address within the City, the new business location must be approved before a City business license can be issued or renewed.
home occupations/home offices
Each applicant for a business license who plans to operate his or her business from a residence within the City of Lincoln must complete a “Home Occupation Application”. The Planning Commission will review the application before City business license can be issued. A copy of the approval letter must be presented to the Revenue Department at the time of making application for licensing. In the event that a previously approved home office relocates from one address within the City to another address within the City, the new home office business location must be approved before a City business license can be issued or renewed. It is required, therefore, that applications for home occupations/home offices be made in person at the office of the Revenue Department located at 150 Magnolia St, Lincoln, AL 35096.
gross receipts licenses and ninety (90) day affidavits
All gross receipts based licenses are calculated on twelve (12) months of actual or annualized gross receipts. New gross receipts based licenses are generally issued a business license in a minimum amount at the time of application. A sworn affidavit attesting to the gross receipts of the business for the first ninety days must be executed. This affidavit must be received by the Revenue Department at the end of such 90 day period, or on December 31 of the current license year, whichever occurs first. The gross receipts information will be annualized (projected for the twelve month period) and will provide the basis for calculating the actual business license liability for the current year and, in some instances, for the second year of operation. Any applicable business license amounts previously paid will be deducted from the actual business license liability, and you will be billed for any balance due.
changes of ownership; merger; acquisition of an existing business
When making application for a business license as a result of the sale or purchase of a business, a change of ownership merger or other acquisition of a previously registered business in the City of Lincoln you must provide documentation of the said business transaction.
no proration of license resulting from abandonment or discontinuance of business
There is no provision for the proration of any business license tax as a result of the abandonment or discontinuance of a business.
license to be exhibited, displayed, or posted
Each license issued by the Revenue Department shall be posted in a conspicuous place where such business or occupation is carried on, and the holder shall immediately show such license to the department’s designated agent, or to any police officer of the city upon request. Failure to exhibit, display or post such license as required by City ordinance shall be unlawful. Where a license decal or sticker is required to be affixed to any machine or vehicle, it shall be the duty of the license holder to keep securely attached the de decal or sticker in a conspicuous place.
Non-profit organizations which have been granted exemptions from business license taxation by specific Acts of the Alabama Legislature are exempt from City license taxes. The legislative act or a copy thereof must be submitted to the Revenue Department in order to be eligible for such exemptions. Non-profit organizations are NOT automatically exempt from the provisions of the City of Lincoln Business License Code by virtue of having qualified for non-profit status on the federal income tax level under the provisions of USC 501 (c)(3).
request for ruling on determination of taxation
Any taxpayer or applicant may request a ruling on the determination of whether amounts of gross sales, or gross receipts of his/her business are subject to the license tax. Such requests shall be made in writing to the City Clerk, and shall contain all pertinent facts relating to the item(s) in question.
confidentiality of applications and tax returns
Information supplied to the department in the form of applications and tax returns is subject to the confidentiality provisions outlined in Ordinance #2017-14 “The Business License Ordinance of the City of Lincoln”.