The City of Haleyville has adopted the Business License Code which is in effect within the City limits and the Police Jurisdiction.  We have received some questions about who is required to purchase a license and to collect sales tax on sales.  To help explain the obligations of people selling merchandise or services within the City and Police Jurisdiction, please observes these requirements and answers to frequently asked question.

1.  The Levy of the Business License reads as follows:

Ordinance #2007-11, Section 1.

Pursuant to the Code of Alabama, the following is hereby declared to be and is adopted as the business license code and schedule of licenses for the municipality for the year beginning January 1, 2008, and for each subsequent year thereafter. There is hereby levied and assessed a business license fee for the privilege of doing any kind of business, trade, profession or other activity in the municipality, or the police jurisdiction, by whatever name called. 

The Business license is required for anyone engaging in doing business in Haleyville regardless of what I call the activity.  For example, if I am selling merchandise through Facebook or other social media in Haleyville or the Police Jurisdiction, I must have a business license and comply with the reporting, assessment and collection of sales tax or other fees required by law.

Questions have also been raised as to whether this is a requirement for “Yard Sales.”

The answer is that, if I am engaging in the selling of new or used items that are purchased or collected for resale, I must have a Business License and I have to collect and submit sales tax to the City.  The name I call the activity does not override the nature of what I am doing.

This type of activity is covered under the definition of a “Peddler” and would purchase a license based on the amount of gross sales under “Retail.” Continue reading