Alabama Tax Licenses Must Be Renewed Annually

Effective November 1, 2020, taxpayers are required to renew their Alabama tax licenses on an annual basis. Licenses for the following tax types will need to be renewed annually:

• Sales tax
• Rental tax
• Sellers use tax
• Lodgings tax
• Utility gross receipts tax
• Simplified Sellers Use Tax

The renewal process must be completed on an annual basis in order to generate a new license each year. The taxpayer’s business information must be verified and/or updated, which can be done on the My Alabama Taxes website. The following information will need to be verified and/or updated:

• Current legal name
• Owner/officer/member information
• Phone number
• Social Security Number/FEIN (Federal Employer Identification Number)
• Location addresses including DBAs (Doing Business As) for each location

Additionally, taxpayers will need to verify that the business continues to operate in the same business entity type for which the license was issued. If the entity type changes, taxpayers will need to apply for a new license. If a taxpayer fails to renew their tax license, the license previously issued to the business will be cancelled, and the taxpayer will no longer be able to use the license in order to make tax-exempt purchases.

Taxpayers with Alabama tax licenses should take note and set reminders or have a system in place to ensure that the license is updated in a timely manner on an annual basis. (Notice of Annual Renewal of Alabama Tax Licenses, October 1, 2020, Alabama Department of Revenue)

UPDATE: The Alabama Department of Revenue has provided helpful information on their website to help taxpayers navigate the tax license renewal process. The Alabama Department of Revenue webpage has step-by-step instructions for tax license renewal as well as tax license renewal FAQs. For more information, visit the webpage. (ALDOR Sales and Other Tax License Renewals Go Annual, Online webpage, Alabama Department of Revenue website, October 28, 2020)