Business Licensing & Operations, Birmingham

Every city handles business licensing & operations a little differently. In Birmingham, Alabama, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Tobacco Retail License

Any retail dealer in Birmingham selling tobacco products, whether or not tobacco is the main stock in trade, must hold a city business license under Schedule 238 of the Code of Ordinances. The tax equals two-tenths of one percent of the prior year's gross receipts, with a $300 minimum, and the Revenue Division will not issue the license without a current Alabama ABC Board tobacco permit.

Key details: License schedule: Schedule 238, Tobacco Products, Retail. Tax rate: 0.2% of prior-year gross receipts. Minimum license fee: $300.00 per year. State permit required: Valid Alabama ABC Board tobacco permit. Renewal deadline: On or before February 15 each year.

Selling tobacco products without the Schedule 238 license, or without a valid ABC Board permit on file, is a misdemeanor under Sec. 3A-1-164, punishable by a fine of $50.00 to $500.00 and up to six months in jail, with each day of unlicensed operation a separate offense. Late renewal draws a 15 percent penalty, rising to 30 percent after 30 days, under Sec. 3A-1-53.

Secondhand Dealers

Birmingham requires every secondhand dealer to log each purchase, sale, or exchange of used goods, check the seller's photo ID, and report the day's transactions to police by noon under Chapter 12-13. Dealers must hold goods 15 business days (21 days for vehicles) before resale and cannot buy from anyone under 19.

Key details: Resale hold: 15 business days (21 days for vehicles). Daily police report due: by noon. ID check: required at every transaction. Minimum seller age: 19 years old. Record inspection: anytime by mayor/police.

Failing to keep the required transaction record, skipping the ID check, missing the noon daily police report, reselling goods before the 15-day (or 21-day, for vehicles) hold expires, falsifying records, or buying from a seller under 19 are each unlawful under Chapter 12-13. Because the chapter sets no dealer-specific fine, violations default to the Code's general penalty in § 1-1-6: up to $500 and up to six months in jail, with each day of noncompliance a separate offense.

Massage Establishments

Birmingham requires every massage parlor to hold a city business license before opening, priced on a sliding scale of gross receipts, plus a per-worker fee for each masseur or attendant. Section 12-12-24 sets the base license at $100 a year on receipts under $10,000, rising with three percent of receipts above that.

Key details: Base license fee: $100/yr on receipts under $10,000. Above $10,000 receipts: $100 + 3% of excess. Per-worker fee: $50/yr per masseur/attendant. Individual license filing fee: $5.00 (nonrefundable). Health exam required: within 20 days of application.

Operating a massage parlor without the business license, employing an unlicensed masseur or attendant, or violating any operating rule in Chapter 12-12 (unlaundered linens, locked-door treatment, employing someone convicted of prostitution within 24 months) can trigger license revocation under § 12-12-23 after notice and a council hearing, plus prosecution under the Code's general penalty, § 1-1-6: a fine up to $500, up to six months in jail, or both. A revoked licensee cannot reapply for 12 months.

Compared to other cities, Birmingham takes a harder line on massage establishments. The enforcement and penalty structure reflects that.

Adult Entertainment

Birmingham requires a permit from the Department of Planning, Engineering and Permits before any adult bookstore, cabaret, or adult theater can open, and bars these adult establishments within 750 feet of homes, schools, parks, churches, or historic districts, and within 1,500 feet of another adult establishment, under the zoning ordinance's adult establishment regulations.

Key details: Permit required: Yes, from Dept. of Planning, Engineering and Permits. Residential/school/park/church buffer: 750 feet. Historic district buffer: 750 feet. Buffer from other adult businesses: 1,500 feet. Sign cap: 40-100 sq ft depending on frontage.

Operating an adult establishment without the required permit, or within the prohibited 750-foot or 1,500-foot buffer zones, violates Section 11 of the zoning ordinance and is enforced through the same violation and penalty process that applies to other zoning violations under Article VII. A sign that shows prohibited sexual content or exceeds the size and placement limits is a separate, independently citable violation.

Compared to other cities, Birmingham takes a harder line on adult entertainment. The enforcement and penalty structure reflects that.

Pawnbrokers

Birmingham licenses pawnbrokers and pawnbroker's agents under Schedule 189 of the Appendix A business license schedule, charging two-tenths of one percent of gross receipts with a $900 minimum license each year. The city's general license article separately makes it unlawful to engage in the pawnbroking business at all without first obtaining that license.

Key details: License fee rate: 0.2% of gross receipts. Minimum annual license: $900.00. Schedule: Appendix A, Schedule 189. Also governed by: Alabama Pawnshop Act, Ala. Code § 5-19A-1. Unlicensed operation penalty: up to $500/offense, 6 months (§ 3A-1-41).

Operating as a pawnbroker or pawnbroker's agent in Birmingham without first obtaining the Schedule 189 business license violates § 3A-1-41, punishable by a fine up to $500 for each offense and, if willful, up to six months' imprisonment, with each day of unlicensed operation counted as a separate offense. The city can also pursue license revocation and injunctive relief against an unlicensed pawn business.

Towing Companies

Birmingham requires every towing and vehicle immobilization service to hold a city license before booting or towing a vehicle without the owner's consent. City Code caps what a licensed tow operator can charge: $160.00 to tow a small vehicle, $300.00 for a large vehicle, and $10.00 per 24-hour storage period, with the first day free, and enforcement runs through the police department.

Key details: Small vehicle tow cap: $160.00 max (Sec. 12-19-75(b)(1)). Large vehicle tow cap: $300.00 max (Sec. 12-19-75(b)(2)). Storage fee: $10.00 per 24 hrs, first day free. Owner notice: Mailed within 24 hours of tow. Failure-to-report fine: Up to $100.00.

Operating a towing or vehicle immobilization business in Birmingham without a Section 12-19-11 license is unlawful and punishable under the general penalty in Section 1-1-6. A tow operator who fails to phone in and mail notice of a non-consensual tow as Section 12-19-72 requires faces a fine of up to $100.00 and can collect no more than one day's storage regardless of how long the vehicle actually sat in the yard.

This is one of the stricter rules in Birmingham's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

The Bottom Line

Birmingham is tougher than many cities when it comes to business licensing & operations. Out of the 6 rules covered here, 3 are rated strict. If you are a homeowner, renter, or business owner in Birmingham, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

These rules come from Birmingham's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.