Bloomington, IN Business Licensing & Operations: Towing Companies (2026)

Chapter 4.32, adopted by Ordinance No. 20-03 in 2020 and amended by Ordinance No. 2025-20 in December 2025, requires any towing company performing a non-consensual tow that originates within Bloomington's corporate boundaries to hold a city-issued license (§ 4.32.040); a company merely passing a towed vehicle through the city is exempt. The license administrator, the director of the department of economic and sustainable development or a designee, issues a one-year, non-transferable license for a $350 nonrefundable fee after the applicant discloses its vehicle storage facility, offers at least 40 business hours per week including some weekend hours, passes a background check clear of violations in the last 12 months, and shows commercial general liability coverage of $1,000,000 per occurrence/$2,000,000 aggregate, $1,000,000 automobile liability, and $150,000 garage keeper's liability (§§ 4.32.060, 4.32.070, 4.32.090).

Operationally, a tow requires a contemporaneous written authorization signed by the parking lot owner or agent, and a towing company employee generally cannot act as that agent except for permitted multifamily rental-parking arrangements (§ 4.32.100). Tow-away signage must be posted at every lot entrance and exit at least 24 hours before a tow, with stricter size, reflectivity and content standards phasing in on July 1, 2028 (§ 4.32.110). Towing and storage fees are capped: $150 to tow a vehicle under 10,001 pounds, an added $450 for heavier vehicles, up to $150 for winching, $30 per 24-hour storage period, and a $25 administrative fee cap, and booting a vehicle is prohibited (§§ 4.32.120, 4.32.130). Records of each tow must be kept for two years (§ 4.32.150).