Montgomery, AL Business Licensing & Operations: Towing Companies (2026)
Key Facts
- License gate
- City council resolution required (Sec. 6-2)
- Police-directed tows
- Must use chief-approved towing service
- Redemption fee
- $50 city processing fee (Sec. 27-665)
- Unredeemed vehicles
- May be sold after 60 days (Sec. 27-666)
- Other council-gated licenses
- Taxicabs, ambulances, liquor types
Summary
Towing companies operating in Montgomery, Alabama need a business license issued only after the city council passes a resolution authorizing it, one of just 14 license types singled out for council approval rather than routine finance-department issuance. City Code Sec. 6-2 sets the requirement.
The city council must pass a resolution authorizing the issuance of the following types of business licenses: ... (14)Towing companies. ... The law enforcement officer making the impoundment shall direct an approved towing service to tow the vehicle to the garage of the towing service, storage lot, or other place of safety designated by the chief of police and maintain custody and control of the vehicle until the registered owner or authorized agent of the registered owner claims the vehicle by presenting the release document from the Montgomery Police Department as described in hereunder, and paying all reasonable and customary towing and storage fees for the services of the towing company. ... Payment of a $50.00 processing/administration fee to the city.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 27).
Full Breakdown
Montgomery does not let the finance department issue a towing company business license administratively. Sec. 6-2 lists 14 categories of business license that require the city council to first pass a resolution authorizing issuance, and 'towing companies' is the fourteenth category on that list, alongside taxicabs and limousines, ambulance service, and several liquor license types. That council-resolution step functions as Montgomery's gate on who may operate a wrecker business in the city, layered on top of the Chapter 6 general business license process. The Code also regulates towing operators directly when they are engaged by the police department.
Under Sec. ' Separately, Sec. 00 processing and administration fee to the city, on top of whatever the towing company itself charges for towing and storage. If a vehicle is never properly redeemed within 60 days of impoundment, Sec. 27-666(d) lets the towing company that lawfully holds it advertise and sell the vehicle under the state disposal statute, Code of Ala. 1975, Sec. 32-13-1 et seq.
Violations & Fines
Operating a towing company in Montgomery without the council-authorized business license required by Sec. 6-2 is a Code violation subject to the general penalty in Sec. 1-6: a fine of $1.00 to $500.00, up to six months in jail or hard labor, or both, with a corporation limited to the fine plus court costs. A towing service acting for the police must also be 'approved' by the chief of police under Sec. 27-664 before it can lawfully take custody of an impounded vehicle.
Frequently Asked Questions
Do I need a special license to run a towing company in Montgomery?
Can any towing company handle a police-ordered impound in Montgomery?
What does it cost to get my car back from an approved tow in Montgomery?
Sources & Official References
Other rules in Montgomery
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