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Decatur, AL Home Business: Zoning & Home Occupation Permits (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Permit issuer
Building director, building department
Application fee
$50.00, nonrefundable
Space limit
One room of the dwelling, no accessory buildings
Prohibited home occupations
19 listed categories including salons and auto repair
Transferability
Personal to applicant, not transferable to another location
Fine per offense
$2.00 to $100.00 plus costs, per day

Summary

In the City of Decatur, Alabama, a home occupation needs a building department permit before the revenue department will issue a business license. The applicant pays a nonrefundable $50.00 fee, signs a questionnaire, and stays off a 19-item prohibited list. The permit cannot be transferred to another address.

Home occupation procedure: The granting of a home occupation permit by the building department may be obtained by submitting an application to the building director of the city on forms provided by them and providing such information as may be necessary for a determination that the request complies in all respects to the terms of this section. (1)Zoning verification required: The building director will examine the zoning map to determine that the address of the home occupation provided by the applicant is located in the appropriate zoning district. ... (3)Application fee required: A nonrefundable fifty dollars ($50.00) application fee is required to be collected from the applicant by the building director.(4)City business privilege license required: The applicant shall obtain a city business privilege license from the revenue department only after obtaining a home occupation permit from the building department, and application fee has been paid.(5)Home occupations nontransferable: All home occupations are personal to the applicant and as such are nontransferable to another location, subject to provisions of this section.

Full Breakdown

Article VI of Chapter 25 of the Decatur City Code sets the home occupation rules for every residential zoning district, including PRD, R-1 through R-6 and the historic-designation districts. Section 25-140 states the purpose: keep these businesses compatible with the surrounding area by avoiding added traffic or noise. Section 25-143 makes a home occupation a permitted use, but only after the building department verifies the zoning district, the applicant signs the home occupation questionnaire, and the revenue department issues a city business privilege license. The building department can approve or deny the use based on the criteria in the article.

Section 25-146 sets the permit steps. The applicant submits an application to the building director on the city's forms. The director checks the zoning map against the address, hands over a questionnaire listing every requirement for the applicant to sign, and collects a nonrefundable $50.00 fee. Only then does the revenue department issue the business privilege license. Every home occupation is personal to the applicant and cannot move to another location.

The operating limits sit in § 25-145. The business gets no more than one room of the dwelling and cannot operate in an accessory building. It cannot sell stocks of merchandise, cannot show goods from outside, and cannot store highly explosive or combustible material. No noise, vibration, smoke, dust, odors, heat, or glare may be noticeable at or beyond the property boundaries. Sales parties are capped at one in each three successive months, and supplier deliveries are barred except by commercial common carriers, defined in § 25-142 as delivery services that carry no freight over 150 pounds.

Section 25-144 lists 19 uses that can never be home occupations, among them auto repair, beauty and nail salons, dental and medical offices, dance instruction, catering, gift shops, welding, and massage parlors, plus anything similar. Under § 25-147 the permit is a privilege, carries no property right, and can be revoked.

Violations & Fines

Section 25-26 fines any violation of Chapter 25 not less than $2.00 nor more than $100.00 plus court costs per offense, with each day counted separately. Under § 25-147 the building department or revenue department can revoke a home occupation permit on evidence of a potential violation, and the permit holder then has 60 days to close the business.

Frequently Asked Questions

What are the steps to get a home occupation permit in Decatur, Alabama?
Under § 25-146 you apply to the building director, who verifies the zoning district on the zoning map, gives you a questionnaire to sign confirming every requirement is met, and collects the $50.00 nonrefundable fee. After the permit is granted you obtain a city business privilege license from the revenue department.
Which businesses are barred from operating as home occupations?
Section 25-144 bars 19 categories, including minor or major auto repair, barber and beauty shops, hair and nail salons, carpentry, dance instruction, dental and medical offices, photo studios, private schools with organized classes, upholstering, massage parlors, welding, gift shops, rental businesses, and catering, along with uses similar to those listed.
Can I run a home occupation from a garage or shed?
No. Section 25-145(b) states that no home occupation shall be permitted in any accessory building, and subsection (a) confines the business to no more than one room of the residential dwelling. The use must also be carried on entirely inside the principal building by the people who live there, per § 25-142.
How long do I have to close if the permit is revoked?
Section 25-147(c) gives a permit holder sixty days to close the home occupation after a permit or approval is revoked. The building department or revenue department can revoke on evidence of a potential violation, and subsection (b) says the permit creates no property right or other interest.

Sources & Official References

Other rules in Decatur

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