Dothan, AL Local Taxes & Fees: Business Tax Classification (2026)

Dothan's business license tax runs from City Code § 18-1, which levies a license fee 'for the privilege of doing any kind of business, trade, profession, exhibition, or other activity in the municipality.' Section 18-2 defines the 'schedule of licensees' as the classifications that describe each business activity and set its tax rate, and § 18-22 lists hundreds of NAICS-coded categories, from Accountants/CPAs at a flat $100.00 to tiered rates for wholesalers based on gross sales. Under § 18-4(b), a business that operates two or more distinct lines must buy a separate license for each line, and § 18-4(a) ties every license to one physical location.

To classify a business correctly, § 18-8(a) requires the taxpayer to file a sworn statement showing employee counts, space occupied, or whatever other factor the schedule uses to fix the classification and tax amount. If the License Officer disagrees with a taxpayer's self-reported classification or amount, § 18-8(b) authorizes a preliminary assessment; the taxpayer then has 30 days under § 18-8(e)(1) to file a petition for review, and 30 more days to appeal an adverse finding to the board of commissioners. Licenses run on the calendar year: § 18-3(a) requires the full annual fee from anyone starting before July 1, half the fee for a mid-year start, and § 18-3(d) sets January 31 as the annual renewal deadline.

Late payment triggers a 15 percent penalty for the first 30 days delinquent, another 15 percent after 60 days, plus one percent monthly interest under § 18-16.