Huntsville, AL Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Classification system
- 2002 NAICS sectors
- Default tax basis
- Gross receipts
- Multi-line license trigger
- Over 35% of gross receipts
- Administering office
- City Finance Director
Summary
Huntsville sorts every business into a NAICS sector code that fixes how its annual license tax is calculated.
Except as provided in Code of Ala. 1975, § 11-51-193, with respect to taxpayers subject to state licensing board oversight, be classified into one or more of the following 2002 North American Industrial Classification System ("NAICS") sector and applicable sub-sectors, industry groups, industries and U. S. Industries thereunder:
SECTOR NAICS TITLE BASIS FOR LICENSE CALCULATION 111XXX Crop production Gross receipts 112XXX Animal production Gross receipts 113XXX Forestry and logging Gross receipts 114XXX Fishing, hunting, and trapping Gross receipts 115XXX Support for agriculture and forestry Gross receipts 211XXX Oil and gas extraction State regulated
212XXX Mining (except oil and gas) Gross receipts where not state regulated 213XXX Support for mining activities State regulated 221XXX Utilities State regulated 236XXX Building developing and general contracting Gross receipts
237XXX Heavy construction Gross receipts 238XXX Special trade contractors Gross receipts 311XXX Food manufacturing Gross receipts 312XXX Beverage and tobacco manufacturing Gross receipts 313XXX Textile mills Gross receipts 314XXX Textile product mills Gross receipts 315XXX Apparel manufacturing Gross receipts
316XXX Leather and allied product manufacturing Gross receipts 321XXX Wood products manufacturing Gross receipts 322XXX Paper manufacturing Gross receipts 323XXX Printing and related support activities Gross receipts
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 30 Update 2).
Full Breakdown
Every taxpayer buying a Huntsville business license must be classified into a 2002 NAICS sector, sub-sector, and industry group under City Code Sec. 15-86. That classification sets the tax basis: most sectors are taxed on gross receipts, but categories like oil and gas extraction, mining support, and utilities are tagged 'state regulated' instead and taxed under a different method. A business with more than one line of activity must classify and license each line separately once it passes 35 percent of gross receipts (Sec. 15-44(b)).
Violations & Fines
Operating without the correct license classification is a violation of Chapter 15, Article II. The finance director can suspend or refuse license renewal for unpaid business license liabilities, and the general Code penalty for unclassified violations runs up to a $500.00 fine or six months in jail or hard labor, or both, under Sec. 1-15.
Frequently Asked Questions
Who decides my NAICS classification in Huntsville?
Is every business taxed on gross receipts?
Sources & Official References
Other rules in Huntsville
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