Mobile classifies business activities into license-fee categories based on gross receipts and activity type, with rates set in the city schedule and renewals due annually through the Revenue Department.
The City of Mobile issues business licenses through its Revenue Department under a classification schedule keyed to NAICS-style activity codes. Each business is assigned one or more classifications driving the license fee, typically calculated against gross receipts within a tiered schedule. Restaurants, retail, contractors, professional services, and rental properties carry different rates. Multi-classification businesses pay against the dominant activity. Annual renewals are due each January, and operating without a current license risks penalties, back-taxes, and stop-work orders. New businesses must register before opening doors.
Operating without a license, misclassifying to a lower rate, or failing to report gross receipts accurately risks penalties, back-taxes, and license revocation.
See how Mobile's business tax classification rules stack up against other locations.
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