Revenue Department
City of Muscle Shoals — Revenue Department
Introduction
The Revenue Department of the City of Muscle Shoals is responsible for administering and enforcing the City’s business licensing program and other local revenue collections as defined by the City Code. Our mission is to provide professional, courteous service to residents and businesses while ensuring compliance with municipal ordinances and supporting the financial stability of our community.
Key Functions & Responsibilities
| Function | Description
|
|---|
| Business Licensing | All businesses, trades, and professions operating within the City must obtain a business license before beginning operations. Licenses are renewed annually, with the license year running January 1 through December 31. Renewal is delinquent after January 31. |
| Tobacco Tax (Third-Party Collection) | The City contracts with a third-party administrator to collect tobacco taxes on its behalf. This ensures proper reporting and compliance for businesses engaged in the sale of tobacco products. |
| Compliance & Enforcement | The Revenue Office ensures businesses remain compliant with city ordinances, including proper licensing, timely renewals, and penalties for delinquency. |
| Coordination with State Revenue Collection | While the City Revenue Office does not directly collect sales tax, lodgings tax, or rental tax, these revenues are collected by the State of Alabama Department of Revenue and distributed to the City. |
Important Ordinances & Code Sections
The responsibilities of the Revenue Department are governed by the City’s Code of Ordinances, including:
Chapter 22 – Businesses: Establishes licensing requirements, fees, and penalties for businesses operating within the city.
Chapter 22, Article II – Business Licenses: Defines when licenses are required, renewal timelines, and enforcement provisions.
View the full Code of Ordinances here: Muscle Shoals Code of Ordinances.
What Residents & Businesses Should Know
Licenses Are Required Before Business Begins
Every person or entity engaging in business within Muscle Shoals must secure a business license prior to opening.
Annual Renewal & Deadlines
Licenses are valid from January 1 to December 31 each year. Renewals are due by January 31 to avoid penalties.
Sales, Lodgings, and Rental Taxes
These taxes are not collected by the City Revenue Office. They are remitted directly to the Alabama Department of Revenue, which distributes the City’s share.
Tobacco Tax
Businesses selling tobacco products should be aware that the City’s tobacco tax is collected through a third-party administrator, not directly by the City.
Our Commitment
The Revenue Department is dedicated to:
Providing clear information and guidance to business owners.
Ensuring fair, consistent enforcement of licensing ordinances.
Supporting the financial stability of Muscle Shoals by safeguarding city revenues.
Offering courteous, efficient service to residents and businesses alike.
