RENTAL – LEASE TAX: Each person, firm or corporation engaged in the business of renting or leasing real property to others within the City, will pay an amount equal to 3/10 of 1% of the gross compensations from such business, paid monthly, quarterly or semiannually not later than the 20th day of the month following the reporting period for which you are filing to be considered a timely return.
LEASE TAX – Tax which is imposed upon every person engaged in or continuing in the business of leasing or renting tangible personal property. At the rate of (3/4% ) percent on every vehicle leased. At the rate of three (3%) percent of the gross proceeds derived by the lessor or renter from the lease or rental of tangible personal property; provided the privilege or license tax on each person engaging or continuing within this city in the business of leasing or renting any automotive vehicle or truck trailer, semitrailer or house trailer, provided further, that the tax levied hereby shall not apply to any leasing or rental, as lessor, by the state, or any municipality or county in the state.
SALES TAX – Taxes that are imposed upon the consumer for purchases made at retail, at the rate of Four (4%) upon every person, firm or corporation, engaged in, or continuing within this City in the business of selling at retail any tangible personal property whatsoever, including merchandise and commodities of every kind and character.
At the rate of (1%) percent on every business selling at retail, any automotive vehicle or truck trailer, semitrailer or house trailer, one (1%) percent of every machine used in mining, quarrying, compounding, processing and manufacturing. On machines used in planting, cultivating, and harvesting farm products, livestock, poultry or farms and the parts made or manufactured for use on or in the operation of such machines.
USE TAX – Tax which is imposed upon the consumer or user of goods or merchandise purchased from vendors located outside the City of Irondale, such goods or merchandise not being subject to the City of Irondale sales tax laws. At the rate of four (4%) percent on the storage, use or other consumption in this city of tangible personal property (not including materials and supplies bought for use in fulfilling a contract for the painting, repairing, or reconditioning of vessels, barges, ships and other watercraft of more than (50 fifty tons burden) purchased at retail for storage, use or other consumption in this city.
At the rate of one (1%) percent on the storage, use or other consumption in this city of any machines used in mining, quarrying, compounding, processing and manufacturing of tangible personal property, purchased at retail on the sale price of any such machine, and on the parts of such machines, attachments and replacements therefor, also on any automotive vehicle or truck trailer, semitrailer or house trailer purchased at retail.
LODGING TAX – Lodging tax is a privilege tax levied on persons, firms, or corporations engaging in the business of renting or furnishing rooms or lodging to transients in the City of Irondale, Alabama. Charges for rooms, lodgings, or accommodations supplied for a period of 180 continuous days or more in any one place are exempt from state, county and municipal lodgings tax. The tax applies to all charges in conjunction with providing such accommodations. The City of Irondale lodgings tax rate is 6%. The State of Alabama and Jefferson County also levy lodgings tax.
JEFFERSON COUNTY – Your business may also need a Jefferson County and/or State of Alabama business license. You should also check for the licensing requirements in any city in which you wish to conduct business.
JEFFERSON COUNTY OCCUPATIONAL TAX – calls should be made to Jefferson County Revenue Department.
ALCOHOLIC BEVERAGE LICENSE – If you want to apply for any alcoholic beverage license, you should begin the application process at the ABC Board. You should phone them before going in order to find out what you need to bring with you.
STATE OF ALABAMA REVENUE OFFICE – They can assist you in applying for your State Sales and/or Use Tax Number.
City of Irondale Sales & Use Tax Breakdown formula:
4% City of Irondale
4% State of Alabama
2% Jefferson County
Failure to Timely, Pay Tax
If a taxpayer fails, neglects, or refuses to pay to the City the amount of tax shown as due on a return required to be filed on or before the date prescribed for payment of the tax, there shall be added: (1) In addition to the tax due or the amount of tax herein required to be collected and/or remitted; or, (2) For any tax for which a monthly or quarterly return is required, or, (3) For which no return is required, a penalty of ten percent (10%) of the unpaid amount shown as tax due on the return or the amount stated in the notice and demand, together with interest thereon at the rate of one percent (1%) per month, or fraction thereof, from the date at which the tax became due and payable.
Underpayment of Tax
Any taxpayer failing to pay the tax levied to the City or any amount of tax herein required to be collected and paid to the City, within the time required, shall pay, in addition to the tax or the amount of tax herein required to be collected and/or remitted, a penalty of ten percent (10%) of the amount of tax due, plus interest at the rate of one percent (1%) per month, or fraction thereof, from the date at which the tax or the amount of tax herein levied or required to be collected became delinquent, that is, due and payable to the City.
Interest shall be computed at the rate of one percent (1%) per month or fraction thereof, and shall be added to any tax or other amount due the City which is not paid by the due date. Interest on any delinquency or underpayment shall be charged from the due date of the tax.