Business License and Tax Requirements
Thank you for your interest in doing business in Eclectic. We wish you well in your efforts toward building a successful and prosperous business. If you can not find the information you need, please contact us for assistance.
A valid Town of Eclectic business license is required for any company or person to engage in any business within the corporate limits as well as our police jurisdiction. A business license application needs to be completed and submitted for approval as well as the fee(s) paid before conducting business in the town or police jurisdiction.r paragraph here.
Sales & Use Tax
Sales tax is due from the consumer on retail sales of tangible personal property. The business acts as the agent for the Town of Eclectic by collecting the sales tax from its customers. The sales tax collected by the business for sales and deliveries in Eclectic is remitted to the Town of Eclectic through the Alabama Department of Revenue website.
The Town of Eclectic sales tax rate is 5% and the total sales tax within the Town of Eclectic including the State and County tax is 10%. The Eclectic Police Jurisdiction extends 1.5 miles beyond the town limits and the applicable sales tax is 2.5% for a total of 7.5% including the State and County.
Use tax is due from the business or individual on items that are purchased for use in the Town of Eclectic from vendors located outside the Town of Eclectic and on which a local city sales/use tax has not already been paid.
The sales/use tax report is due on or before the 20th day of the month next succeeding the period in which the tax accrues. A discount is allowed only for Sales Tax if the tax is paid on or before the 20th day of the month in which the tax is due.
A penalty of 10% and interest of ½ of 1% are due if the tax is paid after the 20th day of the month in which the tax is due. The business is required to file a return for each period even if there are no taxes collected. Businesses with limited sales in Eclectic may file the tax quarterly or annually, based on the State of Alabama Revenue Department guidelines.
The following items may apply depending on the nature of your business:
The records of a business or an individual conducting business in Eclectic must be accurately reflected in the information reported to the Town of Eclectic. The business records must be maintained for a period of two to six years depending on the type(s) of business activity being conducted .
An examination of the business records may be conducted in order to verify that the report(s) submitted to the Town of Eclectic are in compliance with the Ordinances and Code of the Town of Eclectic.
Welcome to the business center for the Town of Eclectic. Here you will find all information needed to properly process a new or renewal business license. Click on the links to the right to download the proper forms. Be sure to double check that you have all of the required documents to submit, as the omission of documents will result in the delay and/or denial of an application. Information on requirements and explanations are provided below. Make sure to throughly read this page for the details pertaining to your needs.
Coming 2017 renewal year, we will be going to a web based renewal system. Please check back for updates.
Building & Sign Permits
Any type of construction in the Town of Eclectic, or it's police jurisdiction, can require a permit or business license depending on the type of work being done. This includes the moving of buildings, such as storage buildings or pre-manufactured buildings. Sign permits are also needed before signs are erected or installed.
Fines and penalties can be accessed if the proper permits are not obtained, so always call or check with the proper authority before you begin a project.
- A Certificate of Occupancy (CO) is required if the business location is newly constructed or remodeled (Issued by Town of Eclectic Building Inspector).
- A health certificate is required for all businesses preparing food (Issued by the Elmore County Health Department).
- A Life Safety inspection is required for all Eclectic-based businesses locating in an existing commercial building/space (Issued by the Town Building Inspector).
- The Town of Eclectic's business licenses are not transferable. If more than a fifty- percent change of ownership occurs or a new federal identification number is obtained, or location address changes, a new business license is required.
- A business located in the town's police jurisdiction, but actual outside the town limits will pay half the business license fee.
- All businesses must publicly exhibit and display the license certificate in the business establishment for which the license was issued (only valid for one specific location).
Any business or individual selling, storing, or delivering cigarettes in the Town jurisdiction must pay a tax per cigarette. The stamps are sold in rolls containing 15,000 stamps and are usually $450.00 per roll. Any business or individual selling, storing, or delivering cigarettes is required to have a business licensed in the Town ofEclectic.
Home Based Business
If your business is based in a residence located inside the town jurisdiction, you are required to obtain a certificate of Home Occupancy. Please contact The Town of Eclectic Planning Commission or Town Clerk. Type your paragraph here.
Rental and Leasing Tax
Any person engaged in the business of renting or leasing tangible personal property is required to remit a fee of 2.5 % of the gross receipts derived from the lease of the rental property. The rental and leasing tax report is due on or before the 20th day of the month next succeeding the period in which the tax accrues. Penalty and interest are due if the tax is paid after the 20th day of the month in which the tax is due. The business is required to file a return for each period even if there are no taxes collected.
Business License Applications
All businesses operating in the town's corporate limits or police jurisdiction are required to complete and submit a business license application and supply copies of any State Certifications or Licenses. (if applicable) Once a completed business license application is received it will be reviewed for approval. If it is determined additional information is needed you will be contacted. Below are links to different documents and checklists, please select the one(s) that best suits your business needs.
NOTICE: Be aware that business licenses expire December 31st and renewals are due January 1st and delinquent on February 1st.
Submit completed business license application and required materials to:
Town of Eclectic
145 Main St
PO Box 240430
Eclectic, AL 36024
Payment Information: Payments may be made in person at the Town Clerk's Office in Town Hall located 145 Main Street, Monday - Friday 8:00 AM to 5:00 PM. Cash, checks or money orders are acceptable
Sorry, we do not accept credit or debit cards at this time.
Renew/Apply for a Business License
Alcoholic Beverage License
In order to receive a license to sell alcoholic beverages in the Town of Eclectic, the business must be licensed by the State of Alabama Alcoholic Beverage Control Boardand receive Eclectic Town Council approval prior to selling alcoholic beverages. After receiving approval from the Eclectic Town Council, the business must provide a copy of the ABC license and remit all applicable license fees and submit all required reports.
Motor Fuel Tax
Wholesalers selling motor fuels into the Town of Eclectic pay a motor fuel tax. The motor fuels tax is charged per gallon and due on or before the 20th day of the month next succeeding the period in which the tax accrues. A penalty is due if the tax is paid after the 20th day of the month in which the tax is due. The business is required to have a business license in the Town of Eclectic.