Business Tax Info & FAQs:

The City of Decatur is referred to as a self-administered jurisdiction because businesses report and remit the various local taxes they have collected directly to us. Businesses register with the city and are assigned an account number and reporting forms for this purpose. Most businesses report and remit the taxes they have collected on a monthly basis, but the frequency of reporting can be different (quarterly, semi-annually, annually, occasional) based on the type of business and the average amount remitted.

For the sake of uniformity, all municipalities in Alabama are required to follow the same rules, regulations, definitions, and procedures as are adopted by the Alabama Department of Revenue for the purposes of collection and administration of sales, use, rental/leasing, or lodgings taxes. This does not apply to the different tax rates as these are established by each municipality.

Click here for a table listing tax types, rates, and due dates.

Q: How do I register to report taxes to the City of Decatur?
A: Click here to download a tax form and instructions. Please contact us at taxform@decatur-al.gov for this purpose.

Q: How do I register to report taxes to the City of Decatur?
A: The business licensing process establishes registration, the assignment of an account number for tax reporting, and the mailing of pre-printed tax reports for you to use. Please review the Business License Info & FAQ’s section for this purpose.

Q: What if I do not need a license but need to establish an account for regular tax reporting?
A: Complete and submit the registration form.

Q: When are the tax reports and payments due?
A: Generally the reports are due by the 20th following the month for which you are reporting. Please check the “Tax Types & Rate Information” table for your specific tax.

Q: Can I pay my business taxes online?
A: Yes. In fact, if the amount you owe is more than $750.00 per year, online payments are mandatory.

Q: How do I make an online payment?
A: All cities and counties in the State of Alabama use the same system, making it easier for you to manage your payments. Simply visit ONE SPOT to set up or access your account.

Q: My business is in the Police Jurisdiction. Is the tax rate for my business the same as within the city limits?
A: No, businesses in the Police Jurisdiction have the tax rate of businesses within the city limits (review the ordinance)