The Alabama Department of Revenue (Department) announced that, beginning November 1, 2020, taxpayers will be required to renew most of their Alabama tax licenses on an annual basis. ¹ For calendar year 2021, Alabama-registered taxpayers must renew their licenses during the period between November 1 and December 31, 2020, or the licenses will be cancelled. A taxpayer that fails to renew its licenses, under Ala. Code Section 40-23-6.1, may no longer use its sales-and-use-tax license to make tax-exempt purchases for resale or rental purposes. This is the first time Alabama has required license renewals.

The new annual registration requirement applies to the following Alabama taxes:

• Sales tax
• Rental tax
• Sellers use tax
• Lodgings tax
• Utility Gross Receipts Tax
• Simplified Sellers Use Tax (SSUT)

Taxpayers will be required to review and/or update the following information through the My Alabama Taxes website:

• Current legal name (review)
• Owner/officer/member information (review and/or update)
• Phone number(s) (review and/or update)
• Social Security numbers/FEINs (review)
• Location address(es) including doing business as (d/b/a) for each location — (review and/or update)
• Main address (review)
• Location address(es) (review and/or update)

Businesses that changed their entity type will need to apply for a new license.

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¹ Ala. Dept. of Rev., NOTICE Annual Renewal of Alabama Tax Licenses (October 1, 2020).