Contractors and Subcontractors

As with all other businesses, a Business Registration form is completed for a contractor business license. All contractors are licensed by a combination of a flat fee and a percentage of gross receipts. At the time the license is issued, general contractors pay a flat fee of $155; subcontractors pay a flat fee of $105. In addition, the following items may apply depending on the type of contractor to be licensed:

• General contractors, plumbers, and electricians are required to purchase an indemnity bond or make a cash deposit as part of the licensing requirement.
• Contractors licensed by a state of Alabama licensure board (e.g. plumbers, electricians, homebuilders) must present proof of their State of Alabama licensure board license when applying for a business license in the City of Auburn.
• The remainder of the business license fee is paid quarterly as a percentage of the construction work gross receipts (contractor’s percentage).This contractor’s percentage/business license fee is ¼ of 1% of the gross construction receipts. Typically construction work requires permits to be pulled from Codes department and at the time the permit is issued, Codes collects the contractor’s percentage for the permitted job for the convenience of the contractor. When this contractor’s percentage is not collected by Codes, the gross receipts are self-reported each quarter and remitted to the Revenue Office.
• Every person working on a job site should be either an employee of a licensed contractor or hold an Auburn contractor business license.
• Any business or individual that is found working within the Auburn city limits without a license will be charged a minimum late penalty of 25% plus 1% for each month late, up to a penalty three times the license fee.