Senate Considers 2 Business Licensing Fixes

Date: April 04, 2017


If passed this session, two bills dealing with changes to business licenses could help some Alabama small businesses.

Pharmacy Business Licenses

The first is Senate Bill 31, sponsored by Sen. Billy Beasley, which passed the Senate 23-1 last month. This measure would change the formula used to calculate the fee for a pharmacy business license if the municipality bases businesses licenses on gross receipts, including prescription medication sales. The bill would not affect gross receipts on nonpharmaceutical purchases and nonprescription retail sales.

While prescription drug prices have increased dramatically, pharmacies can only charge the contracted fee that is negotiated with the insurance company, Medicaid, or Medicare. This discrepancy can then throw off the gross receipts numbers, impacting the pharmacy business license fee.

One example illustrating this problem came from an NFIB member, Marble City Pharmacy in Sylacauga. In the instance explained, the drug Humira Crohn’s Starter Kit cost the pharmacy $12,045.42, but the pharmacy was only paid $40.68 for the prescription.


Business Delivery Licenses

Another measure, Senate Bill 316, was introduced by Sen. Paul Sanford last month. SB 16 would set the fee for a business delivery license at $100, cap the issuance fee at $10, and delete provisions for fee increases.

Additionally, if a business has no physical presence in the municipality or police jurisdiction and its’ deliveries do not exceed $5,000 per year, it will be exempt from needing to purchase a delivery license in the first place.

NFIB/AL State Director Rosemary Elebash says members have long waited for changes to the business delivery license system, and this would be a first step toward addressing it

Related Content: Small Business News | Alabama | Economy

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