Alabama Disabled Veteran Business License Cap

Code sections 40-12-340 through 40-12-352, as the Department of Veterans Affairs summarizes them, cap license taxes for a narrow group. The person has to be a bona fide permanent Alabama resident and an honorably discharged veteran of a period when the United States was engaged in hostilities with a foreign state. The disability is a physical disability of 25% or more. It does not have to be service-connected. The veteran has to conduct the business as a livelihood through personal effort and have no more than one employee. State, county, and municipal licenses to carry on that business then cost not more than $25. The cap does not apply if the veteran's real and personal property is valued at $5,000 or more, or if net income is $2,500 or more. Those dollar lines are the statute the department prints. They are low enough that most operating businesses are outside the cap. This is not a general veteran business-license waiver, and it is not the 5% state-bid preference.