HB561 • 2026

Municipalities; imposition of new or increased taxes or fees, ordinance required

Elections Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Carns
Last action: 2026-03-17
Official status: Read Second Time in House of Origin
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on consequences for non-compliance or how it will affect urgent financial needs.

Municipalities; New Taxes or Fees Require Ordinance

This bill requires municipalities to pass an ordinance, after a public hearing and notice period, before imposing new taxes or increasing existing tax rates.

What This Bill Does

Requires that any new tax or fee imposed by a municipality must be done through an ordinance.
Requires at least 30 days' notice before a public hearing for the proposed tax or fee increase.
Specifies what information must be included in the notice, such as details about the proposed change and how to obtain more information.
Makes it mandatory that the proposed ordinance is published on the municipality's website if available.

Who It Names or Affects

Municipalities in Alabama
Residents and businesses affected by municipal taxes and fees

Terms To Know

Ordinance: A law made by a city or town council.
Public Hearing: A meeting where the public can give input on proposed laws or regulations.

Limits and Unknowns

The bill does not specify what happens if a municipality fails to follow these requirements.
It is unclear how this will affect municipalities with urgent financial needs that require immediate action.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

QN67815-1

County and Municipal Government

Reported Out of Committee House of Origin

Plain English: QN67815-1 03/17/2026 THR (H) HSE 2026-1183 House County and Municipal Government Reported Substitute for HB561 Page 1 A BILL TO BE ENTITLED AN ACT Relating to municipalities; to amend Section 11-45-2, Code of Alabama 1975, to require that new or increased taxes or fees may only be levied by ordinance; and to require notice and a public hearing.

QN67815-1 03/17/2026 THR (H) HSE 2026-1183 House County and Municipal Government Reported Substitute for HB561 Page 1 A BILL TO BE ENTITLED AN ACT Relating to municipalities; to amend Section 11-45-2, Code of Alabama 1975, to require that new or increased taxes or fees may only be levied by ordinance; and to require notice and a public hearing.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1.
Section 11-45-2, Code of Alabama 1975, is amended to read as follows: "§11-45-2 (a) The style of an ordinance of a city or town shall be, "Be it ordained by the city (or town) council of _______ as follows:" inserting the name of the city or town as the case may be.
(b)(1) No ordinance or resolution intended to be of permanent operation shall be adopted by the council at the same meeting at which it is introduced, unless unanimous consent of those present is given for the immediate consideration of such the ordinance or resolution, such with consent to be shown by a vote taken by yeas and nays, and the names of the members voting shall be entered upon the minutes ,.

This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

2026-03-17 House
Read for the Second Time and placed on the Calendar
2026-03-17 House
Reported Out of Committee House of Origin
2026-03-03 House
Pending Committee Action in House of Origin
2026-03-03 House
Read for the first time and referred to the House Committee on County and Municipal Government

Official Summary Text

Municipalities; imposition of new or increased taxes or fees, ordinance required

Current Bill Text

Read the full stored bill text

HB561 INTRODUCED
Page 0
HB561
CXR1XJQ-1
By Representative Carns
RFD: County and Municipal Government
First Read: 03-Mar-26
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CXR1XJQ-1 03/03/2026 THR (L)ma 2026-1183
Page 1
First Read: 03-Mar-26
SYNOPSIS:
Under existing law, a municipality may enact an
ordinance or resolution to levy a new tax or license
fee or to increase the rate of any existing tax or
license fee when the tax or license fee is otherwise
authorized by law.
This bill would provide that a municipality may
only levy a new tax or license fee, or increase the
rate of a tax or license fee, by ordinance.
This bill would provide that the ordinance may
not be considered for adoption until after a public
hearing, and would require at least 30 days' notice
before a public hearing.
This bill would also provide the requirements
for a notice.
A BILL
TO BE ENTITLED
AN ACT
Relating to municipalities; to amend Section 11-45-2,
Code of Alabama 1975, to require that new or increased taxes
or fees may only be levied by ordinance; and to require notice
and a public hearing.
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HB561 INTRODUCED
Page 2
and a public hearing.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-45-2, Code of Alabama 1975, is
amended to read as follows:
"§11-45-2
(a) The style of an ordinance of a city or town shall
be, "Be it ordained by the city (or town) council of _______
as follows:" inserting the name of the city or town as the
case may be.
(b)(1) No ordinance or resolution intended to be of
permanent operation shall be adopted by the council at the
same meeting at which it is introduced, unless unanimous
consent of those present is given for the immediate
consideration of such the ordinance or resolution, such with
consent to be shown by a vote taken by yeas and nays, and the
names of the members voting shall be entered upon the
minutes ,.
(2) and no No ordinance or resolution intended to be of
permanent operation shall become a law unless on its final
passage a majority of the members elected to said the council
in cities of over 12,000 inhabitants shall vote in its favor.
(3) In all towns and in cities of less than 12,000
population inhabitants, an affirmative vote of a majority of
the whole number of members of the council to which the
corporation is entitled, including the mayor, shall be
required to enact any ordinance or resolution intended to be
of permanent operation.
(c)(1) Notwithstanding subsection (b), any action taken
on or after October 1, 2025, by a council to adopt a new tax
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HB561 INTRODUCED
Page 3
on or after October 1, 2025, by a council to adopt a new tax
or license fee or to increase the rate of a tax or license fee
shall be subject to this subsection.
(2) Once the ordinance is introduced at a council
meeting, the council shall hold a public hearing after not
less than 30 days' notice of the public hearing.
(3) The notice shall state all of the following:
a. The substance of the proposed ordinance.
b. The amount of any proposed new tax or license fee or
the amount of the increase in any tax or license fee.
c. The date, time, and place of the public hearing.
d. That a copy of the proposed ordinance may be
obtained from the office of the municipal clerk.
(4) The notice shall be published in a newspaper of
general circulation published in the municipality or otherwise
in the same manner as the publication of an ordinance is
provided for in Section 11-45-8(b).
(5) A copy of the proposed ordinance shall be published
concurrently on the website of the municipality, if the
municipality has a website, and on the Secretary of State's
open meetings website.
(6) After the public hearing, the proposed ordinance
may be considered by the council at a regular council meeting.
(c)(d) The A council shall award no contract on bids
except by resolution."
Section 2. This act shall become effective on October
1, 2026.
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