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HB566 INTRODUCED
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HB566
4UBWHIR-1
By Representative Lee
RFD: Transportation, Utilities and Infrastructure
First Read: 05-Mar-26
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4UBWHIR-1 03/04/2026 GED (L)ma 2026-1186
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First Read: 05-Mar-26
SYNOPSIS:
Existing law authorizes municipalities to levy a
business license on certain businesses operating within
their jurisdictions .
This bill would provide for the circumstances
when a municipality may levy a business license on
certain businesses in the building trade located inside
the municipality's jurisdiction.
A BILL
TO BE ENTITLED
AN ACT
Relating to municipalities; to add Section 11-51-133 to
the Code of Alabama 197 5, to limit municipalities from levying
a business license on certain businesses.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 11-51-133 is added to the Code of
Alabama 1975, to read as follows:
§11-51-133
(a) As used in this section, the following terms have
the following meanings:
(1) CERTIFIED HEATING AND AIR CONDITIONING CONTRACTOR.
The same meaning as provided in Section 34-31-18.
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The same meaning as provided in Section 34-31-18.
(2) CERTIFIED REFRIGERATION CONTRACTOR. The same
meaning as provided in Section 34-31-18.
(3) CONCRETE PROVIDER. An individual or business entity
engaged in selling concrete, ready mix, or cement that is to
be installed at a job site in a municipality, other than a
municipality in which the individual or business entity is
eligible to obtain a delivery license pursuant to Section
11-51-194.
(4) DUCT AIR TIGHTNESS TESTING CONTRACTOR. The same
meaning as provided in Section 34-31-18.
(5) ELECTRICAL CONTRACTOR. The same meaning as provided
in Section 34-36-3.
(6) GENERAL CONTRACTOR. The same meaning as provided in
Section 34-8-1, without regard to the monetary thresholds set
forth in that section.
(7) JOURNEYMAN ELECTRICIAN. The same meaning as
provided in Section 34-36-3.
(8) MASTER GAS FITTER. The same meaning as provided in
Section 34-37-1.
(9) MASTER PLUMBER. The same meaning as provided in
Section 34-37-1.
(10) ONSITE WASTEWATER LICENSEE. A qualified individual
holding a license issued by the Alabama Onsite Wastewater
Board.
(11) PHYSICAL BUSINESS LOCATION. A principal business
office, branch office, or other office, warehouse, or
permanent fixed place of business. The term does not include a
temporary job site, job trailer, equipment, or materials
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temporary job site, job trailer, equipment, or materials
stored on a temporary basis in connection with a construction
project or job.
(12) RESIDENTIAL HOME BUILDER. The same meaning as
provided in Section 34-14A-2, without regard to the monetary
thresholds set forth in that section.
(13) SUBCONTRACTOR. The same meaning as provided in
Section 34-8-1, without regard to the monetary thresholds set
forth in that section.
(b)(1) A municipality may impose a business license on
any of the following businesses that perform work within the
municipality but do not maintain a physical business location
within the municipality:
a. A certified heating and air conditioning contractor.
b. A certified refrigeration contractor.
c. A concrete provider.
d. A duct air tightness testing contractor.
e. An electrical contractor.
f. A general contractor.
g. A journeyman electrician.
h. A master gas fitter.
i. A master plumber.
j. An onsite wastewater licensee.
k. A residential home builder.
l. A subcontractor.
(2) The amount of the business license shall be
calculated on the basis of a flat fee or the gross receipts
derived from the work performed within the municipality.
(c)(1) For the purpose of calculating the amount of a
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(c)(1) For the purpose of calculating the amount of a
business license, a municipality shall permit any business
listed in subsection (b) to exclude any gross receipts that
were used to calculate the amount of a business license paid
in another municipality when the business maintains a physical
place of business in the municipality where the application
for a business license has been filed.
(2) A municipality may request any business seeking to
exclude gross receipts pursuant to subdivision (1) to submit
to the municipality a list of business licenses the business
has obtained in other municipalities and any gross receipts
reported by the business to obtain those business licenses in
order to verify that the receipts should be excluded.
(d) A municipality may not require any business listed
in subsection (b) to obtain a municipal business license to
work on a project on behalf of a county government when that
project is located on county property or on a
county-maintained road, bridge, right-of-way, or easement.
Section 2. This act shall become effective on October
1, 2026.
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