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SB148 • 2026

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

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

Taxes
Passed Legislature

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

Sponsor
Allen (G)
Last action
2026-04-07
Official status
Indefinitely Postponed in House of Origin
Effective date
Not listed

Plain English Breakdown

The effective date for enforcement is October 1, 2026, but the rules apply to actions taken on or after October 1, 2025.

SB148: Rules for New or Higher City Taxes and Fees

This bill requires cities to use a formal ordinance, give at least 30 days of public notice with specific details, and hold a hearing before they can create new taxes or raise existing ones.

What This Bill Does

  • Requires municipalities to pass an official ordinance instead of using other methods like resolutions to start new taxes or increase fees on or after October 1, 2025.
  • Mandates that city councils give at least 30 days' notice before holding a public hearing on tax changes.
  • States that the public notice must include details about the proposed plan, the specific amount of any new tax or fee increase, and where people can read the full ordinance.
  • Requires cities to publish the notice in a local newspaper and post it online if they have a website or use the state's open meetings site.

Who It Names or Affects

  • City councils and town governments
  • Residents who live in municipalities with new taxes or fee increases

Terms To Know

Ordinance
A formal law passed by a city council.
License Fee
Money charged for permission to do something, like running a business or parking in certain areas.

Limits and Unknowns

  • This law only applies to actions taken on or after October 1, 2025.
  • The bill text does not explain what happens if a city fails to follow these new rules.
  • It is unclear how this rule interacts with taxes that were already planned before the effective date.

Amendments

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

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County and Municipal Government

County and Municipal Government 1st Amendment

Plain English: This amendment changes the date when city councils can start adopting new taxes to October 1, 2026.

  • Sets a specific deadline of October 1, 2026, for cities to begin creating new tax laws.
  • The provided text is very short and only shows the change in date; it does not explain what rules apply before that date or if other parts of the bill were changed.
  • It is unclear from this snippet alone whether 'new tax' includes all types of taxes or just specific ones.

Bill History

  1. 2026-04-07 Senate

    Currently Indefinitely Postponed

  2. 2026-02-12 Senate

    Carried Over to the Call of the Chair

  3. 2026-01-20 Senate

    Read for the Second Time and placed on the Calendar

  4. 2026-01-20 Senate

    Reported Out of Committee House of Origin

  5. 2026-01-20 Senate

    County and Municipal Government 1st Amendment

  6. 2026-01-14 Senate

    Pending Committee Action in House of Origin

  7. 2026-01-14 Senate

    Read for the first time and referred to the Senate 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 
SB148 INTRODUCED
Page 0
SB148
6YLHF31-1
By Senator Allen
RFD: County and Municipal Government
First Read: 14-Jan-26
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6YLHF31-1 01/14/2026 THR (L)ma 2025-2066
Page 1
First Read: 14-Jan-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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SB148 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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SB148 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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