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SB304 ENROLLED
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SB304
V74A6LP-3
By Senator Albritton
RFD: County and Municipal Government
First Read: 12-Feb-26
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First Read: 12-Feb-26
Enrolled, An Act,
Relating to municipalities; to add Section 11-51-133 to
the Code of Alabama 1975, to further provide for the levying
of certain business licenses by municipalities.
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.
(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
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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
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.
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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 a flat
fee or be calculated on the basis of the gross receipts
derived from the work performed within the municipality. Gross
receipts derived from construction, contracting, installation,
or service activities shall be attributed to the municipality
where the job site is located and where the labor, materials,
or services are performed, regardless of the business'
physical business location.
(c)(1) A municipality may impose a business license on
any business listed in subdivision (b)(1) that maintains a
physical business location in that municipality and performs
work within that municipality.
(2) The amount of the business license shall be one of
the following:
a. A flat fee not to exceed five hundred dollars
($500).
b. A flat fee not to exceed five hundred dollars ($500)
plus a fee calculated on the basis of the gross receipts
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plus a fee calculated on the basis of the gross receipts
derived from the work performed by the business within the
municipality.
c. A fee calculated on the basis of the gross receipts
derived from the work performed by the business within the
municipality.
(3) This subsection may not be construed to allow a
municipality in which a business maintains a physical place of
business to use the gross receipts derived from work performed
by the business in another jurisdiction to impose a business
license on any business listed in subdivision (b)(1).
(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 January
1, 2027.
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1, 2027.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB304
Senate 17-Mar-26
I hereby certify that the within Act originated in and passed
the Senate, as amended.
Patrick Harris,
Secretary.
House of Representatives
Amended and passed: 08-Apr-26
Senate concurred in House amendment 08-Apr-26
By: Senator Albritton
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