City of Montgomery; municipal occupational tax, city council authorized to impose

Plain English Breakdown

The bill summary and digest do not provide specific details about the tax implementation or exact effective date.

Montgomery City Council Can Now Charge a Tax

This bill allows the city council of Montgomery to create and collect an occupational tax from people who work in certain jobs within the city.

What This Bill Does

• The Alabama Legislature says it is necessary for the city of Montgomery to have additional funding to stabilize health care, develop transportation infrastructure, and bolster public safety.
• It lets the City Council make rules about charging a tax on workers who do specific jobs in the city.

Who It Names or Affects

• The people who work in Montgomery might have to pay this new tax if it is created by the City Council.
• The City of Montgomery's government and its city council are allowed to make decisions about this tax.

Terms To Know

occupational tax

A type of tax that workers might have to pay if they do certain jobs in a specific area, like a city or county.

governing body

The group of people who make decisions for a city or town, such as the City Council.

Limits and Unknowns

• It is not clear how much money this tax will bring in or what specific jobs it might cover.
• This bill has passed both parts of the Alabama Legislature but needs further action before becoming law.

Official Summary Text

City of Montgomery; municipal occupational tax, city council authorized to impose

Current Bill Text

SB310 INTRODUCED
Page 0
SB310
NRXPPTT-1
By Senator Hatcher (N & P)
RFD: County and Municipal Government
First Read: 17-Feb-26
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NRXPPTT-1 01/09/2026 THR (L)THR 2025-3292
Page 1
First Read: 17-Feb-26
A BILL
TO BE ENTITLED
AN ACT
Relating to Montgomery County; to authorize the
governing body of the City of Montgomery to impose a municipal
occupational tax.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The Legislature hereby finds and declares
that it is necessary to provide additional funding to
stabilize the health care industry, develop transportation
infrastructure, and bolster public safety in the City of
Montgomery.
Section 2. The governing body of the City of
Montgomery, by ordinance or resolution, may levy and impose a
municipal license tax or fee upon any individual who engages
in or follows any trade, occupation, or profession in the
municipality.
Section 3. This act shall become effective on June 1,
2026.
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