The bill, designated as Section 11-51-133 of the Code of Alabama 1975, allows municipalities to levy business licenses on specific contractors and service providers that perform work within their jurisdiction but do not maintain a physical business location there. The businesses affected include certified heating and air conditioning contractors, certified refrigeration contractors, concrete providers, electrical contractors, general contractors, and others as defined in the bill. The business license fee can either be a flat fee or based on the gross receipts from work performed within the municipality, with specific provisions ensuring that municipalities cannot impose fees based on receipts from work done in other jurisdictions.

Additionally, the bill stipulates that municipalities may not require a business license for contractors working on projects for county governments located on county property or maintained roads. The maximum flat fee for businesses maintaining a physical location in the municipality is capped at $500, and the bill clarifies that gross receipts from work performed in other jurisdictions cannot be used to impose a business license. The act is set to take effect on January 1, 2027.

Statutes affected:
Introduced: 11-51-133
Engrossed: 11-51-133
Enrolled: 11-51-133